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Retained Earnings Question

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

The Units of Production Method of Cost Allocation

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

Tax savings strategies for a small business

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

Advanced Taxation Question

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

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

Factory Overhead

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

Three year short/long term strategies

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

Accounting Problem

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

Accounting-Cost Concept Problem.

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 - Coke vs. Pepsi

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

E2-6 Battle Company

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

Uncollectible Accounts

Ed Co. prepared an aging of its accounts receivable at December 31, 2004 and determined that the net realizable value of the receivables was $290,000. Additional information is available as follows: Allowance for uncollectible accounts at 1/1/04?credit balance $ 29,000 Accounts written off as uncollectible during 2004 23,


1. Paul inherits stock from his Aunt Sadie that had a basis of $63,000 to Sadie and a fair market value of $54,000 on February 23, 2006, the date of her date. Paul sells the stock on June 21, 2006 for $58,000. What is the amount and character of the gain or loss on the sale? 2. What incentive provisions or preferential trea

Accounts Receivable Aging Report

1. What is an account receivable aging report? 2. Why is an accounts receivable aging report needed for an audit? 3. What is an accounts receivable aging report used for in normal business company operations? 4. What data will you need to prepare the report? 5. Where will you collect the data you nee

Overhead Costs & Dropping a Product Line

The company manufactures three products. Profit computations for these three products for the most recent year are as follows: Product X Product Y Product Z Total Sales $ 300,000 $ 700,000 $ 800,000 $ 1,800,000 Direct materials (70,000) (150,000) (200,000) (420,000) Direct l

Predetermined Overhead Rate

Cabat Company manufactures two products, Product C and Product D. The company estimated it would incur $177,910 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:

Accounting Questions Wert Inc

23. You have been provided the following information about Wert Inc. (In Thousand of dollars) 2005 2004 Sales $2,456 $3,778 Net Income

Break-even point/Net operating income

1. South Company sells a single product for $20 per unit. If variable expenses are 60% of sales and fixed expenses total $9,600, the break-even point will be: A. $24,000 B. $14,400 C. $9,600 D. $16,000 2. Arthur Company has a margin of safety percentage of 25%. The break-even point is $300,000 and the variable expenses

Absorption vs. Variable

Qadir Company, which has only one product, has provided the following data concerning its most recent month of operations Selling Price $93 Units in beginning inventory 0 Units produced 5,400 Units sold 5,200 Units in ending inventory 200 Variable costs per unit: Direct materials $24 Direct labor 27 Variable Ma

Accounting Multiple Choice

1. If a company fails to record estimated bad debts expense, a. cash realizable valve is understated b. expenses are understated c. revenues are understated d. receivables are understated 2. Stiner Company acquires land for $36,000 cash. Additional costs are as follows: Removal of shed

Accounting Study Questions

1. Management should select the depreciation method that is easiest to apply OR best measures the plant asset's market vale over its useful life OR best measures the plant asset's contribution to revenue over its useful life OR has been used most often in the past by the company? 2. Corporations invest in other companies f

Accounting Case - Stock Dividends and Stockholders

CA15-5 (Stock Dividends) Kitakyushu Inc., a client, is considering the authorization of a 10% common stock dividend to common stockholders. The financial vice president of Kitakyushu wishes to discuss the accounting implications of such an authorization with you before the next meeting of the board dividend. Instructions:

Accounting Interest Note Receivables

A. How would I show the interest on a $2,000,10%,1-year note receivable would be? b.The maturity value of a $15,000, 12%,3-month note receivable ? c. If Lj company acquires land for $36,000 cash. Additional costs are as follows: Removal of shed $ 300 Fillin

Accounting questions

A) Company's Acctg Change Disclosure---- Find a company which had a change in accounting principle recently. Many companies have changes in accounting principles. One way to facilitate this process is to review the Independent Auditors' Report for a company, since a company is required to disclose any material changes in acco