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Purchases recorded gross and net

Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method. August 10 Purchased merchandise on account,$12,000, terms 2/10, n/30. 13 Returned part of the purchase of August 10, $1,200, and received credit on account. 15 Purchased merchandise on account,

Efficient Markets

You must complete the activity in class materials to complete this assignment. Go to course materials, click on Unit 3 tab, click on view unit, click on the activity button, and follow the directions in the activity. After completion of the activity answer the following question: 1-How do you think the efficient market hypot

Absorption Income versus Contribution Margin Income: Example

The background materials present the computations for both gross profit on sales and contribution margin. Can you give specific benefits to be derived from using the information from computing gross profit on sales as opposed to contribution margin? Is net income always going to be the same regardless of the accounting approach?

Computation of Ending Retained Earnings

Please help with the following accounting problem. For the following four cases, compute the ending amount of retained earnings. Provide step by step calculations. Caution: Not all of the items listed should be included in the computation of ending retained earnings. Case A Case B Case C Case D Cost of goods sold

Spot Rate for XYZ (ABC) Corporation

XYZ Corp, a US based importer, makes a purchase of crystal glassware from a firm in Switzerland for 39,960 Swiss francs or $24,000, at the spot rate of 1.665 francs per dollar. The terms of the purchase are net 90 days, and the US firm wants to cover this trade payable with a forward market hedge to eliminate its exchange rate r

Maturity Value - Gain or Loss

Benjamin Company had bonds outstanding with a maturity value of $1,500,000. On June 30, 2010, when these bonds had an unamortized premium of $21,000, they were called in at 103. To pay for these bonds, Benjamin had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 20 years. Th

Workers creating the standards

Do you agree that the changes that needed to be made were probably done in a more timely manner with the workers creating the standards?

Accounting for Property, Plant, and Equipment

Among the principal topics related to the accounting for the property, plant, and equipment of a company are acquisitions and retirements. a. What expenditures should be capitalized when equipment is acquired for cash? b. Assume the market value of equipment is not determinable by reference to a similar purchase for cash. D

The Effect of Accounting Transactions on Liquidity Ratios

The Lux Company experiences the following unrelated events and transactions during Year 1. The company's existing current ratio is 2:1 and its quick ratio is 1.2:1. 1. Lux wrote off $5,000 of accounts receivable as uncollectible. 2. A bank notifies Lux that a customer's check for $411 is returned marked insufficient funds.

Perpetual Accounting

How do you journalize entries? 14 Purchased Merchandise for cash $3,800 23 Sold merchandise for cash $6,400. Merchandise sold had a cost of $5,120 26 Purchased merchandis for cash $2,300 29 Made refunds to cash customers for defective merchandise $90. The return had a scrap value of $30 30 Sold merchandise on account $3,

Inventoriable costs for Garza Company

In your audit of Garza Company, you find that a physical inventory on December 31, 2010, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items were all excluded from the $441,000. 1. Merchandise of $61,000 which is held by Garza on consignment. The consignor is the Bontemps

Calculate variances, prepare reports, calculate cash receipts and more...

Various problems that I need assistance with are down below... Thanks again! ------------------- 1.) Production and purchases budgets of Osage Inc. has actual sales for June and July and forecast sales for August, September, October, and November as follows: Actual: June 4,150 units July 4,350 units Forec

Information in Cash Records for Ankors Inc.

Can you help me get started with this assignment? Ankors Inc shows the following information in its cash records: June 30th bank reconciliation: Balance per bank $26,746 Add deposits in transit 2,100 Deduct outstanding checks (3,800) Balance

Reggie White, Jack the Treasurer, Cash Manager Ken

(1) Reggie White, a corporate treasurer, is trying to decide which two 1-year securities to purchase: a negotiable CD with nominal yield of 6 percent or a municipal security with a nominal yield of 4.5 percent. The issuing municipality is not in the same state as Reggie's company, but he recognizes the muni's interest is exempt

Tax Issues

Let me pose an issue to you. Say you are working as an accountant reporting to the corporate controller. You research some tax issue for him and come to a reasonable conclusion based on the facts you have researched. After your boss reviews your work, he comes back to you with a great idea on how to reduce taxes. However, his i

Computing TIE and AFN: Formula to Forecast Funds

Question 1: The following shows some information related to ABC Company. Total debt outstanding $300,000 Annual Interest Rate 5% Annual Revenues $1,000,000 Average tax rate 35% Net profit margin on revenues 10% What is the company's TIE (times-interest earned)? Question 2: ABC Company's sales are expected

Cost, Discretionary Cost, Revenue, Profit and Investment Centers

Can you help me get started on this assignment? Identify each of the following as a cost center, a discretionary cost center, a revenue center, a profit center, or an investment center: a. The manager of center A is responsible for generating cash inflows and incurring costs with the goal of making money for the company. Th

Long-Term Goals in Accounting Departments

Can you help me get started on this assignment? Assume that you work in the accounting department of a small wholesale warehousing company. Inspired by a recent seminar on budgeting, the company's president wants to develop a budgeting system and has asked you to direct it. Identify the points concerning the initial ste

Budgetary Control: Approach to Budgetary Control

Toby Andres owns a tree nursery. She analyzes her business's results by comparing actual operating results with figures budgeted at the beginning of the year. When the business generates large profits, she often overlooks the differences between actual and budgeted data. But when profits are low, she spends many hours analyzi

Budgets - Department in a Discount Department Store

Sam Zubac is the manager of the show department in a discount department store. During a recent meeting, Zubac and his supervisor agreed that Zubac's goal for the next year would be to increase the number of pairs of shoes sold by 20 percent. The department sold 8,000 pairs of shoes last year. Two salespersons currently work

Accounting: Chart of accounts, equation, journal, ledgers. debits, credits

1) In a typical chart of accounts, liabilities start with a _______ and expenses start with a _____ Possible answers are (a) 2,4 (b) 1,3 (c) 2,5 (d) 1,4 2) A business makes a principle payment of cash on a note payable. The note payable was originally issued for the purchase of equipment. Which of the following occurs?

System Integrity and Validation

- Which CAAT are the best to use for Kudler Foods Fine? - Describe how the selected computer assisted auditing techniques will be used to validate data and system integrity within the system. - Explain the functions of audit productivity software. - Explain how audit productivity software might be used in the four systems d

Transfer of Property to Corporation in Exchange for Stock

Sam Rogers forms a corporation. Sam transfers to the corporation property having a basis to him of $15,000 and a fair market value of $27,000 for 900 shares of the $10 par stock of the corporation. A year later, Bill Morrison, who is not related to Sam, transfers property having a basis to him of $1,000 and a fair market value