Reference no: EM13846447
Discussion
1. Daniel Company has 500,000 shares of common stock issued and 250,000 shares of common stock outstanding. Determine the earnings per share for 2008 if its net income is $175,000.
2. Guan Company had 200,000 shares of common stock outstanding on January 1, 2008, and repurchased 60,000 shares of common stock on March 31, 2008. Determine the earnings per share for calendar 2008 if net income was $400,000.
3. Gregson Enterprises, in its first year of operations, reported the following information:
Selling price per unit $ 100
Direct Materials per unit 5
Direct labor per unit 1
Unit-related overhead per unit 6
Selling cost per unit 2
Batch-related overhead for the year 500,000
Facility-sustaining overhead for the year 800,000
Fixed administrative cost for the year 650,000
Units produced 20,000
Units sold 15,000
What is Gregson's ending inventory using absorption costing?
4. Determine the classification for each account on the balance sheet using the following classifications. Use OOE for "other owners' equity" items that are not contributed capital or retained earnings. Put the letters in the spaces provided.
CA- Current Assets LTL- Long Term Liabilities
INV- Investments OL- Other Liabilities
PPE- Property, plant, and equipment CC- Contributed
INT- Intangibles RE- Retained Earnings
OA- Other assets OOE- Other owners' equity
CL- Current liabilities
1. Accounts Payable
2. Accumulated Depreciation
3. Bonds Payable
4. Building
5. Cash
6. Common Stock
7. Land Held for Speculation
8. Marketable Securities
9. Treasury Stock
10. Wages Payable
5. Tidrick Manufacturing has just completed its first year of operation. It has the following accounts in the general ledger. The bookkeeper is unsure which accounts to show on the balance sheet and which accounts to report on the income statement. All amounts are in the thousands of dollars.
-Prepare the current asset section of the balance sheet.
Accounts receivable $3,680
Accounts payable $7,316
Accumulated depreciation, Building $580
Accumulated Depreciation, Machinery $362
Additional Paid-In Capital $3,234
Allowance for Uncollectible Accounts $45
Bonds Payable $580
Building $2,340
Cash $4,317
Common Stock $30
Copyright $391
Cost of Goods Sold $33,892
Deferred Income Taxes Payable $30
Discount on Bonds Payable $75
Dividends Payable $130
Finished Goods Inventory $30
Income Tax Expense $1,079
Income Taxes Payable $1,300
Insurance Expense $400
Interest Expense $308
Land $2,510
Land held for speculation $2,500
Machinery $1,879
Marketable Securities (trading) $835
Notes Payable, Due in 90 Days $1,570
Notes Payable, Due in 10 Years $1,670
Preferred Stock $20
Prepaid Insurance $500
Prepaid Rent $941
Purchases Discounts $180
Raw Materials Inventory $87
Rent Expense $600
Retained Earnings $2,996
Sales $43,068
Sales Discounts $1,414
Sales Returns and Allowances $210
Selling and Administrative Expenses $2,700
Supplies $78
Wages Payable $580
Work-in-process Inventory $210