Solved by verified expert :Chapter Two and Three ProblemsPlease complete the following 7 exercises below in either Excel or a word document (but must be singledocument). You must show your work where appropriate (leaving the calculations within Excel cells isacceptable). Save the document, and submit it in the appropriate week using the Assignment Submissionbutton.Chapter 2 Exercise 11. Issuance of stockPrepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share foreach of the following independent cases:a. Jackson Corporation has common stock with a par value of $1 per share.b. Royal Corporation has no-par common with a stated value of $5 D share.c. French Corporation has no-par common; no stated value has been as signedChapter 2 Exercise 33. Analysis of stockholders’ equityStar Corporation issued both common and preferred stock during 19X6. The stockholders’ equitysections of the company’s balance sheets at the end of 19X6 and 19X5 follow.Preferred stock, $100 par value, 10%Common stock, $10 par value19X6$580,0002,350,00019X5$500,0001,750,000Paid-in capital in excess of par valuePreferredCommonRetained earningsTotal stockholders’ equity24,0004,620,0008,470,000$16,044,0003,600,0006,920,000$12,770,000a. Compute the number of preferred shares that were issued during 19X6.b. Calculate the average issue price of the common stock sold in 19X6.c. By what amount did the company’s paid-in capital increase during 19X6?d. Did Star’s total legal capital increase or decrease during 19X6? By what amount?Chapter 2 Problem 11. Bond computations: Straight-line amortizationSouthlake Corporation issued $900,000 of 8% bonds on March 1, 19X1. The bonds pay interest onMarch 1 and September 1 and mature in 10 years. Assume the independent cases that follow.Case AThe bonds are issued at 100.Case BThe bonds are issued at 96.Case CThe bonds are issued at 105.Southlake uses the straight-line method of amortization.Instructions:Complete the following table:a. Cash inflow on the issuance dateb. Total cash outflow through maturityc. Total borrowing cost over the life of the bond issued. Interest expense for the year ended December 31,e.f.g.h.19X1Amortization for the year ended December 31, 19X1Unamortized premium as of December 31, 19X1Unamortized discount as of December 31, 19X1Bond carrying value as of December 31, 19X1Case A_____________________Case B_____________________Case C______________________________________________________________________________________________________________________________Chapter 3 Exercise 11. Product costs and period costsThe costs that follow were extracted from the accounting records of several different manufacturers:1. Weekly wages of an equipment maintenance worker2. Marketing costs of a soft drink bottler3. Cost of sheet metal in a Honda automobile4. Cost of president’s subscription to Fortune magazine5. Monthly operating costs of pollution control equipment used in a steel mill6. Weekly wages of a seamstress employed by a jeans maker7. Cost of compact discs (CDs) for newly recorded releases of Rush, Billy Joel, and Bryan Adamsa. Determine which of these costs are product costs and which are period costs.b. For the product costs only, determine those that are easily traced to the finished product andthose that are not.Chapter 3 Exercise 22. Definitions of manufacturing conceptsInterstate Manufacturing produces brass fasteners and incurred the following costs for the year justended:Materials and supplies usedBrass$75,000Repair parts16,000Machine lubricants9,000Wages and salaries Machine operators128,000Production supervisors64,000Maintenance personnel41,000Other factory overhead Variable35,000Fixed46,000Sales commissions20,000Compute:a. Total direct materials consumedb. Total direct laborc. Total prime costd. Total conversion costChapter 3 Exercise 55. Schedule of cost of goods manufactured, income statementThe following information was taken from the ledger of Jefferson Industries, Inc.:$85,00Administrative$59,00Direct labor0expenses0Selling34,000Work in. processexpenses300,00SalesJan. 129,0000FinishedDec. 3121,000goodsJan. 1Dec. 31Raw(direct)materialson handJan. 1Dec. 31115,000131,000Direct materialpurchases88,000Depreciation: factory18,000Indirectmaterialsused10,00031,00040,000Indirect laborFactory taxesFactory utilities24,0008,00011,000Prepare the following:a. A schedule of cost of goods manufactured for the year ended December 31.b. An income statement for the year ended December 31.Chapter 3 Problem 33. Manufacturing statements and cost behaviorTampa Foundry began operations during the current year, manufacturing various products for industrialuse. One such product is light-gauge aluminum, which the company sells for $36 per roll. Costinformation for the year just ended follows.Per UnitDirect materialsDirect laborFactory overheadSellingAdministrativeVariableCost$4.506.59Fixed Cost$50,00070,000135,000Production and sales totaled 20,000 rolls and 17,000 rolls, respectively There is no work in process.Tampa carries its finished goods inventory at the average unit cost of production.Instructions:a. Determine the cost of the finished goods inventory of light-gauge aluminum.b. Prepare an income statement for the current year ended December 31c. On the basis of the information presented:1. Does it appear that the company pays commissions to its sales staff? Explain.2. What is the likely effect on the $4.50 unit cost of direct materials if next year’s productionincreases? Why?
Expert answer:ACC Chapter Two and Three Problems
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