Accounting questions and answers in March 2021

To capitalize an expenditure is to: a credit an expense account b Debit an expense account.  C. Credit the owner's capital account d. Debit an asset account. ====================== An asset's book v...
In September, Larson Inc. sold 40,000 units of its only product for $262,000, and incurred a total cost of $245,000, of which $27,000 was fixed costs. The flexible budget for September showed total sa...
Mraz's Place operates as a restaurant. Its customers can pay by cash, debit or credit card. For each debit transaction, Jason pays $0.15. For credit cards, Jason pays 5% of the total credit card trans...
Beds Unlimited received a shipment of bed sheets on September 6, 2019. The value of the bed sheets was $12,000 and the sheets were shipped FOB shipping point. Freight charges came to $340. This compan...
Leslie and Ben run a dry cleaners together, called Pawny Cleaners. Their customers can pay by cash, debit or credit card. For each debit transaction, they pay $0.15. For credit cards, they pay 4.0% of...
The following is written on an invoice relating to goods that were purchased: 2/15, n/60. What does it mean? It means a ..........% discount would apply if paid within ......... days. The net amoun...
If a taxpayer drives 10,000 business miles during 2018, and uses the standard mileage method, the taxpayer's deduction on Schedule C is: Question 20 options: 1)  $2,400  2)  $2,300  3)  $5,400  ...
During 2018, a corporation purchased machinery costing $20,000 and a warehouse costing $160,000. These are the only two acquisitions of depreciable property purchased by the corporation in 2018. The m...
If Johnson determines price so as to receive a desired return on assets of 15%, the price is Johnson Marine has the following costs and expected sales for the coming year. Johnson is considering a num...
Business Process Redesign Select any company which has recently undertaken business process re-engineering (other than Ford motors and IBM) and discuss the topic under following headings: 1. A brief d...
Explanation and Solution The partnership agreement of Paul, Simon and Peter provides for the division of net income as follows: • Simon, who manages the partnership is to receive an annual salary of...
A project your company is contemplating is expected to generate the following cash flows over the next 4 years. From the table below, Determine the payback period. Year and Cash Flows ($) Year 0= -200...
Given the following information regarding the Amazon stocks on 4/16/2020). Price per share = $2,400. Last year's profit = 288M. Number of outstanding shares = 12M. Determine the P/E ratio for Amazon. ...
Johnson Marine has the following costs and expected sales from the coming year. Johnson is considering a number of different methods to determine the price of its product. Variable Manufacturing: 2,35...
Calculate the annual returns from 2001 to 2010 for each fund.  Calculate the average return over the 10 year period and the standard deviation of each fund's return for the10 year period as well. Da...
Bold Company estimated the annual warranty expense at 2% of annual net sales. The net sales for 2016 amounted to P4,000,000. On January 1, 2016, the warranty liability was P60,000 and the warranty pay...
The value of a machine was $400,000 when purchased new one year ago. It has an expected life of five years and the income statement shows the straight line depreciation rate as 20%.  Using double dec...