A manufacturer makes a single product. When comparing this year's income statement with last year's, why is net income different for the same level of sales: Cost have not changed at all, but income has. What was done right this year? The statements, both prepared using absorption costing, look like this:
I need to identify at least on recent FASB position/proposal/pronouncement which would be of particular interest to the Cola industry, specifically Pepsi or Coca-Cola. I don't need a great deal of information, only to get me started so I may further research. Thank you.
In the Scott Fane opinion, Justice O'Connor alluded to "incremental commercialization" within professions. Identify examples of incremental commercialization within the public accounting profession in recent years. How, if at all, has an increasing emphasis on the commercial aspects of public accounting affected the profession?
Meg and Walt are going to be married in three months. Meg has owned and lived in her home for 42 years, and Walt has owned and occupied his home for 35 years. They both have listed their homes for sale. They anticipate the sales results will be as follows: Meg's *Selling price $450K *Selling expenses $40K *Adjusted basis $
Biro Manufacturing started 2005 with the following account balances. Cash 800 Raw Materials Inventory 960 Work in Process Inventory 640 Finished Goods Inventory (320 inits @ $5)
Pike Skatedboard Co. makes specialized skatedboards. Pike seeks to be the leader in designs for skateboards and produces designs in lot sizes of 1,000 units Pike uses job order costing in conjunction with normal costing to measure and assign unit cost. The following information is provided regarding the company's two product
Identify normal balances for listed accounts in the first group. Indicate whether debit or credit is required for the second group. Indicate agreement or disagreement in third group of accounts.
Indicate whether debit or credit decreases the normal balance of each of the following accounts: office supplies-repair services revenue-interest payable-accounts receivable-salaries expenses-owner capital-prepaid insurance-buildings-interest revenue-owner withdrawals-unearned revenue-accounts payable. Identify whether a de
Importance of Manufacturing Overhead Allocation The percentages of product costs comprised by direct materials, direct labor, and manufacturing overhead for three companies are as follows: Company A Company B Company C Direct materials . . . . . . . . . . . . . .
1.) The accounting records disclosed the following cost information for 2007: Direct materials $30,000 Direct labor $40,000 Fixed Manufacturing Overhead $50,000 Variable Manufacturing Overhead $10,000 Assume the company produced 10,000 units of in
In their review of the public accounting profession, Lou Harris and Associates warn that an audit report too often is viewed as a "certificate of health" for a company: The report states: The most serious consequences stemming from such a misunderstanding are that the independent auditor can quickly be portrayed as the force
Sarah owns undeveloped land (basis of $350K) held as an investment. On October 7, 2006, she exchanges the land with her 27-year-old daughter, Ellen for other undeveloped land also to be held as an investment. The appraised value of Ellen's land is $500K. a. On February 15, 2007, Sarah sells the land to Jeff, a real estate
Rocky Industries; Wisconsin Rentals; Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting. Which of the following general entries will RH Consu
1. Rocky Industries received its telephone bill in the amount of $300, and immediately paid it. Rocky's general journal entry to record this transaction will include a A. Debit to Telephone expense for $300 B. Credit to Accounts Payable for $300. C. Debit to Cash for $300 D. Credit to Telephone Expense for $300 E. Debit
Practically every line of Kevin and Janet's form 1040 can be used for tax planning. They had total income of $98,771 and paid federal income tax of $6,838 or 7%. Additionally, Kevin had income from his business of $48,040 and paid self-employment tax of $7,001 or 15%. Explain how Kevin and Janet took advantage of existing IR
Assuming that Neasha elects to use the carryback provision what after tax net income (loss) is reported in 2007?
I Part: 2) Revenue Recognize: The revenue recognition principle provides that revenue is recognized when: 1- It is realized, 2- It is earned. Explain when revenues are a realized , b) realizable, and c) earned. II Part: Neasha Corporation reported the following results for its first three years of operation:
Dividends and Taxes: Investors require an after-tax rate of return of 10 percent on their stock investments. Assume that the tax rate on dividends is 30 percent while capital gains escape taxation. A firm will pay a $2 per share dividend 1 year from now, after which it is expected to sell at a price of $20. a. Find the c
Cabigas Company manufactures two products, Product C and Product D. The company estimated it would incur $167,140 in manufacturing overhead costs during the current period. Overhead currently is applied to the products on the basis of direct labor hours. Data concerning the current period's operations appear below:
The most recent monthly income statement for Kennaman Stores is given below: Total Store I Store II Sales $2,000,000 $1,200,000 $800,000 Less variable expenses
During 2006, Edgemont Corporation had revenues of $230,000 and expenses, including income taxes, of $190,000. On December 31, 2005, Edgemont had assets of $350,000, Liabilities of $80,000, and Capital Stock of $210,000. Edgemont paid a cash dividend of $25,000 in 2006. No additional Stock was issued. Compute the retained earning
You are asked to make a depreciation schedule for a business asset. A depreciation schedule shows the remaining value of the asset at the end of each time period. Scenario B: A $26,000 company car is expected to be driven for 120,000 miles and then salvaged for $3,500. Find the unit depreciation using the units-of-production
My wife comes to me with the following tax saving strategies: Computer Consulting received $7900 from customers in the last week of December. Can she just hold on to the money and include it in January 2005 receipts? She would like to purchase a car in the name of Computer Consulting. What are his options? She would like
1. As marginal tax rates increase, the after-tax cost of a non-deductible expense will A. Increase B. Decrease C. Stay the same 2. A taxable corporation faces a flat 35% marginal tax rate. What is the tax savings from an additional $100,000 deduction? A. $35,000 B. $100,000 C. -0- D. $65,000 3. A taxpayer who th
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 for $4,000 cash for use in business. 9: Purchased supplies on account for $500. 11: Billed customers $1,800 for
The estimated total factory overhead cost and total machine hours for Department 40 for the current year are $225,000 and 56,250 respectively. During January, the first month of the current year, actual machine hours used totaled 5,100 and factory overhead cost incurred totaled $19,800. (a) Determine the factory overhead rat
Accounting Case - Fair Value - Will classifying the portfolio as each proposes actually have the effect on earnings that each says it will?
Addison Manufacturing holds a large portfolio of debt and equity securities as an investment. The fair value of the portfolio is greater than its original cost, even through some securities have decreased in value. Ted Abernathy, the financial vice president, and Donna Nottebart, the controller, are near year-end in the proces
Knowing AFC's strategy to double its sales in the next two years, the president has asked you to research companies that have accomplished this or want to accomplish this. The research should include the following: example companies strategies to implement potential risks Based on your findings, what relevant informa
How do the at-risk rules and passive loss rules can affect a tax return? How is a gain on line 17 of form 1040 can be calculated?
See attached file for full problem description. 1. Which costs are irrelevant? 2. Which alternative should Paul choose? Support your decision with only relevant numbers. Paul Smith is considering replacing Jones & Smith's present dishwasher with a new energy-efficient model. Although the old dishwasher has a presen
See attached file for full problem description. 1. Using the high/ low two-point method, determine the variable cost per customer. 2. What is the monthly fixed labor cost at Jim's Place? 3. What is your estimate of total labor costs if 3900 customers are served during the month?
Comparative Analysis Case The Coca-Cola Company versus PepsiCo, Inc. Instructions: Go to KWW website and use information found there to answer the following questions related to The Coca-Cola versus PepsiCo, Inc. a) (1) What specific items does Coca-Cola discuss in its Note 1-Accounting Polices? (Prepare a
Source documents, overhead rate, total cost/unit cost, Entry record. E2-6 Battle Company Job Cost Sheet Job No. 469 Quantity 2000 Item White Lion Cages Date Requested 7/2 For Tesla Company Date Completed 7/31 Date Direct Materials Direct Labor Manufacturing Overhead 7/10 828