188. Complete the missing items in the following chart: Prepaid Expenses Examples Adjusting Entry Financial Statement Impact if Adjusting Entry is Omitted Supplies,(a) Dr. Expense   Cr. Asset Income Statement:   Revenues: No effect   Expenses: Understated   Net income:  (b)Balance Sheet:   Assets:       (c)   Liabilities:   (d)   Stockholders’ equity:  Overstated Unearned Revenues Examples Adjusting Entry Financial Statement Impact if Adjusting Entry is Omitted Unearned rent,(e) (f) Income Statement:   Revenues: (g)   […]

  122. An unfinished desk is produced for $36.00 and sold for $65. An additional amount of $6.65 of processing can be added to the desk which will allow the company to sell the desk for $75. Provide a differential analysis for further processing.  123. Delicious Cake Factory normally sells their specialty cake for $22. An offer to buy 100 cakes for $18 per cake was made […]

  Multiple Choice Questions  43.When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents    A. the actual costs incurred for labor, materials, and overhead on all jobs that were started but are not yet complete.   B. the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with […]

1. Under accrual accounting, revenue is recognized:  A. when cash is received, and expenses, when cash is paid. B. when cash is received, and expenses, when they are incurred. C. when it is earned, and expenses, when the costs are incurred. D. When it is earned, and expenses when cash is paid.   2. Glass Corporation sold merchandise to a customer for $30,000 on credit on July 15. The customer paid […]

  81.A remittance advice is a(n):    A.Explanation for a payment by check. B.Bank statement. C.Internal voucher. D.Electronic funds transfer. E.Cancelled check. 82.A bank statement provided by the bank includes:    A.A list of outstanding checks. B.A list of petty cash amounts. C.The beginning and the ending balance of the depositor’s account. D.A listing of deposits in transit. E.A reconciliation to the depositor cash account. 83.A bank […]

  Learning Objective 5-6   1) Lito & Sons Woodworks has a beginning inventory of $60,000 and ending inventory of $84,000 for the current period. The company had sales of $340,000 and cost of goods sold of $200,000 during the period. What was the inventory turnover? A) 4.72 times B) 3.66 times C) 2.78 times D) 1.55 times 2) Gaffney & Sons Woodworks has a […]

  6) How much will internal failure costs change if the internal product failures are reduced by 1/3 with the new procedures? A) $22,500 decrease B) $67,500 decrease C) $500,000 decrease D) $750,000 decrease   7) How much do external failure costs change if all changes are as anticipated with the new prevention procedures? Assume all units produced are sold and there are no ending […]

  SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 76) Clock Manufacturing Company purchased a new piece of equipment at a cost of $60,000 at the beginning of the year. For tax purposes the machine is a Class 8 asset. The company has a 34 percent income tax rate. The CCA rate for Class 8 is 20%. […]

    81. Which of the following is a product cost? A. customer serviceB. supervisory factory laborC. depreciation on sales showroomD. marketing vice president’s salaryE. advertising costs   82. Using these abbreviations–DL = Direct Labor, MO = Manufacturing Overhead, DM = Direct Materials, WIP = Work-in-Process, FG = Finished Goods, COGS = Cost of Goods Sold–how would you represent the flow of manufacturing costs through the accounts? (Use + to mean “add to” […]

    161. Cleary Company had total Sales of $550,000; Sales Discounts of $10,000; Sales Returns of $40,000 and Cost of Merchandise Sold of $200,000 during 2010.  The total asset balance at the beginning of the year was $175,000 and at the end of the year was $167,000.  Calculate the ratio of net sales to total assets (Round answer to 2 decimal points). A. 1.75B. 2.92C. .34D. .57   162. What is […]