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Accounting

Which of the following is not excluded from income?

1. Gross income may be realized when a taxpayer receives economic benefit even if no cash is received. T or F 2. Which of the following is not excluded from income? (Assume that any amounts received by the taxpayer were kept). a. fair market value of prize won on a game show b.

Taxable Income Ruling: doctrine of constructive receipt

Introduction: Walter used the cash method to account for income from his cattle ranch. During an audit in the third year, the IRS auditor discovered a document from a customer indicating that two years earlier, Walter sold 115 heads of cattle to the customer for $77,000. The document appeared to be a tear slip, the top half of

Common errors in accounting systems

Answer each in 3 or more sentences. What do you do if your G/L A/R balance states $1M and your subsidiary ledger says $800K? What are the most common errors in working with General Accounting, Fixed Assets, Revenue (billing)? What would you do to ensure these errors do not happen?

Return on Assets

Refer to the attached appendix A and B and calculate the return on assets in the form of a percentage.

An Analysis of Corporate Cash Flow Activities

Analyze the transactions above and indicate whether each transaction resulted in a cash flow from: (a) operating activities, (b) investing activities, (c) financing activities, or (d) noncash investing and financing activities. Global Corporation had the following transactions during 2006.

Lockbox system- Penn Steelworks Penn Steelworks A) What is the opportunity cost to Penn Steelworks of the funds tied up in mailing and processing? Use a 365-day year. B) What would the net cost or savings be from use of the proposed cash acceleration technique? Should Penn adopt the system?

(Lockbox system) Penn Steelworks is a distributor of cold-rolled steel products to the automobile industry. All of its sales are on a credit basis, net 30 days. Sales are evenly distributed over its 10 sales regions throughout the United States. Delinquent accounts are no problem. The company has recently undertaken an analysis

Concentration Banking

Treemont Shops operates in Naples, Florida. The firm distributes speciality gardening supplies nationwide. The firm currently uses a centralized billing system. Treemont has annual credit sales of $362 million. Lasdon National Bank has presented an offer to operate a concentration-banking system for the company. Treemont already

Flat Tax

Should the federal income tax be a flat tax, which means should everyone pay taxes at the same percentage? Include brief assessments on the pros and cons of this type of a system.

Price Variance and Material Usage Variance

Error Correction, Inc. (ECI) makes a white liquid substance that is used to cover errors made on printed documents. ECI expects to use 4 ounces of a chemical known as Fatal per bottle of correction fluid. Fatal is expected to cost $.40 per ounce. Actual materials cost amounted to $.46 per ounce. ECI expected to make and sell 1,0

Three Part Classification Manufacturing Costs

Springfield Manufacturing produces electronic storage devices, and uses the following three-part classification for its manufacturing costs: direct materials, direct manufacturing labor, and indirect manufacturing costs. Total indirect manufacturing costs for January were $300 million, and were allocated to each product on the b

Internal Control System Objectives

Dale Company experienced the following events during 2004. 1. Acquired $30,000 cash from the issue of common stock. 2. Paid $12,000 cash to purchase land. 3. Borrowed $8,000 cash. 4. Provided services for $20,000 cash. 5. Paid $1,000 cash for rent expense. 6. Paid $12,000 cash for other operating expenses. 7. Paid a $2,00

Penalty in Casinos

Suppose that in Las Vegas, casinos could monitor the actions of dealers costlessly and spot every instance in which the dealer makes a mistake in which a player is overpaid. The casino is considering disciplining its dealers by charging them the equivalent of the money lost by the casino for any mistakes that they (the dealer) m

Production Function and Price of Labor

Suppose that the Johnson Company has the following production function: Q = L × C The price of labor (L) is $20 per unit and the price of capital (C) is $50/unit. How much labor and capital should Johnson employ to produce 200,000 units? What is the total cost of production?

How do variable costs and fixed costs differ? Give an example of each.

Please see attached file. a. Chapter 15: Discussion Questions 9-11, 17, and 19. b. Chapter 15: Practice Exercise 15-8 Fixed Costs and Variable Costs c. Chapter 15: Practice Exercise 15-13 Direct and Indirect Costs d. Chapter 15: Practice Exercise 15-15 Out-of-Pocket Costs and Opportunity Costs e.

Gearing/EPS

Good Day, Could you please assist with the attached question. Regards Paradise Limited wishes to raise R10 million in external finances by issuing either ordinary shares or 14 % preference shares or a 12 % unsecured loan. These funds are expected to generate additional operating profits of R3.28 million. The ordinar

Questions about Breakeven Calculations

Executives of Studio Recordings, Inc, produced the latest compact disc by the Starshine Sisters Band, titled Sunshine/Moonshine. The following cost information pertains to the new CD: CD package and disc (direct material and labor) $1.25/CD Songwriters' royalties $0.35/CD Recording artists' roya

Selling Price - Gargantuan Industries

Gargantuan Industries is a multiproduct company with several manufacturing plants. The Boise Plant manufactures and distributes two household cleaning and polishing compounds, standard and commercial, under the Super Clean label. The forecasted operating results for the first six months of the current year, when 100,000 cases

The Dean Company

(Note) Posting must be answered within 3 hours, if partially answered then that is also acceptable. Thank you 1. The Dean Company produces and sells a single product. The following data refer to the year just completed: Selling Price $ 350 Units in beginning Inventory 0 Units Produced 20000 Units sold

Tax advantages and disadvantages of business types

We have elected the S corporation form of business. Now we are not sure this was the best business structure for us from a taxing perspective, and we would like a written comparison discussing the tax advantages and disadvantages of the C corporation, S corporation, and partnership forms of business. Also we would like a recomm

Predetermined Overhead Rates - Full Cost and Selling Price

Compute a departments predetermined over head rate using traditional costing and use it to determine the full cost and selling price for a regular meal and a special meal Raw materials $875,000 Direct Labor $1,145,000 Overhead $1,533,000 Dept expected to make 300,000 regular meals and 50,000 special meals

Depreciation change in accounting method

On January 1, 2005, Baden Co., purchased a machine (its only depreciable asset) for $300,000. The machine has a five-year life, and no salvage value. Sum-of-the-years'-digits depreciation has been used for financial statement reporting and the elective straight-line method for income tax reporting. Effective January 1, 2008, for

Deferred Tax liability - Reaker Company

A reconciliation of Reaker Company's pretax accounting income with its taxable income for 2008, its first year of operations, is as follows: Pretax accounting income $3,000,000 Excess tax depreciation (90,000) Taxable income $2,910,000 The excess tax depreciation will result in equal net taxable amounts in each of t

Expected Change In Net Income - Quickbow Company

Quick bow Company currently uses maximum trade credit by not taking discounts on purchases. Quickbow is considering borrowing from its bank, using notes payable, in order to take trade discounts. The firm wants to determine the effect of the policy change on its net income. The standard industry credit terms offered by all

Your 401 (k) Account At East Coast Yachts

I need assistance with three questions on the attached document. Please see attached file for full problem description. Your 401 (k) Account At East Coast Yachts You have been at your job for East Coat Yachts for a week now and have decided you need to sign up for the company's 401(k) plan. Even after your decision with