1. Supplies on hand at December 31, 2011, total $1,000. 2. The studio pays rent quarterly (every three months). The last payment was made November 1, 2011. The next payment will be made early in February 2012. 3. Studio equipment is being depreciated over 120 months (10 years). 4. On October 1, 2011, the studio borrowed $24,000 by signing a 12 month, 12 percent note […]

1) Giga Stuff, Inc. has a number of divisions. One division, Sophistosand, makes a component, component X, that is used in the manufacture of DVD players. Another division, Videostuff, makes DVD players that use component X and needs 60,000 units of component X per year. Sophistosand incurs the following costs for one unit of component X: Direct materials $0.30 Direct labor 0.15 Variable overhead 0.70 […]

1. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $300,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? Answer a. Bad Debt Expense 20,000 […]

1.) The Hamblen Company has budgeted production for the next five quarters as follows: 2004 2004 2004 2004 2005 Quarter …………… First Second Third Fourth First Production in units … 10,000 12,000 16,000 14,000 11,000 Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 4,000 lbs. The raw materials inventory at the […]

1. (TCOs 2 & 3) During the year, Zander is transferred by his employer from Seattle to San Diego. His moving expenses are not reimbursed and are as follows: Cost of moving household furnishings $9,000 Transportation $1,000 Meals $800 Lodging $1,400 His qualified moving expenses are: (Points : 5) $12,200. $11,800. $11,400. $10,000. None of the above

1. The Hilltop Corporation is considering (as of 1/1/08) the replacement of an old machine that is currently being used. The old machine is fully depreciated but can be used by the corporation through 2011. If Hilltop decides to replace the old machine, Baker Company has offered to purchase it for $50,000 on the replacement date. The disposal value of the old machine would be […]

1. Accrualbasis. Grier & Associates maintains its records on the cash basis. You have been engaged to convert its cash basis income statement to the accrual basis. The cash basis income statement, along with additional information, follows: No plant assets were sold during 2012. Cal State San Bernardino, Dept of Accounting & Finance, Prof M. Henry Page 1 Acct 372 TR 2 4pm TAKE HOME […]

1. Albertville Inc produces leather handbags. The production budget for the next four months is: July 5,000 units, August 7,000 units, September 7,500 units, October 8,000 units. Each handbag requires 1.3 hours of unskilled labor (paid $8 per hour) and 2.2 hours of skilled labor (paid $15 per hour). How many unskilled labor hours will be budgeted for August? 2. Banburry Place has forecast its […]

1. The basic differences between the financial statements of a merchandising business and a service business include reporting cost of merchandise sold on the income statement and the: (Points : 1) inclusion of merchandise inventory on the balance sheet as a current asset. stockholders’ equity section of the balance sheet. other income section of the income statement. inclusion of a stockholders’ equity statement. 2. Which […]

1. Calhoun Inc has forecast purchases on account to be $310,000 in March, $370,000 in April, $421,000 in May, and $499,000 in June. Seventy percent of purchases are paid for in the month of purchase, the remaining 30% are paid in the following month. What are budgeted cash payments for April? 2. Carlton has forecast sales to be $212,000 in February, $276,000 in March, $297,000 […]