Questions from Accounting Principles

Q: Deitz Corporation is projecting a cash balance of $30,000

Deitz Corporation is projecting a cash balance of $30,000 in its December 31, 2019, balance sheet. Deitz’s schedule of expected collections from customers for the first quarter of 2020 shows total col...

Q: The controller of Trenshaw Company wants to improve the company’s control system

The controller of Trenshaw Company wants to improve the company’s control system by preparing a month-by-month cash budget. The following information is for the month ending July 31, 2020. June 30, 2...

Q: Nieto Company’s budgeted sales and direct materials purchases are as follows.

Nieto Company’s budgeted sales and direct materials purchases are as follows. Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the mon...

Q: Green Landscaping Inc. is preparing its budget for the first quarter

Green Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end th...

Q: Pletcher Dental Clinic is a medium-sized dental service specializing in

Pletcher Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the master budget for the first 2 quarters of 2020. All that remains in th...

Q: Edington Electronics Inc. produces and sells two models of calculators,

Edington Electronics Inc. produces and sells two models of calculators, XQ-103 and XQ-104. The calculators sell for $15 and $25, respectively. Because of the intense competition Edington faces, manage...

Q: Emeric and Ellie’s Painting Service estimates that it will paint 10 small

Emeric and Ellie’s Painting Service estimates that it will paint 10 small homes, 5 medium homes, and 2 large homes during the month of June 2020. The company estimates its direct labor needs as 40 hou...

Q: Thome and Crede, CPAs, are preparing their service revenue (

Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for...

Q: Turney Company produces and sells automobile batteries, the heavy-duty

Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows. Quarter ……………………………. HD-240 1 ………………………………………………….. 5,000 2 ………………………………………………….....

Q: DeWitt Industries has adopted the following production budget for the first 4

DeWitt Industries has adopted the following production budget for the first 4 months of 2020. Each unit requires 2 pounds of raw materials costing $3 per pound. On December 31, 2019, the ending raw...