Question: The completed work sheet for Valerie Insurance

> You are considering buying one of two local firms (Olson Corp. and Miami Inc.). Olson Corp. uses a substantial amount of direct labor in its manufacturing operations and its salespeople work on commission. Miami Inc. uses the latest automated technology

> Use the information in Exercise 12 to compute total cost for each revenue-generating area if Prosperous Bank uses the step method of cost allocation.Information given in Exercise 12:Prosperous Bank has three support areas (administration, human resources

> LaNora White received her accounting degree in 1992. Since graduating, she has obtained significant experience in a variety of job settings. Her skills include auditing, income and estate taxation, and business consulting. White currently has her own pra

> Birmingham Bolt, Inc., has been approached by one of its customers about producing 800,000 special-purpose parts for a new home product. The parts would be produced at a rate of 100,000 per year for 8 years. To provide these parts, Birmingham would need

> Jill Haas is a divisional manager within Tulsa GPS Guidance Systems. Haas is concerned about the amount of the division’s production. The following production data are available for April 2010:Total units completed ……………………………846720Total good units compl

> Four goals should be considered when trying to design an effective spreadsheet model: communication, reliability, auditability, and maintainability. We also noted that a spreadsheet design that results in formulas that can be copied is usually more effec

> Refer to question 23 at the end of Chapter 2. Implement a spreadsheet model for this problem and solve it using Solver.In Question 23 at the end of Chapter 2The Quality Desk Company makes two types of computer desks from laminated particle board. The Pre

> Refer to question 22 at the end of Chapter 2. Implement a spreadsheet model for this problem and solve it using Solver.In Question 22 at the end of Chapter 2Zippy motorcycle manufacturing produces two popular pocket bikes (miniature motorcycles with 49cc

> Refer to question 19 at the end of Chapter 2. Implement a spreadsheet model for this problem and solve it using Solver.In Question 19 at the end of Chapter 2American Auto is evaluating their marketing plan for the sedans, SUVs, and trucks they produce. A

> Refer to question 15 at the end of Chapter 2. Implement a spreadsheet model for this problem and solve it using Solver.In Question 15 at the end of Chapter 2The Gourmet Grill Company manufactures and sells two different types of grills: propane and elect

> A bank has $650,000 in assets to allocate among investments in bonds, home mortgages, car loans, and personal loans. Bonds are expected to produce a return of 10%, mortgages 8.5%, car loans 9.5%, and personal loans 12.5%. To make sure the portfolio is no

> Tuckered Outfitters plans to market a custom brand of packaged trail mix. The ingredients for the trail mix will include Raisins, Grain, Chocolate Chips, Peanuts, and Almonds costing, respectively, $2.50, $1.50, $2.00, $3.50, and $3.00 per pound. The vit

> Incline Electronics produces three different products in a plant that is open 40 hours per week. Each product requires the following processing times (in hours) on each of three machines.Each machine must be run by one of 19 cross-trained workers who are

> The Beef-Up Ranch feeds cattle for mid-western farmers and delivers them to processing plants in Topeka, Kansas and Tulsa, Oklahoma. The ranch must determine the amounts of cattle feed to buy so that various nutritional requirements are met while minimiz

> Bearland Manufacturing produces 4 different types of wood paneling. Each type of paneling is made by gluing and pressing together a different mixture of pine and oak chips. The following table summarizes the required amount of gluing, pressing, and mixtu

> A furniture manufacturer produces two types of tables (country and contemporary) using three types of machines. The time required to produce the tables on each machine is given in the following table.Country tables sell for $350 and contemporary tables s

> Refer to question 25 at the end of Chapter 2. Implement a spreadsheet model for this problem and solve it using Solver.In Question 25 at the end of Chapter 2Sanderson Manufacturing produces ornate, decorative wood frame doors and windows. Each item produ

> The standards for one case of liquid weed killer are:Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 lbs. @ $ 6.00/lb.Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

> Shown here is an income statement in the traditional format for a firm with a sales volume of 20,000 units:Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $160,000Cost of goods sold ($1

> Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2011 and 2010. Sales for the year ended December 31, 2011, totaled $580,000.Required:a. Calculate ROI for 2011. Round your percentage answer to two decimal places.b. Calcul

> The following data have been extracted from the records of Riddle Co.:Required:a. Calculate the missing costs.b. Calculate the cost formula for mixed cost using the high–low method.c. Calculate the total cost that would be incurred for

> For several years Orbon, Inc. has followed a policy of paying a cash dividend of $1.20 per share and having a 10% stock dividend. In the 2011 annual report, Orbon reported restated earnings per share for 2009 of $2.70.Required:a. Calculate the originally

> Enter the following column headings across the top of a sheet of paper:Enter the transaction / situation letter in the first column and show the effect, if any, of the transaction entry or adjustment on the appropriate balance sheet category or on the in

> During the year ended December 31, 2011, Gluco, Inc., split its stock on a 3-for-1 basis. In its annual report for 2010, the firm reported net income of $3,703,920 for 2010, with an average 268,400 shares of common stock outstanding for that year. There

> Following are condensed income statements for Uncle Bill’s Home Improvement Center for the years ended December 31, 2011, and 2010:Uncle Bill was concerned about the operating results for 2011 and asked his recently hired accountant, &a

> The inventory records of Cushing, Inc., reflected the following information for the year ended December 31, 2010:Required:a. Assume that Cushing, Inc., uses a periodic inventory system. Calculate cost of goods sold and ending inventory under FIFO and LIF

> Following are comparative balance sheets for Millco, Inc., at January 31 and February 28, 2011:Required:Prepare a statement of cash flows that explains the change that occurred in cash during the month. You may assume that the change in each balance shee

> Bacon, Inc., has the following owners’ equity section in its May 31, 2010, comparative balance sheets:Required:a. Calculate the amount that should be shown on the balance sheet for common stock at May 31, 2010.b. The only transaction af

> Using a present value table, your calculator, or a computer program present value function, answer the following questions:Required:a. What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest

> Top Cap Co. is evaluating the purchase of another sewing machine that will be used to manufacture sport caps. The invoice price of the machine is $208,000. In addition, delivery and installation costs will total $10,000. The machine has the capacity to p

> Following is a partially completed balance sheet for Hoe man, Inc., at December 31, 2011, together with comparative data for the year ended December 31, 2010. From the statement of cash flows for the year ended December 31, 2011, you determine the follow

> Big Blue Rental Corp. provides rental agent services to apartment building owners. Big Blue Rental Corp.’s preliminary income statement for August 2010, and its August 31, 2010, preliminary balance sheet, did not reflect the following:a

> You have accumulated $8,000 and are looking for the best rate of return that can be earned over the next year. A bank savings account will pay 6%. A one-year bank certificate of deposit will pay 8%, but the minimum investment is $10,000. Account will pay

> The financial statements of Pouchie Co. included the following information for the year endedDecember 31, 2010 (amounts in millions):Depreciation and amortization expense . . . . . . . . . . . . . . . . . . . . . . $ 520Cash dividends declared and paid .

> Big Thunder Co. incurred the following costs during April:Raw materials purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 99,225Direct labor ($15 per hour) . . . . . . . . . . . . . . . . . . . . . . . . . . . 123,750Manufacturing overhea

> Branson Co. received its bank statement for the month ending May 31, 2010, and reconciled the statement balance to the May 31, 2010, balance in the Cash account. The reconciled balance was determined to be $18,600. The reconciliation recognized the follo

> Gravois, Inc. incurred the following costs during June:Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $158,375Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283,140

> On April 8, 2010, a flood destroyed the warehouse of Stuco Distributing Co. From the waterlogged records of the company, management was able to determine that the firm’s gross profit ratio had averaged 35% for the past several years and that the inventor

> Rolen, Inc. is in the process of preparing the fourth quarter budget for 2010, and the following data have been assembled:• The company sells a single product at a price of $25 per unit. The estimated sales volume for the next six months is as follows:Se

> Presented here are the original overhead budget and the actual costs incurred during July for Rembrant, Inc. Rembrant’s managers relate overhead to direct labor hours for planning, control, and product costing purposes. The original bud

> Charlie’s Furniture Store has been in business for several years. The firm’s owners have described the store as a “high-price, high service” operation that provides lots of assistance to its customers. Margin has averaged a relatively high 32% per year f

> Following are the budgeted income statements for the second quarter of 2010 for Marine Tech, Inc.:The company expects about 40% of sales to be cash transactions. Of sales on account, 65% are expected to be collected in the first month after the sale is m

> The following information was obtained from the records of Shae, Inc.:Merchandise inventory . . . . . . . . . . . . . . . . . . . . . . . . . $264,000Notes payable (long-term) . . . . . . . . . . . . . . . .. . . . . . . . 300,000Sales . . . . . . . . .

> The following data have been collected by capital budgeting analysts at Sunrise Beach, Inc., concerning an investment in an expansion of the company’s product line. Analysts estimate that an investment of $400,000 will be required to initiate the project

> J. Carrie established Carrie’s Photo Tours during June of this year. The accountant prepared the following chart of accounts:The following transactions occurred during the month of June:a. Carrie deposited $30,000 cash in a bank account

> The journal entries for May, Kiddy Day Care’s second month of business, have been journalized in the general journal in the Working Papers and in CengageNow. The balances of the accounts as of April 30 have been recorded in the general ledger in the Work

> The journal entries for August, Carley’s Car Care’s second month of business, have been journalized in the general journal in the Working Papers and in CengageNow. The balances of the accounts as of July 31 have been recorded in the general ledger in the

> Following is the chart of accounts of Smith Financial Services:Assets111 Cash113 Accounts Receivable115 Supplies117 Prepaid Insurance124 Office FurnitureLiabilities221 Accounts PayableOwner’s Equity311 A. Smith, Capital312 A. Smith, DrawingRevenue411 Pro

> Following is the chart of accounts of Sanchez Realty Company:Assets111 Cash113 Accounts Receivable115 Supplies117 Prepaid Insurance124 Office FurnitureLiabilities221 Accounts PayableOwner’s Equity311 T. Sanchez, Capital312 T. Sanchez, DrawingRevenue411 P

> The partial work sheet for Ho Consulting for May follows:RequiredIf you are using working papers, complete the following:1. a. Write the owner’s name on the Capital and Drawing T accounts.b. Record the account balances in the T accounts

> After the accountant posted the adjusting entries for B. Lyon, Designer, the work sheet contained the following account balances on May 31:RequiredIf you are using working papers, complete the following:1. a. Write the owner’s name on t

> The completed work sheet for Oliver Tour Company as of December 31 is presented in your Working Papers or in CengageNow, along with the general ledger as of December 31 before adjustments.RequiredIf you are using Working Papers, complete the following:1.

> The partial work sheet for Emil Consulting for June is as follows:RequiredIf you are using Working Papers, complete the following:1. a. Write the owner’s name on the Capital and Drawing T accounts.b. Record the account balances in the T

> After the accountant posted the adjusting entries for M. Wally, Designer, the work sheet contained the following account balances on May 31:RequiredIf you are using Working Papers, complete the following:1. a. Write the owner’s name on

> You are to record transactions in a two-column general journal. Assume that the fiscal period is one month. You will then be able to complete all of the steps in the accounting cycle.When you are analyzing the transactions, think them through by visualiz

> Following is the chart of accounts of Vance Rehab Clinic:Assets111 Cash113 Accounts Receivable115 Supplies117 Prepaid Insurance124 EquipmentLiabilities221 Accounts PayableOwner’s Equity311 J. Vance, Capital312 J. Vance, DrawingRevenue411 Professional Fee

> You are to record transactions in a two-column general journal. Assume that the fiscal period is one month. You will then be able to complete all of the steps in the accounting cycle.When you are analyzing the transactions, think them through by visualiz

> Tom’s Catering Services prepared the following work sheet for the year ended December 31, 20--.Required1. Complete the work sheet. (Skip this step if using CLGL.)2. Prepare an income statement.3. Prepare a statement of ownerâ&#128

> The account balances of Miss Beverly’s Tutoring Service as of June 30, the end of the current fiscal year, are as follows:Required1. Data for the adjustments are as follows:a. Expired or used up insurance, $470.b. Depreciation expense o

> Williams Mechanic Services prepared the following work sheet for the year ended March 31, 20--.Required1. Complete the work sheet. (Skip this step if using CLGL.)2. Prepare an income statement.3. Prepare a statement of owner’s equity. A

> The account balances of Bryan Company as of June 30, the end of the current fiscal year, are as follows:Required1. Data for the adjustments are as follows:a. Expired or used up insurance, $495b. Depreciation expense on equipment, $670.c. Depreciation exp

> Here are the accounts in the ledger of Misha’s Jewel Box, with the balances as of December 31, the end of its fiscal year.Cash ……………………………………………………………………………………….. $ 13,242Accounts Receivable …………………………………………………………………… 3,984Merchandise Inventory ………………………

> The trial balance of Jillson Company as of December 31, the end of its current fiscal year, is as follows:Here are the data for the adjustments.a–b. Merchandise Inventory at December 31, $54,845.00.c. Store supplies inventory (on hand),

> The balances of the ledger accounts of Beldren Home Center as of December 31, the end of its fiscal year, are as follows:Cash ……………………………………………………………………………………………… $ 10,592Accounts Receivable …………………………………………………………………………. 43,962Merchandise Inventory ……………

> Kay’s Agency has the following payroll information for the week ended December 14. State income tax is computed as 20 percent of federal income tax.Assumed tax rates are as follows:a. FICA: Social Security, (employer) 6.2 percent (0.062

> Complete Accounting Services has the following payroll information for the week ended December 7. State income tax is computed as 20 percent of federal income tax.Assumed tax rates are as follows:a. FICA: Social Security, (employer) 6.2 percent (0.062) a

> Following is the chart of accounts of the C. Lucern Clinic:Assets111 Cash113 Accounts Receivable115 Supplies117 Prepaid Insurance124 EquipmentRevenue411 Professional FeesExpenses511 Salary Expense512 Rent Expense513 Laboratory Expense514 Utilities Expens

> West Bicycle Shop uses a three-column purchases journal. The company is located in Topeka, Kansas. In addition to a general ledger, the company also uses an accounts payable ledger. Transactions for January related to the purchase of merchandise are as f

> The following transactions relate to Khan, Inc., a sporting goods wholesaler, during November of this year. Terms of sale are 2/10, n/30. The company is located in Denver, Colorado.Nov. 3 Sold merchandise on account to Spence Tennis Shop, invoice no. 542

> Jacobs Company had the following transactions that occurred during February of this year:Feb. 1 Issued Ck. No. 4311, $637, to Barker Company for invoice no. 3113E, recorded previously for $650, less cash discount of $13.2 Issued Ck. No. 4312 to Bonilla E

> Patterson Appliance uses a three-column purchases journal. The company is located in Fresno, California. In addition to a general ledger, Patterson Appliance also uses an accounts payable ledger. Transactions for January related to the purchase of mercha

> C. R. McIntyre Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year

> The following transactions relate to Hawkins, Inc., an office store wholesaler, during June of this year. Terms of sale are 2/10, n/30. The company is located in Los Angeles, California.June 1 Sold merchandise on account to Hendrix Office Store, invoice

> MacDonald Bookshop had the following transactions that occurred during February of this year:Feb. 3 Issued Ck. No. 4312, $892, to Kent Company for invoice no. 68172, recorded previously for $910.20, less 2 percent cash discount.4 Issued Ck. No. 4313 to K

> Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year:May 1

> The trial balance of Hadden Company as of December 31, the end of its current fiscal year, is as follows:Here are the data for the adjustments.a–b. Merchandise Inventory at December 31, $64,742.80.c. Store supplies inventory (on hand),

> Tom’s Catering Services prepared the following work sheet for the year ended December 31, 20--.Required1. Complete the work sheet. (Skip this step if using CLGL.)2. Prepare an income statement.3. Prepare a statement of ownerâ&#128

> The chart of accounts of Ethan Academy is shown here, followed by the transactions that took place during December of this year.Assets111 Cash113 Accounts Receivable114 Supplies115 Prepaid Insurance124 Equipment127 FurnitureLiabilities221 Accounts Payabl

> The account balances of Miss Beverly’s Tutoring Service as of June 30, the end of the current fiscal year, are as follows:1. Data for the adjustments are as follows:a. Expired or used up insurance, $470.b. Depreciation expense on equipm

> Here is the partial work sheet for Meyer Mountain Shop.Required1. Prepare a statement of owner’s equity (no additional investment).2. Prepare a balance sheet.3. Determine the amount of the working capital.4. Determine the current ratio

> Here is the partial work sheet for Eckland Stereo.Required1. Prepare a statement of owner’s equity (no additional investment).2. Prepare a balance sheet.3. Determine the amount of the working capital.4. Determine the current ratio (carr

> The balances of the ledger accounts of Pelango Furniture as of December 31, the end of its fiscal year, are as follows:Cash …………………………………………………………………………………….. $ 12,482Accounts Receivable ………………………………………………………………… 38,962Merchandise Inventory …………………………………

> The accounts and their balances in the ledger of Markey’s Mountain Shop as of December 31, the end of its fiscal year, are as follows:Cash ……………………………………………………………………………………… $ 12,840Accounts Receivable …………………………………………………………………… 3,242Merchandise Inventory

> On May 1, B. Bangle opened Self-Wash Laundry. His accountant listed the following chart of accounts:CashSuppliesPrepaid InsuranceEquipmentFurniture and FixturesAccounts PayableB. Bangle, CapitalB. Bangle, DrawingLaundry RevenueWages ExpenseRent ExpenseUt

> S. Myers, a speech therapist, opened a clinic in the name of Myers Clinic. Her accountant prepared the following chart of accounts:The following transactions occurred during June of this year:a. Myers deposited $40,000 in a bank account in the name of th

> B. Kelso established Computer Wizards during November of this year. The accountant prepared the following chart of accounts:The following transactions occurred during the month:a. Kelso deposited $45,000 in a bank account in the name of the business.b. P

> On July 1, K. Resser opened Resser’s Business Services. Resser’s accountant listed the following chart of accounts:CashSuppliesPrepaid InsuranceEquipmentFurniture and FixturesAccounts PayableK. Resser, CapitalK. Resser, DrawingBusiness Services RevenueWa

> D. Johnston, a physical therapist, opened Johnston’s Clinic. His accountant provided the following chart of accounts:The following transactions occurred during July of this year:a. Johnston deposited $35,000 in a bank account in the nam

> The chart of accounts of the Barnes School is shown here, followed by the transactions that took place during October of this year.Assets111 Cash113 Accounts Receivable115 Prepaid Insurance124 Equipment127 FurnitureLiabilities221 Accounts PayableOwner’s

> Jordan Company provided the following information:Current assets:Cash ………………………………………………………………….. $12,450,000Accounts receivable ………………………………………………. 8,740,000Inventories ……………………………………………………………. 8,150,000Total current assets …………………………………………… $29,340,000

> The following information pertains to Chacon Inc. for last year:Beginning inventory in units ……………………………………………. 5,000Units produced ……………………………………………………………… 20,000Units sold ……………………………………………………………………… 23,700Costs per unit:Direct materials ……………………………………

> Susan Lewis, owner of a florist shop, is interested in predicting the cost of delivering floral arrangements. She collected monthly data on the number of deliveries and the total monthly delivery cost (depreciation on the van, wages of the driver, and fu

> The controller for Beckham Company believes that the number of direct labor hours is associated with overhead cost. He collected the following data on the number of direct labor hours and associated factory overhead cost for the months of January through

> Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed but found th

> Bender Automotive Works Inc. manufactures a variety of front-end assemblies for automobiles. A front-end assembly is the unified front of an automobile that includes the headlamps, fender, and surrounding metal/plastic. Bender has two producing departmen

> At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year, Job K456 was completed with the following information: direct materials cost, $2,750; direct labor cost, $5,355. The average

> Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. The new customer is geographically separated from Smooth Move’s other customers, and

> The Lubbock plant of Morril’s Small Motor Division produces a major subassembly for a 6.0 horsepower motor for lawn mowers. The plant uses a standard costing system for production costing and control. The standard cost sheet for the subassembly follows:D

> Willow Company produces lawn mowers. One of its plants produces two versions of mowers: a basic model and a deluxe model. The deluxe model has a sturdier frame, a higher horsepower engine, a wider blade, and mulching capability. At the beginning of the y

> Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A’s production is much more labor-intensive than that of Model B. Model B is also the more popular of the two speakers.