Lan and Mai are students at Accounting and Auditing Faculty. After completing Accounting Unit, they are now able to prepare financial statement and discussing about the figures on financial report. Mai said, “all the figures on financial statement are definitely reliable because accountants have to adhere with strict code of ethics, integrity standards, and set of accounting rules and standard such as IFRS when preparing the report”. Do you agree or disagree with Mai’s statement?
Category: Accounting
Case Study HP Company is suffering declining sales of its medical products. The president, Toshio Nakao, instructs his controller, Satoshi Kasai, to lengthen asset lives to reduce depreciation expense.
Case Study HP Company is suffering declining sales of its medical products. The president, Toshio Nakao, instructs his controller, Satoshi Kasai, to lengthen asset lives to reduce depreciation expense. A processing line of medical equipment, purchased for $4 million in January 2020, was originally estimated to have a useful life of 5 years and a salvage value of $200,000.
Prepare an answer sheet with column headings as shown below. For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold;
Cost Classification Listed below are costs found in various organizations. 1. Property taxes, factory.2. Boxes used for packaging detergent produced by the company.3. Salespersons’ commissions.4. Supervisor’s salary, factory.5. Depreciation, executive autos.6. Wages of workers assembling computers.7. Insurance, finished goods warehouses.8. Lubricants for production equipment.9. Advertising costs.10. Microchips used in producing calculators.11. Shipping costs on merchandise sold.12. Magazine subscriptions, factory lunchroom.13. Thread in a garment factory.14. Billing costs.15. Executive life insurance.16. Ink used in textbook production.17. Fringe benefits, assembly-line workers.18. Yarn used in sweater production.19. Wages of receptionist, executive offices. Required: Prepare an answer sheet with column headings as shown below. For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it would typically be…
Marwick’s Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $2,450 each from the manufacturer.
Marwick’s Pianos, Inc., sells the pianos to its customers at an average price of $3,125 each. The selling and administrative costs that the company incurs in a typical month are presented below:
A partnership began its first year of operations with the following capital balances: Young, Capital: $143,000 Eaton, Capital: $104,000 Thurman, Capital: $143,000
A partnership began its first year of operations with the following capital balances: Young, Capital: $143,000Eaton, Capital: $104,000Thurman, Capital: $143,000The Articles of Partnership stipulated that profits and losses be assigned in the following manner:Young was to be awarded an annual salary of $26,000 with $13,000 salary assigned to Thurman.Each partner was to be attributed with interest equal to 10% of the capital balance as of the first day of the year.The remainder was to be assigned on a 5:2:3 basis to Young, Eaton, and Thurman, respectively.Each partner withdrew $13,000 per year.Assume that the net loss for the first year of operations was $26,000 with net income of $52,000 in the second year. 21. What was Eaton’s total share of net loss for the first year? A. $3,900 loss.B. $11,700 loss.C. $10,400 loss.D. $24,700 loss.E. $9,100 loss. 22. What was the balance in Young’s Capital account at the end of the first year? A. $120,900.B. $118,300.C. $126,100.D. $80,600.E. $111,500. Solved by verified study co-pilot All Study…
Birch Company normally produces and sells 40,000 units of RG-6 each month. The selling price is $32 per unit, variable costs are $20 per unit, fixed manufacturing overhead costs total $140,000 per month, and fixed selling costs total $30,000 per month.
Birch Company normally produces and sells 40,000 units of RG-6 each month. The selling price is $32 per unit, variable costs are $20 per unit, fixed manufacturing overhead costs total $140,000 per month, and fixed selling costs total $30,000 per month. The pandemic has caused the companies that purchase the bulk of the RG-6 units to withdraw orders, so Birch Company’s sales temporarily drops to only 10,000 units per month. Birch Company estimates that the effects of pandemic will last for five months, after which time sales of RG-6 should return to normal. Due to the current low level of sales, Birch Company is thinking about closing down its own plant during the pandemic, which would reduce its fixed manufacturing overhead costs by $120,000 per month and its fixed selling costs by 80% per month. Start-up costs at the end of the shutdown period would total $18,000, and an additional…
From the following Information, please prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet for the month of May of the current year.
From the following Information, please prepare an Income Statement, Statement of Owner’s Equity, and Balance Sheet for the month of May of the current year. For assistance with your assignment, please use your text, Web resources, and all course materials. Solved by verified study co-pilot All Study Co-Pilots are evaluated by Gotit Pro as an expert in their subject area. Get Solution Contact Us Student review: (19 ratings) 19 out of 19 people found this solution helpful.