Q1- Linda operates a drug-running operation. Which of the following expenses she incurs can reduce taxable income? a. Bribes paid to border guards. b. Salaries to employees. c. Price paid for drugs purchased for resale. d. Kickbacks to police. e. Rent on an office. f. Depreciation on office furniture and equipment. g. Ten
What is the major distinction between revenues and gains? What is the major distinction between expenses and losses? and what is the basis for distinguishing between operating and non-operating items?
The net income of Simon and Hobbs, a department store, decreased sharply during 2000. Carol Simon, owner of the store, anticipates the need for a bank loan in 2001. Late in 2000, Simon instructs the store's accountant to record a $10,000 sale of furniture to the Simon family, even though the goods will not be shipped from the ma
Smooth Brew manufactures cappuccino makers. For the first eight months of 2006, the company reported the following operating results while operating at 80% of plant capacity: Sales (120,000) $6,000,000 Cost of Goods Sold 3,600,000 Gross profit 2,400,000 Operating Expenses 1,800,000 Net income $ 600,000 An ana
A farmer near Bloomington owns a combine and uses it ti provide harvesting service to other farmers. He receives revenue of $40,000 a year, plus the avoidance of $2,000 in fees he would have to pay someone else to harvest his wheat if he did not own the machine. Fuel and repairs are $10,000 a year and the farmer does not have another profitable use for the time he spends harvesting wheat. Unfortunately, the existing combine is worn out and fully DEPRECIATED. It can be sold for its $1,000 spare parts value, but a dealer will allow $5,000 as a trade in allowance on a new $100,000 combine. The new combine will last for a estimated 10 years , after which it will have a negligible salvage value. The farmer is in a 28percent tax bracket and requires 10 percent after tax return on investments. IS THE NEW COMBINE AN ATTRACTIVE INVESTMENT? (assume January 1 installation)
A farmer near Bloomington owns a combine and uses it ti provide harvesting service to other farmers. He receives revenue of $40,000 a year, plus the avoidance of $2,000 in fees he would have to pay someone else to harvest his wheat if he did not own the machine. Fuel and repairs are $10,000 a year and the farmer does not have a
Question 12: A product whose EOQ is 40 experiences a decrease in ordering cost from $90 per order to $10. The revised EOQ is: a) three times as large b) one-third as large c) nine times as large d) one-ninth as large e) cannot be determined Please select the right answer and explain how you have calculated it
Norton's Mufflers manufactures three different product lines, Model X, Model Y, and Model Z. Considerable market demand exists for all models. The following unit data apply: Model X Model Y Model Z Selling Price $80 $90 $100 Direct Materials
Please see the attached file. 1) Compute the budgeted manufacturing overhead rate for 2004. 2) Compute the under-or over-allocated manufacturing overhead of Zaf Radiator in 2004. Dispose of this amount using a) Write-off Cost of Goods Sold b) Proration based on ending balances (before proration) in Work i
Please see the attachment. 3. After examining the records of AIS Consultants Incorp., you determined the following end-of-year amounts: 2006 2005 Credit Sales 200,000 160,000 Accounts Receivable 45,000 40,000 Allowance for Bad Debt 2,000 1,000 AIS Consultants uses the percentage-of-sales method to estimate bad deb
Please see the attachment. 1. (8pts) Match as many of the descriptions as possible with one of the terms. If no match is possible, answer "7." Place the number to the right of the letter below. a. Reports the major classes of operating cash receipts and payments of an entity during a period b. Investing and financin
1. An improvement made to a machine increased its fair market value and its production capacity by 25% without extending the machine's useful life. The cost of the improvement should be ...... (expensed, debited to accumulated depreciation, capitalized in the machine account, allocated between accumulated depreciation and the
If the supply/demand for a product are given by: Supply: p = 1/6q^2; demand p = -1/6q^2 +36 Where p is the price and q is quantity. What is the equilibrium price?
How to calculate manufacturing overhead budget and sales budget? Zeller Electronics Inc. produces and sells two models of pocket calculators, XQ-103 and XQ-104. The calculators sell for $12 and $25, respectively. Because of the intense competition Zeller faces, management budgets sales semiannually. Its projections for the
Based on the analysis of the last six months' sales, your boss notices that sales of beef products are declining in your chain's restaurants. As beef entrée sales decline, so do profits. Fearing beef sales have declined due to several newspaper stories reporting E.coli contamination discovered at area grocery stores, he sugge
Company's current return on equity is 14%. It pays out one half of earnings as cash dividends (payout ratio = .5). Current book value per share is $50. Book value per share will grow as the company reinvests earnings. Assume that the ROE and payout ratio stay constant for the next four years. After that, competition forces ROE
Not-for-profit entities usually receive minimal - if any - revenue from traditional sources like sales. Discuss the accounting issues that arise because of this.
Please help answer the following question regarding accounting. Provide at least 200 words. Can you describe for me the two major constraints inherent in the presentation of accounting information and the significance they play in financial accounting?
The controller for Tulsa Photographic Supply company has established the following activity cost pool and cost drivers Activity cost pool budgeted overhead cost machine setup................. $250,000 Material handling.............. 75,000 Hazardous waste control........ 25,000 Qu
Break-Even Computation B&B company reports the following items: Direct materials per unit . . . . . . . . $ 2.25 Direct labor per unit . . . . . . . . . . 3.95 Variable overhead per unit . . . . 1.80 Monthly rent . . . . . . . 2,200.00 Monthly depreciation . . . . . 680.00 Other monthly fixed costs. . . . . . . . 2,40
See Attached file. Selected transactions for H Burns, Inc, an interior decorating firm, in its first month of business are as follows: Jan 2 Invested $15,000 cash in business in exchange for common stock. 3 Purchased used car fro $4,000 cash for use in business. 9 Purchased supplies on account for $500. 11
The Welding Department of Batista Manufacturing Company has the following production and manufacturing cost data for February 2008. All materials are added at the beginning of the process. Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,000 units Materials $18,000 1/10 comple
5-43 Make-or-buy Tanner Appliance Company manufactures 12,000 units of part M4 annually. The part is used in the production of one of its principal products. The following cost information is available on part M4: Direct Materials $11 Direct Labor 9 Unit-related support 4 Batch-related support 5
Selig Sporting Goods Inc. has been experiencing growth in the demand for its products over the last several years. The last two Olympic Games greatly increased the popularity of basketball around the world. As a result, a European sports retailing consortium entered in to an agreement with Selig's Roundball Division to purchase
The following additional information is available about flight 581: A. Member of the flight crew are paid fixed annual salaries, whereas the flight assistance are paid by the flight. B. One-third of the liability insurance is a special charge assessed against Flight 581 because in the opinion of the insurance company, the d
Please see the attached excel file. There are 8 multiple choice questions. 1. HIJ Company paid $500 cash for salary expenses. Which of the following choices accurately reflects how this event would affect the company's financial statements? Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flow A)
1.Speedy Bike Company received a $940 check from a customer for the balance due. The transaction was erroneously recorded as a debit to Cash $490 and a credit to Service Revenue $490. The correcting entry is a. debit Cash, $940; credit Accounts Receivable, $940. b. debit Cash, $450 and Accounts Receivable, $490; credit Servi
Cheryl (a calendar year taxpayer) donates a statue to a local art museum (a qualified charity). The statue cost Cheryl $13,000 ten years ago and, according to one of Cheryl's friends (an amateur artist), is worth $50,000. On her income tax return, Cheryl deducts $50,000 as a charitable contribution. Upon later audit by the IRS,
The General's Favorite Fishing Hole Chart of accounts Assets Revenues 101 Cash 401 Registration Fees 142 Office Supplies 144 Food Supplies Expenses 145 Prepaid Insurance 511 Wages Expense 181 Fishing Boats 521 Rent Expens
1. The Equipment account's proper classification is: a. Revenue b. Liability c. Expense d. Asset 2. The Supplies account's proper classification is: a. Asset b. Revenue c. Liability d. Expense 3. The Cost of Goods Sold account's proper classification is: a. Asset b. Revenue c. Liability
Fill in the blanks in the following separate income statements a through e. Identify any negative amount by putting it in parenthesis. See attached file. Sales............................................... $60,000 $42,500 $36,000 $ ? $23,600 Cost of goods sold .............................. Merchandise In