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?
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
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
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
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
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.
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 return on investment, residual income, and economic value added metrics. What does each metric explain? When should each be used?
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
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 memo for the CEO on the following: Explain the objectives and characteristics of an internal account
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
"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?
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
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
The problem deals with estimating the elasticity measures of a certain product offered by the Kwikmeal service.
KWIKMEAL After you complete your MBA, you decide to open a restaurant, named KWIKMEAL. KWIKMEAL is a fast food restaurant with a very limited menu. It serves only a steak sandwich on a whole-wheat roll plus a salad with any beverage of the customer's choice. Normally the sandwich, salad and beverage meal sells for $12.00 and th
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
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
Russell Company has the following projected account balances for June 30, 2009: Accounts payable $40,000 Sales $800,000 Accounts receivable 100,000 Capital stock 400,000 Depreciation,
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
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.
Hello, Hope you can help! I have the answer/solution to a problem but could you help me by explaining it better to me? Can you let me know if the answer is correct and how was it derived to that answer? Can you show me step by step to this? Thanks! Factory overhead rate, entry for applying factory overhead, and factory
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?
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
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
http://www.colorado.gov/dpa/dfp/sco/cafr/cafr09/cafr09.pdf 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
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
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. http://www.thecoca-colacompany.com/investors/pdfs/form_10K_2009.pdf Reference page 69-73.
M. J. Lighting uses direct costing for all internal reporting. For the current year, finished goods inventory, under variable costing was as follows (M.J. does not have any work inprocess): Beginning of year End of year Fi
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