Alexia Corporation was organized on January 1, 2012. It is authorized to issue 10,000 shares of 8%,
$100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2
per share. The following stock transactions were comple
The comparative balance sheets for Strackman Lux Company as of December 31 are
1. Operating expenses include depreciation expense of $42,000 and charges from prepaid
expenses of $5,720.
2. Land was sold for cash at
Estrella Company has several processing departments. Costs charged to the Assembly
Department for November 2012 totaled $2,229,000 as follows.
Production records show that 35,000 units were in beginning work in process 30%
complete as to conversion costs,
On January 1, 2012, Kristen Corporation had the following stockholders equity accounts.
Common Stock ($20 par value, 60,000 shares issued and
Paid-in Capital in Excess of ParCommon Stock. 200,000
Retained Earnings 600,000
The partners in River Song Company decide to liquidate the firm when the balance sheet shows
The partners share income and loss 5 : 3 : 2. During the process of liquidation, the following
transactions were completed in the following sequenc
Fiedel Company manufactures its product, Vitadrink, through two manufacturing processes:
Mixing and Packaging. All materials are entered at the beginning of each process. On
October 1, 2010, inventories consisted of Raw Materials $26,000, Work in Process-
Mabry Manufacturing Company uses a job order cost system in each of its three
manufacturing departments. Manufacturing overhead is applied to jobs on the basis of
direct labor cost in Department D, direct labor hours in Department E, and machine hours
Fong Company manufactures basketballs. Materials are added at the beginning of the
production process and conversion costs are incurred uniformly. Production and cost data
for the month of July 2012 are as follows.
(a) Calculate the following
The bank portion of the bank reconciliation for Helene Company at November 30, 2012, was as
The adjusted cash balance per bank agreed with the cash balance per books at November 30. The
December bank statement showed the following checks and depo
Simon Manufacturing Corporation accumulates the following data relative to jobs started
and finished during the month of June 2012.
Overhead is applied on the basis of standard machine hours. Three hours of machine time
are required for each direct labor
Larussa Inc. is preparing its annual budgets for the year ending December 31, 2011.
Accounting assistants furnish the data shown below.
An accounting assistant has prepared the detailed manufacturing overhead budget and the
selling and administrative expe
Svetlana Pace is the advertising manager for Bargain Shoe Store. She 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
Verdugo Corporation is considering three long-term capital investment proposals.
Relevant data on each project are as follows.
Salvage value is expected to be zero at the end of each project. Depreciation is computed
by the straight-line method. The compa
Korte Company is currently producing 16,000 units per month, which is 80% of its production
capacity. Variable manufacturing costs are currently $8.00 per unit. Fixed manufacturing costs are
$56,000 per month. Korte pays a 9% sales commission to its sales
Gorham Manufacturings sales slumped badly in 2010. For the first time in its history, it
operated at a loss. The companys income statement showed the following results from
selling 600,000 units of product: Net sales $2,400,000; total costs and expenses
Utech Company bottles and distributes Livit, a diet soft drink. The beverage is sold for 50
cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the
year 2010, management estimates the following revenues and costs.
Skop Inc. is a construction company specializing in custom patios. The patios are
constructed of concrete, brick, fiberglass, and lumber, depending upon customer
preference. On June 1, 2012, the general ledger for Skop Inc. contains the following data.
Bynum Manufacturing uses a job order cost system and applies overhead to production
on the basis of direct labor costs. On January 1, 2012, Job No. 50 was the only job in
process. The costs incurred prior to January 1 on this job were as follows: direct m
Condensed financial data of Sinjh Inc. follow.
1. New plant assets costing $85,000 were purchased for cash during the year.
2. Old plant assets having an original cost of $57,500 were sold for $1,500 cash.
3. Bonds matured and were
Presented below are the financial statements of Rajesh Company.
1. Dividends declared and paid were $25,000.
2. During the year equipment was sold for $8,500 cash. This equipment cost $18,000
originally and had a book value of $8,500 at t
On January 1, 2012, Hammermeister Inc. had the following stockholders equity account balances.
Common Stock, no-par value (500,000 shares issued). $1,500,000
Common Stock Dividends Distributable. 200,000
Retained Earnings. 600,000
During 2012, the followi
The following is taken from the Gajda Company balance sheet.
Interest is payable semiannually on January 1 and July 1. The bonds are callable on any
semiannual interest date. Gajda uses straight-line amortization for any bond premium or
discount. From Dec
Jacobsen Corporation had the following stockholders equity accounts on January 1,
2010: Common Stock ($5 par) $500,000, Paid-in Capital in Excess of Par Value
$200,000, and Retained Earnings $100,000. In 2010, the company had the following
At April 30, partners capital balances in SKG Company are: S. Seger $52,000, J.
Kensington $54,000, and T. Gomez $18,000. The income sharing ratios are 5:4:1,
On May 1, the SKGA Company is formed by admitting D. Atchley to the firm as a
On July 1, 2010, Rossillon Company issued $4,000,000 face value, 8%, 10-year bonds at
$3,501,514.This price resulted in an effective-interest rate of 10% on the bonds Rossill on
uses the effective-interest method to amortize bond premium or discount. The
TLR produces plastic that is used for injection molding applications such as gears for small motors.
In 2010, the first year of operations, TLR produced 6,000 tons of plastic and sold 5,000 tons. In
2011, the production and sales results were exactly reve
On May 31, 2012, Sabre Company had a cash balance per books of $6,781.50. The bank statement from
New York State Bank on that date showed a balance of $6,404.60. A comparison of the statement with
the cash account revealed the following facts.
1. The stat
Ursula Company maintains a petty cash fund for small expenditures. The following transactions
occurred over a 2-month period.
July 1 Established petty cash fund by writing a check on Scranton Bank for $200.
15 Replenished the petty cash fund by writing a
The post-closing trial balance for Bugeja Co. is shown on page 349.
The subsidiary ledgers contain the following information: (1) accounts receivable B.
Cordelia $2,500, I. Togo $7,500, T. Dudley $5,000; (2) accounts payableT. Igawa
$10,000, D. Miranda $1
Presented below and on page 348 are the purchases and cash payments journals for
Richmond Co. for its first month of operations.
In addition, the following transactions have not been journalized for July. The cost of all
merchandise sold was 65% of the sa