Homework Chapter 2
1. (20 points) The accounting system of Carlton and Sons consists of a general journal (GJ), a cash receipts
journal (CR), a cash disbursements journal (CD), a sales journal (SJ), and a purchases journal (P
Managerial accounting notes:
Direct material+ Direct labor= Prime cost
Direct labor+ Factory Overhead= Conversion cost.
70,000 @ 10% complete
7,000 Unit- Approximation of 100% complete Units
Conversion cost= 70,000/7,000
On January 8, the end of the first weekly pay period of the year, David Cruz
Company's payroll registered showed that the employees earned $27,760 of
office salaries and $70,240 of sales salaries. Other deductions are,
withholding taxes (federal) is $13,7
a manufacturer of womens shoes, is currently working on a major promotional campaign. Her ideas
include the installation of a new lighting system and increased display space that will add $34,000 in
fixed costs to the $270,000 currently spent by the compa
Quatro Co. issues bonds dated January 1, 2015, with a par value $400,000. The bonds annual
contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds
mature in three years. The annual market at the date o
1. the fact / it is said that / in fact / in other words / example / that is
2. For this reason / so / because of / therefore / as a result
3. But / however
now / look at
4. most / especially / specific/ finally / particular / major / basically / more / m
Chapter 1 Glossary
Information and measurement system that identifies, records, and communicates relevant
information about a company's business activities.
Equality involving a company's assets, liabilities, and equity; Ass
Chapter 5 Glossary
Ratio used to assess a company's ability to settle its current debts with its most liquid assets;
defined as quick assets (cash, short-term investments, and current receivables) divided by
Chapter 6 Glossary
See weighted average.
Principle that prescribes the less optimistic estimate when two estimates are about equally
Receiver of goods owned by another who holds them for purposes of s
Chapter 3 Glossary
Length of time covered by financial statements; also called reporting period.
Accounting system that recognizes revenues when earned and expenses when incurred; the
basis for GAAP.
Chapter 2 Glossary
Record within an accounting system in which increases and decreases are entered and stored in a
specific asset, liability, equity, revenue, or expense.
Account balance Difference between total debits and total credits (including
Chapter 4 Glossary
Recurring steps performed each accounting period, starting with analyzing transactions and
continuing through the post-closing trial balance (or reversing entries).
Balance sheet that presents a
Chapter 8 Glossary
Report that explains the difference between the book (company) balance of cash and the cash
balance reported on the bank statement.
Bank report on the depositor's beginning and ending cash balances, an
Chapter 7 Glossary
People, records, and methods that collect and process data from transactions and
events, organize them in useful forms, and communicate results to decision makers.
Accounts payable ledger
Chapter 9 Glossary
Accounts receivable Amounts due from customers for credit sales; backed by the customer's general credit
Accounts receivable Measure of both the quality and liquidity of accounts receivable; indicates how often
Answer the following questions from your Text in Chapter 1: 2, 4, 6, 8, & 10.
1. (30 points) King, Inc., a successful Midwest firm, is considering opening a branch
office on the west coast. Under normal economic conditions, with a 45% probability
of occurring, King can expect to earn a net income of $70,000 per year. In a minireces
1. (25 points) Complete the following balance sheet for the Range Company using the following
Debt to Assets = 60 percent
Quick Ratio = 1.1
Asset Turnover = 5x
Fixed Asset Turnover = 12.037x
Current Ratio = 2
Average Collection Period = 16.83
#1. Quesiton Page 1
Solution page 2
#2. Quesetion&Solution page 3
#3. Question Page 4
Solution Page 5
Solution is picture format, so might take a while to load in.
1. (40 points) The following is the December 31, 2010 balance sheet for the E
(25 points) The Magic Pumpkin Limousine Company wants to purchase a car entertainment
system for one of its automobiles. The entertainment system vendor has offered to finance
the $2,000 purchase over one year in 12 installments, with a total of $200 i
Homework Chapter 4
Student: _Huiting Lin_
1. (50 points) The following is the balance sheet for 2003 for Marbell Inc.
Sales for 2002 were $300,000. Sales for 2003 have been projected to increase by 20%. Assuming that Marbell
Inc. is operating below capaci
(50 points) Gray House is issuing bonds paying $95 annually that will mature
15 years from today. The bond is currently selling for $980.
a) Coupon rate
b) Current yield
c) Approximate yield to maturity
a) Coupon Rate=(95*100)/1000=9.5% p.a.
(50 points) Dixon Corporation is considering a public offering of common
stock. The firm will offer one million shares of common stock for sale. The
estimated selling price is $45 per share, with Dixon Corp. receiving $40.50
per share after the offerin
(50 points) The law firm of Bushmaster, Cobra, and Asp is considering investing in a complete small
business computer system. The initial investment will be $50,000. The computer is in the 5-year MACRS
category, and the firm's tax rate is 34%. The comp
(40 points) The Nickelodeon Manufacturing Co. has a series of $1,000 par value bonds outstanding. Each
bond pays interest semi-annually and carries an annual coupon rate of 6%. Some bonds are due in 4
years, while others are due in 10 years. If the requir