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Net income and breakeven point calculation

What should a company expect their net income to be if their units sold increases by 10,000 units given the following information? What would their breakeven sales point be? Sold 60,000 units this year. Sales $120,000 Direct Labor 6,000 Indirect Labor

Financial Accounting

True/False 1. Accounts receivable are the result of cash and credit sales. 2. Under the direct write-off method, no attempt is made to match bad debts expense to sales revenues in the same accounting period. 3. Allowance for Doubtful Accounts is debited under the direct write-off meth

Bonds Payable

23. Entries for bonds payable. (20 points) Prepare the necessary journal entries to record the following transactions relating to the long-term issuance of bonds of Titus Co.: March 1 Issued $800,000 face value Titus Co. second mortgage, 8% bonds for $872,160, including accrued interest. Interest is payable semiannually on

Accounting Information Systems

How can data modeling tools such as an E-R diagram help identify inconsistencies early on in the data modeling process? How can the data modeling process encourage accountants and other users to get more involved in database design? What techniques might an auditor employ to evaluate the reliability and integrity of an accoun

Oversight Board

The Associated Press article, "Oversight Board a Way to Report Wrongdoing, "states:" Corporate oversight boards, created amid the accounting scandals, are encouraging people to come forward with information by making it easier for company employees and others to report tips and complaints" (p. 1). 1. Present an argument in fa

Manergerial Accounting - compares and contrasts

1. Compare and contrast a cost-plus pricing strategy to a target pricing strategy. 2. Discuss the effects of cost behavior on selection of appropriate cost drivers. 3. What is the basic premise behind activity-based costing systems? What is an activity? Describe how ABC systems work. 4. Describe the budgeting proce

Accounting Equations and Methods

1. Discuss the expansion of the basic accounting equation to include revenues and expenses. Discuss and illustrate how this expanded accounting equation stays in balance after every transaction and whether the rigorous rules of accounting necessarily mean there is only one numerical answer. Explain. 2. Describe the accounting

Case Analysis?Time and Billing System

File contains a paper which answers such questions as whether and automated time and billing system can drastically improve a company's efficacy with regard to its record keeping as well as the timeliness and accuracy of delivery, which are the most pressing, and challenging problems at present for a professional service agency.

Accounting Problems - variable costs, journal entries and break even points

Du Page Company manufactures a nutrient, Everlife, through two manufacturing processes: Blending and Packaging. All materials are entered at the beginning of each process. On August 1, 2005, inventories consisted of Raw Materials $5,000, Work in Process?Blending $0, Work in Process?Packaging $3,945, and Finished Goods $7,500. Th

Tax Issues for Incorporation to provide some ownership to daughter Margaret.

Nancy and her daughter, Margaret, have been working together in a business called The Floral Shop. Nancy formed the business in 1990 as a sole proprietorship. Because Nancy was well known and liked in the community before starting the business, the business has been very successful. It currently has assets with a fair market va

Tax issues for bonuses in a seasonal business

In January, Don and Steve each invested $ 100,000 of cash to form a corporation to conduct business as a retail golf equipment store. On January 5, they paid Bill, an attorney, to draft the corporate charter, file the necessary forms with the state, and write the bylaws. They leased a building and began to acquire inventory,

Tax Effect of Capital Loss Claim

5. Kathy owns all the stock in Eagle Corporation. Eagle Corporation reports on a calendar year basis. During the 2006, Kathy incurs a $ 25,000 long term capital loss, and Eagle Corporation incurs a $ 25,000 long term capital loss. Compare the treatment of these transactions on the tax returns of Kathy and Eagle.

Individual Income for S Corporation

3. Harry is the sole shareholder of Purple Corporation, which is an S Corporation. Purple earned net operating income of $ 60,000 during the year and had a net capital loss of $ 8,000. Harry withdrew $ 30,000 of the profit from the corporation. How much income must Harry report on his individual income tax return for the year?

Individual Income from a C Corporation

1. George owns a sole proprietorship and Mike is the sole shareholder of a C Corporation. During 2006 both businesses make a profit of $ 75,000 and neither owner withdraws any funds from his business during 2006. How much income must George and Mike report on their individual income tax returns for year 2006?

Expenditures and Encumbrances

What is the difference between expenditures and encumbrances? What are the differences between reserve for encumbrances and encumbrances?

Business problem :Activity based costing

Chapter 22: (Exercises 22-2, and 22-3) Allocating Unit-Level, Batch-Level, and Product Line Manufacturing, Overhead Costs, Solar Salt Company has two divisions. Gross margin computations for these two divisions for 2006 are given below. Agricultural Products

Cost accounting

1. Consider the cost function: C = 60 + 20Q + 30Q^2 with MC = 20 +60Q (here Q denotes output) Part A) Write down the expression for the average cost. Part B) What is the output elasticity of the total cost at output level of Q = 1 ? Part C) At an output of 1, does the cost function exhibit economies of scale, diseconomies o

Accounting Questions

See attached file for full problem description. ____ 4. Shaulter Corporation uses a process cost accounting system. Given the following data, compute the number of units transferred out during the current period. Beginning Work in Process 12,000 units (1/2 complete) Ending Work in Process 15,000 units (1/3 complete)

Accounting Questions

See attached file for full problem description. Question 2 Jay Manufacturing's sales slumped badly in 2006 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: Net sales, $2,000,000; total costs and expenses, $2,500,000; and net lo

Accounting Problem

Prepare a complete statement of cash flows; report its operating activities using the direct method. Forten Company, a merchandiser, recently completed its calendar-year 2008 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchase

Managerial Accounting

1. Zeta Company sells men's sports coat. The average sales price is $475 the average cost per code is $225. Fixed costs are $4,220,000. If Zeta sells 25,000 coats, the contribution margin will be: a. $7,655,000 b. $5,625,000 c. $2,030,000 d. $6,250,000 5. The following information was drawn from th


A. STONES Company accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Miles Driven Total Cost January 8,000 $ 15,850 March 8,500 $ 16,800 February 7,500 14,900 April 8,200

Unit Costs; Profit Maximizing output

The controller for Canandaigua Vineyards, Inc. has predicted the following costs at various levels of wine output. (See attached) The company's marketing manager has predicted the following prices for the firm's fine wines at various levels of sales. (See attached) 1. Calculate the unit costs of wine production and s

Accounting Multiple Choice

1.) Which of the following costs typically include both fixed and variable components? (a) Direct materials (b) Direct labor (c) Factory overhead (d) None of the above 2.) Mitchell Company has total current assets of $45,000 including inventory of $10,000, and current liabilities of $21,000. The company's working capita

Change of additional investment in account receivable

The current credit terms : net 1/30 net 50. Half of our current customers take the cash discount and pay on the 30th day, whereas the other half pass the discount and pay on the 50th day. The tax rate and pre-tax required rate of return of our company are 30% and 12%, respectively. Now my proposed new credit policy : To t


For each of the following unrelated transactions, list the accounts that will be debited and credited. (a) Borrowed cash from the bank. (b) Provided services on account. (c) Paid cash for office supplies. (d) Collected cash due on accounts receivable. (e) Paid cash dividends to stockholders.

Accounting for Costs

King Company has two departments, assembly and finishing. Consider the following data for the Assembly Department: Units Percent Direct Direct Complete Material Labor Overhead Total Beginn