Illustration 8.1 states the six principles of control (below). How do you think these principles of controls apply any organization. Ø Establishment of responsibility Ø Segregation of duties Ø Documentation procedures Ø Physical, mechanical, and electronic controls Ø Independent int
Moon and Chittenden are considering a new Internet venture to sell used textbooks. The project requires $300,000 in financing. Two alternatives have been proposed. Plan 1 (Common equity financing). Sell 30, 000 shares of stock at a net price of $10 per share. Plan 2 (Debt equity financing). Sell a combination of 15,000 sha
McFrugal, Inc. has expected sales of $20 million. Fixed operating costs are $2.5 million, and the variable cost ratio is 65 percent. McFrugal has outstanding a $12 million, 8 percent bank loan. The firm also has outstanding 1 million shares of common stock ($1 par value). McFrugal's tax rate is 40 percent. a. What is McFrugal
P-2. Ivan Rice is a new accountant with Wertz Company. Wertz purchased merchandise on account for $6,000. The credit terms are 2/10, n/30. Ivan has talked with the company's banker and knows that he could earn 10% on any money invested in the company's savings account. Instructions (a) Should Ivan pay the invoice within t
Question: Taylor company produces two industrial cleansers that use the same liquid chemical input: pocolimpio and maslimpio. Pocolimpio uses two quarts of the chemical for every unit produced, and maslimpio uses five quarts. Currently, Taylor has 6,000 quarts of the material in inventory. All of the material is imported. For
Instructions: Prepare a schedule showing a vertical analysis for 2009 and 2008. ***See attached word document please GALLUP CORPORATION Operating Data 2009 2008 Sales $750,000 $600,000 Cost of goods sold 465,000 390,000 Selling expenses 120,000 72,000 Administrative expenses 60,000 54,000 Income tax expense 33,00
Aquatic Manufacturing uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A, direct labor hours in department B, and machine hours in Department C. Solve for (a), (b), & (c) Data and instructions attached.
Explain, Show along with how and why this transaction fits into accounting equation. Looking at this it would make no sense that it would equal out in the books? SEPT 1-SIGNED UP FOR CLASS AT COLLEGE. COST 1,000.00. PUT THIS ON BUSINESS CREDIT CARD SEPT 20-TRANSFERRED 2,500 FROM PERSONAL SAVINGS TO BUSINESS CHECKING SE
Wyalusing Industries manufactured prefabricated house. They expanded into pre-cut housing when it acquired Fairmont. Wyalusing uses ROI as a performance measure with investment defined as average productive assets. Management bonuses are based in part of the return on investment (ROI). All investments are expected to earn a mini
I have just purchased a small mfg. company that does not have an accounting manager. We Mfg. 3 to 5 products from raw materials to the finished product. I have hired two (2) two year accounting graduates to work in the accounting dept. One will be the accounting manager and the other will be the assistant and complete othe
This file contains examples in the preparation and calculation of financial ratios; both - common size percents and trend percents for the Bluegrass Corporation. Examples which can used to calculate relevant financial ratios for any company.
After posting all actual factory overhead and applying factory overhead to production departments in a process costing system, A There will never be underapplied overhead. B There will never be overapplied overhead. C There will always be underapplied overhead. D There will always be
Westwood Inc. is a decentralized organization with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company's Office Products Division for the most recent year are given below: Sales
Whenever an unallocated credit differential exists as the result of a bargain purchase, the FASB requires that the resulting negative goodwill be treated as follows
* Whenever an unallocated credit differential exists as the result of a bargain purchase, the FASB requires that the resulting negative goodwill be treated as follows: a. Recorded as an extraordinary gain in the period of combination b. Allocated proportionately against the amounts that otherwise would be assigned to all
* Reporting Unit C is assigned $200,000 of goodwill arising from a recent business combination. The current carrying value of its net assets is $400,000 and the current fair value of its net assets, excluding goodwill, is $350,000. The fair value of the reporting unit is estimated to be $380,000. The amount of the impairment lo
Hello I am preparing for an exam and my instructor indicated it will be very familiar to this article. I am hoping an OTA can help me interpret the case. I have to answer the following question and give an in-depth analysis. Given the difference in strategy between the two firms within the case , what would you expect woul
1. For its first year of operations Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income 300,000 Permanent difference (15,000) 285,000 Temporary difference - depreciation (20,000
A) Ben, age 19, a full-time college student, he is claimed as a dependent by his parents. He earned $5,400 wages during the year. b) Anita, age 12, is claimed as a dependent by her parents. She earned interest income of $1,200 during the year. c) Earl, age 16, is claimed as a dependent by his parents. He earned wages o
Compute the taxable income for 2007 for Marjory on the basis of the following information. Marjory is married but has not seen or heard from her husband since 2005. Salary $6,000 Interest on bonds issued by city of Independence (MO) 2,000 Interest on CD issued by Hivernia Natio
Allied Company's Small Motor Division manufactures a number of small motors used in household and office appliances. The Household Division of Allied then assembles and packages such items as blenders and juicers. Both divisions are free to buy and sell any of their components internally or externally. The following costs relate
Accounting Principle Board (APB) Opinion No. 22 and the Emerging Issues Task Force (EITF) have both addressed the disclosure of accounting polices. If you should examine the requirements mandated by the APB Opinion No. 22. Also, the list and summarize the supplemental guidance issues addressed by the Emerging Issues Task Forc
1. Prepare report showing budgeted and actual costs for patients. Show variances. Working with spending variances and efficiency variance. Medical assistants 1580 patients $14.00 per hour standard wage -- each asst. expected to spend 30 minutes w/ patient Assistants total 840 hours @ average pay rate of $15.50 Ans
P22-3 (Error Corrections and Accounting Changes) Patricia Voga Company is in the process of adjusting and correcting its books at the end of 2008. In reviewing its records, the following information is compiled. 1. Voga has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows. Decembe
1. A famous psychologist has written a highly acclaimed book targeted at victims of domestic abuse. This book gives practical advice on getting out of such abusive relationships and avoiding further injury prior to getting out of the relationship. Pat thinks the book is excellent, but knows that many persons who could benefit fr
Please see the problem below and provide the answer to "e" and "f" only. Thank you The standards for ONE carton of Special Soap are as follows: Direct materials ....................................... 4 lbs. @ $ 5.10/lb. Direct labor ............................................ 3 hrs @ $10.50/hr. Variable Overhead
Required: a. What are the objectives for a standard system? How are these objectives being met and not met with the current system? b. Prepare a set of recommendations for changes in the system. What implementation issues will be raised by your recommendations?
Accounting: Concepts and Applications, 9eChapter 2: Financial Statements ISBN: 0324187564 Author: W. Steve Albrecht, James D. Stice, Earl K. Stice, Monte R. Swain Citation Generator Practice 2-14 Expanded Accounting Equation For the following four cases, use the expanded accounting equation to compute the missing
Louisiana Timber Company currently has 5 million shares of stock outstanding and will report earnings of $9 million in the current year.
I need a solution to the attach problems. Question # P1 Louisiana Timber Company currently has 5 million shares of stock outstanding and will report earnings of $9 million in the current year. The company is considering the issuance of 1 million additional shares that will net $40 per share to the corporation. a. What is
I have a problem on future taxable amounts and deferred taxes and I am totally lost. The information is attached. I don't know where to begin the calculations. I need some help with this problem. The following information is available for a corporation for 2006. 1. Exess of tax depreciation over book depreciation, $40,00
Problem 1 Prepare a manufacturing overhead budget For Savage Inc. variable manufacturing overhead cost are expected to be $20,000 in the first quarter of 2005 with $2,000 increments in each of the remaining three quarters. Fixed overhead cost are estimated to be $35,000 in each quarter. Instructions Prepare the manufa