I am really having a difficult time figuring out the entries when it comes to bonds and investments, please help. Danka Inc. develops and leases databases of publicly avaiable information. The following selected transactions relate to certain securities acquired as a long term investment by Danka Inc. whose fiscal year end
Over the past 10 years, Molly O'Rourke has slowing built a diversified portfolio of common stock. Currently her portfolio includes 20 common stock issues and has a total market value of $82,500. Molly is at present considering the addition of 50 shares of one of two common stock issues-X or Y. To assess the return and risk
30. Mauve Corporation began operations as a farm supplies business and used a fiscal year ending September 30. The company gradually went out of the farm supplies business and into the mail-order Christmas gifts business. The company has received permission from the IRS to change to a fiscal year ending January 31, effective for
The Cardinal Wholesale Company is an S corporation that began business on March 1, 2005. Robert, a calendar year taxpayer, owns 100% of the Cardinal stock. He has $400,000 taxable income from other sources each year. Robert will work approximately 30 hours a week for the corporation. Cardinal sells swimming pool supplies, and it
56. Rosa and Steve, who are married, had taxable income of $225,000 for 2005. They had positive AMT adjustments of $40,000, negative AMT adjustments of $10,000, and tax preference items of $67,500. a. Compute their AMTI. b. Compute their tentative minimum tax.
Bonnie owns a personal computer (adjusted basis of $3,000) that she uses exclusively in her business. Bonnie transfers the computer and cash of $1,500 to Green Computers for a laser printer (worth $5,500) also to be used in her business. a. Calculate Bonnie's recognized gain or loss on the exchange. b. Calculate Bonnie's b
Theater Arts Company produces and sells theater costumes. The following transactions relate to certain securities acquired by Theater Arts Company, which has a fiscal year ending on December 31: 2004 Feb 10 Purchased 4,000 shares of the 150,000 outstanding common shares of Haslam Corporation at 48 plus commission and oth
34. Carlton received the following income and incurred and paid the following expenses during the current year: Salary income $72,000 Dividend income 4,000 Interest income 3,000 Contributions to First Church 2,500 Real estate taxes on personal residence 1,800 Alimony paid to former spouse
Four hundred and eighty minutes of production time are available per day. The schedule calls for the production of 80 units per day. Each unit of the product requires 30 minutes of work. What is the theoreticalminimum number of workstations? a. 2 b. 3 c. 4 d. 5 e. 6 East Texas Seasonings is prepar
A. Compute earnings per share if earning before interest and taxes are $20,000, $30,000 and $120,000 b. Explain the relationship between earnings per share and the level of EBIT. c. If the cost of debt went up to 12% and all other facts remained equal, what would be the break-even level for EBIT?
Leno Drug Store and Hall Drug store are competitors in the discount drug chain business. Two separate capital structures. Leno Debt @ 10% $100,000 Common Stock, $10 par $200,000 Total $300,000 Shares 20,
Rainbow Cruises operates a week-long cruise tour through the Hawaiian Islands. Passengers currently pay $1,500 for a two-person cabin, which is an all-inclusive price that includes food, beverages, and entertainment. The current cost to Rainbow per two-person cabin is $1,200 for the week-long cruise, and at this cost, Rainbow is
Missouri Company mines an iron ore called Alpha. During the month of August, 350,000 tons of Alpha were mined and processed at a cost of $675,000. As the Alpha ore is mined, it is processed into Delta and Pi, where 60% of the Alpha output becomes Delta and 40% becomes Pi. Each product can be sold as is or processed into the refi
There are four auto body shops in a community and all claim to promptly serve customers. To check if there is any difference in service, customers are randomly selected from each repair shop and their waiting times in days are recorded. The output from a statistical software package is: Summary Groups Count Sum Average Varianc
7. The following information relates to Snowbird Corporation: What is Snowbird's margin of safety? A) $62,500 B) $187,500 C) $100,000 D) $212,500 8. Carver Company produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs are $5 per unit based on the current l
28. A firm pays a $1.90 dividend at the end of year one (D1), has a stock price of $40 (P0), and a constant growth rate (g) of 8 percent. a. Compute the required rate of return (Ke). Also indicate whether each of the following changes would make the required rate of return (Ke go up or down. (For parts b, c, and d below, as
Choate and Choate (Identifying Controls for a System) Choate and Choate is an advertising agency that employs 625 salespersons, who travel and entertain extensively. Each month, salespersons are paid both salary and commissions. The nature of their jobs is such that expenses of several hundred dollars a day might be incurr
Abbitt Company, which has only one product, has provided the following data concerning its most recent month of operations: 19. What is the unit product cost for the month under variable costing? A) $80 B) $119 C) $113 D) $86 20. What is the unit product cost for the month under absorption costing? A) $
The following overhead data are for a department in a large company. Actual costs incurred Static budget Activity level (in units) 420 420 Vari
Anders Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Work in process, beginning: Units in process 800 Stage of completion with respect to materials 70% Stage of completion with respect to conv
What risks do you think accrue to using a new software package that has just been released?
(See attached file for full problem description) (TCO E) The Hadfield Company was organized on January 1, 2001, to manufacture and sell a unique electronic part. The company's plant is highly automated with low variable and high fixed manufacturing costs. Operating results for the first three years of activity were as follow
4. (TCO D) Mr. Earl Pearl, Accountant for Margie Knall, Inc. has prepared the following product-line income data: PRODUCT Total A B
3. (TCO D) Bulan Inc. makes a range of products. The company's predetermined overhead rate is $20 per direct labor-hour, which was calculated using the following budgeted data: Variable manufacturing overhead................. $140,000 Fixed manufacturing overhead..................... $560,000 Direct labor-hours......
Main Company uses a standard cost system in which it applies manufacturing overhead to its product on the basis of standard direct labor-hours (DLHs). Below is the standard cost card for the product: Direct materials, 5 feet at $4.00 per foot......................... $20.00 Direct labor, 2.0 DLHs at $10.00 per
(TCO B) Evergreen Corp. has provided the following data: Sales per period 1,000 units Selling price $40 per unit Variable manufacturing cost $12 per unit Selling expenses $5,100 plus 5% of selling price Administrative expenses $3,000 plus 20% of selling price The number of units needed to achieve
1. Wages paid to the factory manager are considered an example of; A. Direct labor-ye, Period cost yes B. Direct labor yes Period cost yes C. Direct labor no, period cost-yes D. Direct labor- no, period cost no 2. Property taxes on a manufacturing plant are an element of A. Conversion cost- yes, period cost no
Production and purchases budgets. Ozark Inc. has actual sales for August and September and forecasted sales for October, November, December, and January as follows: Actual: August 8,300 units September 8,700 units Forecasted: October 8,400 units November 9,500 units December 7,800 units January 7,400 units R
What is the tax equivalent yield of a municipal bond paying 4% for someone in the 30% tax bracket (assume this investor resides in the same state as the municipal bond).
Calculation of Ratios The financial information below was taken from the annual financial statements of 2006 2005 Current assets $240,000 $212,000 Current liabilities 80,000 90,000 Total liabilities 182,000 160,000 Total assets 520,000 480,000 Sales 400,000 370,000 Cost of goods sold 240,000 220,000 Inven
I have these multiple choice problems that I need to work on and I am on sure on the answer, please help
7. Keifert Company had a balance in the Merchandise Inventory account of $260,000 at the beginning of the year and a balance of $340,000 at the end of the year. The inventory turnover ratio for 2006 was 4 times. If gross profit as a percentage of sales was 40%, the amount of sales for 2006 was a. $2,000,000. b. $1,200,000.