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Accounting

Purchase of asset

On July 1, 2008, Red Gate Farm buys a combine for $100,000 in cash. Assume that the combine is expected to have seven year life and an estimated salvage value of $16,000 at the end of that time. Required 1. Prepare the journal entry to record the purchase of the combine on July 1, 2008. 2. Compute the depreciable cost

Denny Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. The company's estimator has been involved in a long-simmering dispute with the on-site

I have several study questions that I need assistance with answering. ________________________________________ Denny Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. The company's estimator has been involved in a long-simmering dispute with the on-site work s

3-10 Johnsfield Cash Flow concepts

Johnsfield & Co. will be undertaking the following financial transactions in the next planning period. For each transaction represented in the table below, check the statement or statements that will be affected immediately. `Pro Forma Income Pro Forma Balance Transaction Cash Budget Statement S

Reconcilliation of Absorption and Variable Costing Net Operating Income

High Tension Transformers, Inc., manufactures heavy-duty transformers for electrical switching stations. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and government. The company has provided the following data: Year 1 Year 2 Year

Debit and Credit and Normal Balance

Also see attached file In columns (a) and (b) indicate whether the change in the account would be recorded as a debit or a credit and whether the normal balance of the account is a debit or a credit. In column (c) indicate if the basic type of account is Asset, Liability or Stockholder's Equity. (a) (b ) (c) Recorde

Dividend Valuation Model and Wealth Maximization

Eastern Telecom is trying to decide whether to increase its cash dividend immediately or use the funds to increase its future growth rate. It will use the dividend valuation model for analysis purposes. The model formula is as follow: P0 = __D1___ Ke - g P0 = Price of stock D1 = Dividend at the end of the first yea

Tax: charitable contributions, and AMT calculation

24. Doug's records contain the following information: 1. Donated stock having a fair market value of $3,600 to a qualified charitable organization. He acquired the stock five months previously at a cost of $2,400. 2. Paid $700 to a church school as a requirement for the enrollment of his daughter. 3. Paid $200 for an

Tax: unreasonable compensation; deductions for medical, taxes, interest

1). Anita, the controlling shareholder and an employee of Southwest Corporation, receives an annual salary of $750,000. Based on several factors including the size of the corporation's operations and a comparison of salary received by officers of comparably-sized corporations, the IRS contends that Anita's salary should be no h

Tax Accounting: passive losses, depreciation, Sec 1231, ordinary gain

1). Julie reports the following income and loss: Salary $ 90,000 Income from activity A 60,000 Loss from activity B ( 35,000) Loss from activity C ( 55,000) Activities A, B, and C are all passive activities. Based on this information, Julie has a. adjusted gross income of $60,000. b. salary of $90,000 and net losse

Tax Accounting: calculate adjusted basis in home, rental and other property

1). Michelle purchased her home for $150,000, and subsequently added a garage costing $25,000 and a new porch costing $5,000. Repairs to the home's plumbing cost $1,000. The adjusted basis in the home is a. $150,000. b. $151,000. c. $180,000. d. $181,000. 2). Which one of the following does not affect the adjusted basis

Depreciation tax shield 7

7. A project will increase sales by $140,000 and cash expenses by $95,000. The project will cost $100,000 and be depreciated using the straight-line method to a zero book value over the 4-year life of the project. The company has a marginal tax rate of 34%. What is the value of the depreciation tax shield? (Points: 2) $

Megatronics corporation a massive retailer of electronics products, is organized in four separate divisions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on R

I need help with this problem. Megatronics corporation a massive retailer of electronics products, is organized in four separate divisions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on ROI. Last year, the company as a whole produced a 13 percent return on its investment. During t

E6-5 Segregation of Duties

The following task are perfrmed by three employees, each of whom is capable of performing all of the tasks. Do not concern yourself with the time required to perform the tasks, but with the need to provide for segregation of duties. Assign the duties by using a check mark to indicate which employee should prform each task. Remem

Net pay/ vacation pay

27. The following totals for the month of June were taken from the payroll register of ABC Company: Salaries expense $13,000 Social security and Medicare Taxes withheld 975 Income Taxes withheld 2,600 Retirement Savings 500 The entry to record the payment of net pay would include a ________. debit to Salaries P

Income tax liability: replacement property in a sale of land

You have a client who is in possession of 1,000 acres of farm ground. The farm ground was purchased 10 years ago for $160,000, and is now worth $2,000,000. The client wishes to sell the farm ground and purchase an apartment building of approximately equal value to his farm ground. How would you suggest your client obtain the r

11. ABC company uses the estimate of sales method of accounting for uncollectible accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1, 2005, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2005, ABC wrote-off accounts receivable totaling $1,800 and made credit sales of $100,000. After the adjusting entry, the December 31, 2005, balance in the Uncollectible Accounts Expense would be ________.

11. ABC company uses the estimate of sales method of accounting for uncollectible accounts. ABC estimates that 3% of all credit sales will be uncollectible. On January 1, 2005, the Allowance for Doubtful Accounts had a credit balance of $2,400. During 2005, ABC wrote-off accounts receivable totaling $1,800 and made credit sal

Uses the direct write-off method of accounting for uncollectible

9. The LMN Co. uses the direct write-off method of accounting for uncollectible accounts receivable. The entry to write off an account that has been determined to be uncollectible would be as follows: ________. debit Allowance for Doubtful Accounts; credit Accounts Receivable debit Sales Returns and Allowan

Busy Pig Company Two Products

Busy Pig company produces two products. Absorption costing for the products look like this: Product A Product B Direct materials 6000 40 000 Direct wages 10 000 20 000 Indirec

Portfolio Returns

Problem: Rate of Return if State Occurs State of Economy Probability of State of Econ Stock A Stock B Stock C Boom 0.30 0.30 0.45 0.33 Good

Bad Debt question

Hi! I need help calculating the net realizable value of A/R at 12/31/09, as well as preparing a balance sheet for the company. Current assets section of balance sheet for Company B: A/R - $63,000 Less: Allowance for bad debts - (9,000) $54,000 The company's accounting records revealed the following information fo

Accounting for Bad Debts issue

Here's the question: as of January 2009, the balance in Company A's Allowance for Bad Debts account was 9,720. During the year, a total of 23,900 of delinquent receivables was written off as bad debt. The balance in the Allowance for Bad Debt account at December 31, 2009 was 10,480. a. What was the total amount of bad debts