Question & Answer

A square hole is to be cut using ECM through a plate of pure copper (valence = 1) that is 20 mm thick. The hole is 25 mm on each side, but the electrode used to cut the hole is slightly less that 25 mm on its sides to allow for overcut, and its shape includes a hole in its center to permit the flow of electrolyte and to reduce the area of the cut. This tool design results in a frontal area of 200 mm2. The applied current = 1000 amps. Using an efficiency of 95%, determine how long it will take to cut the hole.

In the previous problem, if the foundry desired to improve its quality performance to the 5.0 sigma level in all three measures of DPM, how many defects and defective units would they produce in an annual production quantity of 15,000 castings? Assume the same eight features are used to assess quality.

The cash method of accounting means that taxpayers don’t recognize income unless they receive cash or cash equivalents. True or false? Explain.

Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newton’s common stock activities. 1. Number of common shares issued and outstanding at December 31, 2012 2,000,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2013 200,000 3. Shares issued for cash on March 31, 2014 2,000,000 Number of common shares issued and outstanding at December 31, 2014 4,200,000 4. A 2-for-1 stock split of Newton’s common stock took place on March 31, 2015 Instructions (a) Compute the weighted-average number of common shares used in computing earnings per common share for 2013 on the 2014 comparative income statement. (b) Compute the weighted-average number of common shares used in computing earnings per common share for 2014 on the 2014 comparative income statement. (c) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2014 on the 2015 comparative income statement. (d) Compute the weighted-average number of common shares to be used in computing earnings per common share for 2015 on the 2015 comparative income statement.

Consider the bond investment by Lady Gaga in IFRS17-5. Discuss the accounting for this investment if Lady Gaga’s business model is to hold the investment to collect interest while outstanding and to receive the principal at maturity.

Marvin Gaye Company has been having difficulty obtaining key raw materials for its manufacturing process. The company therefore signed a long-term noncancelable purchase commitment with its largest supplier of this raw material on November 30, 2014, at an agreed price of $400,000. At December 31, 2014, the raw material had declined in price to $365,000. Instructions What entry would you make on December 31, 2014, to recognize these facts?

Consider the following independent situations. (a) Mike Finley wishes to become a millionaire. His money market fund has a balance of $92,296 and has a guaranteed interest rate of 10%. How many years must Mike leave that balance in the fund in order to get his desired $1,000,000? (b) Assume that Sally Williams desires to accumulate $1 million in 15 years using her money market fund balance of $182,696. At what interest rate must Sally’s investment compound annually?

Discuss how a change to the LIFO method of inventory valuation is handled when it is impracticable to determine previous LIFO inventory amounts.

Presented below is information related to Haselhof Inc. Balance per books at October 31, $41,847.85; receipts $173,523.91; disbursements $164,893.54. Balance per bank statement November 30, $56,274.20. The following checks were outstanding at November 30. 1224 $1,635.29 1230 2,468.30 1232 2,125.15 1233 482.17 Included with the November bank statement and not recorded by the company were a bank debit memo for $27.40 covering bank charges for the month, a debit memo for $372.13 for a customer’s check returned and marked NSF, and a credit memo for $1,400 representing bond interest collected by the bank in the name of Haselhof Inc. Cash on hand at November 30 recorded and awaiting deposit amounted to $1,915.40. Instructions (a) Prepare a bank reconciliation (to the correct balance) at November 30, for Haselhof Inc. from the information above. (b) Prepare any journal entries required to adjust the cash account at November 30.

Moonwalker Corporation issued 2,000 shares of its $10 par value common stock for $60,000. Moonwalker also incurred $1,500 of costs associated with issuing the stock. Prepare Moonwalker’s journal entry to record the issuance of the company’s stock.

Does the kiddie tax eliminate the tax benefits gained by a family when parents transfer income-producing assets to children?  Explain.

Assuming adequate E&P, will the shareholder’s tax basis in noncash property received equal the amount the shareholder includes in gross income as a dividend (assuming adequate E&P)? Under what circumstances will the amounts be different, if any?

Will the amortization of Discount on Bonds Payable increase or decrease Bond Interest Expense? Explain.

Assume the same information as in E17-3 except that the securities are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows. 2013 $320,500 2016 $310,000 2014 $309,000 2017 $300,000 2015 $308,000 Instructions (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entries to record the interest received and recognition of fair value for 2013. (c) Prepare the journal entry to record the recognition of fair value for 2014.

When the UK joined the ERM in 1990, it was hoped that this would make speculation pointless. As it turned out, speculation forced the UK to leave the ERM in 1992. Can you reconcile this with the argument that fixed rates discourage speculation?

DiCenta Corporation reported net income of $270,000 in 2014 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 5,000 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. DiCenta’s tax rate is 40%. Compute DiCenta’s 2014 diluted earnings per share.

During 2014, Liselotte Company earned income of $1,500,000 before income taxes and realized a gain of $450,000 on a government-forced condemnation sale of a division plant facility. The income is subject to income taxation at the rate of 34%. The gain on the sale of the plant is taxed at 30%. Proper accounting suggests that the unusual gain be reported as an extraordinary item. Illustrate an appropriate presentation of these items in the income statement.

In the absence of restrictive provisions, what are the basic rights of stockholders of a corporation?

A silicon wafer with a diameter of 200 mm is processed over a circular area whose diameter = 190 mm. The chips to be fabricated are square with 10 mm on a side. The density of point defects in the surface area is 0.0047 defects/cm2. Determine an estimate of the number of good chips using the Bose-Einstein yield computation.

Explain how some mortgage operations by some commercial banks (along with other financial institutions) played a major role in instigating the credit crisis that began in 2008. (LO3)

. In 2024, Jack is single two children, ages 10 and 12.  Jack works full time and earns an annual salary of $195,000 as a consultant. Jack files as a head of household and does not itemize his deductions.  In the fall of this year, he was recently offered a position with another firm that would pay him an additional $45,000.

Who are the two key international players in the development of international accounting standards? Explain their role.

Simon Company determines that its goodwill is impaired. It finds that its implied goodwill is $360,000 and its recorded goodwill is $400,000. The fair value of its identifiable assets is $1,450,000. What is the amount of goodwill impaired?

If taxpayers are not allowed to claim deductions for dependency exemptions, is it necessary to determine who qualifies as a taxpayer’s dependent(s)? Briefly explain.

Wallace Computer Company is a small, closely held corporation. Eighty percent of the stock is held by Derek Wallace, president. Of the remainder, 10% is held by members of his family and 10% by Kathy Baker, a former officer who is now retired. The balance sheet of the company at June 30, 2014, was substantially as shown below.CONCEPTS FOR ANALYSIS Assets Liabilities and Stockholders’ Equity Cash $ 22,000 Current liabilities $ 50,000 Other 450,000 Common stock 250,000 $472,000 Retained earnings 172,000 $472,000 Additional authorized common stock of $300,000 par value had never been issued. To strengthen the cash position of the company, Wallace issued common stock with a par value of $100,000 to himself at par for cash. At the next stockholders’ meeting, Baker objected and claimed that her interests had been injured. Instructions (a) Which stockholder’s right was ignored in the issue of shares to Derek Wallace? (b) How may the damage to Baker’s interests be repaired most simply? (c) If Derek Wallace offered Baker a personal cash settlement and they agreed to employ you as an impartial arbitrator to determine the amount, what settlement would you propose? Present your calculations with sufficient explanation to satisfy both parties.