Amerspec Enterprise Inc. produces aeronautical navigation equipment. The stockholders' equity accounts of Amerspec Enterprises Inc., with balances on January 1, 2006, are as follows; Common Stock, $10 stated value (100,000 shares authorized, 60,000 shares issued) ...........................
Web Creations, a Website design and maintenance company, uses job-costing system has a single direct-cost category (professional services) and a single indirect-cost pool (client support). Client support costs are allocated to individual jobs using actual professional service-hours. Budgeted and actual amounts for 2004 are as
Please help with the following problem. Dr. Giles is a dentist who deducted losses for her horse breeding activity for 15 years. In 14 of the 15 years, she sustained a loss for tax reporting purposes. As a result of an audit, she took the IRS to task in Tax Court in 2006. She lost her case because she did not satisfactori
1- If the going concern assumption is not made in accounting, discuss the differences in the amounts shown in the financial statements for the following items. a- land b- Unamortized bond premium c- Depreciation expense on equipment d- Merchandise inventory e- Prepaid Insurance 2-What accounting assumption principle o
Problem 1 If merchandise purchased on account is returned, the buyer may inform the seller of the details by issuing: A. A debit memorandum B. A credit memorandum C. An invoice D. A bill Problem 2 If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30, and the seller prepays
I need some help figuring out how to do these calculations. I attached the balance sheet and growth assumptions as well as a spreadsheet. Laredo Railroad Financial Data Laredo Balance Sheet (amounts in thousands, except per share amounts) as of December 31 1998 1999 ASSETS Current assets Cash and cash
Choose from the following list the term which best describes the presentation of the item on the financial statements of Gordon Corporation for 2008. C: Change in estimate P: Prior period adjustment (not due to change in principle) R: Retrospective type accounting change with note disclosure N: None of the above 1. In
Green Industries (a sole proprietorship) sold three SS1231 assets during 2005. Data on these property dispositions are as follows: Asset Cost Acquired Depreciation Sold for Sold on Rack $100,000 10/10/01 $60,000 $135,000 10/10/05 Forklift $35,000 10/16/02 $23,000 $
Accounting for Income Taxes a. Roberts Corp. reports pretax accounting income of $200,000, but due to a single temporary difference, taxable income is only $150,000. At the beginning of the year, no temporary differences existed. Roberts is subject to a tax rate of 40%. Required: Prepare the compound journal entry to reco
Accounting changes and error corrections: a. Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2006. Inventory values at the end of each year since the inception of the company are as follows: FIFO LIFO 2004 $200,000 $180,000 2005 400,000 360,000 Requi
On December 31, 2005, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2006, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share. Brisbane sold 6,000 treasury shares on
1. You are given the following data; k* = real risk-free rate = 4.0% Constant inflation premium = 7.0% Maturity risk premium = 1.0% Default risk premiums for AAA bonds = 3.0% Liquidity premium for long-term = 2.0% Assume that a highly liquid market does NOT exist for long-term US Treasury bonds, and the expected
21. Mr. and Mrs. South's adjusted gross income was $85,000. During the year they incurred and paid the following: Publications (unreimbursed and related to employment) - $500 Tax return preparation fee - 1,000 Professional dues - 1,200 Fees for will preparation (no tax advice) - 800 Life insurance premiums - 1,400 Assu
Tax deductions: employee business expenses and cosmetic surgery. See attached file for full problem description.
Tax calculations: long and short term capital gains/losses. See attached file for full problem description.
Tax transactions: basis of assets, basis in stocks sold. See attached file for full problem description.
Accounting Problems. Classification of product cost and period cost, statement of cash flows for Millco, income statement and balance for Aron Concrete, and cash budget of Ritewell Publishers. See attached file for full problem description. Bright, Inc., a producer of educational toys for children, incurs the following
Please see attached for full problem. 1. Based on what you have learned regarding ABC costing, please help Mary prepare a revised cost report by: a. Computing the overhead rate for various activities in the spirit of ABC b. Preparing a new cost report for the three products c. In your opinion how many cost pools will be s
Brittney is a broker who works full-time for a national brokerage firm. She also maintains an office in her home for her sole proprietorship, which she uses to provide financial planning services to clients. Expenses of the business (other than home office expenses) are $3,200. Brittany's home expenses are as follows:
Milton, who is single, listed his personal residence with a realtor on March 3, 2005, at a price of $250,000. He rejected several offers in the $200,000 range during the summer. Finally, on August 16, 2005, he and the purchaser signed a contract to sell at $245,000. The sale (i.e. closing) took place on September 7, 2005. The cl
Teresa calls you to discuss her latest tax planning ideas. At a cocktail party last night she was mesmerized by a discussion of like kind exchanges. She now feels that like kind exchanges will be the solution to all of her tax problems. She just "knows" she should do the following like kind exchanges this year: · Exc
Margie purchased a commercial building in January 1990 for $100,000. She also purchased equipment for $30,000 at that time and opened a business. She replaced the roof of the building in August 1995 at total cost of $20,000. She has depreciated the building and new roof using the straight-line method. The equipment has been full
Scoff Division of World-Wide Paint currently is losing money; therefore senior management is considering selling or closing it. Scoff's only product an intermediate chemical called Binder is used principally by the firm's Latex Division. If Scoff is sold, Latex Division can purchase ample quantities of Binder in the market at su
A road contractor has been using kilometers of road constructed as a cost driver. Based on last years costs he estimates that he can build a kilometer of road for $3 million. The county has recently asked him for an estimate to build 20 kilometers of road. Before making his bid based on his $3 million per kilometer estimate,
ROI and Residual Incomes BOATS A B C D E Revenues 5,500,000 8,300,000 10,400,000 12,800,000 20,400,000 Annual Expenses 3,800,000 8,200,000 9,100,000 9,900,000 18,900,000 Income 1,700,000 100,000 1,300,000 2,900,000 1,500,000 Book Value 0 5,200,000 6,100,000 5,200,000 8,300,000 Market Value 5,000,000
Measer Enterprises produces standard telephone key pads. The firm operates in a highly competitive market in which the keypads are sold for $4.50 each. Du tto the nature of the production technology the firm can produce only between 10,000 and 13,000 units per month in fixed increments of 1,000 units Measer has the following cos
A dialysis clinic offers two services hemiodialysis(HD) and peridoneal dialysis (PD). HD requires patients to come to the clinic three time a week to receive treatment. PD allows patients to administer their own treatment daily in their own homes. The profit analysis of the two services follows: Total HD PD Revenue
1. From the perspective of an accountant, what are your priorities about the accounting information system performance? How are these priorities related to the accounting internal control, the system components and the processes of developing the system? 2. What are the drawbacks of poorly documented systems?
1. Machain Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company's cost formula for variable overhead cost is $2.90 per machine hour. The actual variable overhead cost for the month was $15,270. The original budget for the month was based on 5,000 machine hours. The compa
Data related to the acquisition of timber rights and intangible assets during the current year ended December 31 are as follows: a. Timber rights on a track of land were purchased for $720,000 on July 11. The stand of timber is estimated a 2,250,000 board feet. During the current year, 600,000 board feet of timber were