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    Purchase vs pooling method for Goodwin

    "ACC 401 Chapter 2 " The financial statements for the year ended December 31, 2003: GOODWIN CORR INCOME STATEMENT Revenue $2,700,000 $600,000 Expenses 1,980,000 400,000 Net income $720,000 $200,000 RETAINED EARNINGS STATEMENT Beginning retain

    Joanna's computations at ABC Bank; HECS liability

    Question 1 : (a) The Mason Gift Company had sales of $730 000 in the past year, with operating expenses of $95 000 and cost of goods sold of $280 000. Interest expenses amounted to $32 500 and $12 500 in interest income was received. Shares purchased in January 2009 for $22 000 were sold for $29 500. Compute the taxable income

    Grieg Landscaping construction of new plant

    Grieg Landscaping began construction of a new plant on December 1, 2010. On this date the company purchased a parcel of land for $139,000 in cash. In addition, it paid $2,000 in surveying costs and $4,000 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,000, with $1,000 being received

    Changes for Accounting Firms Since the 1990s

    1. Identify the ways in which the image of the public accounting profession, and auditors specifically, has changed since the mid-1990s. What actions have been taken to restore public confidence in the profession? Do you think these actions are effective? Explain. 2. What are the differences between and similarities among a

    How do functional divisions affect the structure of your organization?

    How do functional divisions affect the structure of your organization or an organization with which you are familiar? Is it a centralized organization or an decentralized organization? Why? Do you think the organization could be organized more effectively? If so, how, and why would it be considered more effective? If not, why is

    Tax planning: Calculate Carmin's adjusted gross income on her 2009 tax return

    Carmin Kovach is single and has two children from her previous marriage. Anika, 9, lives with Carmin. Julius, 11, lives with his father, Ray. Carmin pays alimony of $400/month to Ray. The payments are to continue until Julius reaches 18, when they will be reduced to $100. Carmin is 34 and employed as a nuclear engineer with Atom

    Expansion, Calculate Projected Interest Payments and Tax Shields

    3a.) Under the assumption that Ideko market share will increase by 0.5% per year, you determine that the plant will require an expansion in 2010. The cost of this expansion will be $15 million. Assuming the financing of the expansion will be delayed accordingly, calculate the projected interest payments and the amount of project

    Standard Price, Standard Quantity, and Variances

    Fruit Snacks Corp Inc. makes lunchbox style fruit snacks. The owner of the company is setting up a standard cost system, and she has collected the following data for one of the company's products fruit chews. The data below pertain only to the fruits used in the product: Material requirements, kilograms of fruits per doze

    Proco: How Many Pipes Should They Produce in January?

    Proco manufactures pipes. The estimated number of pipes for the first three months is: Month Unit Sales Jan 1,000 Feb 1,400 March 1,200 FGI at the end of last December was 100 units. Ending FGI is equal to 20% of the next month's sales. The company exp

    Amount of water purchased during the month of March

    Cola inc. is working on their budget for next year. COGS has been estimated at 60% of sales. Water purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 20% of sales and are paid during the month of sale. Other operating costs amounting to 25% of sales are to be paid in the mo

    Step-by-step answer to Profit Maximization

    ABC Co has 200 labor hours available. There is no limit on machine hours. ABC can sell all of Y it wants, but can only sell a maximum of 30 units of X and 20 units of Z. x y z Contribution Margin per Unit $20 $10

    The Wendt Corporation had 10.5 million of taxable income. a. What is the company's federal income tax bill for the year? b. Assume the firm receives an additional $1 million of interest income from some bonds it owns. What is the tax on this interest income? c. Now assume that Wendt does not receive the interest income but does receive an additional $1 million as dividends on some stock it owns. What is the tax on this dividend income?

    The Wendt Corporation had 10.5 million of taxable income. a. What is the company's federal income tax bill for the year? b. Assume the firm receives an additional $1 million of interest income from some bonds it owns. What is the tax on this interest income? c. Now assume that Wendt does not receive the interest income but

    Cost of Sales: ABC Company

    In 2007 ABC co had sales of $5,970,090, total expenses of $5,370,097 and gross profit of $2,777,300. What was cost of sales? I believe profit is irrelevant here, can I calculate cost of sales simply by using sales-expenses?

    Division Margin: GStyle Company

    GStyle Company has the following information pertaining to its clip division: Fixed manufacturing expense $35,000 Fixed selling and admin expenses $30,000 Sales $250,000 Direct Man. costs (Variable) $40,000 Variable selling an

    Accounting rules to prevent this from happening again

    SPE's continue to have legitimate uses in business. Often they are used to isolate high risk projects from the rest of the corporation, or joint projects with other companies. The problem with the SPE's as the related to Enron and the like, is that they were being used to create fictional transactions to mislead investors as to

    Why would companies choose to raise money with bonds vs. notes?

    Bonds are kind of a "big company" tool for borrowing. It takes a lot of time to prepare a bond issuance and there are a lot more costs compared to borrowing with notes. Most often the rate is set far in advance of when the bonds are actually issued. I worked on a $125 million bond issue and it took about 4 months to prepare the

    Arizona Company: accounts receivable balance, allowance account, bad debt expense

    Arizona Company reported accounts receivable of $21,200,000 at the end of its 2009 fiscal year. This amount was net of an allowance for doubtful accounts of $1,456,000. During 2010, Georgia sold $72,300,400 of merchandise on credit. It collected $48,520,555 from customers. Accounts valued at $2,125,000 were written off as un

    Vermont Clock Works Job-Order Costing

    Vermont Clock Works manufactures fine, handcrafted clocks. The firm uses a job-order costing system, and manufacturing overhead is applied on the basis of direct-labor hours. Estimated manufacturing overhead for the year is $260,000. The firm employs 10 master clockmakers, who constitute the direct labor force. Each of these emp

    Pritchard Company: selling price per unit

    Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling price is computer by adding a 20% markup to full cost. How much should the selling price be per unit for 300,000 units? $49 $

    Identify dependent variables (DVs) and independent variables (IVs).

    For our purposes, the main distinction is between dependent variables (DVs) and independent variables (IVs). A DV, sometimes called a criterion, is the variable that we're trying to either predict or control. Some typical DVs in business settings are: * Market position * Profit * Job Satisfaction (Jobsat) * Intention to q

    Constant growth stock

    The last dividend paid by ABC Company was $2.00. ABC's growth rate is expected to be a constant 4 percent. ABC's required rate of return on equity (ks) is 9 percent. What is the current price of ABC common stock?

    Which is the best investment, After-Tax Returns, for ABC Corporation?

    ABC Corporation has $50,000 which it plans to invest in marketable securities. The corporation is choosing between the following three equally risky securities: Spartan County tax-free municipal bonds yielding 8 percent; Ford bonds yielding 11.5 percent; GE preferred stock with a dividend yield of 12 percent. ABC's corporate tax

    Sherman Books: Which statement is true about retained earnings?

    On its 1999 balance sheet, Sherman Books showed a balance of retained earnings equal to $510 million. On its 2000 balance sheet, the balance of retained earnings was also equal to $510 million. Which of the following statements is most correct? Show your calculations. a. The company must have had net income equal to zero i

    Compute cost per unit: absorption and variable costing

    Units produced $100,000.00 Units sold $95,000.00 Fixed manufacturing overhead $300,000.00 Direct materials per unit $55.00 Direct labor per unit $25.00 Variable manufacturing overhead per unit $15.00 A. Compute the cost per unit using abso

    Prepaid Rent: Preparing the Adjusting Entry

    Adjusting Entries: Prepaid rent at 1/1/10 was $9,000. During 2010 rent payments of $110,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $111,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing e