Danko uses a predetermined overhead rate to apply overhead to units produced. As of January 1, 2010, Danko anticipated incurring 1,000 hours of direct labor. Danko estimated overhead for 2010 of $5,000 plus $8 per hour. 4. Danko incurred depreciation of $8,000 during 2010, of which $6,000 was factory depreciation and $2,000 was office depreciation.
REQUIREMENT #1: During its first month of operation, the Parkview Landscaping Corporation, which specializes in residential landscaping, completed the following transactions: July 1 Began business by making a deposit in a company bank account of $24,000, in exchange for 4,800 shares of $5 par value common stock. July 1 Paid the premium on a one-year insurance policy, $2,400. July 1 Paid the current month's rent, $2,080. July 3 Purchased landscaping equipment from Brookwood Company, $8,800. Paid $1,200 down and the balance was placed on account.
• debit to Allowance for Doubtful Accounts for $3,300. Multiple Choice Question 182 The financial statements of the Melton Manufacturing Company reports net sales of $300,000 and accounts receivable of $50,000 and $30,000 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days? • 60.8 • 96.1 • 36.5 • 48.7 Find the final exam answers here ACC 291 Final Exam Answers Multiple Choice Question 119 Stine Company purchased machinery with a list price of $64,000. They were given a 10% discount by the manufacturer.
Case Study 1 (Part A) (Learning Objectives 4, 5, 6: Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books; construct and use a trial balance) During the first month of operation of Gordon Construction, Inc., completed the following transactions: June2 | Gordon received $55,000 cash and issued common stock to the stockholders. | 3 | Purchased supplies, $3,000, and equipment, $5,200, on account. | 4 | Performed services for a client and received cash, $6,300. | 7 | Paid cash to acquire land, $37,000. | 11 | Performed services for a customer and billed the customer, $1,200.
During 2007 and 2008 Stator reported Net Income of $25,000 and $15,000 and paid dividends $10,000 and $12,000, respectively. Rotor uses the equity method a. What amount of differential will be amortized annually b. What will be the balance in the investment account on Dec 31, 2007? c. What amount of investment income will be reported by Rotor for the year 2007?
The equipment was acquired on January 1. It had a $1,000 estimated salvage value and a three-year useful life. 7. Sold inventory to customers for $25,000 that had cost $14,000 to make. Required Explain how these events would affect the balance sheet, income statement, and statement of cash flows by recording them in a horizontal financial statements model as indicated here.
What accounts and what amounts should David credit in 2004 to record the issuance of the 10,000 shares? Additional Treasury Paid-in Retained Common Stock Capital Earnings Stock ———————— —————————— ———————— ——————— a. $180,000 $70,000 b. $180,000 $ 70,000 c. $240,000 $10,000 d. $170,000 $70,000 $10,000 When we buy the stock back, the entire value goes into Cash account and treasury stock account. When the company resells it, the gain goes into APIC (additional paid-in capital) and the stock sold is recorded in the Treasury account.
Answer: Amount of discount = 70,000 * .03 = $2100. Net amount to borrow from bank = 70,000 – 2100 = $67,900. Interest cost of borrowing money at 6.5% = 67,900 * .065 * (60-10 days)/365 day in a year = $604.59. Amount saved by borrowing money to pay within time period to take advantage of discount = $2100-$604.59 = $1495.41 2) Determine the monthly payments for a $4000 loan at 5.5% add-on interest for one year. Answer: 4000 * .055 * 1 = 220.00 in interest.
4-5 Multiyear Future Value How much would be in your savings account in eight years after depositing $150 today if the bank pays 8 percent per year? (LG4-3) FV8 = 150 × (1 + 0.07)8 150 × 1.71818618 Answer: 257.73 4-7 Compounding with Different Interest Rates A deposit of $350 earns the following interest rates: a. 8 percent in the first year. b. 6 percent in the second year.
3. The journal entry to record the payroll for Marcus Garvey Company for the week ending January 8, would probably include a a. credit to Office Salaries. b. credit to Wages Expense. c. debit to Federal Income Taxes Payable. d. credit to FICA Taxes Payable.