Question & Answer

Bruno Corporation’s post-closing trial balance at December 31, 2014, is shown on the next page.   At December 31, 2014, Bruno had the following number of common and preferred shares. Common Preferred Authorized 600,000 60,000 Issued 200,000 10,000 Outstanding 190,000 10,000 The dividends on preferred stock are $4 cumulative. In addition, the preferred stock has a preference in liquidation of $50 per share. Instructions Prepare the stockholders’ equity section of Bruno’s balance sheet at December 31, 2014.

What is the theoretical justification of the allowance method as contrasted with the direct write-off method of accounting for bad debts?

If a true centrifugal casting operation were to be performed in a space station circling the Earth, how would weightlessness affect the process?

: Describe how managers apply the stages of unfreezing, changing, and refreezing to bring about changes in the culture and people of an organization.

What is self-assembly in nanofabrication?

Matt Holmes recently joined Klax Company as a staff accountant in the controller’s office. Klax Company provides warehousing services for companies in several European cities. The location in Koblenz, Germany, has not been performing well due to increased competition and the loss of several customers that have recently gone out of business. Matt’s department manager suspects that the plant and equipment may be impaired and wonders whether those assets should be written down. Given the company’s prior success, this issue has never arisen in the past, and Matt has been asked to conduct some research on this issue. Instructions Access the IFRS authoritative literature at the IASB website (http://eifrs.iasb.org/). (Click on the IFRS tab andthen register for free eIFRS access if necessary.) When you have accessed the documents, you can use thesearch tool in your Internet browser to respond to the following questions. (Provide paragraph citations.) (a) What is the authoritative guidance for asset impairments? Briefly discuss the scope of the standard (i.e., explain the types of transactions to which the standard applies). (b) Give several examples of events that would cause an asset to be tested for impairment. Does it appear that Klax should perform an impairment test? Explain. (c) What is the best evidence of fair value? Describe alternate methods of estimating fair value.

Courtney recently received a speeding ticket on her way to the university.  Her fine was $200.  Is this considered a tax?  Why or why not?

Relative to arm’s-length transactions, why do related-party transactions receive more IRS scrutiny?

According to the video, what are four possible functions of the electrodes in resistance spot welding?

The comparative balance sheets of Madrasah Corporation at the beginning and end of the year 2014 appear below.   Net income of $44,000 was reported, and dividends of $33,000 were paid in 2014. New equipment was purchased and none was sold. Instructions (a) Prepare a statement of cash flows for the year 2014. (b) Compute the current ratio (current assets 4 current liabilities) as of January 1, 2014, and December 31, 2014, and compute free cash flow for the year 2014. (c) In light of the analysis in (b), comment on Madrasah’s liquidity and financial flexibility.

Many of the design guidelines that are applicable to plastics are also applicable to rubber. However, the extreme flexibility of rubber results in certain differences. What are some examples of these differences?

The financial statements of P&G are presented in Appendix 5B. The company’s complete annual report, including the notes to the financial statements, can be accessed at the book’s companion website, www. wiley.com/college/kieso. Instructions Refer to P&G’s financial statements and the accompanying notes to answer the following questions. (a) What criteria does P&G use to classify “Cash and cash equivalents” as reported in its balance sheet? (b) As of June 30, 2011, what balances did P&G have in cash and cash equivalents? What were the major uses of cash during the year? (c) P&G reports no allowance for doubtful accounts, suggesting that bad debt expense is not material for this company. Is it reasonable that a company like P&G would not have material bad debt expense? Explain.

What are the potential implications for future aggregate living standards of ‘super-hysteresis’ compared with ‘hysteresis’ following the COVID-19 pandemic?

A Metric 16x2 bolt (16 mm diameter, 2 mm pitch) is subjected to a torque of 15 N-m during tightening. If the torque coefficient is 0.24, determine the tensile stress on the bolt.

A small company uses a band saw to cut through 2-inch metal bar stock. A material supplier is pushing a new material that is supposed to be more machinable while providing similar mechanical properties. The company does not have access to sophisticated measuring devices, but they do have a stopwatch. They have acquired a sample of the new material and cut both the present material and the new material with the same band saw settings. In the process, they measured how long it took to cut through each material. To cut through the present material, it took an average of 2 minutes, 20 seconds. To cut through the new material, it took an average of 2 minutes, 6 seconds. (a) Develop a machinability rating system based on time to cut through the 2.0-inch bar stock, using the present material as the base material. (b) Using your rating system, determine the machinability rating for the new material.

As the new staff person in your company’s treasury department, you have been asked to conduct research related to a proposed transfer of receivables. Your supervisor wants the authoritative sources for the following items that are discussed in the receivables transfer agreement. Instructions Access the IFRS authoritative literature at the IASB website (http://eifrs.iasb.org/). (Click on the IFRS tab and then register for free eIFRS access if necessary.) When you have accessed the documents, you can use the search tool in your Internet browser to prepare responses to the following items. (a) Identify relevant IFRSs that address transfers of receivables. (b) What are the objectives for reporting transfers of receivables? (c) Provide the definition for “Amortized cost.”

The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://annualreport.marksandspencer.com/_assets/downloads/Marks-and- Spencer-Annual-report-and-financial-statements-2012.pdf. Instructions Refer to M&S’s financial statements and the accompanying notes to answer the following questions. (a) What criteria does M&S use to classify “Cash and cash equivalents” as reported in its statement of financial position? (b) As of 31 March 2012, what balances did M&S have in cash and cash equivalents? What were the major uses of cash during the year? (c) What amounts related to trade receivables does M&S report? Does M&S have any past due but not impaired receivables?

Identify and briefly describe the two methods generally employed to account for the cash received in situations where the collection of the sales price is not reasonably assured.

Explain the differences between financial and non-financial performance measures and give two examples of each.             (LO1)

List the factors that affect the hold down pressure in a drawing operation according to the video on sheet-metal stamping dies and processes.

How can the market distortions argument be used to justify putting excise duties on specific goods such as petrol, alcohol and tobacco? Is this the only reason why excise duties are put on these particular products?

Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2014, at 119.792 to yield 8%. Interest is payable semiannually on July 1 and January 1. Prepare the journal entries to record (a) the issuance of the bonds, (b) the payment of interest and the related amortization on July 1, 2014, and (c) the accrual of interest and the related amortization on December 31, 2014. (Round to the nearest dollar.)

Identify some of the changes and injuries that can occur at or immediately below the surface of a metal.

Assume you asked your favorite AI learning tool to do the following: “Describe the §1231 netting process” and the AI tool responded as follows:

How much flexibility do partnerships have in allocating partnership items to partners?