Author: Anonymous

7. Hamlin, Hamlin & McGill enters into a contract with a customer to complete a parking lot for $459,000 on April 30, 2026 with a performance bonus of $24,000 if the building is completed by July 31, 2026. The bonus is reduced by $4,800 each week that completion is delayed. Sunland commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability July 31, 2026 55% August 7, 2026 35% August 14, 2026 5% August 21, 2026 5% The transaction price is:

Bulldog Company had the following account balances at December 31, Year 1: Accounts Receivable $650,000 Allowance for doubtful accounts before any provision for Year 1 doubtful accounts expense  $14,000 Credit Sales for Year 1 $1,250,000 Bulldog is considering the following method of estimating doubtful accounts expense for year 1: Based on credit sales at 3% Based on accounts receivable at 6% What amount should Bulldog charge to bad debt expense under each method?   % of credit sales % of accounts receivable A. $37,500 $25,000 B. $51,500 $39,000 C. $37,500 $39,000 D. $51,500 $25,000

A flash flood swept through FMB, Inc.’s warehouse on May 1. After the flood, FMB’s accounting records showed the following: Inventory, January 1 $45,000 Purchases, January 1 through May 1 $145,000 Sales, January 1 through May 1 $200,000 Inventory not damaged by flood $20,000 Gross profit percentage on sales 45% What amount of inventory was lost in the flood?

During the current fiscal year, Keenum Corp. signed along-term noncancellable purchase commitment with its primary supplier. Keenum agreed to purchase $2.62 million of raw materials during the next fiscal year under this contract. At the end of the current fiscal year, the raw material to be purchased under this contract had a market value of $1.34 million. What is the journal entry at the end of the current fiscal year? A: Estimated Liability on Purchase Commitment       1,280,000            Gain on Purchase Commitment                                             1,280,000 B: Loss on Purchase Commitment                               1,340,000            Estimated Liability on Purchase Commitment                      1,340,000 C: Loss on Purchase Commitment                               1,280,000            Estimated Liability on Purchase Commitment                      1,280,000 D: No journal entry is required

6. Which of the following is an advantage of the single-step income statement over the multiple-step income statement?

8. Expensing the cost of a wastebasket with an estimated useful life of 10 years when purchased is an example of the application of the  

23.a. The transaction price allocated to the pool is:

Dicer Company uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) was $390,000 ($594,000), purchases during the current year at cost (retail) were $2,055,000 ($3,300,000), freight-in totaled $129,000, sales during the current year totaled $3,000,000, and net markups(markdowns) were $72,000 ($108,000). What is Dicer’s ending inventory value at cost?

2. The purpose of Statements of Financial Accounting Concepts is to

Use the following information for questions 19 and 20: Magnus Carlsen provides Hans Niemann $100,000 in services on terms 2/10, n/30. Hans pays 20% of the balance 9 days later and the remaining balance 15 days later.