• Q : Prepare journal entries to record the machines purchase....
    Accounting Basics :

    Saturn Co. purchases a used machine for $167,000 cash on January 2 and readies it for use the next day at an $3420 cost. On January 3, it is installed on a required operating platform costing.

  • Q : Explain the net present value of the project....
    Accounting Basics :

    Achebe Company is considering purchasing new equipment. The equipment is expected to reduce annual cash operating costs. You have the following additional information:

  • Q : What is the effect on income if termus accepts....
    Accounting Basics :

    In producing 4,000 additional units, fixed overhead costs would remain at their current level but incremental variable overhead costs of $4 per unit would be incurred. What is the effect on income

  • Q : Why the additional costs necessary....
    Accounting Basics :

    A company has already incurred a $15,000 cost in partially producing its three products. Their selling prices when partially and fully processed are shown in the table below with the additional cost

  • Q : Determine the present value of each of the investment....
    Accounting Basics :

    Determine the present value of each of the investment alternatives. Based on that analysis alone, which investment would you advise Mr Rhodes to choose?

  • Q : A contract or coupon interest rate....
    Accounting Basics :

    A bond that has a $1000 par value and a contract or coupon interest rate of 10.5%. The bonds have a current market value of $1,125 and will mature in 10 years.

  • Q : The beginning to the end of the period....
    Accounting Basics :

    In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method, the net decrease in inventories from the beginning to the end of the period is a

  • Q : Investment is certificates of deposit....
    Accounting Basics :

    Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and interest is paid semi-annually. The journal entry to record the recei

  • Q : Analysis of estimated overhead costs....
    Accounting Basics :

    Major Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 47 range instruments and 303 pressure gauges were produced, and overhead costs of

  • Q : What is the amount of each semiannual interest payment....
    Accounting Basics :

    Citywide Company issues bonds with a par value of $69,000 on their stated issue date. The bonds mature in seven years and pay 9% annual interest in semiannual payments.

  • Q : What journal entry would blanton corporation use....
    Accounting Basics :

    Blanton Corporation purchased 35% of the outstanding shares of common stock of Worton Corporation as a long-term investment. Subsequently, Worton Corporation reported net income and declared and pai

  • Q : What is the amount of gain or loss on the sale....
    Accounting Basics :

    An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $40.50 per share. What is the amount of gain or loss on the sale?

  • Q : Explain the dynamo corporation....
    Accounting Basics :

    After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own business. You expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and

  • Q : Dinkel manufacturing corporation accumulates....
    Accounting Basics :

    Overhead is applied on the basis of standard machine hours. Three hours of machine time are required for each direct labor hour. The jobs were sold for $400,000.

  • Q : How much is retained earnings reduced by the property....
    Accounting Basics :

    Boxer Company owned 23,000 shares of King Company that were purchased in 2011 for $370,000. On May 1, 2013, Boxer declared a property dividend of 1 share of King for every 10 shares of Boxer stock.

  • Q : The present value of the cash inflows....
    Accounting Basics :

    They expect to have various cash inflows but no additional cash outflows. Kowalski's discount rate is 12% and the project profitability index on the project is zero. Are the following statements TRU

  • Q : What is the relevant cost of 720 liters....
    Accounting Basics :

    Janus, Inc. is preparing an estimate for a customer order. The order requires 800 liters of material K44T. K44T is used in a number of Janus products. You have the following additional information:

  • Q : Determine the number of units....
    Accounting Basics :

    Green Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data.

  • Q : How much would the net operating income of sorensen increase....
    Accounting Basics :

    If Product C is dropped, sales volume of Product B is expected to drop by 10%.The $3,000 facilities cost for Product C represents the cost of a seperate facility used to manufacture the product.

  • Q : Materials handling number of requisitions....
    Accounting Basics :

    Major Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 47 range instruments and 303 pressure gauges were produced.

  • Q : Operations and thus generate sales....
    Accounting Basics :

    Wells Water Systems recently reported $8,250 of sales, $4,500 of operating costs other than depreciation, and $950 of depreciation. The company had no amortization charges.

  • Q : The companys statement of cash flows for the fiscal year....
    Accounting Basics :

    Dalmeyer Co. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information about this year's financial events.

  • Q : How much free cash flow did wells generate....
    Accounting Basics :

    Wells Water Systems recently reported $8,250 of sales, $4,500 of operating costs other than depreciation, and $950 of depreciation. The company had no amortization charges, it had $3,250.

  • Q : Compute the net present value for each project....
    Accounting Basics :

    Salvage value is expected to be zero at the end of each project. Depreciation is computed by the straight-line method. The company's minimum rate of return is the company's cost of capital which is

  • Q : The standpoint of the north division....
    Accounting Basics :

    The annual production capacity is 35,000 units and the variable cost of each unit is $24, Presently the North Division sells 32,000 units per year to outside customers at $40 per unit.

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