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Continuing Expenditures

See attached file for full problem description. Problem 1 Recording continuing Expenditures for plant Assets. Big Sky, Inc., recorded the following transactions over the life of a piece of equipment purchased in 2005; Jan 1,2005 Purchased the equipment for $36,000 cash, The equipment is estimated to have a 5 yr life and

Accounting variances on price and efficiency

Materials and manufacturing labour variances, standard costs. Consider the following selected data regarding the manufacture of a line of upholstered chairs: Direct materials 2 square metres of input at $10 per square metre Direct manufacturing labour 0.5 hour of input at $20 per hour The following data were compiled reg

Tax Questions

An S corporation has a lesser degree of limited liability than a C corporation. True or False? A limited partner in a limited partnership has limited liability whereas a general partner in a limited partnership has unlimited liability. True or False?

Taxation- Gift

In which, if any, of the following independent situations has Geraldine made a gift? A. Geraldine gives her 19-year old son $20,000 to be used by him for his college expenses. B. Geraldine buys her grandfather a new Jaguar for his birthday. C. Geraldine sends $20,000 to Duke University to cover her nephew's tuition. The ne

Treasury Stock

Camby Corporation's balance sheet reported the following: Capital stock outstanding, 5,000 shares, par $30 per share $150,000 Paid-in capital in excess of par 80,000 Retained earnings 100,000 The following trans

Tax Questions about corporations and partnerships

All should be answered true or false. (1) An S corporation shareholder's stock basis is increased by that shareholder's share of corporate profits, but not by a share of increases in corporate liabilities. (2) The general objective of the tax on unrelated business income is to tax such income as if the entity were a corp

Important information about Accounts and Notes Payable

Described below are certain transactions of Carson Company for 2007: 1. On May 10, the company purchased goods from Jay Company for $50,000, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 2. On June 1, the company purchased equipment for $60,000 from Nolan Compa

Basic and Diluted EPS

Berry Company 1) Net income (including an extraordinary gain (net tax) of $70,000 $230,000 2) Capital Structure a) cumulative 8% preferred stock, $100 par 6,000 shares issued/outstanding $600,000 b) $10 par common stock, 74,000 shares outstanding on January 1. $1,000,000 On A

Accounting for Merchandising Operations

I don't understand how to account for the different shipping terms (FOB shipping point, destination and etc.) How do you specially account for terms such as 1/10, n/30? For your convenience and as per your instructions, I have attached a APA formatted MS Word file, which explains the meaning of the different shipping terms (

Minimizing Costs

PROBLEM: The Bunker Manufacturing firm has five employees and six machines and wants to assign the employees to the machines to minimize cost. A cost table showing the cost incurred by each employee on each machine follows: Machine Employee A B C D E F

Accounting Analysis

A new snowboard rental store rents snowboards for skiing on a weekly basis for $75/week including the boots. The skiing season is 20 weeks long. The store owner can buy a snowboard and boots for $550, rent them for a season and sell them for $250 at the end of the season. The store rent is $7,200/year. During the off-season, the

Administration and Accounting Departments

I have been running my own business for the last 15 years and I have BS degree in accounting. Because of my business management experience and accounting education, as a partner of a newly established business consulting firm, the consulting has appointed me be the manager for the administrative and accounting departments. I

Partnership Basis in Land

Betty's basis in her partnership interest is $90,000 and she receives distributions of $35,000 cash and inventory (basis to the partnership of $22,000 and a fair market value of $28,000). No land is distributed. (A) How much gain or loss, if any, must Betty recognize as a result of the distribution. (B) What basis will Betty

Variance Analysis for Materials and Labour Costs

Based on the following: Direct materials: Standard price per pound: $9 Actual price per pound: $8 Price variance: $20,000 F Total of direct-material variances: $2,000 F Direct labor: Actual hours worked: 40,000 Actual rate per hour: $15 Efficiency variance: $28,000 F

Net realizable value method

Here, two or more units of the software are sold as a single package. Managers at Software For You are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows: Stand-Alone Selling Price

Contribution Margin

Aromatic Coffee, Inc., sells two types of coffee, Colombian and Blue Mountain. The monthly budget for U.S. coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the U.S. market. The following information is provided for March:

Operating Income and Transfer Price

The Mill Flow Company has two divisions. The Cutting Division prepares timber at its sawmills. The Assembly Division prepares the cut lumber into finished wood for the furniture industry. No inventories exist in either division at the beginning of 20x3. During the year, the Cutting Division prepared 60,000 cords of wood at a cos

ROI Analysis for Mikey Co.

Mikey Co. group managers are evaluated annually with bonuses awarded based on ROI. In the previous fiscal year, Mikey produced 12% return on investments. This year Mikey is considering an investment that will assist in future growth in the Cooper group. Relevant data is as follows: Cooper


ABC Company has developed the following standard costs for its product Product 1 cost element:Standard Quantity x Standard Price = Unit Standard Cost Direct Materials 3 pounds x $2 = $6 Direct Labor 2 hours x $8 = $16 Manufacturing Overhead2 hours x $4 = $8 Total = $30 ABC Company expected to produce 20,000 units of

Full accounting for one month operation

Sally Brown has decided to go to business for herself by running the company Tapes 4 You. Tape 4 You will rent tapes, DVDs, VCRs, and DVD players. In addition, it will also rent video games and the necessary machinery. Finally, a small amount of inventory will be kept on hand of VCRs and DVD players for sale. The following trans

Rate of return on gross book value

The asset section of the January 1, 20X9, balance sheet of Junction Company has only one machine (and nothing else) which was acquired on January 1, 20X5. The machine's original cost was $500,000, and the estimated life was determined to be 10 years. The estimated residual value was zero, and the straight-line method of deprecia

Variable and Fixed Costs

Express Company has the capacity to produce 100,000 juicers per month. They are currently producing and selling 80,000 juicers. The cost of producing 80,000 juicers is $1,200,000 (800,000 variable and $400,000 fixed). The juicers are normally sold directly to retailers at @ $25 each. Express has an offer from Apple Company (fo

Accounting Information System

1. If AIS (Accounting Information Systems) are so vital to business success, why do so many businesses have problems in this area? 2. What opportunities has the advent of business use of the Internet created for AIS development? 3. Do external individuals who interact with the organization have a right to know what infor

Finance-Related Multiple Choice Problems

Please help with the following problems. A) Why do annual reports include more than 1 year of the balance sheet and statements of income and cash flows? Is it... 1) SEC requires only 1 year's data or... 2) Financial statements for only 1 year would have no reference point for indicating changes in a company's fin

Accounting Operation Costs

Problem 1 Muscle Beach Current Operating Data MegeMuscle PowerGym ProForce Selling price per unit $140 $200 $290 Contribution margin per unit 42 77 58 Monthly sales volume-units 3,000 2,000 1,000 Fixed expenses per month Total of $320,000 a. Calculate the contribution margin ratio of each product b. Calculate t

Accounting Depreciation and fixed assets

Monumental Products Corp. had recently purchased a new machinery at a cost of $450,000. Management estimates that the equipment will have a useful life of 15 years and no salvage value at the end of the period. If the straight-line depreciation method is used for financial reporting, calculate the following: A) Annual dep

Tax Saving Strategy

1. Allan and Sarah are not married. Sarah has a low income but Allan has a high income. a. How might a loan from Sarah to Allan be advantageous to them? b. How might it be advantageous for Allan to rent something from Sarah? 2. Allan and Sarah are married. Allan passes away and Sarah is the sole beneficiary of Allan'

Describe the operating cycle and the cash cycle.

Describe the operating cycle and the cash cycle. What are the differences between them? When you analyze a company's financial health, what kind of ratios would you review? (please list top 3 financial ratios you would consider the most important and which would provide you with a clear idea on the financial status of the co