Questions from Accounting Principles

Q: Detwiler Orchard issues a $700,000, 6%, 15

Detwiler Orchard issues a $700,000, 6%, 15-year mortgage note to obtain needed financing for a new lab. The terms call for annual payments of $72,074 each. Prepare the entries to record the mortgage l...

Q: In its proposed 2020 income statement, Hrabik Corporation reports income before

In its proposed 2020 income statement, Hrabik Corporation reports income before income taxes $500,000, income taxes $100,000 (not including unusual items), loss on operation of discontinued music divi...

Q: During the current month, Wacholz Company incurs the following manufacturing costs

During the current month, Wacholz Company incurs the following manufacturing costs. a. Purchased raw materials of $18,000 on account. b. Incurred factory labor of $40,000. Of that amount, $31,000 rela...

Q: The condensed financial statements of Murawski Company for the years 2019 and

The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented as follows. (Amounts in thousands.) Compute the following ratios for 2020 and 2019. a. Current ratio...

Q: Huebner Corporation leases new equipment for 10 years on December 31,

Huebner Corporation leases new equipment for 10 years on December 31, 2020. The present value of the lease payments is $192,000. After recording this lease, Huebner has assets of $1,800,000, liabiliti...

Q: Amanda Company reports the following total costs at two levels of production

Amanda Company reports the following total costs at two levels of production. Classify each cost as variable, fixed, or mixed.

Q: Summary financial information for Gandaulf Company is as follows.

Summary financial information for Gandaulf Company is as follows. Compute the amount and percentage changes in 2020 using horizontal analysis, assuming 2019 is the base year.

Q: Cedar Grove Industries produces and sells a cell phone-operated home

Cedar Grove Industries produces and sells a cell phone-operated home security control. Information regarding the costs and sales of security controls during May 2020 are provided below. Unit selling p...

Q: Snow Cap Company has a unit selling price of $250,

Snow Cap Company has a unit selling price of $250, variable costs per unit of $170, and fixed costs of $160,000. Compute the break-even point in units using (a) the mathematical equation and (b) unit...

Q: Wade Company estimates that it will produce 6,000 units of

Wade Company estimates that it will produce 6,000 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $7, direct labor $13, and overhead...