Posted: May 5th, 2016

Sinking Fund Income is reported in the income statement as?

When a corporation issues bonds, it executes a contract with the bondholders, known as a bond debenture.

a. True
b. False

If the bonds are purchased between interest dates, the purchase price includes accrued interest since the last interest payment.

a. True
b. False

Loster Company reported a net loss of $14,089 for the year ended December 31, 2008. During the year, accounts receivable decreased ,731, merchandise inventory increased $6,803, accounts payable increased by $13,479, and depreciation expense of $4,042 was recorded. What was the net cash used for or provided by operating activities during the year 2008?
Select the correct answer.

a. used net cash of $4,360.
b. used net cash of $14,089.
c. provided net cash of $4,360.
d. provided net cash of $14,089

Job order cost accounting systems can be used only for companies that manufacture a product.

a. True
b. False

Sinking Fund Income is reported in the income statement as

a. extraordinary
b. other income
c. gain on sinking fund transactions
d. income from operations

The payment of dividends is an example of a cost.

a. True
b. False

Period costs are

a. found on the balance sheet.
b. found on the job order cost sheets.
c. not involved in the production process.
d. classified as direct labor, direct material, or factory overhead.

Problem 19-10
The Stamping Department accepted Job 051507A on May 15th to make 1,000 funnels.
To complete the job they requisitioned 1,100 sheets at $1.20 per sheet and 1,150 grommets at $0.15 per set.
The cost driver that the Stamping Department uses is drop-forge strokes which are counted on a machine mounted counter. $2.25 is applied as overhead for each drop-forge stroke. Additionally $375.00 of overhead is applied to each job due to setup and teardown.
Direct labor is applied at $22.50 per hour for the machine operator and $11.10 for the machine loader. The job required 6 1/2 hours of labor by the team.