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Accounting Transactions Based on Estimates

We all know that in many cases, accounting transactions are based on estimates. Present value calculations are no exception. Interest rates, term, stream of cash flows, or future values may need to be estimated for recording transactions. What impact do these estimates have on the financial statements?

Various Types of Evidential Matter Gathered

A part of the audit process is the review of the various types of evidential matter gathered. What is your opinion of the relative persuasiveness of: Auditor observation and recalculation evidence Confirmation by external sources Combination of information from external and internal sources Data from inside the company

Nonmonetary Exchanges: Hyde, Inc. and Wiggins, Inc.

On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to below as Asset A, and Wiggins is referred to as Asset B. The following facts pertain to these assets. Asset A Asset B Original cost

Managerial Accounting

Deliverable Length: 1-2 page memo Details: You are the manager of an accounting department and would like to hire another managerial accountant to focus on internal accounting. The CEO is not convinced that a managing accountant position is needed. Prepare a 1-2 page memo for the CEO on the following: * Explain the obj

accounting and compilation services

What assurance is provided by CPAs who perform accounting and compilation services for a client? Explain the benefits received by a client who requests accounting and compilation services. References

Accounting: Pension Plan

1. In accounting for a pension plan, any difference between the pension cost charged to expense and the payments into the fund should be reported as: A) an offset to the liability for prior service cost. B) pension asset/liability. C) other comprehensive income (G/L). D) accumulated other comprehensive income (PSC). 2.

Tax Return and Research

John Gemstone, a wealthy client, has recently been audited by the IRS. The agent has questioned the following deduction items on Mr. Gemstone's tax return for the year under review: A $10,000 loss deduction on the rental of his beach cottage. A $20,000 charitable contribution deduction for the donation of a painting to a loc

Explain the types of accounting information important when making decisions.

List the types of Accounting information when making decisions within a large company. Details: Consider the following scenario: You are a senior level manager in a large company: List and explain the types of accounting information that are important to you and your staff when making decisions. Explain how your

Contemporary Accounting: 5-10 pros and 5-10 cons of implementing IFRS in the US

The new hires need to develop an understanding of what is happening in the international corporate accounting climate. Many countries have already made the change to IFRS. The United States is moving in that direction. It will be important for them to have a foundation to build on with regard to their future development of exper

Is the Small Case Division of the IRS Optimal?

"Assume that your client has a tax deficiency less than $50,000 - would you advise the client to use the "Small Cases Division" which is somewhat similar to the "Small Claims court"? If so - why? What are the risks of advising the client to use this venue?

Justin Mining Co: Prepare Entries

On July 23 of the current year, Justin Mining Company pays $4,836,000 for land estimated to contain 3,900,000 tons of recoverable ore. It installs machinery costing $390,000 that has a 10-year life and no salvage value and is capable of mining the ore deposit in eight years. The machinery is paid for on July 25, seven days befor

NIU Company's budgeted sales

Budgeted sales NIU Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $258,000 $38,700 February 283,800 45,150 March 348,300 52,890 NIU's sales are 40% cash and 60% credit. Credit sales are collected 10% in the month of sale, 50% i

Budgeted profit, what if analysis

Monterio Mfg. Co. manufactures and sells folding umbrellas. 2006 Income Statement is: Sales (200000 units) $1000000 Cost of goods sold $600000 Gross Margin=$400,000 Selling expenses $150000 Admin. expenses $100000 Net Profit (before income taxes) $150,000 Monteiro's budget changes for 2007 are: 30% increase in number of un

Asset be Sold Now or Kept for Another 5 Years

Storrs Corporation can sell an asset today for $1 million, or the asset can be kept for an additional 5 years and then scraped for an estimated value of $200,000. If kept, the asset will generate cash flows of $200,000 at the end of each year for the next 5 years, exclusive of scrap value. The price will decline very rapidly, so

Amount of Money Transferred to Finished Goods

This is the homework question: During 2008, Lawson Manufacturing expected Job No. 26 to cost $600,000 of overhead, $1,000,000 of materials, and $400,000 in labor. Lawson applied overhead based on direct labor cost. Actual production required an overhead cost of $560,000, $1,100,000 in materials used, and $440,000 in labor. All o

Polytechnic Corporation - tax liability

Please see the attached file. Polytechnic Corporation reported taxable income of $2,340,000 for the year ended December 31, 2011. The controller is unfamiliar with the required treatment of temporary and permanent differences in reconciling taxable income to pretax financial income and has contacted your firm for advice.

Tax Deficiency and the Small Cases Division

Assume that your client has a tax deficiency less than $50,000 - would you advise the client to use the "Small Cases Division" which is somewhat similar to the "Small Claims court"? If so - why? What are the risks of advising the client to use this venue?

Record the Purchase of the Land for Dakota Mining Co.

On July 24 of the current year, Dakota Mining Co. pays $3,580 for land estimated to contain 4,750000 tons of recoverable ore. It installs machinery costing $330000 that has a 8-year life and no salvage value and is capable of mining the ore deposit in 7 years. The machinery is paid for on July 26, six days before mining operat

Computing and Revising Depreciation: Selling Plant Assets

2007 Jan 1 Paid $22, 989 cash plus $1,823 in sales tax for a new delivery truck estimated to have a five year life and a $3,560 salvage value. Delivery truck costs are recorded in the Trucks account. Dec 31 Recorded annual straight-line depreciation on the truck. 2008 Dec 31 Due to new information obtained earlier in

Colorado CAFR Need help answering these questions pertaining to the state of Colorado, above website will give the CAFR needed to help with answers. 1. Indicate the activities accounted for in both internal service funds and major enterprise funds. Comment on whether any of these

plant and division managers paid only a fixed salary

Suppose all plant and division managers were paid only a fixed salary -no other incentives or bonuses.  a) describe the agency problems that would appear in capital investment decisions.  b) how would tying the managers' compensation to EVA alleviate these problems ?


Is budgeting used primarily for scorekeeping, attention directing, or problem solving? Explain

Components of Different Financial Statements

In a brief paragraph asume the role of an investor. Describe the components of the different financial statements based on this perspective and explain which of the four different financial statements helped you the most and why. Reference page 69-73.

Manchester Production: Minimum transfer price to second division

8. The main division of Manchester Production has capacity to produce 140,000 units of its electronics components, while production has been at 105,000 per year for the past number of years. Selected information from the most current income statement follow: Sales 105,000 @ $30.00 $3,150,000 Variable manuf