Share
Explore BrainMass

Accounting

Thomas Corporation: Total Assets, Cash, and Net Income

Thomas Corporation began business by issuing $2,000 of common stock on January 1, 2010. The business performed $8,000 of service on account in 2010 and collected $6,000 of this amount by year end. It paid operating expenses of $4,500 and paid a $500 dividend to stockholders. a) What is the amount of total assets at t

Reporting balance sheets and income statements

On July 1, 2007, Grape Crushers Company purchased for cash 40% of the outstanding capital stock of Fuzzy Flask Corporation. Both Grape Crushers and Fuzzy Flask have a December 31 year-end. Fuzzy Flask Corporation, whose common stock is actively traded on the American Stock Exchange, paid a cash dividend on November 15, 2007, to

Earnings Per Share and Treasury Buyback

1) Explain how earnings per share might be affected by treasury stock transactions. 2) Calculate the ratio of debt to total assets for 2003 and 2004, and discuss the implications of the change. 2004 2003 dollars in millions Net Sales 9614 8812 Net Earnings 891 787 Total Assets 10790 101

HIGHLANDS GOLF INC.

A) Journalize the adjusting entries that were made. (b) Prepare an income statement and a retained earnings statement for the 3 months ending September 30 and a classified balance sheet at September 30. (c) Identify which accounts should be closed on September 30. (d) If the note bears interest at 12%, how many months has it

High-Low Method on estimating cost behavior

Gentlemen produces and packages his own brand applesauce. A high low cost behavior needs to happen on the inventory on the company's energy cost behavior. Month Pints of applesauce produced Energy cost Jan. 35,000 $23,400 Feb. 21,000

Tax

1.Jackie Smith had a fur coat that cost $12,000 when purchased in 1998 and that was worth $14,000 when it was stolen on April 15, 2008. Her t.v. which cost $800 in 2003 and was worth $600, was also stolen. She received $10,000 from her insurance company for the theft of the two items. On July 20, 2008, her summer cottage was a b

Stock

1. Boyd Smith acquires 100 shares of Evans Corporation stock for $3,000 on January 8, 2007. He gave the stock to his daughter Susan on January 8, 2008, when the fair market value was $2,400. On March 22, 2008, Susan sold the stock for $1,500. What is the nature and the amount of the gain or loss for Susan in 2008?

Understate, Overstate, and No Effects

Indicate the effect - Understate, Overstate, No Effect - that each of the following errors has on 2007 net income and 2008 net income. a) Wages payable were not recorded at 12/31/07. Explain. b) Equipment purchased in 2006 was expensed. Explain. c) Equipment purrchased in 2007 was expensed. Explain d) 2007 ending inventory

Calculating Monthly Sales

Trent, Inc., is a retail store operating in a state with a 5% retail sales tax. The state law provides that the retail sales tax collected during the month must be remitted to the state during the following month. If the amount collected is remitted to the state on or before the twentieth of the following month, the retailer may

Accounting Internal Controls

Discuss Accounting Internal Controls; what they are? why they exist? who regulates them? Give examples. Identify as many internal control weaknesses as you can in this scenario, and suggest how each could be addressed. (10pts) Emporia Middle School wants to raise money for a new sound system for its auditorium. The primary

Mulkeen Service Company, Faith's Fine Furniture Corporation, Faye's Fashions Inc

E2-8 Analyzing the Effects of Transactions in T-Accounts: L02, L03, L05 Mulkeen Service Company, Inc., was organized by Conor Mulkeen and five other investors. The following activities occurred during the year: 0.Received $60,000 cash from the investors; each was issued 1,000 shares of capital stock. 1.Purchased equipment

Computing Payroll Taxes Payable

Payroll for the pay period ended October 31, 2007 is summarized as follows: Federal Income Department Total Wages Withheld FICA Unemployment Factory 75,000 9,000 70,000 22,000 Sales 22,000 3,000 16,000 2,000 Office

Payroll Tax Entries

(Payroll Tax Entries) Below is a payroll sheet for Jedi Import Company for the month of September 2007. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% F.I.C.A.

Tax Problem

Problem:The Book used is: Pope, T. & Anderson, K. & Kramer, J. (2007). Federal taxation comprehensive. Upper Saddle River, NJ: Prentice Hall. Reconciling Book Income and Taxable Income. Zero Corporation reports the following results for the current year: Net income per books (after taxes) $33,000 Federal income

Accounting problem

(a) A company purchased a patent on January 1, 2008, for $2,500,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2008, the company paid legal costs of $162,000 in successfully defending the patent in an infringement sui

Some problems from book Investment Analysis and Portfolio Management (9th ed.). Book from: Frank K. Reilly, & Keith C. Brown, (2009). Mason, OH: South-Western/ Cengage Learning.

Chapter 11, question 1, page 350; Discuss the difference between the top-down and bottom-up approaches. What is the major assumption that causes the difference in these two approaches? Problems 1, 2, 4, 5, page 350 1. What is the value to you of a 9 percent coupon bond with a par value of $10,000 that matures in 10 years if

Margaret and John Murphy

In 2008, Margaret and John Murphy are married taxpayers who file a joint tax return with AGI of $25,000. During the year they incurred the following expenses: Hospitalization Insurance Premiums $1,050 Premiums on an insurance policy that pays 300 $100 per day for each day Margaret

Amount of Total Assets and Cash on Hands

Thomas Corporation began business by issuing $2,000 of common stock on January 1, 2010. The business performed $8,000 of service on account in 2010 and collected $6,000 of this amount by year end. It paid operating expenses of $4,500 and paid a $500 dividend to stockholders. Remember to show your work for parts a - c

Depletion Expense Recording

In January, 2007, M Corporation purchased a mineral mine for $3,400,000 with removable ore estimated by geological surveys at 2,000,000 tons. The property has an estimated value of $200,000 after the ore has been extracted. The company incurred $1,000,000 of development costs preparing the mine for production. During 2007, 500,0

Sum of the Years Digits

On January 1, 2000, B. Company purchased equipment at a cost of $50,000. The equipment was estimated to have a salvage value of $5,000 and it is being depreciated over eight years under the sum-of-the-years'-digits method. What should be the charge for depreciation of this equipment for the year ended December 31, 2007?

Double Declining Method

V Co. purchased machinery that was installed and ready for use on January 3, 2006, at a total cost of $69,000. Salvage value was estimated at $9,000. The machinery will be depreciated over five years using the double-declining balance method. For the year 2007, V. should record depreciation expense on this machinery in the a

Recording Land, Warehouse, and Building

R. Corporation purchased for $855,000 a tract of land on which was located a warehouse and office building. The following data were collected concerning the property: Current Assessed Valuation Vendor's Original Cost Land $300,000 $280,000 Warehouse 200,000 180,000

EPS and Effect of Stock Split on EPS

10.1 read and interpret corporate governance statement. Refer to the "corporate governance" disclosures provided the "link on Intel corporation's web site. Identify the principal topics covered in those disclosures. Are there other topics that you believe would be appropriate to have included in those disclosures? Explain your a

Differential Analysis: Net Income, Fixed Costs, and Processing

Part A: The luggage department of ABC store has annual revenues of $1,000,000, variable costs of $300,000, direct fixed costs (like special store fixtures, and per square foot rent) of $500,000, and allocated indirect fixed costs of $400,000 (like management salaries and insurance). What would be the effect on total net income

The Big Foam Brewery Company has 30,000 shares of $10 par value common stock.

The Big Foam Brewery Company has 30,000 shares of $10 par value common stock authorized and 20,000 shares issued and outstanding. On August 15, 2007, Big Foam Brewery Company purchased 1,000 shares of treasury stock for $16 per share. Big Foam Brewery Company uses the cost method to account for treasury stock. On September 14, 2

Partnerships Formation Operation

Jeff Able is a partner in the Willing and Able partnership. On June 1, 2008, Jeff transfers property to the partnership that has a fair market value of $60,000 and adjusted basis to Jeff of $10,000. Three weeks later, the Willing and Able partnership transfers $40,000 cash to Jeff. Willing and Able would not have transferred the

Reporting the Income of the Partnership

Elder Attorney had practiced law for several years and had accumulated $50,000 in accounts receivable. He reported his income for tax purposes under the cash receipts and disbursements method. Elder formed an equal partnership with Senior Counsel, Lawyers Unlimited, a cash-basis law partnership, and transferred his $50,000 accou

Partnership Taxation 1

Joe Quick and Jane Reddy are equal partners in the Quick and Reddy partnership. On the first day of the current taxable year, Joe's adjusted basis in his partnership interest is $10,000 and Jane's adjusted basis is $2,000. During the year, Joe had withdrawals of $25,000 and Jane had withdrawals of $20,000. Given the following pa