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Accounting

Parent Company

PARENT COMPANY CONCEPT David Company Book Value Current Assets: $620,000 Equipment: $260,000 Buildings: $410,000 Liabilities:($390,000) Revenues: ($900,000) Expenses: $500,000 Investment income: not given Mark Company Book Value Current assets: $300,000 Equipment: $200,000 Buildings: $150,000 Liabilities: ($120

Cost Based Pricing and profit calculations

A Grocery store makes pricing decisions based on cost of the products. All other costs are fixed at $800,000 per year. The average cost of inventory at the store is $1,000,000. The inventory turns over eight times a year. a. If prices are set at 12% above costs, what is the profit of the grocery store for the year? b. What

Accounting Regression Analysis

During the last 10 months, Arcade Corporation has had the following indirect costs. It is tryng to determine a good cost driver for the indirect costs. That usage of two potential cost drivers, direct labor hours and machine hours has been recorded over the last 10 months. Month Indirect Costs Direct Labor Hours Machine Hour

Accounting example problems

I need assistance with these three problems regarding a break-even problem solving. 6-12 Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at selling price of $20 per game. Fixed costs associated with the game total $182,000 per year, and variable costs are $6 per game. Pro

How does ABM helps uncover what causes cost.

Accounting and ABM. See attached file for full problem description. Katherine Mitchell Salem Enterprises How are accountants likely to response? How does ABM helps uncover what causes cost. What are types and level of details required for ABC Pitfalls or barriers for successful implementation of ABC

Uncollectible Account Receivable-Allowance method

Explain Direct write off method and Allowance method of estimating bad debts expense. Give general journal entries for the following transactions separately for (Direct write off (2) Allowance method (Percentage of sales and (3) Allowance method (Percentage of accounts receivable. 1 during year 1 a corporation made credi

Calculate: Absorption and Variable Costing

Far North Telecom, Ltd., of Ontario has organized a new division to manufacture and sell specialty cellular telephones. The division's monthly costs are shown below. Manufacturing Costs: Variable Cost per Unit: Direct materials: $48 Variable manufacturing overhead: $2 Fixed manufacturing overhead costs (total): $360,000

Accounting Information Systems

Describe some considerations useful in the design of accounting codes. For each consideration you name, provide an example to illustrate your point.

cost accounting value to an organization

1. Does cost accounting differ from financial accounting? If so, how? When is cost accounting valuable to an organization? Where is cost accounting information stored and maintained? 2. If cost accounting serves internal more than external purposes, do ethics matter not only in the development of the cost accounting system b

Account Receivable-Gross method and Net Method of recording sales discount.

Explain Gross method and Net method of recording sales discount allowed to account receivables. Give general journal entries for the following transactions separately for gross and Net methods of collecting account receivables. I (a)Gross method assuming that the Payment is made within discount period Jan 1 2006 A corpora

Pension Plan accounting questions

PLEASE INCLUDE EXPLANATION FOR EACH QUESTION'S ANSWER. 1.Which of the following statements typifies defined contribution plans? A)Investment risk is borne by the corporation sponsoring the plan. B)The plans are more complex than defined benefit plans. C)Present value factors are used to determine the annual contribu

Governmental Accounting and Not-For Profit Organizations

Accounting practices for interest expenditures may neither reflect actual economic costs nor mirror those for interest revenues. A town plans to borrow about $10 million and is considering three alternatives. A town official requests your guidance on the economic cost of each of the arrangements and advice as to how each woul

Accounting Multiple Choice Questions

Toffee (bars) Cashews (bags) Units Marginal Total Marginal Total Utility Utility Utility Utility 1 10 10 12 12 2 8 18 10 22 3 5 23 7 29 4 3 26 5 34 5 1 27 2 36 6 0 27 1 37 TABLE 6-1 5) Refer to Table 6-1. If the prices of both toffee bars and bags of cashews are both $1 and this consumer has

Accounting/Economic Multiple Choice Questions

1) Diminishing marginal utility implies that the A) first unit of a good consumed will contribute most to the consumer's satisfaction. B) last unit of a good consumed will contribute most to the consumer's satisfaction. C) total utility is negative. D) total utility is increasing. E) marginal utility of a good diminishe

Accounting Questions

Part One: Balance Sheet and Income Statement Classifications. Specify on the answer sheet the letter of the financial statement classification the account would appear in. Use only the classifications shown. Balance Sheet Income and Retained Earnings Statement a. Current Assets j. Sales Revenue b. Investments k. Cost of

Short-Run and Long-Run Price Elasticity

1. Estimate Short-Run and Long Run Price Elasticity of Demand for Selected Commodities, United States Commodity Short-Run Long Run Clothing 0.90 2.90 Household natural gas 1.40 2.10 Tobacco Prod

Basic Variance Analysis

Basic Variance Analysis. See attached file for full problem description. PROBLEM 10-14 Basic Variance Analysis Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit

Effectiveness of Budgeting Systems

Please help with the following problems involving accounting. Provide at least 200 words in answers to these questions. In evaluating the effectiveness of a budget system within a company, what do you take into consideration from a management accounting perspective?

Break-Even and Target Profit Analysis

Break-Even and Target Profit Analysis Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $50 per unit. Variable expenses are $32 per stove, and fixed expenses associated with the stove total $108,000 per month. Required: 1. Compute the break-even point in number

Accounting Questions

When the cash proceeds from a bond issued with detachable stock warrants exceeds the sum of the par value of the bonds and the fair market value of the warrants, the excess should be credited to: a. additional paid-in capital from stock warrants. b. retained earnings. c. a liability account.

Accounting Questions - Morton Co. and Gomez

On November 1, 2004, Morton Co. purchased Gomez, Inc., 10-year, 9%, bonds with a face value of $150,000, for $135,000. An additional $4,500 was paid for the accrued interest. Interest is payable semiannually on January 1 and July 1. The bonds mature on July 1, 2011. Morton uses the straight-line method of amortization. Ignorin

Pinellas Pillow Company - Costing Method

Pinellas Pillow Company's planned production for the year ended was 10,000 units. This production level was achieved, but only 9,000 units were sold. Direct material used $80,000 Direct labor incurred $40,000 Fixed manufacturing overhead $50,000 Variable manufacturing overhead $24,000 Fixed selling and administ

Absorption versus Variable Costing - Collegiate Sporting Goods

Information taken from Collegiate Sporting Goods Company's records for the most recent year is as follows: Direct material used $272,000 Direct labor $128,000 Variable manufacturing overhead $60,000 Fixed manufacturing overhead $100,000 Variable selling and administrati

Accounting Questions

Solo Co. purchased $300,000 of bonds for $315,000. If Solo intends to hold the securities to maturity, the entry to record the investment includes a. a debit to Held-to-Maturity Securities at $300,000. b. a credit to Premium on Investments of $15,000. c. a debit to Held-to-Maturity S

Percentage of Earnings Retained

See attached file for full problem description. Note: Do only c) #2 The Gannette Co., Inc. presented five year summary as part of its 2001 annual report. C. Based on these data compute the following for 1999 - 2001 2. Percentage of earnings retained 2001 2000 1999 Net Income 831,197,000 1,719,077,000 9

Corporate After Tax Yield, Cash Flow

Corporate After Tax Yield 1. The Shrieves Corporation has $10,000 that it plans to invest in marketable securities. It is choosing among AT&T bonds, which yield 7.5 percent, state of Florida muni bonds, which yields 5 percent, and AT&T preferred stock, with a dividend yield of 6 percent. Shrieves's corporate tax rate is 35 perc

Accounting for Merchandising Organizations

Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases..................... E250,000 Freight In.................. E8,000 Sales discounts............. 4,000 Purchase returns........ 7,000 Inventory Sales........