Organization- A group of people working together in some type of concentrated or
Formal Organization-The framework that defines the boundaries of an
organization, the organizational structure
Informal Organization- Sum of the personal
Demonstration Problem 11-1
On January 1, 2013, the Pattison Corporation purchased machinery for $240,000. The
estimated useful life of the machinery is eight years and the estimated residual value is $20,000.
The machine is expected to produce 55,000 unit
Demonstration Problem 13-4
Safe-Loc Security Door Corp. introduced a new line of commercial security doors in 2013 that
carry a four-year warranty against manufacturer's defects. Based on their experience with
previous product introductions, warranty cost
Demonstration Problem 13-1
On September 1, 2013, Tri-State Paving Inc., an asphalt resurfacing and repairing company,
borrowed $6 million cash to fund a twenty mile highway project. The loan was made by
Alabama TrustCorp under a noncommitted short-term li
The following selected transactions relate to liabilities of Odyssey Travel Corporation.
Odyssey's fiscal year ends on December 31.
Prepare the appropriate journal entries through the maturity of each liability.
Demonstration Problem 11-2
The Leidecker Company provided the following information on intangible assets:
a. A patent was purchased for $1,000,000 on June 30, 2011. Leidecker estimated the remaining
useful life of the patent to be five years.
b. During 20
Demonstration Problem 13-3
At December 31, 2013, Parker Petroleums liabilities include the following:
1. $22 million of 10% notes are due on March 31, 2017. A debt covenant requires Parker to
maintain current assets at least equal to 150% of its current l
Demonstration Problem 11-4
At the beginning of 2011, Ross Technology, Inc. acquired the Valpo Corporation for $350
million. In addition to cash, receivables, and inventory, the following allocations were made:
Plant and equipment (depreciable assets)
ECON 111 / Sirianni
PRACTICE EXAM #2
Write your initials at the top of each page. You may use a calculator, but not one that is on a cell phone.
Only the multiple choice questions that are placed on the Scantron will be graded, and only the short
Demonstration Problem 11-3
In 2013, the assistant controller of Paddington Industries discovered that in 2010 the company
had debited research and development expense for the $200,000 cost of a machine purchased on
January 3, 2010. The machine was purchas