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Accounting for Liabilities

Basis of Contributed Property Subject To A Mortgage

In 2007 Sally Smith contributed property to a new partnership in return for a 50% interest in capital and profits. The property had a fair market value of $10,000, an adjusted basis of $6,000, and was subject to a $9,000 mortgage which was assumed by the partnership. What was Smith's basis in the partnership as a result of this

Current liabilities

13. (1) B Corp. has an employee benefit plan for compensated absences that gives employees 10 paid vacation days and 10 paid sick days. Both vacation and sick days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days; however, no payment is given for sick days not taken. At December 3

Graduate Manufacturing Company - Long-Term Liabilities

Your accounting firm has been hired to consult with the Graduate Manufacturing Company (GMC). GMC is preparing its annual financial statements as of December 31, 2009. GMC has requested guidance concerning 7 specific reporting issues. You have been assigned to prepare a written report to be presented to GMC's senior managem

Liabilities for Outdoor Adventure Camps

In order to fund the outdoor adventure camps, Sam and George have determined they need $1,000,000. They have found a bank willing to loan them the $1,000,000 at an interest rate of 10% for 20 years. The business would be required to make monthly payments on this loan. Another option for the company is to incorporate the business

Deferred Tax Liabilities and Assets

The amount of income taxes due to the government for a period of time is rarely the amount reported on the income statement for that period as income tax expense. a. Explain the objectives of accounting for income taxes in general purpose financial statements. b. Explain the basic principles that are applied in accounting

Liabilities

1. Assume a company under analysis has few current liabilities but substantial long-term liabilities. Notes to the financial statements report the company has a "revolving loan agreement" with a bank. Is this disclosure relevant to your analysis? 2. Choose a certain industry subject to peculiar financing and operating condi

Recording Liability for Outstanding Premiums

Milner Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Milner Frosted Flakes boxes and $1.00. The company estimates that 60% of the boxtops will be redeemed. In 2007, the company sold 675,000 boxes of Frosted Flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. I

Liability and Equity Transactions

For each of the following scenarios, provide the general journal entries to record the necessary information. Use the following account titles for the transactions: Retained earnings, Dividends payable, Cash, Bonds payable, Interest expense, Interest payable, Paid-in capital, Common Stock, and Preferred Stock. Scenario 1: On

Interpreting K-1 filings for ratios and disclosure

Please examine the current and contingent liabilities of GM and answer the below questions: General Motors http://www.gm.com/corporate/investor_information/sec/ (sort filings by "annual filings" and select the Feb. 28, 2008 10-K). What is the company's current ratio and acid-test ratio? What does this mean? Discus

Tootsie Roll: Total Current Liabilities, Accounts Payable, Etc.

Refer to the financial statements of Tootsie Roll Industries and the Notes to Consolidated Financial Statements in Appendix A. Instructions Answer the following questions. (a) What were Tootsie Roll's total current liabilities at December 31, 2004? What was the increase/decrease in Tootsie Roll's total current liabiliti

Kraft Current Liabilities 2007 and 2006

What were the company's total current liabilities at the end of its most recent reporting period? What were the company's total current liabilities at the end of the previous period? Please detail how the current liabilities differ from the previous year liabilities. Kraft Foods Inc. and Subsidiaries Consolidated Balan

Burlin Company starts the year with $100,000 in assets and $80,000 in liabilities. Net income for the year is $25,000, and no dividends are paid. How much is owners' equity at the end of the year?

Using the accounting equation, answer each of the following independent questions. 1. Burlin Company starts the year with $100,000 in assets and $80,000 in liabilities. Net income for the year is $25,000, and no dividends are paid. How much is owners' equity at the end of the year? 2. Chapman Inc. doubles the amount of ass

Multiple Choice Questions Regarding Taxes

1. Gold Ltd. reported deferred tax assets and deferred tax liabilities at the end of 2001 and 2002. For the year ended 2002, Gold should report deferred income tax expense or benefit equal to the a. Sum of the net changes in deferred tax assets and deferred tax liabilities. b. Decrease in deferred tax assets. c. Increase i

Current Liabilities

Is it possible for a business to be successful if the business does not have any current liabilities? Why?

Venable Co: What amount of warranty liability should be reported at year end?

Please help with the following problem. During 2006, Venable Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects. Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sa

Warranty Liabilities and Net Sales

1. .A decrease in warranty liabilities increases net sales. Why? a. True b. False 2. .A company with anticipated earnings-per-share growth is worth more. Why? a. True b. False 3. .A reduction in the advertising expense ratio increases return on common equity and share value. Why? a. True b. False 4. .An underestim

Liabilities for a school district

Lincoln Elementary school is a new school located in a suburb that is close to Big Cold Northern City. You are a teacher at the school and you are in charge of the end of day pick up of children from the school. The "end of day" pickup extends for several hours due to a child care center located at the school. The school has

Estimated Liability Due to Coupons with Products

Albertson Corporation began a special promotion in July 2006 in an attempt to increase sales. A coupon was placed in each box of product. Customers could send in 5 coupons for a free prize. Each prize cost Albertson Corporation $3.00. Albertson's management estimated that 80% of the coupons would be redeemed. For the six

Types of current liabilities management

Current Liabilities management can be an excellent source of financing for the firm. Name and explain at least 3 methods of current liabilities management. Which of these methods do you prefer? Why? Does the type of industry make a difference as to which method is preferable? Explain please.

FCC Ruling

See the attached file. I am writing a paper about a current event as it pertains to business law. The topic is the recent ruling from the Federal Communications Commission FCC 07-232. The ruling clarifies the use of automated dialers by collections agencies to contact customers on their wireless phones. I am trying to inclu

Accounting Questions: Sales Tax, Long/Short Term Liabilities

What are the ramifications to a business of not tracking and paying sales tax? What is the difference between accounts payable and accrued expenses? Is short-term or long-term debt more stressful to your personal finances? Why? Why is it important to differentiate between short-term and long-term liabilities?

Assets, Liabilities, Equity

Please fill in the spreadsheet (Spreadsheet PA2-1.xls)with the data provided. Attached in a word document is the information and data compiled (Team Problem.doc).