ACC 206 Week 2 Assignment

Chapter 2 Exercise 11. Issuance of stockPrepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases:a. Jackson Corporation has common stock with a par value of $1 per share.b. Royal Corporation has no-par common with a stated value of $5 per share.c. French Corporation has no-par common; no stated value has been assigned.
Chapter 2 Exercise 33. Analysis of stockholders’ equityStar Corporation issued both common and preferred stock during 19X6. The stockholders’ equity sections of the company’s balance sheets at the end of 19X6 and 19X5 follow.19X619X5
Preferred stock, $100 par value, 10%$580,000$500,000Common stock, $10 par value2,350,0001,750,000Paid-in capital in excess of par valuePreferred24,000—Common4,620,0003,600,000Retained earnings8,470,0006,920,000Total stockholders’ equity$16,044,000$12,770,000a. Compute the number of preferred shares that were issued during 19X6.b. Calculate the average issue price of the common stock sold in 19X6.c. By what amount did the company’s paid-in capital increase during 19X6?d. Did Star’s total legal capital increase or decrease during 19X6? By what amount?
Chapter 2 Problem 11. Bond computations: Straight-line amortizationSouthlake Corporation issued $900,000 of 8% bonds on March 1, 19X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow. Case A—The bonds are issued at 100. Case B—The bonds are issued at 96. Case C—The bonds are issued at 105.Southlake uses the straight-line method of amortization.Instructions:Complete the following table:Case ACase BCase Ca. Cash inflow on the issuance date_____________________b. Total cash outflow through maturity_____________________c. Total borrowing cost over the life of the bond issue_____________________d. Interest expense for the year ended December 31, 19X1_____________________e. Amortization for the year ended December 31, 19X1_____________________
f. Unamortized premium as of December 31, 19X1_____________________g. Unamortized discount as of December 31, 19X1_____________________h. Bond carrying value as of December 31, 19X1_____________________Chapter 3 Exercise 11. Product costs and period costsThe costs that follow were extracted from the accounting records of several different manufacturers:1. Weekly wages of an equipment maintenance worker2. Marketing costs of a soft drink bottler3. Cost of sheet metal in a Honda automobile4. Cost of president’s subscription to Fortune magazine5. Monthly operating costs of pollution control equipment used in a steel mill6. Weekly wages of a seamstress employed by a jeans maker7. Cost of compact discs (CDs) for newly recorded releases of Rush, Billy Joel, and Bryan Adamsa. Determine which of these costs are product costs and which are period costs.b. For the product costs only, determine those that are easily traced to the finished product and those that are not.Chapter 3 Exercise 22. Definitions of manufacturing concepts Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:Materials and supplies usedBrass $75,000Repair parts 16,000Machine lubricants 9,000Wages and salaries Machine operators 128,000Production supervisors 64,000Maintenance personnel 41,000Other factory overhead Variable 35,000Fixed 46,000Sales commissions 20,000
Compute:a. Total direct materials consumedb. Total direct laborc. Total prime costd. Total conversion costChapter 3 Exercise 55. Schedule of cost of goods manufactured, income statementThe following information was taken from the ledger of Jefferson Industries, Inc.:Direct labor$85,000Administrative expenses$59,000Selling expenses34,000Work in. processSales300,000Jan. 129,000Finished goodsDec. 3121,000Jan. 1115,000Direct material purchases88,000Dec. 31131,000Depreciation: factory18,000Raw (direct) materials on handIndirect materials used10,000Jan. 131,000Indirect labor24,000Dec. 3140,000Factory taxes8,000Factory utilities11,000Prepare the following:a. A schedule of cost of goods manufactured for the year ended December 31.b. An income statement for the year ended December 31.Chapter 3 Problem 3 3. Manufacturing statements and cost behaviorTampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-gauge aluminum, which the company sells for $36 per roll. Cost information for the year just ended follows.Per UnitVariable CostFixed CostDirect materials$4.50$ —
Direct labor6.5—Factory overhead950,000Selling—70,000Administrative—135,000
Production and sales totaled 20,000 rolls and 17,000 rolls, respectively There is no work in process. Tampa carries its finished goods inventory at the average unit cost of production.Instructions:a. Determine the cost of the finished goods inventory of light-gauge aluminum.b. Prepare an income statement for the current year ended December 31c. On the basis of the information presented:1. Does it appear that the company pays commissions to its sales staff? Explain.2. What is the likely effect on the $4.50 unit cost of direct materials if next year’s production increases?

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