The Vernon Corporation was formed on January 2, 2018. The company sold 20,000 shares of $8.00 par value stock for $20.00 per share. On July 1, 2018, Vernon bought back 4,000 shares of stock for $24.00 per share. The treasury stock was resold on September 1, 2018 for $32.00 per share.
Which one of the following is the correct entry to record the resale of treasury stock?
Multiple Choice
A) DR Cash 128,000 CR Common stock 128,000
B) DR Cash 128,000 CR Treasury stock 96,000 CR Paid-in capital from treasury stock 32,000
C) DR Cash 128,000 CR Treasury stock 96,000 CR Gain on sale of treasury stock 32,000
D) DR Cash 128,000 CR Treasury stock 96,000 CR Retained earnings 32,000

Answer:

B) DR Cash 128,000 CR Treasury stock 96,000 CR Paid-in capital from treasury stock 32,000

Explanation:

Based on the information given the correct journal entry to record the resale of treasury stock is to Debit Cash $128,000 Credit Treasury stock $96,000 and Credit Paid-in capital from treasury stock $32,000

DR Cash $128,000

(4000*$32)

CR Treasury stock $96,000

(4000*$24)

CR Paid in capital in excess of par $32,000

(4000*$8)

Wesson Company uses the allowance method to record its expected credit losses. It estimates its losses at one percent of credit sales, which were $750,000 during the year. The Accounts Receivable balance was $220,000 and the Allowance for Doubtful Accounts has a credit balance of $1,000 at year-end. What amount is the debit to the Bad Debts Expense

Zhang Industries sells a product for $700. Unit sales for May were 400 and each month's sales are expected to grow by 3%. Zhang pays a sales manager a monthly salary of $3,000 and a commission of 2% of sales in dollars. Assume 30% of Zhang's sales are for cash. The remaining 70% are credit sales; these customers pay in the month following the sale. Compute the budgeted cash receipts for June.Multiple Choice$282,520.$196,000.$280,000.$201,880.$285,880.

Deborah's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Deborah's very tiny kitchen has barely enough room for the two ovens in which her workers bake the pizzas. Deborah signed a lease obligating her to pay the rent for the two ovens for the next year. Because of this, and because Deborah's kitchen cannot fit more than two ovens, Deborah cannot change the number of ovens she uses in her production of pizzas in the short run.

However, Deborah's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Deborah lets them know how many workers she needs for each day of the week. In the short run, these workers are__________ inputs, and the ovens are__________ inputs.

Paradise Corporation budgets on an annual basis for its fiscal year. The following beginning and ending inventory levels (in units) are planned for next year.Beginning Inventory Ending InventoryRaw material* 41,000 51,000Finished goods 81,000 51,000* Three pounds of raw material are needed to produce each unit of finished product.If Paradise Corporation plans to sell 485,000 units during next year, the number of units it would have to manufacture during the year would be:

Bob is the owner of Apartments Complex. Betty is his manager. Bob informs all tenants in writing as part of their lease that rent may ONLY be paid to Bob and not to Betty. However, over the years, tenants pay Betty directly who gives the rent to Bob. Bob never objects. What types of agency authority does Betty have

A cement manufacturer has supplied the following data:

Tons of cement produced and sold 235,000
Sales revenue $1,010,500
Variable manufacturing expense $416,000
Fixed manufacturing expense $275,000
Variable selling and administrative expense $54,000
Fixed selling and administrative expense $215,000
Net operating income $50,500

Required:
What is the company's unit contribution margin?

The governor has proposed to clean up all the trash on the side of the highway. The project is estimated to cost the tax payers and additional $15,000. The city will benefit by having a clean highway which will entice tourists to stop along their routes. The project is estimated to bring in $12,000 of revenue from the highway being cleaned. Should the governor continue with the project

At the beginning of the year, Rangle Company expected to incur $54,000 of overhead costs in producing 6,000 units of product. The direct material cost is $20 per unit of product. Direct labor cost is $30 per unit. During January, 600 units were produced. The total cost of the units made in January was: Multiple Choice $30,000 $5,400 $35,400

Orion Flour Mills purchased a new machine and made the following expenditures:

Purchase price $55,000
Sales tax 5,000
Shipment of machine 800
Insurance on the machine for the first year 500
Installation of machine 1,600

The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash.

Required:
Record the above expenditures for the new machine.

Warbler Corporation has Federal taxable income of $10,000,000. Warbler apportions 70% of its manufacturing income to State C. Warbler generates $4,000,000 of nonapportionable income each year, and 30% of that income is allocated to State C. Applying the state income tax modifications, Warbler's total business income from the manufacturing operation this year is $12,000,000.
a. How much of Warbler's manufacturing income does State C tax?
b. How much of Warbler's allocable income does State C tax?

what is difference between T-Account and a ledger Account?(hint... what dose T-Account not have?)

The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop.The standard labor cost for a motor tune-up is given below:
Standard Hours Standard Rate Standard Cost
Motor tune-up 2.50 $35.00 $87.50
The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 60 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:
Labor rate variance $ 50 F
Labor spending variance $ 55 U
Required:
1. Determine the number of actual labor-hours spent on tune-ups during the week.
2. Determine the actual hourly rate of pay for tune-ups last week.

Item11 2 points Time Remaining 1 hour 57 minutes 8 seconds01:57:08 Item 11 Time Remaining 1 hour 57 minutes 8 seconds01:57:08 An advantage of bonds is: Multiple Choice Bonds do not affect owner control. Bonds require payment of par value at maturity. Bonds can decrease return on equity. Bond payments can be burdensome when income and cash flow are low. Bonds require payment of periodic interest.

A ship valued at $1,337,500 is carrying a cargo of iron ore valued at $125,000, and a cargo of coal valued at $100,000. The ship is stranded and the captain jettisons what is later determined to be $12,500 worth of iron ore. The stranded ship is towed to port, receives a bill from the tug company of $56,250 and is determined to have suffered $71,875 worth of damage to the ship. The captain declares a general average.
How much liability will the company shipping the coal have?

Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.
FORTEN COMPANY
Comparative Balance Sheets
December 31
Current Year Prior Year
Assets
Cash $ 66,400 $ 84,500
Accounts receivable 82,380 61,625
Inventory 292,156 262,800
Prepaid expenses 1,320 2,115
Total current assets 442,256 411,040
Equipment 146,500 119,000
Accum. depreciation—Equipment (42,125) (51,500)
Total assets $ 546,631 $ 478,540
Liabilities and Equity
Accounts payable $ 64,141 $ 131,175
Short-term notes payable 13,300 8,200
Total current liabilities 77,441 139,375
Long-term notes payable 59,500 59,750
Total liabilities 136,941 199,125
Equity
Common stock, $5 par value 179,250 161,250
Paid-in capital in excess of par, common stock 54,000 0
Retained earnings 176,440 118,165
Total liabilities and equity $ 546,631 $ 478,540
FORTEN COMPANY
Income Statement
For Current Year Ended December 31
Sales $ 637,500
Cost of goods sold 296,000
Gross profit 341,500
Operating expenses
Depreciation expense $ 31,750
Other expenses 143,400 175,150
Other gains (losses)
Loss on sale of equipment (16,125)
Income before taxes 150,225
Income taxes expense 39,650
Net income $ 110,575
Additional Information on Current Year Transactions
The loss on the cash sale of equipment was $16,125 (details in b).
Sold equipment costing $79,875, with accumulated depreciation of $41,125, for $22,625 cash.
Purchased equipment costing $107,375 by paying $52,000 cash and signing a long-term note payable for the balance.
Borrowed $5,100 cash by signing a short-term note payable.
Paid $55,625 cash to reduce the long-term notes payable.
Issued 3,600 shares of common stock for $20 cash per share.
Declared and paid cash dividends of $52,300.
Required:
Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.)

Exercise 8-3 Lump-sum purchase of plant assets LO C1 Rodriguez Company pays $394,875 for real estate with land, land improvements, and a building. Land is appraised at $202,500; land improvements are appraised at $45,000; and a building is appraised at $202,500. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.

Following is the stockholders’ equity section from the The Coca-Cola Company 2017 balance sheet. (All amounts in millions except par value.)

The Coca-Cola Company Shareowners' Equity December 31, 2017
Common stock-$0.25 par value; authorized-11,200 shares; issued-7,040 shares $1,760
Capital surplus 15,864
Reinvested earnings 60,430
Accumulated other comprehensive income (loss) (10,305)
Treasury stock, at cost-2,781 shares (50,677)
Equity attributable to shareowners of The Coca-Cola Company $17,072

Required:
a. Compute the number of shares outstanding.
b. At what average price were the Coca-Cola shares issued? Round answer to two decimal places.

Next
Unit 1 Quiz
6
This holiday season, the hottest gift was a doll named Sparkle Princess within a few hours all of the stores sold out their stack of this
People who had been fortunate enough to buy a doll began to sell their dolls on the internet. Thousands of people logged on to try to
be a
the few dolls that were being sold on the Internet. What MOST likely happened with the internet sales?
CA The price went down because the supply was low and the demand was high
B. The price went up because the supply was low and the demand was high
CC The price went down because the supply was high and the demand was low
D. The price went up because the supply was high and the demand was low
Reser

You are the VP of Marketing at Stauffer Foods and you learn that the puddings packaged desserts line from General Foods (GF) is available for acquisition. This division produces successful products like Pudding Pops, Instant Pudding, and Pudding in a Cup. You make some of assumptions about this line. Which assumption would you not make

Which of the following statements is CORRECT? a. More of Project A's cash flows occur in the later years. b. We must have information on the cost of capital in order to determine which project has the larger early cash flows. c. The crossover rate, i.e., the rate at which Projects A and B have the same NPV, is greater than either project's IRR. d. The NPV profile graph is inconsistent with the statement made in the problem. e. More of Project B's cash flows occur in the later years.

The Assembly Department for Right pens has the following production data for the current month.
Beginning Work in Process Units Transferred Out Ending Work in Process
0 15,000 10,000
Materials are entered at the beginning of the process. The ending work in process units are 50% complete as to conversion costs.
Compute the equivalent units of production for (a) materials and (b) conversion costs.

Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $155 Units in beginning inventory 200 Units produced 2,020 Units sold 1,760 Units in ending inventory 460 Variable costs per unit: Direct materials $ 49 Direct labor $ 29 Variable manufacturing overhead $ 11 Variable selling and administrative expense $ 14 Fixed costs: Fixed manufacturing overhead $18,180 Fixed selling and administrative expense $33,440 What is the total period cost for the month under variable costing

g Units: Beginning Inventory: 85,000 units, 70% complete as to materials and 20% complete as to conversion. Units started and completed: 260,000. Units completed and transferred out: 345,000. Ending Inventory: 32,500 units, 40% complete as to materials and 15% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of materials. Group of answer choices 227,500 349,875 298,500 332,875 358,000

Suppose management estimated the market valuation of some obsolete inventory at $99,000; this inventory was recorded at $120,000, which resulted in recognizing a loss of $21,000. The auditors obtained the following information: The inventory in question could be sold for an amount between $78,000 and $92,000. The costs of advertising and shipping could range from $5,000 to $7,000.
Required:
a. Would you propose an audit adjustment to the management estimate?
A. Yes
B. No
b. Prepare the appropriate accounting entry. (In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
General Journal Debit Credit

The Horstmeyer Corporation commenced operations early in 2021. A number of expenditures were made during 2021 that were debited to one account called intangible asset. A recap of the $176,500 balance in this account at the end of 2021 is as follows:
Date Transaction Amount
February 3 State incorporation fees and legal costs related to organizing the corporation $ 9,500
March 1 Fire insurance premium for three-year period 8,500
March 15 Purchased a copyright 25,000
April 30 Research and development costs 45,000
June 15 Legal fees for filing a patent on a new product resulting from an R&D project 5,500
September 30 Legal fee for successful defense of patent developed above 17,000
October 13 Entered into a 10-year franchise agreement with franchisor 45,000
Various Advertising costs 21,000
Total $ 176,500
Required:
Prepare the necessary journal entry to clear the intangible asset account and to set up accounts for separate intangible assets, other types of assets, and expenses indicated by the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Required: a. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 30,000 and 32,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 32,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.,

define liquidity economics.​

Information from the records of the Abel Corporation for July 2018 was as follows:
Sales $1,230,000
Selling and administrative expenses 210,000
Direct materials used 264,000
Direct labor 300,000
Factory overhead * 405,000
*variable overhead is $205,000, fixed overhead is $200,000
Inventories
July 1, 2018 July 31, 2018
Direct materials $36,000 $42,000
Work in process 75,000 84,000
Finished goods 69,000 57,000
The total product cost is:_______.
a. $969,000
b. $1,179,000
c. $764,000
d. $615,000

When Valley Co. acquired 80% of the common stock of Coleman Corp., Coleman owned land with a book value of $75,000 and a fair value of $125,000. What is the amount of excess land allocation attributed to the noncontrolling interest at the acquisition date

Imagine a hypothetical economy with a population of 100 people, 80 of which over sixteen. Forty eight of these people who are working and twelve people who are willing, able and looking for work cannot find jobs. The unemployment rate in this economy is____________ % (enter percentage as a whole number, not a decimal, no percentage sign). S

Suppose that 10 of those unemployed people get discouraged and give up looking for work. Now, the unemployment rate is __________% (enter percentage as a whole number, not a decimal, no percentage sign).