Project #82101 - Accounting

Please answer in the Answer Sheet provided at the end of the Question booklet. Submit the Answer Sheet only through Quiz 2 Assignment link in LEO.

Do NOT submit the entire Question Booklet. If you do so, you will have a 5 point deduction.

Deadline:  11.59 pm, Sunday September 20

 

I will accept late work up to 2 hours after the deadline with an automatic 10 point penalty.  After that, you will receive a zero for this Quiz.

 

1 ) The following information relates to Chesapeake Inc.:

 

Advertising Costs

$10,270

Administrative Salaries

24,700

Delivery Vehicle Depreciation

1,027

Factory Repair and Maintenance

910

Indirect Labor

11,700

Indirect Materials

9,360

Manufacturing Equipment Depreciation

2,080

Office Rent

61,100

President's Salary

40,300

Sales Revenue

450,000

Sales Salary

4,500

                             

How much were Chesapeake Inc.’s period costs?

A) $141,897

B) $474,050

C) $615,947

D) $61,503

 

2) ABC corporation has 2,000 shares, 10% preferred stock of $50 par, and 6,000 shares of common stock outstanding. The net income for the year is $250,000. Earnings per share. is

A) $50

B) $40

C) $42

D) $125

 

3) The net income for ShaminaTutorial Services for the year ended was $500,000. The company has no preferred stock. Common stockholders' equity was $1,000,000 at the beginning of the year and $2,000,000 at the end of the year. Calculate the return on common stockholders' equity.

A) 18.75%

B) 20.00%

C) 21.43%

D) 33.33%

4) NHL Geological Services  has net sales on account of $1,200,000. The average net accounts receivable are $600,000. Calculate the days' sales in receivables.

A) 439.8 days

B) 304.0 days

C) 182.5 days

D) 8.7 days

 

5)  Benjamin Sports Camp Inc.. provides the following data:

 

 

2015

2014

Cash

$21,000

$18,000

Accounts Receivable, Net

31,000

35,000

Merchandise Inventory

53,000

25,000

Property, Plant, and Equipment, Net

120,000

90,000

Total assets

$225,000

$168,000

 

Net credit sales

$240,000

Cost of Goods Sold

(110,000)

Gross profit

$130,000

 

Calculate days' sales in inventory for 2015.

A) 252.2

B) 176.3

C) 0.008

D) 129.4

 

6) Benjamin Sports Camp Inc. provides the following data:

 

 

2015

2014

Cash

$40,000

$25,000

Accounts Receivable, Net

98,000

62,000

Merchandise Inventory

70,000

50,000

Property, Plant, and Equipment, Net

180,000

120,000

Total assets

$388,000

$257,000

 

Net credit sales

$240,000

Cost of Goods Sold

(110,000)

Gross profit

$130,000

 

Calculate accounts receivable turnover ratio for the year 2015.

A) 5 times

B) 4 times

C) 3 times

D) 2 times

 

 

 

7)  Benjamin Sports Camp Inc. provides the following data:

 

 

2015

2014

Assets

 

 

Current Assets:

 

 

Cash and Cash Equivalents

$29,000

$25,000

Accounts Receivable, Net

31,000

62,000

Merchandise Inventory

53,000

50,000

Total Current Assets

$113,000

137,000

Property, Plant, and Equipment, Net

120,000

120,000

Total Assets

$233,000

257,000

 

Net sales

$500,000

Cost of Goods Sold

(150,000)

Gross profit

$350,000

 

Calculate the asset turnover for the year 2015.

A) 7.27 times

B) 1.22 times

C) 1.55 times

D) 2.04 times

 

8) Maryland Inc. provides the following income statement for the year 2015:

 

 

2015

Net Sales

$240,000

Cost of Goods Sold

110,000

Gross Profit

$130,000

Operating Expenses:

 

Selling Expenses

45,000

Administrative expenses

12,000

Total Expenses

57,000

Operating Income

$73,000

Other Revenues and (Expenses):

 

Loss on sale of capital assets

(23,000)

Interest Expense

(1,000)

Total Other Revenues and (Expenses)

(24,000)

Income Before Taxes

$49,000

Income Tax Expense

5,000

Net Income

$44,000

 

Calculate the times-interest-earned ratio.

A) 25 times

B) 30 times

C) 45 times

D) 50 times

 

9) The following information relates to Chesapeake Inc

 

Advertising Costs

$10,270

Sales Salary

4,500

Sales Revenue

450,000

President's Salary

40,300

Office Rent

61,100

Manufacturing Equipment Depreciation

2,080

Indirect Materials

9,360

Indirect Labor

11,700

Factory Repair and Maintenance

910

Direct Materials

28,080

Direct Labor

35,100

Delivery Vehicle Depreciation

1,027

Administrative Salaries

24,700

 

How much were Chesapeake Inc’s  product costs?

A) $141,897

B) $697,127

C) $229,127

D) $87,230

 

10) The following information relates to Chesapeake Inc.:

 

Advertising Costs

$10,270

Sales Salary

4,500

Sales Revenue

450,000

President's Salary

40,300

Office Rent

61,100

Manufacturing Equipment Depreciation

2,080

Indirect Materials

9,360

Indirect Labor

11,700

Factory Repair and Maintenance

910

Direct Materials

28,080

Direct Labor

35,100

Delivery Vehicle Depreciation

1,027

Administrative Salaries

24,700

 

How much was Chesapeake Inc’s  manufacturing overhead?

A) $21,060

B) $21,970

C) $24,050

D) $141,897

 

11) At the beginning of 2015, Jakob Medical  Company's Work-in-Process Inventory account had a balance of $120,000. During 2015, $250,000 of direct materials were used in production, and $75,000 of direct labor costs were incurred. Manufacturing overhead amounted to $850,000. The cost of goods manufactured was $675,000. What is the balance in the Work-in-Process Inventory account on December 31, 2015?

A) $230,000

B) $1,295,000

C) $675,000

D) $620,000

 

 

12) Sadie Literary Services Company's selected cost data for 2015 are shown below:

 

Work-in-Process Inventory, Jan. 1, 2015

$5,640

Direct Materials Used

105,000

Work-in-Process Inventory, Dec. 31, 2015

2,870

Cost of Goods Manufactured

193,200

 

Assuming manufacturing overhead costs of $27,850, what is the amount of direct labor incurred by Sadie Literary Services Company in 2015?

A) $63,120

B) $190,430

C) $57,580

D) $79,690

 

13) Brielle Inc. reports the following cost information for March:

 

Cost of Goods Manufactured

$75,000

Manufacturing Overhead

18,250

Finished Goods Inventory, March 1

4,500

Finished Goods Inventory, March 31

2,650

Work-in-Process Inventory, March 1

9,670

Work-in-Process Inventory, March 31

1,250

Direct Materials Used

25,300

 

What is the cost of goods sold for March?

A) $83,420

B) $73,150

C) $76,850

D) $82,150

 

14) Baltimore  Inc. reports the following cost information for March:

 

Cost of Goods Manufactured

$75,000

Manufacturing Overhead

18,250

Finished Goods Inventory, March 1

4,500

Finished Goods Inventory, March 31

2,650

Work-in-Process Inventory, March 1

9,670

Work-in-Process Inventory, March 31

1,250

Direct Materials Used

25,300

 

What is the amount of direct labor incurred by Baltimore Inc. in March?

A) $29,600

B) $39,870

C) $126,970

D) $23,030

 

15) Felix Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement:

 

 

Additional information provided by the company includes the following:

1) Current assets, other than cash, increased by $24,000

2) Current liabilities decreased by $1,000

How much is the net cash provided by operating activities?

A) $21,000

B) $34,000

C) $29,000

D) $39,000

 

16)  Rodriguez Inc uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:

 

 

Additional information provided by the company includes the following:

1) Equipment costing $65,000 was purchased for cash.

2) Equipment with a cost of $32,000 and accumulated depreciation of $7,000 was sold for $45,000.

What was the amount of net cash provided by (used for) investing activities?

A) $120,000

B) $20,000

C) $(120,000)

D) $(20,000)

 

17) Morgana Engineering  sold equipment for cash. The income statement shows a loss on sale of $7,000. The net book value of the asset prior to the sale was $26,900. Which of the following statements describes the cash effect of the transaction?

A) positive cash flow of $33,900 from financing activities

B) negative cash flow of $19,900 for operating activities

C) negative cash flow of $19,900 for financing activities

D) positive cash flow of $19,900 from investing activities

 

18)   Avatar Company is preparing its statement of cash flows using the indirect method. Refer to the following portion of the comparative balance sheet:

 

 

Additional information provided by the company includes the following:

1) During 2014, the company repaid $35,000 of Long-Term Notes Payable.

2) During 2014, the company borrowed $27,000 on a new Note Payable.

 

Based on the above information only, what amount of net cash flow would be shown in the financing section of the statement of cash flows?

A) $(8,000)

B) $8,000

C) $62,000

D) $(62,000)

 

19) Avatar Company uses the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:

 

 

Note:

1) There was no retirement of stock during the year.

2) There were no sales of treasury stock during the year.

Which of the following statements would be true?

A) There was zero net cash flow from transactions involving Common Stock.

B) There was a negative cash flow of $4,000 from the issuance of Common Stock.

C) There was a positive cash flow of $4,000 from the issuance of Common Stock.

D) There was positive cash flow of $16,000 from issuance of Common Stock.

 

20) Taylor Company follows the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance sheet:

 

 

Note: Net Income for the year was $89,000.

Based on the above information, calculate the dividends declared during the year 2014.

A) $3,000

B) $89,000

C) $65,000

D) $24,000

 

21) Vatsala Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014:

 

From the income statement:

Sales Revenues, $265,000

Cost of Goods Sold, $210,000

Operating expenses, $31,000

 

From the balance sheet:

 

 

Beginning Balance

Ending Balance

Accounts Receivable:

$14,500

$17,800

Inventory:

23,500

17,800

Accounts Payable:

6,000

13,500

Accrued Liabilities:

4,000

1,500

 

On the statement of cash flows, what amount will be shown for collections from customers?

A) $261,700

B) $268,300

C) $265,000

D) $32,300

 

22) Vatsala Company uses the direct method for its statement of cash flow. It reports the following information regarding the year 2014:

 

From the income statement:

Sales Revenues, $265,000

Cost of Goods Sold, $210,000

Operating expenses, $31,000

 

From the balance sheet:

 

 

Beginning Balance

Ending Balance

Accounts Receivable:

$14,500

$17,800

Inventory:

23,500

17,800

Accounts Payable:

6,000

13,500

Accrued Liabilities:

4,000

1,500

 

On the statement of cash flows, what amount will be shown for payments to suppliers for inventory purchases? (Assume that Accounts Payable are for purchases of inventory only.)

A) $204,300

B) $211,800

C) $196,800

D) $208,200

 

23) During September, the Finishing  Department of  Perry Hall Company had beginning transferred in units of 500 units with costs of $125,000. During the month, 800 units were transferred in from the Milling Department with transferred in costs of $200,000. It had 400 units in ending Work-in-Process Inventory. What is the total cost of production for the units transferred to the Finishing Department in September under the first-in, first-out (FIFO) method?

A) $258,336

B) $125,000

C) $75,000

D) $150,000

 

24) The Polishing Department of Kevin Wood Works had 15,000 units in process on June 1 and received 25,000 units from the Machining Department. What is the number of units to account for by the Polishing Department for June?

A) 25,000 units

B) 15,000 units

C) 40,000 units

D) 10,000 units

 

24)  Dennis Paints has two processes—Coloring Department and Mixing Department. Dennis assigned $385,000 to the 5,500 gallons of paint transferred from Mixing Department to Finished Goods Inventory. The journal entry to record completion of processing is:

A) debit Work-in-Process Inventory—Mixing, $385,000; credit Finished Goods Inventory, $385,000.

B) debit Finished Goods Inventory, $385,000; credit Cost of Goods Sold, $385,000.

C) debit Cost of Goods Sold, $385,000; credit Finished Goods Inventory, $385,000.

D) debit Finished Goods Inventory, $385,000; credit Work-in-Process Inventory—Mixing, $385,000.

 

 

SEE ANSWER SHEET ON NEXT PAGE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACCT 221 Quiz 1

 

Answer Sheet

Name: (3 point deduction if no name is provided here)

Part 1(Do Not show your computations here in Part 1. Computations must be shown in Part 2 of this Answer Sheet)

 

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

 

Part 2

Supporting Computations( 5 point penalty if computations are not shown here)

 

There are only 2 questions in this quiz, #19 and #25 that don’t require computations. The remaining 23 questions require computations and you need to show them here.  Eg: if your answer to a question is 10 and you had to add 5+5=10 to get to the answer, then I need to see that.

 

Please cross reference your supporting computations with the appropriate question number. These computations are an integral part of this quiz.

 

 

Failure to submit computations fully will result in significant loss of points

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Due By (Pacific Time) 09/20/2015 12:00 pm
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