Question: Consider E-books again. The controller of

> The adjusted trial balance of Eastwood Company and other related information for the year 2017 are presented as follows. Additional information: 1. The LIFO method of inventory value is used. 2. The cost and fair value of the long-term investments th

> Wade Corp. has 150,000 shares of common stock outstanding. In 2017, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in the $1,210,000 are as follows. 1. In 2017, Wade Corp. so

> Cooke Company has a fiscal year ending on September 30. Selected data from the September 30 worksheet are presented below. Instructions a. Prepare a complete worksheet. b. Prepare a classified balance sheet. (Note: $10,000 of the mortgage payable is d

> On January 1, 2017, Norma Smith and Grant Wood formed a computer sales and service company in Soapsville, Arkansas, by investing $90,000 cash. The new company, Arkansas Sales and Service, has the following transactions during January. 1. Pays $6,000 in a

> Below is the Retained Earnings account for the year 2017 for Acadian Corp. Instructions a. Prepare a corrected retained earnings statement. Acadian Corp. normally sells investments of the type mentioned above. FIFO inventory was used in 2017 to comput

> The following account balances were included in the trial balance of Twain Corporation at June 30, 2017. The Retained Earnings account had a balance of $337,000 at July 1, 2016. There are 80,000 shares of common stock outstanding. Instructions a. Usi

> Vedula Advertising was founded by Murali Vedula in January 2015. On the next page are both the adjusted and unadjusted trial balances as of December 31, 2017. Instructions a. Journalize the annual adjusting entries that were made. b. Prepare an incom

> Rolling Hills Golf Inc. was organized on July 1, 2017. Quarterly financial statements are prepared. The unadjusted trial balance and adjusted trial balance on September 30 are shown below. Instructions a. Journalize the adjusting entries that were mad

> The following are the trial balance and the other information related to Yorkis Perez, a consulting engineer. 1. Fees received in advance from clients $6,000, which were recorded as revenue. 2. Services performed for clients that were not recorded by

> Access the glossary (“Master Glossary”) to answer the following. a. What is the definition of present value? b. Briefly describe the term “discount rate adjustment technique.”

> Presented below is a combined single-step income and retained earnings statement for Nerwin Company for 2017. Additional facts are as follows. 1. “Selling, general, and administrative expenses” for 2017 included a ch

> The trial balance of Bellemy Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year. Adjustment data: 1. Supplies on hand totaled $1,500. 2. Depreciation is $15,000 on the equipment. 3.

> A review of the ledger of Baylor Company at December 31, 2017, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries and Wages Payable $0. There are eight employees. Salaries and wages are paid every Friday f

> Answer each of these unrelated questions. a. On January 1, 2017, Fishbone Corporation sold a building that cost $250,000 and that had accumulated depreciation of $100,000 on the date of sale. Fishbone received as consideration a $240,000 non-interest-be

> The following information is related to Dickinson Company for 2017. Retained earnings balance, January 1, 2017………………………………...$ 980,000 Sales revenue……………………………………………………………………………..25,000,000 Cost of goods sold………………………………………………………………………..16,000,000 Inte

> The financial statements of M&S are presented in Appendix E. The company’s complete annual report, including the notes to the financial statements, is available online. Instructions Refer to M&S’s financial statements and the accompanying notes to answ

> The financial statements of M&S are presented in Appendix E. The company’s complete annual report, including the notes to the financial statements, is available online. Instructions Refer to M&S’s financial statements and the accompanying notes to answ

> Rainmaker Company prepares its financial statements in accordance with IFRS. In 2017, Rainmaker recorded the following revaluation adjustments related to its buildings and land: The company’s building increased in value by $200,000; its land declined by$

> The financial statements of M&S are presented in Appendix E. The company’s complete annual report, including the notes to the financial statements, is available online. Instructions Refer to M&S’s financial statements and the accompanying notes to answ

> Your client took accounting a number of years ago and was unaware of comprehensive income reporting. He is not convinced that any accounting standards exist for comprehensive income. Access the IFRS authoritative literature at the IASB website (http:/

> Enyart Company has a noncontrolling interest in a subsidiary. Enyart’s controller is unsure how to report losses in the subsidiary that exceed the value of Enyart’s interest in the subsidiary. Advise the controller.

> Presented below is information related to Viel Company at December 31, 2017, the end of its first year of operations. Sales revenue………………………………………………………...$310,000 Cost of goods sold……………………………………………………. 140,000 Selling and administrative expenses………………

> The financial statements of (M&S) are presented in Appendix E. The company's complete annual report, including the notes to the financial statements, is available online. Instructions Refer to M&S’s financial statements and the accompanying notes to an

> The financial statements of M&S are presented in Appendix E. The company’s complete annual report, including the notes to the financial statements, is available online. Instructions Refer to M&S’s financial statements and the accompanying notes to answ

> As a newly enrolled accounting major, you are anxious to better understand accounting institutions and sources of accounting literature. As a first step, you decide to explore the IASB’s The Conceptual Framework for Financial Reporting. Instructions: A

> As discussed in Chapter 1, the International Accounting Standards Board (IASB) develops accounting standards for many international companies. The IASB also has developed a conceptual framework to help guide the setting of accounting standards. While the

> What are some of the challenges to the IASB in developing a conceptual framework?

> On December 31, 2017, Firth Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000 zero-interest-rate note. The note was issued to yield 10% interest. Unfortunately, during 2019, Firth began to experience financial difficulty. As a result,

> What organizations are the two key international players in the development of international accounting standards? Explain their role.

> The comparative balance sheets of Madrasah Corporation at the beginning and end of the year 2017 appear below. Net income of $44,000 was reported, and dividends of $33,000 were paid in 2017. New equipment was purchased and none was sold. Instructions

> Grant Wood Corporation’s balance sheet at the end of 2016 included the following items. The following information is available for 2017. 1. Net income was $55,000. 2. Equipment (cost $20,000 and accumulated depreciation $8,000) was

> On January 1, 2017, Richards Inc. had cash and common stock of $60,000. At that date, the company had no other asset, liability, or equity balances. On January 2, 2017, it purchased for cash $20,000 of debt securities that it classified as available-for-

> A comparative balance sheet for Shabbona Corporation is presented below. Additional information: 1. Net income for 2017 was $125,000. No gains or losses were recorded in 2017. 2. Cash dividends of $60,000 were declared and paid. 3. Bonds payable amo

> Presented below is a condensed version of the comparative balance sheets for Zubin Mehta Corporation for the last two years at December 31. Additional information: Investments were sold at a loss of $10,000; no equipment was sold; cash dividends paid w

> The comparative balance sheets of Constantine Cavamanlis Inc. at the beginning and the end of the year 2017 are as follows. Net income of $44,000 was reported, and dividends of $23,000 were paid in 2017. New equipment was purchased and none was sold.

> Presented below is the trial balance of Scott Butler Corporation at December 31, 2017. Instructions Prepare a balance sheet at December 31, 2017, for Scott Butler Corporation. (Ignore income taxes.) Debit Credit Cash $ 197,000 Sales Revenue $ 8,100

> Norma Smith is the controller of Baylor Corporation and is responsible for the preparation of the year-end financial statements. The following transactions occurred during the year. a. On December 20, 2017, a former employee filed a legal action against

> Presented below are a number of balance sheet accounts of Deep Blue Something, Inc. a. Debt Investments. b. Treasury Stock. c. Common Stock. d. Dividends Payable. e. Accumulated Depreciation—Equipment. f. Construction in Process. g. Petty Cash. h

> Presented below is information related to Ivan Calderon Corp. for the year 2017. Instructions a. Prepare a multiple-step income statement for 2017. Assume that 60,000 shares of common stock are outstanding for the entire year. b. Prepare a separate r

> Presented below are selected ledger accounts of Tucker Corporation as of December 31, 2017. Cash……………………………………………………………………………. $ 50,000 Administrative expenses………………………………………………..100,000 Selling expenses……………………………………………………………..80,000 Net sales……………………

> The accountant of Latifa Shoe Co. has piled the following information from the company’s records as a basis for an income statement for the year ended December 31, 2017. Rent revenue………………………………………………………………………. $ 29,000 Interest expense…………………………………………

> Presented below is information related to Viel Company at December 31, 2017, the end of its first year of operations. Sales revenue…………………………………………………………$310,000 Cost of goods sold……………………………………………………..140,000 Selling and administrative expenses……………………

> Using the information from BE4-9, prepare a retained earnings statement for the year ended December 31, 2017. Assume an error was discovered: land costing $80,000 (net of tax) was charged to maintenance and repairs expense in 2014. From BE 4-9: Portman

> Starr Co. had sales revenue of $540,000 in 2017. Other items recorded during the year were: Cost of goods sold………………………………………$330,000 Salaries and wages expense…………………………120,000 Income tax expense………………………………………25,000 Increase in value of company reputa

> Manitoba Soy Products (MSP) buys soy beans and processes them into other soy products. Each tonne of soy beans that MSP purchases for $300 can be converted for an additional $200 into 500 lbs of soy meal and 100 gallons of soy oil. A pound of soy meal ca

> The Vapor Company produces two products, turpentine and methanol (wood alcohol), by a joint process. Joint costs amount to $144,000 per batch of output. Each batch totals 40,000 litres: 25% methanol and 75% turpentine. Both products are processed further

> Roundtree Chocolates manufactures and distributes chocolate products. It purchases cocoa beans and processes them into two intermediate products: â–  Chocolate powder liquor base. â–  Milk chocolate liquor base. These two

> Quality Chicken is computing the ending inventory values for its July 31, 2015, statement of financial position. Ending inventory amounts on July 31 are 15 kilograms of breasts, 4 kilograms of wings, 6 kilograms of thighs, 5 kilograms of bones, and 2 kil

> A number of terms are listed below: byproduct …………………….constant gross margin percentage estimated net realizable value …………………….joint products main product ………………………………………..physical measure products …………………………………………sales value at splitoff scrap ……………………

> E-books, an online book retailer, has two operating divisions— corporate sales and consumer sales—and two support divisions—human resources and information systems. Each sales division conducts mercha

> Three restaurants in a downtown area of a large city have decided to share a valet service and parking lot for their customers. The cost of the service and lot is $10,000 per month. The owners of the restaurants need to decide how to divide the $10,000 c

> The Bow River Company has prepared division overhead budgets for budgeted-volume levels before allocations as follows: Management has decided that the most appropriate in ventory costs are achieved by using individual division overhead rates. These rat

> Refer to the data given in Exercise 14-20. Required: 1. Allocate the two support divisions’ costs to the two operating divisions using the reciprocal method. 2. Compare and explain differences in requirement 1 with those in requirement

> Explain the main conceptual issue under variable and absorption costing regarding the proper timing for the release of fixed manufacturing overhead as expense.

> Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support divisions— administrative services (AS) and information systems (IS)—and two operating divisions&aci

> Chocolat Inc. decides to examine the effect of using the dual-rate method for allocating truck costs to each round trip. At the start of 2015, the budgeted costs were: Variable cost per round trip ……â€&

> Chocolat Inc. is a producer of premium chocolate based in Owen Sound. The company has a separate division for each of its two products: dark chocolate and milk chocolate. Chocolat purchases ingredients from Toronto for its dark chocolate division and fro

> The Saskatchewan power plant that services all manufacturing divisions of Sask Engineering has a budget for the coming year. This budget has been expressed in the following monthly terms: The expected monthly costs for operating the power plant during

> Dave Meltzer went to Lake Tahoe for his annual winter vacation. Unfortunately, he broke his ankle severely while skiing and had to spend two days at the Tahoe General Hospital. Meltzer’s insurance company received a $4,800 bill for his two-day stay. One

> A number of terms are listed below: Required: Select the terms from the above list to complete the following sentences. Target pricing is a policy well suited to a highly competitive environment where the corporation is a ___________ because customers

> Refer to Exercise 13-27. Required: 1. Calculate Lakeside’s operating income in both 2015 and 2016. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2015 to 2016. 3. C

> Lakeside T-Shirt Company sells a variety of T-shirts. Lakeside presents the following data for its first two years of operations, 2015 and 2016. For simplicity, assume that all purchasing and selling costs are included in the average cost per T-shirt and

> Refer to the Snyder Corporation information in Exercise 13-23. Required: 1. Where possible, calculate the amount and cost of unused capacity for (a) software implementation support and (b) software development at the beginning of 2016, based on units of

> Suppose that during 2016 the market for implementing sales management software increased by 5%, and that Snyder experiences a 1% decline in prices. Assume that any further decreases in selling prices and increases in market share are strategic choices by

> Why is the term direct costing a misnomer for variable costing?

> Refer to the information in Exercise 13-23. Required: 1. Calculate the change in operating income of Snyder Corporation in 2015 and 2016. 2. Calculate the growth, price-recovery, and productivity components of changes in operating income between 2015 an

> Snyder Corporation is a small information systems consulting firm that specializes in helping companies implement sales management software. The market for Snyder’s products is very competitive. To compete, Snyder must deliver quality s

> Refer to the Grey Corporation information in Exercise 13-18. Required: 1. Where possible, calculate the amount and cost of unused capacity for (a) manufacturing, (b) selling and customer service, and (c) design at the beginning of 2015 based on 2015 pro

> Suppose that between 2015 and 2016 the market for Grey’s special-purpose machines grew at 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Grey’s strategic actions. Required: Calculate how much of the change

> Refer to the information in Exercise 13-18. Required: 1. Calculate the change in operating income of Grey Corporation in 2015 and 2016. 2. Calculate the growth, price-recovery, and productivity components of changes in operating income between 2015 and

> Grey Corporation makes a special-purpose D4H machine used in the textile industry. Grey has designed the D4H machine for 2015 to be distinct from its competitors. It has been generally regarded as a superior machine. Grey presents the following data for

> La Flamme Corporation manufactures corrugated cardboard boxes. It competes and plans to grow by producing high-quality boxes at a low price that are delivered to customers in a timely manner. Many other manufacturers produce similar boxes. La Flamme beli

> A number of terms are listed below: Required: Select the terms from the above list to complete the following sentences. Any management team must understand how it created value for its customers and decide how to accomplish this goal better than all it

> Carson Associates prepares architectural drawings to conform to local structural-safety codes. Its statement of comprehensive income for 2015 is: Revenue ……………………………………………………………………………………..$680,000 Salaries of professional staff (8,000 hours × $50 per ho

> The following financial data apply to the DVD production plant of the Dill Company for October 2015: Budgeted Manufacturing Cost per DVD Direct materials ………………………………….$1.60 Direct manufacturing labour ………………..0.90 Variable manufacturing overhead ………..0

> The production-volume variance should always be written off to “Cost of Goods Sold.” Do you agree? Explain

> Screen Games (SG) distributes DVD games to retail stores and game parlours. It has a simple business model: Order the DVD games, catalogue the games on SG’s website, deliver and provide on-site support, and bill and collect from the cus

> The Montreal Company is an electronics business with eight product lines. Income data for one of the products (XT-107) for June 2015 are: Dorval Ltd., an instruments company, has a problem with its preferred supplier of XT-107 components. This supplier

> Executive Power (EP) manufactures and sells computers and computer peripherals to several nationwide retail chains. Johan Farnham is the manager of the printer division. Its two largest selling printers are P-41 and P-63. The manufacturing cost of each p

> Snappy Tiles is a small distributor of marble tiles. Snappy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2015: For 2015, Snappy buys 250,000 marble tiles

> Digital Arts Inc. manufactures game systems. Digital Arts has decided to create and market a new system with wireless controls and excellent video graphics. Digital Arts’s managers are thinking of calling this system the Yew. Based on p

> Bradshaw Repair Shop repairs and services machine tools. A summary of its costs (by activity) for 2014 is as follows: a.Materials and labour for servicing machine tools …………..$800,000 b.Rework costs ……………………………………………………………………75,000 c.Expediting costs ca

> Medical Instruments uses a manufacturing costing system with one direct cost category (direct materials) and three indirect cost categories: a. Setup, production order, and materials-handling costs that vary with the number of batches. b. Manufacturing o

> Manitoba Dairy, maker of specialty cheeses, produces a soft cheese from the milk of Holstein cows raised on a special corn-based diet. One kilogram of soft cheese, which has a contribution margin of $8, requires 4 litres of milk. A well-known gourmet res

> John Beck is the managing partner of a business that has just finished building a 60-room motel. Beck anticipates that he will rent these rooms for 16,000 nights next year (or 16,000 room-nights). All rooms are similar and will rent for the same price. B

> Waterbury, Inc. manufactures and sells RF17, a specialty raft used for whitewater rafting. In 2015, it reported the following: Required: 1. What was the selling price in 2015? What was the percentage markup on full cost? What was the variable cost per

> Body-Builders, Inc., produces two basic types of weightlifting equipment, Model 9 and Model 14. Pertinent data are as follows The weight-lifting craze is such that enough of either Model 9 or Model 14 can be sold to keep the plant operating at full cap

> Nevada Industries manufactures electronic testing equipment. Nevada also installs the equipment at customers’ sites and ensures that it functions smoothly. Additional information on the manufacturing and installation departments is as follows (capacities

> Westford Company produces three products, A110, B382, and C657. Unit data for the three products follow: All three products use the same direct material, Bistide. The demand for the products far exceeds the direct material available to produce the prod

> The Svenson Corporation manufactures cellular modems. It manufactures its own cellular modem circuit boards (CMCB), an important part of the cellular modem. It reports the following cost information about the costs of making CMCBs in 2015 and the expecte

> The following conversation occurred between Brian Richardson, plant manager at Glendale Engineering, and Charles Cheng, plant controller. Glendale manufactures automotive component parts, such as gears and crankshafts, for automobile manufacturers. Richa

> The cooking department of Deli Inc. uses a processcosting system. Direct materials are added at the beginning of the cooking process. Conversion costs are added evenly during the cooking process. Consider the following data for the cooking department of

> Farkas Shoes, a high-end shoe manufacturer, produces two lines of shoes for women. The shoes are identical in design, but differ in the materials used and the trim added to the shoes. The basic shoes are made from a synthetic leather, have a synthetic in

> Margaret Major is the corporate controller of Leisure Suits. Leisure Suits has 20 plants worldwide that manufacture basic suits for retail stores. Each plant uses a process-costing system. At the end of each month, each plant manager submits a production

> Ira Stone, the president of General Hospital, has a meeting with the Medical Economics Group (MEG). MEG is a consulting firm in the health services sector. It reports that General’s billing operations are grossly inefficient. Its standard costing per bil

> Why is the flexible-budget variance the same amount as the rate variance for fixed manufacturing overhead?

> A large metropolitan health-care complex, General Hospital, has had difficulty controlling its accounts receivable. Costs currently available from the information system are inaccurate and have led to gross errors in reports to the various government fun

> As a producer of wine in the Niagara region, you have the opportunity either to lease vineyards from local grape-growers or to purchase grapes from other farmers. In the past you have purchased grapes from the Okanagan Valley in British Columbia, and fro

> Flash Chip Company (FCC) produces memory modules i n a two-step process: chip fabrication and module assembly. In chip fabrication, each batch of raw silicon wafers yields 500 standard chips and 500 deluxe chips. Chips are classified as standard or delux

> In the United States, organ procurement organizations (OPOs), transplant centres, and the medical professions coordinate the organ donation process. The U.S. government pays for this treatment through its Medicare program. What price should the U.S. gove