In the JIT environment, direct materials and conversion costs will vary significantly for each product in a work cell
Indicate whether the statement is true or false
False
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Consider each situation for Kathy, Inc. below independently. ? · Kathy, Inc. issued 10,000 shares of its $25 par common stock (current fair value of common is $35 per share) for a large tract of land. The land was appraised at $400,000. Kathy already had 500,000 shares of common stock outstanding. · Kathy, Inc. issued 2,000 shares of $10 par Class A common stock at $12 and 100 shares of no-par Class B common stock at $20. Required: a.At what amount should land be recorded?b.What is the total amount that should be recorded for additional paid-in capital from the second situation?
What will be an ideal response?
Eastern Company sells products covered by a 3-year warranty. Based on past experience of other entities in the industry, Eastern expects to incur warranty costs equal to 1 . of sales. Eastern's sales were $45,000 in 2013 and $50,000 in 2014 . In 2014, the company spent $200 to repair goods sold in 2013 and $300 to repair goods sold in 2014 . Eastern received no warranty servicing demands from its
customers in 2013 . the company's first year of operations. What is the balance in the warranty liability account on January 1 . 2015? a. $450 b. $500 c. $300 d. $0
Thunder Corporation is authorized to issue $500,000 of 6 percent, 10-year bonds dated July 1 . 2014, with interest payments on December 31 and June 30 . When the bonds are issued on November 1 . 2014, Thunder Corporation receives cash of $515,000, including accrued interest. The journal entry to record the issuance of the bonds would include
a. $15,000 bond premium. b. $5,000 bond premium. c. $15,000 bond discount. d. no bond premium or discount.
A company returns defective supplies that were purchased for cash and receives a cash refund. This transaction should be recorded in the
A) Purchases journal B) Cash Receipts journal C) General journal D) Revenue journal