91) Andrea died with an unused capital loss carryover of $3,300. The carryover A) may be carried back three years. B) will be fully used on Andrea's final income tax return. C) will be inherited by Andrea's heirs. D) expires with death. 92) This year, Lauren sold several shares of stock held for investment. The following is a summary of her capital transactions for the year: Acquired Sold This Year Selling Price Cost 09/25/2013 12/15   $800 $1,000 02/15/2013 07/15 2,200 1,750 06/25/2007 08/01 3,500 2,300 12/28/2009 06/15 750 900 What are the amounts of Lauren's capital gains (losses) for […]

128.On July 10, 2016, Rex Company sold merchandise at an invoice price of $5,000 with terms of 2/10, n/30. Required: Prepare the journal entries required below by indicating the account code of the appropriate account for each debit and credit and enter the dollar amounts for each item. Account Code ACash BAccounts receivable CSales revenue DSales discounts TransactionDebitsCredits CodeAmountCodeAmount Sale on July 10, 2016    Assumption A: Collection of the account on August 9, 2016.    Assumption B: Collection of the account on July 18, 2016.        129.On June 1, 2016, Concorde Company sold merchandise on credit at an invoice price […]

5) Freighters Inc. has provided the following extracts from their budget for the first quarter of the forthcoming year: Jan Feb March Purchases on account $280,000 $295,000 $310,000 The vendors allowed terms of payment as follows: Month of purchase 25% First month after the purchase 50% of the balance Second month after the purchase balance 50% Calculate the total payment on account for the month of March. A) $259,625 B) $563,245 C) $325,643 D) $293,125 6) The following details have been extracted from the budget of a merchandising company. Rent Expense $8,000 per month Depreciation Expense $ 3,500 per month […]

18) Gould Enterprises sells computer disks for $1.50 per disk. Unit variable expenses total $0.90. The breakeven point in units is 3,000 and expected sales in units are 4,300. What is the margin of safety in dollars? A) $4,500 B) $1,950 C) $3,870 D) $6,450 19) McPherson Company is facing a $6 increase in the variable cost of producing one of its products for the upcoming year. As a result, the sales manager has made a proposal to increase the selling price of the product while increasing the advertising budget at the same time. The price increase will lower sales […]

14) Young Guns Company, which sells tents, has provided the following information: Price per unit $40 Variable cost per unit 12 Fixed costs per month $12,600 What are the required sales in units for Young to break even? A) 252 units B) 1,050 units C) 315 units D) 450 units 15) Young Company has provided the following information: Price per unit $40 Variable cost per unit 12 Fixed costs per month $12,600 What is the amount of sales in dollars required for Young to break even? A) $1,050 B) $18,000 C) $5,400 D) $12,600 16) Roberts Tobacco Company has fixed […]