Questions from Accounting Principles

Q: The service division of Raney Industries reported the following results for 2020

The service division of Raney Industries reported the following results for 2020. Sales ………………………………. $500,000 Variable costs …………………… 300,000 Controllable fixed costs ……… 75,000 Average operating as...

Q: Larkin Company accumulated the following standard cost data concerning product I-

Larkin Company accumulated the following standard cost data concerning product I-Tal. Direct materials per unit: 2 pounds at $5 per pound Direct labor per unit: 0.2 hours at $16 per hour Manufacturing...

Q: In Pargo Company’s flexible budget graph, the fixed cost line and

In Pargo Company’s flexible budget graph, the fixed cost line and the total budgeted cost line intersect the vertical axis at $90,000. The total budgeted cost line is $350,000 at an activity level of...

Q: The Rockies Division operates as a profit center. It reports the

The Rockies Division operates as a profit center. It reports the following for the year ending December 31, 2020. Prepare a responsibility report for the Rockies Division at December 31, 2020.

Q: Tropic Zone Corporation experienced the following variances: materials price $350

Tropic Zone Corporation experienced the following variances: materials price $350 U, materials quantity $1,700 F, labor price $800 F, labor quantity $500 F, and total overhead $1,200 U. Sales revenue...

Q: State whether each of the following statements is true or false.

State whether each of the following statements is true or false. If false, indicate how to correct the statement. _____ 1. Mortgage bonds and sinking fund bonds are both examples of debenture bonds. _...

Q: Ownbey Corporation purchased debt investments for $52,000 on January

Ownbey Corporation purchased debt investments for $52,000 on January 1, 2020. On July 1, 2020, Ownbey received cash interest of $2,340. Journalize the purchase and the receipt of interest. Assume that...

Q: Detroit Company has a stock portfolio valued at $6,000

Detroit Company has a stock portfolio valued at $6,000. Its cost was $4,000. If the Fair Value Adjustment account has a debit balance of $300, prepare the journal entry at year-end.

Q: Imhoff Company leases a new building from Noble Construction, Inc.

Imhoff Company leases a new building from Noble Construction, Inc. The present value of the lease payments is $700,000. The lease is a finance lease. Prepare the journal entry that the lessee should m...

Q: Sweetwood Company issues $5 million, 10-year, 9

Sweetwood Company issues $5 million, 10-year, 9% bonds at 96, with interest payable annually on January 1. The straight-line method is used to amortize bond discount. a. Prepare the journal entry to r...