ACC 206 Week Two Assignment Chapter Two and Three Problems

ACC 206 Week 2 Assignment Chapter Two and Three Problems

Chapter Two and Three Problems

Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button.

Chapter 2 Exercise 1

1. Issuance of stock

Prepare 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 3

3. Analysis of stockholders' equity

Star Corporation issued both common and preferred stock during 20X6. The stockholders' equity sections of the company's balance sheets at the end of 20X6 and 20X5 follow.

 

 

Chapter 2 Problem 1

1. Bond computations: Straight-line amortization

Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. 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.

 

 

Chapter 3 Exercise 1

1. Product costs and period costs

The costs that follow were extracted from the accounting records of several different manufacturers:

1.      Weekly wages of an equipment maintenance worker

2.      Marketing costs of a soft drink bottler

3.      Cost of sheet metal in a Honda automobile

4.      Cost of president's subscription to Fortune magazine

5.      Monthly operating costs of pollution control equipment used in a steel mill

6.      Weekly wages of a seamstress employed by a jeans maker

7.      Cost of compact discs (CDs) for newly recorded releases of Rush, Billy Joel, and Bryan Adams

a.      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 2

2. Definitions of manufacturing concepts 
Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:

Materials and supplies used

 

 

Chapter 3 Exercise 5

5. Schedule of cost of goods manufactured, income statement

The following information was taken from the ledger of Jefferson Industries, Inc.:

 

 

Chapter 3 Problem 3
3. Manufacturing statements and cost behavior

Tampa 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.