Q1 (Treasury StockCost Method) Before Gordon Corporation engages in the treasury stock
transactions listed below, its general ledger reflects, among others, the following account balances
(par value of its stock is
Paid-in Capital in Ex
Accounting hW 12
Purchase of equipment
Sale of building
Redemption of bonds
Cash received from goods
Payments of dividends
Issuance of capital stocks
Account Title and
Direct Material price
Debit($) Credit ($)
Account Title and explanation Debit($) Credit ($)
Work in process
Chapter 11 hw
Income before int. and stocks
The issue bonds would be a better choice.
2. b and d because these would be added to your accounting records
debit cash 1200
credit common stock 1200
debit prepaid insurance 800
credit cash 800
Lifo results in a higher quality of earnings ratio.
FIFO results in higher phantom profits
FIFO results in higher net income.
Accounting HW 1/25/16
2. The major advantage is that it seperates the company assets from the personal assets. Disadvantage it
is more complex, it requires quarterly sittings,higher taxes.
7.Financing- dividends paid to shareholders
1. The average time required to purchase inventory, sell it on account and then collect cash from
12. Set of accounting standards that have substantial authoritative support and which guide accounting
Equivalent units 45,000
Computation of Equivalent Units
Work in Process, at end
(5,000 unit x 100%)
(5,000 unit x 40%)
Total Equivalent Units
Homework Assignments: Chapter 5
5. Tim is a plumber who joined a barter club. This year Tim exchanges plumbing
services for a new roof. The roof is properly valued at $2,500, but Tim would
have only billed $2,200 for the plumbing ser
Homework Chapter 4: ACCT 4311
6. Are all capital gains (gains on the sale or disposition of capital assets) taxed at the same rate? Explain
No not all capital gains are taxed at the same time. For instance, when a gain is a lon
Q1 (Accounting for Patents) Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a
precipitator that prevents certain types of air pollution. Fields does not manufacture or sell the products
and processes it develops. Instead, it conducts rese
Q1 (Payroll Tax Entries) Below is a payroll sheet for Otis Import Company for the month of September 2016. The
company is allowed a
unemployment compensation rate by the state; the federal unemployment
tax rate is
and the maximum for both is
Celine Dion Company issued
year bonds on
January 1, 2016 at
Interest is payable semiannually on July 1 and January 1.
Dion Company uses the effective interest method of amortization for bond premium or discount.
Assume an effecti
Q1 (Depreciation ComputationsSL, SYD, DDB) Deluxe Ezra Company purchases equipment
on January 1, Year 1, at a cost of
$788,000 . The asset is expected to have a service
years and a salvage value of
(a) Compute the amount of
(a) Prepare a schedule that discloses the individual costs making up the balance in the land account
in respect of land site number 101 as of September 30, 2017.
Cost of Land (Site #101)
As of September 30, 2017
Cost of land and old b
(a) (1) Determine the proper balance in the Allowance to Reduce Inventory to Market at May 31, 2016.
Calculations of Proper Balance on the Allowance to Reduce Inventory to Market At May 31, 2016.
Cedar shake siding
Louvered glass doors
(a) Compute the inventory at April 30 and the cost of goods sold during April on each of the following bases. Assume that periodic
inventory records are kept. Carry unit costs to the nearest cent.
Dates and Units
April 1 (balance on hand)
(a) Prepare journal entries on the Arnold Company books to record all the events noted above under
each of the following bases:
(1) Sales and receivables are entered at gross selling price.
Accounts Receivable - Chester Company
Solutions to Homework Assignments: Chapter 7
34. At the beginning of his current tax year David invests $12,000 in original issue U.S. Treasury
bonds with a $10,000 face value that mature in exactly 10 years. David receives $700 in
interest ($350 every si