Q-1: McDonnell-Myer Corporation reported net income of $1,150 million. The company had 469 million common shares outstanding at January 1 and sold 42 million shares on Feb. 28. As part of an annual share repurchase plan, 6 million shares were retired on April 30 for $32 per share.

Calculate McDonnell-Myer's earnings per share for the year.

Q-2:CoffeeShop Doughnuts has current assets of $280 million; property, plant, and equipment of $430 million; and other assets totaling $170 million. Current liabilities are $170 million and long-term liabilities total $300 million. Use these data to write CoffeeShop Doughnuts' accounting equation.

Q-3:In October, Glazier Inc. reports 42,000 actual direct labor hours, and it incurs $194,000 of manufacturing overhead costs. Standard hours allowed for the work done is 40,000 hours. The flexible manufacturing overhead budget shows that budgeted costs are $3.80 variable per direct labor hour and $60,000 fixed.
Compute the manufacturing overhead controllable variance. Identify whether the variance is favorable or unfavorable?

Q-4:The following information is provided in the 2011 annual report to shareholders of paris-perfume.com:

                                      December 31, 2011                             December 31, 2010
Accounts receivable                              ???                                                       $100 million

Inventory                                               $70 million                                            $30 million

Other assets                                         ???                                                       $170 million

Total assets                                          ???                                                       $300 million

Total liabilities                                       ???                                                       $100 million

Total stockholders’ equity                      ???                                                       $200 millio

For the year ended Dec. 31, 2011

Net sales                                              ???

Cost of goods sold                               ???

Net income                                           $40 million

Return on assets                                  10%

Receivables turnover                             8.0

Inventory turnover                                12.0

Asset turnover                                       2.5

Return on stockholders’ equity              20%

Profit margin on sales                            4%

Required: Compute the missing amount in the paris-perfume.com financial statement information, indicated by ??? in the table above.

Q-5:Medusa Products uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would work 85,000 machine-hours and incur $170,000 in manufacturing overhead costs for the year.

Required:

1) Compute the company's predetermined overhead rate.

2) Assume that during the year the company actually worked only 80,000 machine-hours and incurred $168,000 of manufacturing overhead costs. Compute the amount of underapplied or overapplied overhead for the year

Q-6: Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.50. The market value of the company's common stock at the end of the year was $26. All of the company's sales are on account.

Compute the following financial data and ratios for this year:

3.Acid-test ratio. (Round your answer to 2 decimal places.)

Q-7:FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following

Required:
1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line month by month and in total for the first quarter.

2. What if FlashKick added a third line - tournament quality soccer balls that were expected to take 40% of the units sold of the match balls and would have a selling price of $45 each in January and February, and $48 each in March? Prepare a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter.

Part 2:Refer to the information above through requirment 1. Flashkick requires ending inventory of product to equal 20% of the next month's unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls.

Required:1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year.

2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget?EZ Curb Company completed the following transactions during 2013. The annual accounting period ends December 31, 2013.

Jan. 8 Purchased merchandise on account at a cost of $14,000. (Assume a perpetual inventory system.)

17 Paid for the January 8 purchase.

Apr. 1 Received $40,000 from National Bank after signing a 12-month, 6 percent, promissory note.

June 3 Purchased merchandise on account at a cost of $18,000.

July 5 Paid for the June 3 purchase.

Aug. 1 Rented out a small office in a building owned by EZ Curb Company and collected six months' rent in advance amounting to $6,000. (Use an account called Unearned Rent Revenue.)

Dec. 20 Received a $100 deposit from a customer as a guarantee to return a large trailer "borrowed" for 30 days.

TIP: Consider whether EZ Curb Company has an obligation to return the money when the trailer is returned

Dec. 31 Determined that wages of $6,500 were earned but not yet paid on December 31 (ignore payroll taxes).
Dec. 31 Adjusted the accounts at year-end, relating to interest.
Dec. 31 Adjusted the accounts at year-end, relating to rent.

Required:
Prepare journal entries for each of the transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

2.Prepare any adjusting entries required on December 31, 2013. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

3.Show how all of the liabilities arising from these items are reported on the balance sheet at December 31, 2013.(Do not round intermediate calculations.)Q-9:On January 1, 2013, the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. The machine is expected to produce 220,000 units during its life.
Required:
Calculate depreciation for 2013 and 2014 using each of the following methods. (Do not round intermediate calculations.)
1. Straight line.
2. Sum-of-the-years' digits.
3. Double-declining balance.
4. One hundred fifty percent declining balance.
5. Units of production (units produced in 2013, 30,000; units produced in 2014, 25,000).

Q-10: On January 1, 2014, Jade Company issued $2,000,000 face value, 7%, 10-year bonds at $2,147,202. This price resulted in a 6% effective-interest rate on the bonds. Jade uses the effective-interest method to amortise bond premium or discount. The bonds pay annual interest on each January 1.

Instructions
(a) Prepare the journal entries to record the following transactions.
(1) The issuance of the bonds on January 1, 2014.
(2) Accrual of interest and amortisation of the premium on December 31, 2014.
(3) The payment of interest on January 1, 2015.
(4) Accrual of interest and amortisation of the premium on December 31, 2015.
(b) Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2015.
(c) Provide the answers to the following questions in narrative form.
(1) What amount of interest expense is reported for 2015?
(2) Would the bond interest expense reported in 2015 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortisation were used?