Allen Labinski has prepared the following list of statements about process cost accounting

E3-1 Allen Labinski has prepared the following list of statements about process cost accounting. Identify each statement as true or false. If false, indicate how to correct the statement.

1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion.
2. A process cost system is used when each finished unit is indistinguishable from another.
3. Companies that produce soft drinks, motion pictures, and computers chips would all use process cost accounting.
4. In a process cost system, costs are tracked by individual jobs.
5. Job order costing and process costing track different manufacturing costs elements.
6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead.
7. Costs flow through the accounts in the same basic way for both job order costing and process costing.
8. In a process cost system, only one work in process account is used.
9. In a process cost system, costs are summarized in a job cost sheet.
10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the units produced during the period.

NOTE: Fill in the table below with your responses; write correction for false statements below the table:

Click here for the solution: Allen Labinski has prepared the following list of statements about process cost accounting

Jim Thome has prepared the following list of statements about bonds

ACC 291 Week 3 Assignment

E10-8 Jim Thome has prepared the following list of statements about bonds.

1. Bonds are a form of interest bearing notes payable.
2. When seeking long term financing, an advantage of issuing bonds over issuing common stock is that stockholder control is not affected.
3. When seeking long term financing, an advantage of issuing common stock over issuing bonds is that tax savings result.
4. Secured bonds have specific assets of the issuer pledged as collateral for the bonds.
5. Secured bonds are also known as debenture bonds.
6. Bonds that mature in installments are called term bonds.
7. A conversion feature may be added to bonds to make them more attractive to bond buyers.
8. The rate used to determine the amount of cash interest the borrower pays is called the stated rate.
9. Bond prices are usually quoted as a percentage of the face value of the bond.
10. The present value of a bond is the value at which it should sell in the marketplace.

Instructions
Identify each statement above as true or false. If false, indicate how to correct the statement.


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Below is a list of treatments of accounting topics

9. Below is a list of treatments of accounting topics. Place GAAP on the line if the treatment is GAAP-based and place IFRS on the line if the treatment is IFRS-based.

A. Interest and dividend income are reported in the investing section of the cash flow statement.__________
B. Interest expense is reported in the financing section of the cash flow statement. ___________
C. The use of LIFO is prohibited. ___________


Click here for the solution: Below is a list of treatments of accounting topics

List two examples of audit evidence the auditor can use in support of each of the following

Auditing P 7-31

List two examples of audit evidence the auditor can use in support of each of the following:
a. Recorded amount of entries in the acquisitions journal
b. Physical existence of inventory
c. Accuracy of accounts receivable
d. Ownership of fixed assets
e. Liability for accounts payable
f. Obsolescence of inventory
g. Existence of petty cash


Click here for the solution: List two examples of audit evidence the auditor can use in support of each of the following

The following is a list (in random order) of the December 31, 2010 balance sheet accounts of the International Products Company

The following is a list (in random order) of the December 31, 2010 balance sheet accounts of the International Products Company.

Additional paid-in capital on preferred stock $ 1,600
Accounts receivable 13,800
Dividends payable 1,800
Buildings 50,000
Bonds payable (due 2016) 29,000
Retained earnings 25,800
Office supplies 1,900
Current income tax payable 4,200
Accumulation depreciation equipment 8,300
Patents (net) 2,400
Notes payable (due January 1, 2013) 17,000
Inventory 24,400
Additional paid in capital on common stock 7,700
Sinking fund for bond retirement 4,000
Accounts payable $16,500
Prepaid insurance 900
Discount on bonds payable 2,000
Common stock $10 par 15,000
Equipment 29,000
Allowance for doubtful accounts 700
Preferred stock $50 par 10,000
Accumulated depreciation Buildings 12,400
Current interest payable 2,900
Investment in held- to- Maturity bonds 9.000
Cash 8,200
Treasury stock (at cost) 1,500
Accrued wages 3,700
Land 9,500

1 .Prepare a property classified balance sheet for the International Products Company on December 31, 20101.
2. Assume instead that International Products Company uses IFRS. Prepare its balance sheet on December 31, 2010.


Click here for the solution: The following is a list (in random order) of the December 31, 2010 balance sheet accounts of the International Products Company

Presented below is a list of items that could be included in the intangible assets section of the balance sheet

E12-1 Presented below is a list of items that could be included in the intangible assets section of the balance sheet.

a) Indicate which items on the list above would generally be reported as intangible assets in the balance sheet.
b) Indicate how, if at all, the items not reportable as intangible assets would be reported in the financial statements

1. Investment in a subsidiary company.
2. Timberland
3. Cost of engineering activity required to advance the design of a product to the manufacturing stage.
4. Lease prepayment (6 months' rent paid in advance)
5. Cost of equipment obtained.
6. Cost of searching for applications of new research findings.
7. Costs incurred in the formation of a corporation.
8. Operating losses incurred in the start-up of a business.
9. Training costs incurred in start-up of a business.
10. Purchase cost of a franchise.
11. Goodwill generated internally.
12. Cost of testing in search for product alternatives.
13. Goodwill acquired in the purchase of a business.
14. Cost of developing a patent.
15. Cost of purchasing a patent from an inventor.
16. Legal costs incurred in securing a patent.
17. Unrecovered costs of a successful legal suit to protect the patent.
18. Cost of conceptual formulation of possible product alternatives.
19. Cost of purchasing a copyright.
20. Research and development costs.
21. Long-term receivables.
22. Cost of developing a trademark.
23. Cost of purchasing a trademark.

Click here for the solution: Presented below is a list of items that could be included in the intangible assets section of the balance sheet

List and briefly describe four of the five differences between managerial accounting and financial accounting

List and briefly describe four of the five differences between managerial accounting and financial accounting.

Click here for the solution: List and briefly describe four of the five differences between managerial accounting and financial accounting.