Fuay l'utonloey TechmlogiE. lnc. purchased as a long-term inyEtment 31TH million of 10% b-onds. dated
Ja'luary 1. on January '1. 2016. lu'lanagement intends to have the investment available hr sale when
circumstanca 'al'll'lli. When the company purchased
As a long-term inn-tment. F'aintsersII Equipment Company purchased 20% of AME Supplies Inc.'s 400.000
shares for $400000 at the beginning cfthe scal year of both cornpaniE. 0n the purchase date. the fair
value and book value ofAIrI'IC's net assets were eq
Fizer Pharmaceutical paid $53 million on January 2. 2016. for 4 millicn shar at Game Ccsmetics ccmmcn
stcck. The investment represents a 25% interest in the net asseE chame and gave Fizer the ability tn
exercise signicant influence over Carne's cperaticns
On January 1. 2016. lBless Tel-ltilEl issued $19 million of E-iil. Ill-year convertible bonds at 1131. The bcnds
pay interest on June 31] and December 31. Each $1.UDIJ brand is convertible into elCI shares ofGIess's no
par common stock. Elon ds that are s
Loreal-American Corporation purchased several marketable securities during 2010. At December 31, 2010, Ihe company:I had It1e investments
i1 bonds listed below. None was held at It1e last reporting date. December 31. 201?. and all are considered securitie
The investments of Harlon Enterprises included the following cost and fair value amounts:
[5 in Iniliorrs Fair Value, Dec. 31
Equity Investments Cost 2111B 2MB
A Corporation shares iii 41] $ 24 na
B Corporation shares 55 55 15 5?
C Corporation shares 25 n
Fuzzy Monkey Technologies. Inc. purchased as a long-term investment $ 130 million of 3% bonds. dated
January 1. on January 1. 2015. Management intends to have the investment available for sale when
circumstances warrant. For bonds of similar rislt and mat
LED Corporation owns $1,000,000 of Branch Pharmaceuticals bonds and classies its investment as
securities available-forsale. The market price of Branchs bonds fell by $411,000, due to concerns about
one of the companys plincipal dogs. The concerns werejus
Ta'Iner-UNF Gol'pcraticn acquired as a lorIg-tenn investment 200 milion of ESE-E bonds. dated July- 1. on
JLly' 1. 2m 5. Company management has the positive intent and al:|ilit:.I to hold the bonds until matunty'. but
Iwhen the bonds were acquired Tanner-
TannerUHF Corporation acquired as a longterm investment $191] million of 8.0% bonds, dated July 1, on
July 1, 2EI16. lCompany management has the positive intent and ability to hold the bonds until maturity. The
market interest rate cfw_yield was 111% for
Bonds Sold at a Discount
Journal Entries at IssuanceBonds Sold at a Discount
Journal EntriesThe Interest Method
Bonds Sold at a Premium
Journal Entries at IssuanceBonds Sold at Premium
Chapter 09 Practice Quiz
Flexible Budgets and Performance Analysis
239. Chapnick Clinic bases its budgets on the activity measure patient-visits. During September,
the clinic planned for 2,800 patient-visits. The clinic has provided the following data con
2. Which of the following would not be considered a product cost?
A. Direct labor costs
B. Factory supervisors salary
C. Factory line workers salary
D. Cost accountants salary.
E. Manufacturing overhead costs
3. Overhead costs:
A. Are direc
1. Regardless of the system used in departmental cost analysis:
A. Direct costs are allocated, indirect costs are not
B. Indirect costs are allocated, direct costs are not.
C. Both direct and indirect costs are allocated
D. Neither direct nor indirec
Multiple Choice Questions
1. A formal statement of future plans, usually expressed in monetary terms, is a:
A. Variance report
B. Position statement
E. Variance analysis
2. The process of planning future business act
Multiple Choice Questions
1. Standard costs are:
A. Actual costs incurred to produce a specific product or perform a service.
B. Preset costs for delivering a product or service under normal conditions.
C. Established by the IMA.
D. Rarely achieved.
1) The purchase of Raw Materials:
Db. Raw Materials $20k
2) The issue od DM and Indirect Materials ($52k of Raw Mater. for use;
$50k is DM, $2k is Indirect Materials)
Cr. Raw Materials
3) Labor cost: ($60k- DL, $1
Chapter 1: Environment and Theoretical Structure of Financial Accounting
Primary Focus of Financial Accounting
Profit-oriented companies providing financial info to various external users
o External users
Service Department Costing
Chapter 4B and 11B
4B: Service Department Allocations
Step Down Method
11B: Service Department Charges
Charging Costs by Behavior
By budget or actual?
GNB 16e Check Figures for Problems and Cases
No check figures
(2) Direct costs of the Hillsdale Store: $137,000
Chapter 8: Applying Excel
Budgeted unit sales
Selling price per unit
Accounts receivable, beginning balance
Sales collected in the quarter sales are made
Sales collected in the quarter after s
-how cost reacts to changes in the level of activity
-Cost structure is the relative proportion of Variable, fixed, and mixed costs.
-Variable costs changes in the level of activity which include cost of goods sold, direct materials, direct
- Managerial accounting is used by managers who plans to control a company, focusing on future trend, relevance, timeliness, and
segment reports. Rules isnt bound by the GAAP .
-Using measurement skills that support planning, controllin
Friday, December 9, 2016
Selected balance sheet amounts for Test Instruments (TI), a computer hardware and software company, for two recent
years appear below:
On January 1, Matthew Company issued 7% term bonds with a
face amount of $1,000,000 due in 8 years. Interest is payable
semiannually on January 1 and July 1. On the date of issue,
investors were willing to accept an effective interest rate of 6%.
Total estimated bad debts
(b) Bad Debt Expense.
Allowance for Doubtful Accounts
First Midterm Examination EX. No.
Accszoo, Fall 2011
Answer Sheet I?"
All answers must be written on this page.
The Baruch Honor Code is the stande of professional behavior on this exam. When you have completed your
exam, please read the following ledge
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The
company has two manufacturing departmentsMolding and Fabrication. It started, completed, and sold only
two jobs during MarchJob P and Job Q. The followi
Fill in the missing amounts in each of the eight case situations below. Each case is
independent of the others. (Hint: One way to find the missing amounts would be to
prepare a contribution format income statement for each case, enter the known data,