12/7/13

Assignment Print View

Problem 10-2A Asset cost allocation; straight-line depreciation L.O. C1, P1 [The following information applies to the questions displayed b elow.]

In January 2011, Keona Co. pays $2,800,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $641,300, with a useful life of 20 years and an $80,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $408,100 that are expected to last another 14 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,865,600. The company also incurs the following additional costs: Cost to demolish Building 1 Cost of additional land grading Cost to construct new building (Building 3), having a useful life of 25 years and a $390,100 salvage value Cost of new land improvements (Land Improvements 2) near Building 2 having a 20-year useful life and no salvage value Total costs

422,600 167,200 2,019,000

158,000 $ 5,566,800

Prob lem 10-2A Asset cost allocation; straight-line depreciation L.O. C1, P1

Section Break

1.

$

aw ard:

9.00 points

Problem 10-2A Part 1 Required: 1. Allocate the costs incurred by Keona to the appropriate columns and total each column. (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)

$

$

$

Land improvements 1 $

$

$

$

$

Land Purchase price Demolition

Building 2

Building 3

Land improvements 2 $

Land grading New building New improvements Totals

Worksheet

2.

$

Prob lem 10-2A Part 1

aw ard:

9.00 points

Problem 10-2A Part 2 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2011. (Omit the "$" sign in your response.) Date Jan. 1

General Journal

Debit

Credit

(Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select)

rev: 11_26_2013_QC_41322, 11_30_2013_QC_41322 Worksheet

3.

Prob lem 10-2A Part 2

aw ard:

9.00 points

Problem 10-2A Part 3 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2011 when these assets were in use. (Omit the "$" sign in your response.) Date Dec. 31

General Journal

Debit

Credit

(Click to select) (Click to select)

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Assignment Print View (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Worksheet

4.

Prob lem 10-2A Part 3

aw ard:

9.00 points

Problem 9-2A Accounts receivable transactions and bad debts adjustments L.O. C1, P2 Lopez Company began operations on January 1, 2010. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. 2010 a. Sold $1,353,800 of merchandise (that had cost $976,200) on credit, terms n/30. b. Wrote off $21,500 of uncollectible accounts receivable. c. Received $672,200 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 3.00% of accounts receivable will be uncollectible. 2011 e. Sold $1,529,600 of merchandise (that had cost $1,285,400) on credit, terms n/30. f. Wrote off $28,700 of uncollectible accounts receivable. g. Received $1,295,900 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 3.00% of accounts receivable will be uncollectible. Required: Prepare journal entries to record Lopez’s 2010 and 2011 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system.) (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) 2010 General Journal Debit Credit a.

(Click to select) (Click to select) (Click to select) (Click to select)

b.

(Click to select) (Click to select)

c.

(Click to select) (Click to select)

d.

(Click to select) (Click to select)

2011 General Journal e.

Debit

Credit

(Click to select) (Click to select) (Click to select) (Click to select)

f.

(Click to select) (Click to select)

g.

(Click to select) (Click to select)

h.

(Click to select) (Click to select)

rev: 05_30_2013_QC_31178

Worksheet

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Prob lem 9-2A Accounts receivab le transactions and b ad deb ts adjustments L.O. C1, P2

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5.

Assignment Print View aw ard:

9.00 points

Problem 11-6AA Entries for payroll transactions L.O. P2, P3, P5 Polo Company has 20 employees, each of whom earns $3,000 per month and is paid on the last day of each month. All 20 have been employed continuously at this amount since January 1. Polo uses a payroll bank account and special payroll checks to pay its employees. On March 1, the following accounts and balances exist in its general ledger: a. FICA — Social Security Taxes Payable, $7,440; FICA — Medicare Taxes Payable, $1,740. (The balances of these accounts represent total liabilities for both the employer's and employees' FICA taxes for the February payroll only.) b. Employees' Federal Income Taxes Payable, $15,000 (liability for February only). c. Federal Unemployment Taxes Payable, $960 (liability for January and February together). d. State Unemployment Taxes Payable, $4,800 (liability for January and February together). During March and April, the company had the following payroll transactions. Mar. 15 Issued check payable to Fleet Bank, a federal depository bank authorized to accept employers' payments of FICA taxes and employee income tax withholdings. The $24,180 check is in payment of the February FICA and employee income taxes. 31 Recorded the March payroll and transferred funds from the regular bank account to the payroll bank account. Issued checks payable to each employee in payment of the March payroll. The payroll register shows the following summary totals for the March pay period. Salaries and Wages

Office Salaries $ 24,000

Shop Wages $ 36,000

Gross Pay $ 60,000

FICA Taxes* $3,720 $ 870

Federal Income Taxes $ 15,000

Net Pay $ 40,410

* FICA taxes are Social Security and Medicare, respectively. 31 Recorded the employer's payroll taxes resulting from the March payroll. The company has a merit rating that reduces its state unemployment tax rate to 4.00% of the first $7,000 paid each employee. The federal rate is .80%. Apr. 15 Issued check to Fleet Bank in payment of the March FICA and employee income taxes. 15 Issued check to the State Tax Commission for the January, February, and March state unemployment taxes. Mailed the check and the first quarter tax return to the Commission. 30 Issued check payable to Fleet Bank in payment of the employer's FUTA taxes for the first quarter of the year. 30 Mailed Form 941 to the IRS, reporting the FICA taxes and the employees' federal income tax withholdings for the first quarter. Required: Prepare journal entries to record the transactions and events for both March and April. (Record the transactions in the given order. In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Date Mar. 15

General Journal

Debit

Credit

(Click to select) (Click to select) (Click to select) (Click to select)

31

(Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select)

31

(Click to select) (Click to select)

31

(Click to select) (Click to select) (Click to select) (Click to select) (Click to select)

Apr. 15

(Click to select) (Click to select) (Click to select) (Click to select)

15

(Click to select) (Click to select)

30

(Click to select) (Click to select)

30

(Click to select)

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Assignment Print View (Click to select)

Prob lem 11-6AA Entries for payroll transactions L.O. P2, P3, P5

Worksheet

6.

aw ard:

9.00 points

Problem 13-3A Equity analysis-journal entries and account balances L.O. P2 At September 30, the end of Excel Company’s third quarter, the following stockholders’ equity accounts are reported. Common stock, $10 par value Paid-in capital in excess of par value, common stock Retained earnings

$ 360,000 90,000 360,000

In the fourth quarter, the following entries related to its equity are recorded. Date General Journal Oct. 2 Retained Earnings Common Dividend Payable Oct. 25

Oct. 31

Nov. 5

Dec. 1

Debit 80,000

Credit 80,000

Common Dividend Payable Cash

80,000

Retained Earnings Common Stock Dividend Distributable Paid-In Capital in Excess of Par Value, Common Stock

63,000

Common Stock Dividend Distributable Common Stock, $12 Par Value

30,000

80,000

30,000 33,000

30,000

Memo—Change the title of the common stock account to reflect the new par value of $4.

Dec. 31 Income Summary Retained Earnings

260,000 260,000

Required: Complete the following table showing the equity account balances at each indicated date (include the balances from September 30). (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Oct. 2 Common stock

Oct. 25

Oct. 31

Nov. 5

Dec. 1

Dec. 31

$

$

$

$

$

$

$

$

$

$

$

$

Common stock dividend distributable Paid-in capital in excess of par, common stock Retained earnings Total stockholders' equity

Prob lem 13-3A Equity analysis-journal entries and account b alances L.O. P2

Worksheet

7.

aw ard:

9.00 points

Problem 14-9A Installment notes L.O. C1, P5 On November 1, 2011, Leetch Ltd. borrows $500,000 cash from a bank by signing a five-year installment note bearing 8% interest. The note requires equal total payments each year on October 31. (Use Table B.3) Required: 1. Compute the total amount of each installment payment. (Round "PV Factor" to 4 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Installment payment

$

2. Complete an amortization table for this installment note. (Please calculate interest expense in the final period as the amount of cash minus the amount of the Beginning balance and make sure that the ending balance in the last period equals to "0". Leave no cells blank - be certain to enter "0" wherever required. Round "PV Factor" to 4 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Payments

Period Ending Date 10/31/2012

(B) Debit Interest Expense

(A) Beginning Balance $

$

(C) Debit Notes Payable $

(D) Credit Cash $

(E) Ending Balance $

10/31/2013 10/31/2014 10/31/2015 10/31/2016

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Assignment Print View Total

$

$

$

3. Prepare the journal entries in which Leetch records the following: (a) Accrued interest as of December 31, 2011 (the end of its annual reporting period). (Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.) Date Dec. 31

General Journal

Debit

Credit

(Click to select) (Click to select)

(b) The first annual payment on the note. (Round "PV Factor" to 4 decimal places. Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response.) Date Oct. 31

General Journal

Debit

Credit

(Click to select) (Click to select) (Click to select) (Click to select)

rev: 08_13_2011

Worksheet

Prob lem 14-9A Installment notes L.O. C1, P5

Problem 18-8A Manufacturing and income statements; inventory analysis L.O. P2 [The following information applies to the questions displayed b elow.]

The following calendar year-end information is taken from the December 31, 2011, adjusted trial balance and other records of Plaza Company. Advertising expense Depreciation expense—Office equipment Depreciation expense—Selling equipment Depreciation expense—Factory equipment Factory supervision Factory supplies used Factory utilities Inventories Raw materials, December 31, 2010 Raw materials, December 31, 2011 Goods in process, December 31, 2010 Goods in process, December 31, 2011 Finished goods, December 31, 2010 Finished goods, December 31, 2011

Section Break

8.

$ 32,100 9,500 9,800 33,300 109,800 8,300 43,000 153,200 180,000 17,200 23,400 168,300 142,300

Direct labor Income taxes expense Indirect labor Miscellaneous production costs Office salaries expense Raw materials purchases Rent expense—Office space Rent expense—Selling space Rent expense—Factory building Maintenance expense—Factory equipment Sales Sales discounts Sales salaries expense

$ 683,200 238,700 57,800 9,100 60,000 994,000 22,000 26,400 79,000 39,200 4,680,000 63,700 399,600

Prob lem 18-8A Manufacturing and income statements; inventory analysis L.O. P2

aw ard:

9.00 points

Problem 18-8A Part-1 Required: 1. Prepare the company’s 2011 manufacturing statement. (Input all amounts as positive values. Omit the "$" sign in your response.) PLAZA COMPANY Manufacturing Statement For Year Ended December 31, 2011 Direct materials (Click to select)

$

(Click to select) (Click to select) (Click to select) Direct materials used

$

(Click to select) Factory overhead (Click to select) (Click to select) (Click to select) (Click to select) (Click to select)

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Assignment Print View (Click to select) (Click to select) (Click to select) Total factory overhead costs Total manufacturing costs (Click to select) Total cost of goods in process (Click to select) Cost of goods manufactured

$

Worksheet

9.

Prob lem 18-8A Part-1

aw ard:

8.00 points

Problem 18-8A Part-2 2. Prepare the company’s 2011 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. (Input all amounts as positive values. Omit the "$" sign in your response.) PLAZA COMPANY Income Statement For Year Ended December 31, 2011 $

(Click to select) (Click to select) Net sales Cost of goods sold (Click to select)

$

(Click to select) (Click to select) (Click to select) Cost of goods sold (Click to select) Operating expenses Selling expenses (Click to select) (Click to select) (Click to select) (Click to select) Total selling expenses General and administrative expenses (Click to select) (Click to select) (Click to select) Total general and administrative expenses Total operating expenses (Click to select) (Click to select) $

(Click to select)

Worksheet

Prob lem 18-8A Part-2

Problem 19-3A Source documents, journal entries, and accounts in job order cost accounting L.O. P1, P2, P3 [The following information applies to the questions displayed b elow.]

Westin Watercraft’s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company’s production activities during May 2011 follows. a. Purchased raw materials on credit, $220,000. b. Paid $127,500 cash for factory wages.

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Assignment Print View c. Paid $15,250 cash to a computer consultant to reprogram factory equipment. d. Materials requisitions record use of the following materials for the month. Job 136 Job 137 Job 138 Job 139 Job 140

$ 48,500 33,000 20,000 23,000 7,000

Total direct materials Indirect materials

131,500 21,000

Total materials used

$152,500

e. Time tickets record use of the following labor for the month. Job 136 Job 137 Job 138 Job 139

$ 12,100 10,600 37,700 39,200

Job 140

3,400

Total direct labor Indirect labor

103,000 24,500

Total

$127,500

f. Applied overhead to Jobs 136, 138, and 139. g. Transferred Jobs 136, 138, and 139 to Finished Goods. h. Sold Jobs 136 and 138 on credit at a total price of $545,000. i. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). Depreciation of factory building Depreciation of factory equipment Expired factory insurance Accrued property taxes payable

$ 69,000 36,500 11,000 36,000

j. Applied overhead at month-end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. Prob lem 19-3A Source documents, journal entries, and accounts in job order cost accounting L.O. P1, P2, P3

Section Break

10.

aw ard:

8.00 points

Problem 19-3A Part 1 Required: 1. Prepare a job cost sheet for each job worked on during the month. (Omit the "$" sign in your response.) Job No. 136 Materials

Job No. 137

Job No. 138

Job No. 139

Job No. 140

$

$

$

$

$

$

$

$

$

$

Labor Overhead Total cost

Worksheet

11.

Prob lem 19-3A Part 1

aw ard:

8.00 points

Problem 19-3A Part 2 2. Prepare journal entries to record the events and transactions a through j. (Omit the "$" sign in your response. ) General Journal a.

Debit

Credit

(Click to select) (Click to select)

b.

(Click to select) (Click to select)

c.

(Click to select) (Click to select)

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Assignment Print View d.

(Click to select) (Click to select) (Click to select)

e.

(Click to select) (Click to select) (Click to select)

f.

(Click to select) (Click to select)

g.

(Click to select) (Click to select)

h.

(Click to select) (Click to select) (Click to select) (Click to select)

i.

(Click to select) (Click to select) (Click to select) (Click to select) (Click to select)

j.

(Click to select) (Click to select)

Worksheet

12.

Prob lem 19-3A Part 2

aw ard:

8.00 points

Problem 19-3A Part 3 3. Prepare T-accounts for each of the following general ledger accounts, each of which started the month with a zero balance: Raw Materials Inventory, Goods in Process Inventory, Finished Goods Inventory, Factory Payroll, Factory Overhead, Cost of Goods Sold. Then post the journal entries to these Taccounts and determine the balance of each account. (Record the transactions in the given order. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) GENERAL LEDGER ACCOUNTS Raw Materials Inventory (Click to select)

(Click to select)

Bal.

Goods in Process Inventory (Click to select)

(Click to select)

(Click to select) (Click to select) (Click to select)

Bal.

Finished Goods Inventory (Click to select)

(Click to select)

Bal.

Factory Payroll (Click to select)

(Click to select)

Bal.

Factory Overhead (Click to select)

(Click to select)

(Click to select)

(Click to select)

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Assignment Print View (Click to select) (Click to select)

Bal.

Cost of Goods Sold (Click to select)

Bal.

Worksheet

13.

Prob lem 19-3A Part 3

aw ard:

8.00 points

Problem 19-3A Part 4 4. Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. (Omit the "$" sign in your response.) Reports of Job Costs Goods in Process Inventory (Click to select)

$

(Click to select) Balance

$

Finished Goods Inventory (Click to select) Balance

$ $

Cost of Goods Sold (Click to select)

$

(Click to select) Balance

$

Worksheet

Prob lem 19-3A Part 4

Problem 21-5AB Allocation of joint costs L.O. C4 [The following information applies to the questions displayed b elow.]

Bloom Orchards produced a good crop of peaches this year. After preparing the following income statement, the company believes it should have given its No. 3 peaches to charity and saved its efforts. BLOOM ORCHARDS Income Statement For Year Ended December 31, 2011 No. 1 Sales (by grade) No. 1: 325,000 Ibs. @ $5.50/lb $1,787,500 No. 2: 550,000 Ibs. @ $3.95/lb No. 3: 900,000 Ibs. @ $0.70/lb Total sales Costs Tree pruning and care @ $0.60/Ib 195,000 Picking, sorting, and grading @ $0.40/Ib 130,000 Delivery costs $0.06/lb 19,500 Total costs Net income (loss)

No. 2

No. 3

Combined

$2,172,500 $ 630,000 $ 4,590,000 330,000 220,000 33,000

540,000 360,000 54,000

1,065,000 710,000 106,500

344,500

583,000

954,000

1,881,500

$1,443,000

$1,589,500

$ (324,000)

$ 2,708,500

In preparing this statement, the company allocated joint costs among the grades on a physical basis as an equal amount per pound. The company’s delivery cost records show that $52,500 of the $106,500 relates to crating the No. 1 and No. 2 peaches and hauling them to the buyer. The remaining $54,000 of delivery costs is for crating the No. 3 peaches and hauling them to the cannery. Section Break

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Prob lem 21-5AB Allocation of joint costs L.O. C4

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14.

Assignment Print View aw ard:

8.00 points

Problem 21-5AB Part 1 Required: 1. Prepare reports showing cost allocations on a sales value basis to the three grades of peaches. Separate the delivery costs into the amounts directly identifiable with each grade. Then allocate any shared delivery costs on the basis of the relative sales value of each grade. (Round your percentages to 1 decimal place, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Tree pruning and care: Grade Allocated Cost No. 1 $ No. 2 No. 3 Total

$

Picking, sorting, and grading: Grade Allocated Cost No. 1 $ No. 2 No. 3 Total

$

Delivery Costs: Grade No. 1

Allocated Cost $

No. 2 No. 3 Total

$

Worksheet

15.

Prob lem 21-5AB Part 1

aw ard:

8.00 points

Problem 21-5AB Part 2 2. Using your answers to part 1, prepare an income statement using the joint costs allocated on a sales value basis. (Input all amounts as positive value. Round your percentages to 1 decimal place, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.) BLOOM ORCHARDS Income Statement For Year Ended December 31, 2011 No. 1 No. 2 (Click to select)

No. 3

Combined

$

$

$

$

$

$

$

$

Costs (Click to select) (Click to select) (Click to select) Total costs (Click to select)

Worksheet

Prob lem 21-5AB Part 2

Problem 21-2A Activity-based costing L.O. P2 [The following information applies to the questions displayed b elow.]

We Care is an outpatient surgical clinic that was profitable for many years, but Medicare has cut its reimbursements by as much as 50%. As a result, the clinic wants to better understand its costs. It decides to prepare an activity-based cost analysis, including an estimate of the average cost of both general surgery and orthopedic surgery. The clinic’s three cost centers and their cost drivers follow. Cost Center Professional salaries Patient services and supplies

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Cost $ 1,900,000 23,000

Cost Driver Professional hours Number of patients

Driver Quantity 10,000 500

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Assignment Print View Building cost

149,000

Square feet

1,500

The two main surgical units and their related data follow. Service Hours Square Feet* Patients General surgery 2,600 400 200 Orthopedic surgery 7,400 1,100 300 * Orthopedic surgery requires more space for patients, supplies, and equipment. Section Break

16.

Prob lem 21-2A Activity-b ased costing L.O. P2

aw ard:

8.00 points

Problem 21-2A Part 1 Required: 1. Compute the cost per cost driver for each of the three cost centers. (Round your answers to nearest dollar amount. Omit the "$" sign in your response.) Cost Center Professional salaries

$

Cost per Driver per hour

Patient services & supplies

$

per patient

Building cost

$

per sq. ft

Worksheet

17.

Prob lem 21-2A Part 1

aw ard:

8.00 points

Problem 21-2A Part 2 2. Use the results from part 1 to allocate costs from each of the three cost centers to both the general surgery and the orthopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units. (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.) Total General surgery

$

Orthopedic surgery

$

Worksheet

Average cost per patient $ $ Prob lem 21-2A Part 2

Problem 22-6A Analysis of price, cost, and volume changes for contribution margin and net income L.O. P2, A1 [The following information applies to the questions displayed b elow.]

This year Cairo Company sold 27,000 units of its only product for $19.60 per unit. Manufacturing and selling the product required $112,000 of fixed manufacturing costs and $172,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs

$ 3.20 2.20 0.32 0.12

Next year the company will use new material, which will reduce material costs by 60% and direct labor costs by 40% and will not affect product quality or marketability. Management is considering an increase in the unit sales price to reduce the number of units sold because the factory’s output is nearing its annual output capacity of 32,000 units. Two plans are being considered. Under plan 1, the company will keep the price at the current level and sell the same volume as last year. This plan will increase income because of the reduced costs from using the new material. Under plan 2, the company will increase price by 25%. This plan will decrease unit sales volume by 10%. Under both plans 1 and 2, the total fixed costs and the variable costs per unit for overhead and for selling and administrative costs will remain the same.

Section Break

18.

Prob lem 22-6A Analysis of price, cost, and volume changes for contrib ution margin and net income L.O. P2, A1

aw ard:

8.00 points

Problem 22-6A Part 1 Required: 1. Compute the break-even point in dollar sales for both (a) plan 1 and (b) plan 2. (Round your contribution margin ratio to 2 decimal places after converting into percentage and other intermediate calculations to 2 decimal places. Round your final answers to the nearest dollar amount. Omit the "$" sign in your response.)

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Assignment Print View Plan 1

$

Plan 2

$

rev: 12_21_2012 Worksheet

19.

Prob lem 22-6A Part 1

aw ard:

8.00 points

Problem 22-6A Part 2 2. Prepare a forecasted contribution margin income statement with two columns showing the expected results of plan 1 and plan 2. The statements should report sales, total variable costs, contribution margin, total fixed costs, income before taxes, income taxes (40% rate), and net income. (Input all amounts as positive values. Round your contribution margin ratio to 2 decimal place, other intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount. Omit the "$" sign in your response.) CAIRO CO. Forecasted Contribution Margin Income Statement Plan 1 Plan 2 (Click to select)

$

$

$

$

(Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select)

Worksheet

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Prob lem 22-6A Part 2

12/12