Question: Assume that Tiffany’s parents rent a store for $7,500 per month. Different types of toys use different amounts of store space. For example, displaying a bicycle requires more store space than displaying a deck of cards. Also, some toys remain on the shelf longer than others. Fad toys sell quickly, but traditional toys sell … Read more
Question: M2-19 Calculating Missing Amounts and Cost of Goods Sold [LO 2-6] For each of the following independent cases A–D, compute the missing values: (Enter all amounts as positive values.) Case Cost of Goods Manufactured Beginning Finished Goods Inventory Ending Finished Goods Inventory Cost of Goods Sold A $3,180 $560 $270 B 4,190 1,400 4,560 C … Read more
Question: Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansionBRUNO COMPANY Statement of Financial PositionDecember 31, 2010 Current assetsCash $260,000Accounts receivable (net) 340,000Inventories at lower-of-average-cost-or-net realizable value 401,000Trading securities-at cost (fair value $120,000) 140,000Property, plant, and equipmentBuilding (net) 570,000Office … Read more
Question: Paul Polishan apparently dominated Leslie Fay’s accounting and financial reporting functions and the individuals who were his subordinates. What implications do such circumstances pose for a company’s independent auditors? How should auditors take such circumstances into consideration when planning an audit? Answer: Finding the implications, if one individual dominates a company’s reporting and accounting: … Read more
Question: Wurtz Inc. has sponsored a noncontributory, defined benefit pension plan for its employees since 20X0. Prior to 20×8, cumulative net pension expense recognized equalled cumulative contributions to the plan. Other relevant information about the pension plan on January 1, 20X8, is as follows. The company has 200 employees. All these employees are expected receive … Read more
Question: The trial balance before adjustment for Martinez Company shows the following balances. Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) Answer: Working Notes; For case (3.) Amount of allowance to be ($84700 x 7 / 100) = $5929 + $2700 debit balance … Read more
Question: On the back of its cereal boxes, Tiger Cereal Company offers a premium to its customers. The premium, a toy truck, may be claimed by sending in $1 plus 10 coupons; one coupon is included in each box of cereal sold. Tiger estimates, based on past experience, that 60% of the coupons will be … Read more
Question: Asaki Company accumulates the following data concerning a proposed capital investment: cash cost $220,000, net annual cash flows $40,000, present value factor of cash inflows for 10 years 5.65 (rounded). Determine the net present value, and indicate whether the investment should be made. Answer: 40,000*5.65 = 226,000226,000 – 220,000 = 6,000 Sourav GharaiI’m sourav, … Read more
Question: Presented below are selected transactions of Pale Force Company. Pale Force sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise on account to CC Company for $3,000, terms 2/10, n/30.March 3 CC Company returned merchandise worth $500 to Pale Force.March 9 Pale … Read more