QuestionYummy Rice Cereal offers an all-star bowl in exchange for three return box tops. Yummy Rice
estimates that 30% will be redeemed. The bowls cost Yummy Rice $1 each. In 2013,
5,000,000 boxes of cereal were sold. By year-end 900,000 box tops had been
QuestionAhi Corporation is one of your clients in Hawaii. The company had a good year last year and owes the IRS
$100,000,000, due on March 15. There are no penalties or interest due to the IRS. One of Ahis employees
approaches you with the following plan
QuestionBuyCo holds 25 percent of the outstanding shares of Marqueen and appropriately applies the
equity method of accounting. Excess cost amortization (related to a patent) associated with this
investment amounts to $10,000 per year. For 2014, Marqueen
Multiple Choice Questions
For business combinations involving less
than 100 percent ownership, the acquirer
recognizes and measures all of the
following at the acquisition date except:
acquired, at fair
B. liabilities assu
Bond Premium, Entries for Bonds Payable Transactions
Wishaw, Inc. produces and sells outdoor equipment. On July 1, 2014, Wishaw, Inc. issued $150,000,000 of 20-year,
12% bonds at a market (effective) interest rate of 9%, receiving cash of $191,
QuestionJohn Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the
hospitals lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and
have resulted in many complaints. Als
Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost
system to assist in the control of costs. According to the standards that have been set for the robes, the factory should
QuestionE7-20 Presented below is information for Jones Company. 1. Beginning-of-the-year Accounts Receivable balance
was $15,000. 2. Net sales (all on account) for the year were $100,000. Jones does not offer cash discounts. 3.
Collections on accounts rec
QuestionGrossman Products began operations in 2013. The following selected transactions occurred
from September 2013 through March 2014. Grossman's fiscal year ends on December 31.
(a.) On September 5, Grossman opened a checking account and negotiat
QuestionOn September 1, 2013, Triton Entertainment borrowed $24 million cash to fund a new Fun
Park. The loan was made by Nevada Bank under a non committed short-term line of credit
arrangement. Triton issued a 9-month, 12% promissory note. Interest was p
QuestionOntario Resources, a natural energy supplier, borrowed $80 million cash on November 1,
2013, to fund a geological survey. The loan was made by Quebec Banque under a short-term
credit line. Ontario Resources issued a 9-month, 12% promissory note wi
QuestionCarpenter Inc. had a balance of $80,000 in its warranty liability account as of December 31,
2012. In 2013, Carpenter's warranty expenditures were $445,000. Its warranty expense is
calculated as 1% of sales. Sales in 2013 were $40 million. What wa
QuestionPanther Co. had a warranty liability of $350,000 at the beginning of 2013 and $310,000 at
the end of 2013. Warranty expense is based on 4% of sales, which were $50 million for the
year. What were the warranty expenditures for 2013?
QuestionClasby Corporation uses the FIFO method in its process costing. The following data concern the
company's Mixing Department for the month of January.
Work in process, January 1
Cost added to production in the mixing departm
QuestionOn November 1, 2013, a $216,000, 9-month, noninterest-bearing note is issued at a 10%
Prepare the appropriate journal entry to record the issuance of the note.
1. Determine the effective interest rate.
2. Prepare the appro
QuestionOn November 1, 2013, Ziegler Products issued a $200,000, 9-month, noninterest-bearing
note to the bank. Interest was discounted at a 12% discount rate.
1. Prepare the appropriate journal entry by Ziegler to record the issuance of the not
QuestionOn October 1, 2013, Home Builders Company issued to Carlton Bank a $600,000, 8-month,
noninterest-bearing note. Interest was discounted by the bank at a 12% discount rate.
1. Prepare the appropriate journal entry by Home Builders to reco
QuestionStern Corporation borrowed $10 million cash on September 1, 2013, to provide additional
working capital for the year's production. Stern issued a 6-month, 10% promissory note to
Second State Bank. Interest on the note is payable at maturity. Each
QuestionHot Springs Marine borrowed $20 million cash on December 1, 2013, to provide working
capital for year-end inventory. Hot Springs Marine issued a 4-month, 9% promissory note to
Third Bank under a prearranged short-term line of credit. Interest on t
QuestionMullerB Company's employees earn vacation time at the rate of 1 hour per 40-hour work
period. The vacation pay vests immediately, meaning an employee is entitled to the pay
even if employment terminates. During 2013, total wages paid to employees
QuestionThe following selected transactions relate to liabilities of Chicago Glass Corporation for 2013.
Chicago's fiscal year ends on December 31.
1. On January 15, Chicago received $7,000 from Henry Construction toward the purchase of
$66,000 of plate g
QuestionCaptain Cook Cereal includes one coupon in each package of Granola that it sells and offers
a puzzle in exchange for $2.00 and three coupons. The puzzles cost Captain Cook $3.50
each. Experience indicates that 20% of the coupons eventually will be
QuestionZ Co. filed suit against W Inc. in 2013 seeking damages for patent infringement. At
December 31, 2013, legal counsel for Z believed that it was probable that Z would be
successful against W for an estimated amount in the range of $30 million to $6
QuestionSawyer Furniture Company concluded its first year of operations in which it made sales of
$920,000, all on installment. Collections during the year from down payments and installments totaled
$302,000. Purchases for the year totaled $735,200; the
QuestionKinder Enterprises relies heavily on a copier machine to process its paperwork. Recently the copy clerk
has not been able to process all the necessary copies within the regular work week. Management is
considering updating the copier machine with
QuestionWhat is the present value/valuation of the following?
Perpetuity of $200 per year, discounted at 6% annually
Preferred stock with a dividend of $5 per year, discounted with a 9% required rate of return
Common stock with a $1 dividend today, expect
The following cost information is available for the Stuart and Hahn Corporation:
$14 per unit for deluxe pillows
$10 per unit for regular pillows
Direct Labor $20 per hour (including benefits)
QuestionPlease describe how changes in accounting estimates are treated. What is the rationale for this approach? What are
some examples of accounting estimates?
SolutionA change in accounting principles, accounting estimates, or the reporting entity. A c
QuestionI need to write a one page paper on five concept from this article. Can anyone help me find five concepts
to write about?