# ACC 206 Week 2 Assignment – Ch. 02 and 03 Problems (All Questions Answered) | A+ | GUARANTEED

Chapter Two and Three Problems

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.

Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button.

Chapter 2 Exercise 1

1. Issuance of stock

Prepare journal entries to record the issuance of 100,000 shares of common stock at \$20 per share for each of the following independent cases:
Jackson Corporation has common stock with a par value of \$1 per share.
Royal Corporation has no-par common with a stated value of \$5 per share.
French Corporation has no-par common; no stated value has been assigned

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.

Chapter 2 Exercise 3

3. Analysis of stockholders’ equity

Star Corporation issued both common and preferred stock during 19X6. The stockholders’ equity sections of the company’s balance sheets at the end of 19X6 and 19X5 follow.

19X6

19X5

Preferred stock, \$100 par value, 10%

\$580,000

\$500,000

Common stock, \$10 par value

2,350,000

1,750,000

Paid-in capital in excess of par value

Preferred

24,000



Common

4,620,000

3,600,000

Retained earnings

8,470,000

6,920,000

Total stockholders’ equity

\$16,044,000

\$12,770,000

Compute the number of preferred shares that were issued during 19X6.
Calculate the average issue price of the common stock sold in 19X6.
By what amount did the company’s paid-in capital increase during 19X6?
Did Star’s total legal capital increase or decrease during 19X6? By what amount?

Chapter 2 Problem 1

1. Bond computations: Straight-line amortization

Southlake Corporation issued \$900,000 of 8% bonds on March 1, 19X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.
Case AThe bonds are issued at 100.
Case BThe bonds are issued at 96.
Case CThe bonds are issued at 105.

Southlake uses the straight-line method of amortization.

Instructions:

Complete the following table:

Case A

Case B

Case C

Cash inflow on the issuance date

_______

_______

_______

Total cash outflow through maturity

_______

_______

_______

Total borrowing cost over the life of the bond issue

_______

_______

_______

Interest expense for the year ended December 31, 19X1

_______

_______

_______

Amortization for the year ended December 31, 19X1

_______

_______

_______

Unamortized premium as of December 31, 19X1

_______

_______

_______

Unamortized discount as of December 31, 19X1

_______

_______

_______

Bond carrying value as of December 31, 19X1

_______

_______

_______

Chapter 3 Exercise 1

1. Product costs and period costs

The costs that follow were extracted from the accounting records of several different manufacturers:
Weekly wages of an equipment maintenance worker
Marketing costs of a soft drink bottler
Cost of sheet metal in a Honda automobile
Cost of president’s subscription to Fortune magazine
Monthly operating costs of pollution control equipment used in a steel mill
Weekly wages of a seamstress employed by a jeans maker
Cost of compact discs (CDs) for newly recorded releases of Rush, Billy Joel, and Bryan Adams Determine which of these costs are product costs and which are period costs.
For the product costs only, determine those that are easily traced to the finished product and those that are not.

Chapter 3 Exercise 2

2. Definitions of manufacturing concepts
Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:

Materials and supplies used

Brass \$75,000

Repair parts 16,000

Machine lubricants 9,000

Wages and salaries Machine operators 128,000

Production supervisors 64,000

Maintenance personnel 41,000

Fixed 46,000

Sales commissions 20,000

Compute:
Total direct materials consumed
Total direct labor
Total prime cost
Total conversion cost

Chapter 3 Exercise 5

5. Schedule of cost of goods manufactured, income statement

The following information was taken from the ledger of Jefferson Industries, Inc.:

Direct labor

\$85,000

\$59,000

Selling expenses

34,000

Work in. process

Sales

300,000

Jan. 1

29,000

Finished goods

Dec. 31

21,000

Jan. 1

115,000

Direct material purchases

88,000

Dec. 31

131,000

Depreciation: factory

18,000

Raw (direct) materials on hand

Indirect materials used

10,000

Jan. 1

31,000

Indirect labor

24,000

Dec. 31

40,000

Factory taxes

8,000

Factory utilities

11,000

Prepare the following:
A schedule of cost of goods manufactured for the year ended December 31.
An income statement for the year ended December 31.

Chapter 3 Problem 3
3. Manufacturing statements and cost behavior

Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-gauge aluminum, which the company sells for \$36 per roll. Cost information for the year just ended follows.

Per Unit

Variable Cost

Fixed Cost

Direct materials

\$4.50

\$ 

Direct labor

6.5



9

50,000

Selling



70,000



135,000

Production 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:

Determine the cost of the finished goods inventory of light-gauge aluminum.
Prepare an income statement for the current year ended December 31
On the basis of the information presented:
Does it appear that the company pays commissions to its sales staff? Explain.
What is the likely effect on the \$4.50 unit cost of direct materials if next year’sproduction increases? Why?

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Homework Writing Services
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
History
excellent!
Customer 463503, October 16th, 2022
Great job
Customer 452947, January 22nd, 2020
Other
Good calculations.
Customer 462613, April 21st, 2022
Excellent analysis.
Customer 459667, April 2nd, 2022
Other
Customer 459155, May 31st, 2022
Psychology
The paper was beautifully written with minor errors. Once again my expectations have been exceeded. Thank you to the writer for a beautifully written paper and thank you to the customer service department for ensuing the work of the highest quality.
Customer 452455, April 29th, 2023
Military
Excellent work
Customer 456821, February 26th, 2022
Professions and Applied Sciences
GOOD application.
Customer 462457, April 13th, 2022
Military
good job
Customer 456821, April 4th, 2022
Psychology
Outstanding job! Really happy about it. I'm impressed!
Customer 463863, February 24th, 2023
Medicine
Always and on time delivery
Customer 453879, September 4th, 2023
Healthcare & Medical
Excellent work! This submission had a mature tone and required minimal edits for clarity. We look forward to your future contributions.
Customer 452441, August 5th, 2022
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend