A total of $4,200 in supplies was purchased during the year. At the end of the year $1,100 of the supplies were left. The adjusting entry needed at the end of the year is:

Multiple Choice

• debit Supplies Expense $4,200; credit Supplies $4,200

• debit Supplies Expense $3,100; credit Supplies $3,100

• debit Supplies Expense $1,100; credit Supplies $1,100

• debit Supplies $3,100; credit Supplies Expense $3,100

Charlie was hired by Ajax this year as a corporate executive and a member of the board of directors. During the current year, Charlie received the following payments or benefits paid on his behalf.

a. Charlie uses the cash method and calendar year for tax purposes. Calculate Charlie’s gross income for the current year.

A stock is expected to pay a dividend of $1 at the end of the year. The required rate of return is r_s = 11%, and the expected constant growth rate is 5%. What is the current stock price?

Select one:

a. $16.67

b. $18.83

c. $21.67

d. $23.33

e. $20.00

The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to

Select one:

a. Maximize its expected total corporate income

b. Maximize its expected EPS

c. Minimize the chances of losses

d. Maximize the stock price per share over the long run which is the stocks's intrinsic value.

e. Maximize the stock price on a specific target date

Leggio Corporation issued 20-year, 7% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds has dropped to 6%. What is the new price of the bonds, given that they now have 19 years to maturity?

Select one:

a. $1,046.59

b. $1,111.58

c. $1,133.40

d. $1,177.78

e. $1,189.04

It is the end of the fiscal year for Company A, a manufacturing company. Looking at the projected income for the year, it looks like income will be too low for anyone to get bonuses. The controller, Shelly Game', is looking over accounting records to make sure that everything is correct for annual income statements. Currently, the accounting department has $50,000 of depreciation expenses associated with computer hardware and software used to calculate product cost, WIP, FGI, and COGS. Since this is part of Accounting expenses, these costs are classified as period costs and recorded as part of Selling and Administrative expenses. Game' is considering proposing that these costs be classified as manufacturing overhead rather than period costs. This change would move these costs to FGI, and make income for the year high enough for employees to get bonuses. Looking at the IMA Statement of Ethical Professional Practice, discuss What the ethical issues are in this situation? What are Game's responsibilities as a management accountant?

It is the end of the fiscal year for Company A, a manufacturing company. Looking at the projected income for the year, it looks like income will be too low for anyone to get bonuses. The controller, Shelly Game', is looking over accounting records to make sure that everything is correct for annual income statements. Currently, the accounting department has $50,000 of depreciation expenses associated with computer hardware and software used to calculate product cost, WIP, FGI, and COGS. Since this is part of Accounting expenses, these costs are classified as period costs and recorded as part of Selling and Administrative expenses.

Game' is considering proposing that these costs be classified as manufacturing overhead rather than period costs. This change would move these costs to FGI, and make income for the year high enough for employees to get bonuses.

Looking at the IMA Statement of Ethical Professional Practice (in the prologue of the text), discuss what the ethical issues are in this situation? What are Game's responsibilities as a management accountant?

Prior to adjustment at the end of the year, the balance in Trucks is $302,210 and the balance in Accumulated Depreciation—Trucks is $100,920. Details of the subsidiary ledger are as follows: Estimated Accumulated Depreciation at Miles Operated Truck No. Cost Residual Value Useful Life Beginning of Year During Year 1 $83,960 $15,360 245,000 miles — 20,600 miles 2 51,050 5,930 300,800 miles $14,700 33,800 miles 3 77,486 12,910 201,800 miles 62,180 8,100 miles 4 89,714 22,010 241,800 miles 24,040 22,500 miles A. Determine for each truck the depreciation rate per mile and the amount to be credited to the accumulated depreciation section of each subsidiary account for the miles operated during the current year. Keep in mind that the depreciation taken cannot reduce the book value of the truck below its residual value. Round rate per mile answers to the nearest cent. B. Journalize the entry on December 31 to record depreciation for the year. Refer to the Chart of Accounts for exact wording of account titles.

Complete the horizontal analysis below:

Year 2                                     Year 1                                     Amount Change                   Percentage Change

$88, 338                                $92,147                                                 ???                                          ???

A. ($3,809), 4.1%

B. $3,809, 4.1%

C. $180,485, 51.1%

D. $8,300, 15%

E. None of these

a. What is the convexity of a 10 year bond with a coupon of 6% and a yield of 7.82%?

b. For the 11th coupon, what is the present value times t times t+1?

c. A bond has a MD of 6.50 years and trades at a price of 118.08. The YTM is 3.40%. Its CX factor is 50.68. Using MD and CX, what is the new price when the YTM increases to 5.1%?

a. What is the convexity of a 10 year bond with a coupon of 6% and a yield of 7.82%?

b. For the 11th coupon, what is the present value times t times t+1?

c. A bond has a MD of 6.50 years and trades at a price of 118.08. The YTM is 3.40%. Its CX factor is 50.68. Using MD and CX, what is the new price when the YTM increases to 5.1%?