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Intermediate Accounting

1. On June 1, 2005, Tocinto Company sold its 8-year, $1,000 face value, 9% bonds dated June 1, 2005 at an effective annual interest rate (yield) of 10%. Interest is payable semiannually, and the first interest payment date is September 1, 2005. Tocinto uses the effective interest method of amortization. Bond issue costs were in

Burns Manufacturing- Absorption versus Variable Costing

Burns Manufacturing incurred the following costs during the year: direct materials $20 per unit; direct labor $12 per unit; variable manufacturing overhead $15 per unit; variable selling and administrative costs $8 per unit; fixed manufacturing overhead $120,000; and fixed selling and administrative costs $10,000. Burns produce

Minimum transfer price, total costs, minimum transfer price

The Appraisal Department of Mega-Mortgage Bank performs appraisals of business properties for loans being considered by the bank and appraisals for home buyers that are financing their purchase through some other financial institution. The department charges $160 per home appraisal, and its variable costs are $126 per appraisal.

Calculate basic and diluted earnings per share

Assume that the following data related to Fargo, Inc for the year 2008 Net income (30% tax rate) $3,000,000 Average common shares outstanding 2008 1,000,000 shares 10% cumulative convertible preferred stock: Convertible into 80,000 shares of common $1,600,0

Cash Dividends for Ives Company

Ives Company has stock outstanding as follows: Common, $10 par value per share, 140,000 shares; Preferred, 5%; $100 par value per share, 6,000 shares. The Preferred is cumulative and participating up to an additional 4% of par; two years are in arrests (not including the current year); and the total amount of cash dividends decl

Adelphia Throughput costing, absorption costing, and variable costing.

Adelphia Corporation which uses throughput costing, just completed its first year of peration.l Planner and actual production equaled 10,000 units and sales totaled 9,600 units at $216 per unit. Cost data for the year are as followed: Direct material (per unit) 36.00 Coversion costs Direct labor 135,000 Var

Quality Cost Report: Red Lake Enterprises

I am not sure how to begin answering this problem. It seems very confusing to me and I am just unsure of how to get started and if I need to use an excel spreadsheet. From what I can tell it looks like I will, but I am just really stressed out about this problem. Please see ** ATTACHED ** file(s) for complete details!!

Taxation: Refund status from California for IOU; reportable?

According to our reading, "if a taxpayer receives a refund of state income taxes deducted in a prior year, the taxpayer must include the refund as income in the year of the refund to the extent the taxpayer received a tax benefit from the prior deduction." What about California's situation where taxpayers are getting IOU's fr

Efficiency Variance

Direct labor-banking application. Pioneer state bank developed a standard for teller staffing that provided for one teller to handle 12 customers per hour. During April, the bank averaged 57 customers per hour and had six tellers on duty at all times. (Relief tellers filled in during lunch and rest breaks.) The teller compensati

Cost or Equity Method

Use of the Cost or Equity Method [AICPA Adapted] Analysis Since Boomer Company's inception, Madison Company has owned 18 percent of Boomer's outstanding common stock. Madison provides three key management personnel to Boomer and purchased 25 percent of Boomer's output during 20X7. Boomer is profitable. On January 2, 20X8, Ma

Choice of Accounting Method

Choice of Accounting Method Understanding Slanted Building Supplies purchased 32 percent of the voting shares of Flat Flooring Company in March 20X3. On December 31, 20X3, the officers of Slanted Building Supplies indicated they needed advice on whether to use the equity method or cost method in reporting their ownership in

Not for Profit Accounting

On January 1, 2009, the first day of the fiscal year, the City of Carter received notification that a federal grant in the amount of $550,000 was approved. The grant was restricted for the payment of wages to teenagers for summer employment. The terms of the grant permitted reimbursement only after payment was made; the grant co

Absorption Income vs Contribution Margin Income

1. What is the difference in calculation between the absorption costing and variable costing approaches? 2. Can you give specific benefits to be derived from using the information from computing gross profit on sales as opposed to contribution margin? 3. Is net income always going to be the same regardless of the accountin

3 Multiple Choice: 501 C organizations

1. A volunteer fire company is most likely organized under Section: a. 501(c)(1) b. 501(c)(3) c. 501(c)(4) d. 501(c)(7) 2. A club formed for pleasure, recreation, and social activities is most likely organized under Section: a. 501(c)(1) b. 501(c)(3) c. 501(c)(4) d. 501(c)(7) 3. An organization that pro

Business process perspective

Please provide an example to the question below. "Organizations are complex systems with multiple stakeholders. Sometimes the interests of various stakeholders can conflict". 1. In a short paragraph, provide an example of a business process where the interests of two (or more) stakeholders are in opposition. Thank yo

Compute operating, financial & combined leverage, pre-tax EPS

Seaside Company manufactures and sells small sailboats. Its annual sales are $3.0 million (30 sailboats at $100,000 each). Because of the need to be near the ocean, the company's fixed costs are high, $1.0 million. The variable cost ratio is 30 percent. The owner, Stan, has financed the business with $1.2 million bank loan at 7

Degree of operating leverage :sample question

2.The Sterling Tire Company income statement for 2006 is as follows: Sterling Tire Company Income Statement For the Year Ended December 31, 2006 Sales (20,000 tires at $60 each) $1,200,000 Less: Variable costs (20,000 tires at $30) 600,000 Fixed costs 400,000 Earnings before interest and taxes (EBIT) 20

Database Definitions Exercise

Define the following terms related to databases. a. Field__________________________________________________________________ _________________________________________________________________________ b. Record________________________________________________________________ ______________________________________________________

Conceptualizing a Business: coffee shop and book store combination

Prepare a paper in which you explain the importance of my selected business which is coffee shop and book store combination. What is the vision, mission, and values in determining your strategic direction. Please include: a. Define my business, products/services, and customers by developing a mission statement. Ensure t

State Tax Refunds and Separate Returns

When is a state tax refund includable in income? Are married taxpayers filing separate returns eligible to use standard deductions or itemized deductions? Why?

Multiple Choice Question: Witten Co. preferred entry to record purchase of bonds

Multiple Choice 35. On August 1, 2007, Witten Co. acquired 200, $1,000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2007, and mature on April 30, 2013, with interest paid each October 31 and April 30. The bonds will be added to Witten's available-for-sale portfolio. The preferred entry to record the purch

Bonds: calculate issue price and amortize premium

Question: On January 1, 2009, Company A issued $60 million face amount of 20-year, 14% stated rate bonds when market interest rates were 16%. The bonds pay interest semiannually each June 30 and Dec 31 and mature on Dec 31, 2028. Using the present value table, calculate the proceeds of Company A's bonds on Jan.1, 2009, assumi

Free Cash Flow (Practice Question, ABC Corp.)

FREE CASH FLOW Estimate the free cash flow that ABC Corp earned in 2008 using the Income Statement and supplemental information below; show your calculations: Income Statement Sales 100 Cost of Sales (40) Gross Margin 60 Expenses

Trial Balance and Income Statements

John Smith starts a sole proprietorship, Johnny's Store, on December 1, 2008. He plans to reinvest all profits in the business for the first several years. I. Using Excel, record the following transactions in debit/credit form. 1. Smith opens a bank account in the name of Johnny's Store with his personal check for

Study Guide 3

Please help me with these so I can make sure to study the right info. 1. Rensing Company's December 31 year-end financial statements contained the following errors: Dec. 31, 2007 Dec. 31, 2008 Ending inventory $7,500 understated $11,000 overstated Depreciation expense $2,000 understated An insuran

Comprehensive cycle problem: Perpetual System

At the beginning of 2006, D & L Enterprises had the following balances in its accounts: Cash ---> $8,400 Inventory 2,000 Common Stock 8,000 Retained Earnings 2,400 During 2006, D & L Enterprises experienced the following events: 1. Purchased inventory costing $5,600 on account from Smoot Company under terms 2/10, n/

Methods of Accounting for Long-Term Investments

Teague Corporation has the following long-term investments: 1. 60 percent of the common stock of Sriel corporation 2. 13 percent of the common stock of Copper Inc. 3. 50 percent of the nonvoting preferred stock of Staffordshire Corporation 4. 100 percent of the common stock of its financing subsidiary, EQ Inc. 5.

Fica Taxes

Is there some threshold for FICA calculations? Joe is president and 75 percent owner of JS Corporation. He takes a salary of $825,000 this year. Presidents of comparable companies are generally paid no more than $500,000. What are the income and FICA tax consequences if $325,000 is determined to be excessive wages by the IRS?