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rubric.
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Points
Criteria
Ind
Sources
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1
The
cases
that
you
researched
were
heard
by
:
the
Supreme
Court
sometime
between
1304
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and
1824.
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1
The
sources
that
you
used
to
research
your
cases
were
reliable
web
sites.
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of
Dispute
and
2
Your
answer
adequately
explains
the
dispute
ry
of
Arguments
between
the
two
parties
named
in
the
case.
4
Points
2
Your
answer
summarizes
the
key
points
made
by
the
lawyers
for
each
party
named
in
the
case.
tion
of
Path
to
the
2
Your
answer
describes
the
path
that
the
case
ourt
and
Explanation
took
to
reach
the
Supreme
Court,
including
me
Court
Decision
who
the
lower
courts
ruled
in
favor
of.
4
Points
2
Your
answer
fully
explains
the
decision
reached
by
the
Supreme
Court
and
the
reasoning
behind
that
decision.
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On June 30, Sharper Corporation's stockholders' equity section of its balance sheet appears as follows before any stock
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Common stock-$10 par value, 60,000 shares issued and
outstanding
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$ 600,000
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$ 1,535,000
Retained earnings
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The stockholders' equity section of TVX Company on February 4 follows.
Common stock-$25 par value, 150,000 shares authorized, 60,000
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$ 1,500,000
429,000
554,000
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F2
Moab Incorporated manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its
operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several
transactions during the year.
a. Moab Incorporated sold a machine that it used to make computerized gadgets for $30,600 cash. It originally bought the
machine for $21,400 three years ago and has taken $8,000 in depreciation.
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same stock had a value of $26,230 at the end of the year.
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On October 10, the stockholders' equity section of Sherman Systems appears as follows.
Common stock-$10 par value, 5,050 shares authorized, issued, and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
$ 860,000
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The management team of Wickersham Brothers Incorporated is preparing its annual financial statements. The statements are
complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized.
Current Year
Prior Year
Balance Sheet
Assets
Cash
$ 91,500
$ 111,000
Accounts Receivable
Inventory
Property and Equipment
Less: Accumulated Depreciation
97,500
00006
000'06
(48,800)
$ 422,700
Total assets
$ 378,500
Liabilities:
$ 15,000
$ 18,000
Accounts Payable
Salaries and Wages Payable
Notes Payable, Long-Term
Stockholders' Equity:
000'e
000 sL
00s T
000 '06
Common Stock
120,000
Retained Earnings
189,700
000 6tT
Total Liabilities and Stockholders'
$ 422,700
$ 378,500
equity…
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Exercise 1-13 (Algo) Identifying effects of transactions on the accounting equation LO P1
The following table shows the effects of transactions 1 through 5 on the assets, liabilities, and equity of Mulan's Boutique. Match each
transaction with its probable description.
Assets
= Liabilities +
Accounts
Equity
Accounts
Receivable
+
+ Supplies
$0 + $ 3,800
Cash +
$ 29,000 +
-4, 800
Land
+ $ 23,000
4,800
=
=
Common
Stock
$ 55,800 +
Payable
$0
Revenues
$0
+
1.
+
2.
+
1,080
+1,080
3.
2,300
4.
-1,080
-1,080
5.
+2, 300
+ $ 4,880
$0
$ 25,420 +
$ 55,800 + $ 2,300
Transaction
Description
1.
2.
3.
4.
5.
2,300
2,300
$0
+
$ 27,800 =
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Service Department Charges
In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis
of the number of purchase requisitions. The Payroll Department had expenses of $75,400 and the Purchasing Department had expenses of $42,000 for the year. The following annual data for Residential, Commercial, and Government Contract
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Government
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At the beginning of 2021, VHF Industries acquired a machine with a fair value of $9,415,785 by signing a four-year lease. The lease is
payable in four annual payments of $3.1 million at the end of each year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD
of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. What is the effective rate of interest implicit in the agreement?
2-4. Prepare the lessee's journal entries at the beginning of the lease, the first lease payment at December 31, 2021 and the second
lease payment at December 31, 2022.
5. Suppose the fair value of the machine and the lessor's implicit rate were unknown at the time of the lease, but that…
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If a company overstates its closing inventory, it will
O understate income but the balance sheet will appear stronger.
O overstate income but the balance sheet will appear weaker.
O understate income and the balance sheet will appear weaker.
O overstate income and the balance sheet will appear stronger.
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Leach Incorporated experienced the following events for the first two years of its operations.
Year 1:
1. Issued $16,000 of common stock for cash.
2. Provided $84,600 of services on account.
3. Provided $42,000 of services and received cash.
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4. Collected $75,000 cash from accounts receivable.
5. Paid $44,000 of salaries expense for the year.
6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent
of the ending accounts receivable balance will be uncollectible.
7. Closed the revenue account.
8. Closed the expense accounts.
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P11-1A Gão Limited was organized on January 1, 2017. It is authorized to issue 10,000…
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In 2016, Anna borrowed $11,500. In 2021, the debt was forgiven. Anna does not believe she should report the forgiveness of debt as
income because she received nothing at the time the debt was forgiven in 2021.
Required:
What amount of income should Anna record in her tax return in relation to debt forgone?
Income to be recorded
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Chapter 4 Assignment
Maria is a divorce attorney who practices law in San Francisco. She wants to join the American Divorce Lawyers Association (ADLA), a professional
organization for divorce attorneys. The membership dues for the ADLA are $500 per year and must be paid at the beginning of each year. For
instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also
has an option for members to buy a lifetime membership today for $4,500 and never have to pay annual membership dues.
Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it
it's
a great deal. Suppose that the appropriate annual interest rate is 8.5%.
O 13 years
O 15 years
What is the minimum number of years that…
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Use the following information for the Quick Studies below. (Algo)
[The following information applies to the questions displayed below.]
On December 31, Hawkin's records show the following accounts.
$ 5,900
1,000
3,600
14,800
Cash
Accounts Receivable
Supplies
Equipment
Accounts Payable
Hawkin, Capital, December 1
Hawkin, Withdrawals
Services Revenue
Wages Expense
Rent Expense
Utilities Expense
HAWKIN
Statement of Owner's Equity
For Month Ended December 31
Hawkin, Capital, December 1
Add: Investments by owner
Hawkin, Capital, December 31
6,400
15,300
1,800
$
16,400
8,000
1,900
1,100
QS 1-16 (Algo) Preparing a statement of owner's equity LO P2
Use the above information to prepare a statement of owner's equity for Hawkin for the month ended December 31. Hint: Owner
investments are $0 for the period.
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Alex Corporation reports the following components of stockholders' equity at December 31 of the prior year.
Common stock-$25 par value, 60,000 shares authorized, 35,000 shares issued
and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
36
Total stockholders' equity
$875,000
70,000
357,000
$ 1,302,000
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During the current year, the following transactions affected its stockholders' equity accounts.
January 2
January 7
February 28
July 9
August 27
September 9
October 22
December 31
Required:
Purchased 3,500 shares of its own stock at $25 cash per share.
Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record.
Paid the dividend declared on January 7.
Sold 1,400 of its treasury…
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Required information
Use the following information for the Quick Study below. (Algo) (5-7)
[The following information applies to the questions displayed below.]
Beginning inventory on January 1
Purchase on January 9
Purchase on January 25
A company reports the following beginning inventory and two purchases for the month of January. On January 26, the
company sells 350 units. Ending inventory at January 31 totals 150 units.
Date
January 1
QS 5-5 (Algo) Perpetual: Inventory costing with FIFO LO P1
January 9
Required:
Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when costs are assigned based on
the FIFO…
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As interest is recorded on an interest-bearing note, the Interest Expense account is
O increased; the Notes Payable account is decreased.
O increased; the Interest Payable account is increased.
O decreased; the Interest Payable account is increased.
O increased; the Notes Payable account is increased.
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A process manufacturer that uses the weighted-average method reports the following. Compute the total equivalent units of production for conversion.
Multiple Choice
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868,000,
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684,000
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624,000
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Question 16 - Exam II - Connect
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