Questions from General Accounting

Q: Daisy’s Creamery Inc. is considering one of two investment options.

Daisy’s Creamery Inc. is considering one of two investment options. Option 1 is a $75,000 investment in new blending equipment that is expected to produce equal annual cash flows of...

Q: Dragon Sports Inc. manufactures and sells two products, baseball bats

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $620,000, and the sales mix is 40% bats and 60% gloves. The unit selling price and the un...

Q: Zero Turbulence Airline provides air transportation services between Los Angeles, California

Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: F...

Q: a. If Canace Company, with a break-even point

a. If Canace Company, with a break-even point at $960,000 of sales, has actual sales of $1,200,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? b. If the...

Q: Beck Inc. and Bryant Inc. have the following operating data

Beck Inc. and Bryant Inc. have the following operating data: a. Compute the operating leverage for Beck Inc. and Bryant Inc. b. How much would income from operations increase for each company if the...

Q: During August, Rothchild Company accumulated 3,500 hours of direct

During August, Rothchild Company accumulated 3,500 hours of direct labor costs on Job 40 and 4,200 hours on Job 42. The total direct labor was incurred at a rate of $25.00 per direct labor hour...

Q: Indicate with a Yes or No whether or not each of the

Indicate with a Yes or No whether or not each of the following accounts normally requires an adjusting entry:

Q: Classify the following items as (1) prepaid expense,

Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense:

Q: Classify the following items as (1) prepaid expense,

Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense:

Q: At the end of the current year, $17,555

At the end of the current year, $17,555 of fees have been earned but have not been billed to clients. Journalize the adjusting entry (include an explanation) to record the accrued fees