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 […]

1.) Cold Spring produces premium bottle water. Cold Spring purchases artesian water, stores the water in large tanks, and then runs the water through 2 processess; filtration and bottling. During February, the filtration proces incurred the following costs inprocessing 190,000 liters: Wages of workers operating the filtration equipment $21,950 Manufacturing overhead allocated to filtration $25,050 Water $ 150,000 Cold Spring had no beginning inventory in […]

1 ) A company purchased $6,000 worth of supplies in August. On August 31, the balance in the Supplies account was $3,200. The adjusting entry includes a: Debit to Supplies Expense for $3,200. Credit to Supplies for $2,800. Debit to Supplies for $2,800. Credit to Cash for $2,800. Credit to Supplies Expense for $2,800. 2 ) PPW Co. leased a portion of its store to […]

1. Conan Company has total fixed costs of $112,000. Its product sells for $37 per unit and variable costs amount to $19 per unit. Next year Conan Company wishes to earn a pretax income that equals 19% of fixed costs. How many units must be sold to achieve this target income level? (Round your answer to the next whole amount.) 14,968 14,908 14,808 7,405 7,424 […]

Working on a McGraw Hill example question and can’t seem to get past part of it… Bethel Company owns a machine that can produce two specialized products. Production time for Product TLX is three units per hour and for Product MTV is five units per hour. The machine’s capacity is 2,200 hours per year. Both products are sold to a single customer who has agreed […]

1. A corporation differs from a proprietorship and a partnership in that a. a corporation is considered a separate legal entity for taxation purposes. b. the owners of the corporation do not have a claim on the net assets of the business. c. assets and liabilities are presented differently on the balance sheet. d. the cost principle only applies to proprietorships and partnerships. 2. Which […]

XS Supply Company is developing its annual financial statements at December 31, 2010. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2010 2009 Balance Sheet at December 31 Cash $ 35,600 $ 30,000 Accounts Receivable 34,400 29,300 Merchandise Inventory 39,600 36,900 Property and Equipment 121,800 101,900 Less: Accumulated Depreciation (29,600 ) (24,800 […]