1) What is FOB shipping Point and FOB Destination Point?

2) Where does Office Supply Expense go on the Income Statement?

3) Using the Gross Method, how do Discounts Lost and Discounts Taken effect the Purchases Account?

4) In a period of rising prices, which inventory method results in the highest ending inventory: Weighted Average, Moving Average, LIFO, FIFO?

5) Calculate Gross Profit when you are given Sales and the Cost of Goods Sold?

6) Which inventory system provides a better matching of revenue and expenses - Weighted Average, Moving Average, LIFO, FIFO?

Exercise 24-1 (Essay) Madrasah Corporation issued its financial statements for the year ended December 31, 2017, on March 10, 2018. The following events took place early in 2018. (a) On January 10, 10,000 shares of $5 par value common stock were issued at $66 per share. (b) On March 1, Madrasah determined after negotiations with the Internal Revenue Service that income taxes payable for 2017 should be $1,270,000. At December 31, 2017, income taxes payable were recorded at $1,100,000.

Discuss how the preceding post-balance-sheet events should be reflected in the 2017 financial statements.

Silver Sun Media is considering a project that would last for 2 years. The project would involve an initial investment of 104,000 dollars for new equipment that would be sold for an expected price of 84,000 dollars at the end of the project in 2 years. The equipment would be depreciated to 24,000 dollars over 4 years using straight-line depreciation. In years 1 and 2, relevant annual revenue for the project is expected to be 85,000 dollars per year and relevant annual costs for the project are expected to be 29,000 dollars per year. The tax rate is 50 percent and the cost of capital for the project is 4.39 percent. What is the net present value of the project?

Ivanhoe Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.15 million. This investment will consist of $2.85 million for land and $9.30 million for trucks and other equipment. The land, all trucks, and all other equipment are expected to be sold at the end of 10 years for a price of $5.20 million, which is $2.30 million above book value. The farm is expected to produce revenue of $2.05 million each year, and annual cash flow from operations equals $1.95 million. The marginal tax rate is 35 percent, and the appropriate discount rate is 10 percent. Calculate the NPV of this investment.

Attached is an Income statement for Fleming Company. Your office burned down. You found the following date: Fleming Income Statement: Revenue $20,980 Rent Expense $2,400 Depreciation Expense $ 2,200 Supplies Expense $ 960 Office Expense $1,240 total $ 6,800 Net income $ 14,100 And the following Notes :The company paid $15,600 in cash dividends. Accounts receivables decreased by $ 1,480 during the course of the year. Accounts payable increased by $ 380 when they purchased supplies. Total cash increased from $ 460 to $ 3100 Prepare the journal entries that occurred during the year. use T account for each account.

Hardhat has a contract to construct a $5,000,000 bridge at an estimated cost of $4,000,000. The

contract is to start in 2016 and will be completed in 2018. Below is the data for 2016-18:

2016                          2017                         2018

Costs to date                                               1,000,000 2,900,000                 4,100,000

Est. costs to complete                              3,000,000                 1,200,000 -

Progress billings during year                   900,000                    2,400,000                 1,700,000

Cash collected during year                      750,000                    2,250,000                 2,000,000

Compute the percentage of completion, and record the journal entries to recognize revenue,

expenses, and gross profit for 2016-18 using the percentage of completion method (Do not

record journal entries for costs incurred, progress billings, and cash collected during 2016-18)?

SquerDeal Mfg manufactures tables and desks, which are sold in sets of 4 chairs to tables to bussiness, school, and public facilities. They reported the fallowing financial information for last year: Direct Labor 20,000hrs @$15/hr, production Manager Salary $80,000, Factory Rent $60,000, Equipment Maintenance$5,000(considered a variable expense), Equipment Depreciation $25,000, Production for the year 35,000 units, Total Revenue $12,000,000, Total table and chairs set sold during the period 30,000, Operating Income under absorption costing (after non-production expenses) $5,000,000 what would Operating Income be under variable costing?

11. A consumer’s utility only depends on the consumption of goods A and B according to the following Cobb-Douglass utility function: U(A, B) = A^(1/3)B^(2/3). The price of goods A and B are $30 and $45, respectively. The consumer has a budget of $2700 that he can use to consume the two goods.

Question a) A new tax of 6% is imposed on the price of good B. Compute the new optimal bundle of good A and B for the same consumer. What is the utility loss due to the tax?

Question b) Show that the consumer would prefer a lump sum income tax that raises the same revenue as the tax on good B.

1. Tank Ltd is considering undertaking the purchase of a new piece of equipment that is expected to increase revenue by $12,000 each year for six years. The equipment will increase costs $4,000 each year for six years. It costs $32,000 to purchase today and for tax purposes must be depreciated down to zero over its 8 year useful life using the straight-line method. If Tank is actually forecasting a salvage (for capital budgeting purposes) of $5,000 after 6 years, what is the machine's net cash flow (after tax) for year 6? Assume the tax rate is 30%.

   A,13000 B, 11800 C, 12400 D, 12700

Metlock Company reports the following financial information before adjustments.

Prepare the journal entry to record bad debt expense assuming Metlock Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,540 debit balance. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)