61.              The following information comes from the annual reports of Devin Designs.   2012 2011 2010 Beginning inventory ? ? 2,250 Purchases 12,652 ? ? Goods available for sale ? ? 12,899 Ending inventory ? 2,662 ? Cost of goods sold 12,213 10,908 10,490   What is the beginning inventory amount for 2012? a.$439 b.$8,246 c.$10,908 d.$2,662 62.              The following information comes from the […]

  Objective 20.7   1) Traditional normal and standard costing systems use ________. A) backflush costing B) delayed costing   C) variable tracking  D) sequential tracking   2) A costing system that omits recording some or all of the journal entries relating to the cycle from purchase of direct materials to the sale of finished goods is called ________. A) dependent costing B) synchronous costing C) […]

  36.On October 1, 2016, Jay Walker Company purchased a one-year insurance policy for $660. The correct adjusting entry on December 31, 2016, is   A.debit Insurance Expense $660; credit Prepaid Insurance $660 B.debit Insurance Expense $495; credit Prepaid Insurance $495 C.debit Prepaid Insurance $55; credit Insurance Expense $55 D.debit Insurance Expense $165; credit Prepaid Insurance $165 37.On November 1, 2016, Peaches Consulting Service paid $4,800 […]

  101. An estimated liability:  A. Is an unknown liability of a certain amount. B. Is a known obligation of an uncertain amount that can be reasonably estimated. C. Is a liability that may occur if a future event occurs. D. Can be the result of a lawsuit. E. Is not recorded until the amount is known for certain. 102. Estimated liabilities commonly arise from:  A. Warranties. B. Vacation benefits. C. Income taxes. D. Employee benefits. […]

  54.On November 1, 2016, Paige Turner Publishing received $50,400 in cash for subscriptions covering one year, recording the entry as a debit to Cash and a credit to Unearned Subscriptions. The correct adjusting entry at December 31, 2016, is   A.Debit Subscriptions Income $8,400; credit Unearned Subscriptions $8,400. B.Debit Unearned Subscriptions $8,400; credit Subscriptions Income $8,400. C.Debit Unearned Subscriptions $4,200; credit Subscriptions Income $4,200. D.Debit […]

  162.The following information relates to Aires Corporation for 20×8 and 20×7:   Aires Corporation Comparative Balance Sheets December 31, 20×8 and 20×7 Assets        20×8        20×7       Change Cash $    21,000 $    54,000 ($ 33,000) Accounts receivable (net) 421,000 480,000 (59,000) Inventory 310,000 340,000 (30,000) Prepaid expenses 17,000 15,000 2,000 Investments 80,000 80,000 0 Land 350,000 300,000 50,000 Building (net) 680,000 700,000 (20,000) […]

    21.Jacob is a department manager who recently instituted a new recognition program for his employees. He budgeted the cost of the new program at $10 per employee, but actual costs were $15 per employee. The cost associated with the recognition program would be considered which of the following kinds of cost?    A. Controllable cost   B. Opportunity cost   C. Fixed cost   D. Product cost   […]

  16) Leonard Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Building and Inspection. The Building Department uses a departmental overhead rate of $18 per machine hour, while the Inspection Department uses a departmental overhead rate of $15 per direct labour hour. Job 611 used the following direct labour hours and machine hours in the two […]

    101. Which of the following transactions or events should be reported as a source of cash from operating activities when using the direct method? A. Credit sales.B. Cash collections from customers.C. Depreciation expense.D. Cash received from the sale of a building.E. Cash received from the sale of treasury stock.     102. When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from […]

  101. The following financial information was summarized from the accounting records of Block Corporation for the current year ended December 31:    SoftwareDivision HardwareDivision CorporateTotal Cost of goods sold $47,200 $30,720   Direct operating expenses 27,200 20,040   Net sales 95,000 64,000   Interest expense     $  2,040 General overhead     18,160 Income tax     4,700         The income from […]