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Accounting

Zen

Zen Company reports net income of $140,000 each year and pays an annual cash dividend of $50,000. The company holds net assets of $1,200,000 on January 1, 2001. On that date, Werry Co. purchases 40 percent of the outstanding stock for $600,000, which gives Werry the ability to significantly influence Zen. At the purchase date

****HOMEWORK PRACTICE PROBLEM*****

Hi need assistance with this practice problem Eban Wares is a division of a major corporation. The following data are for the latest year of operations: Sales................................................................................ $10,890,000 Net operating income.....................................

The Value of Land

Question: Bailey, Inc., buys 60 percent of the outstanding stock of Luebs, Inc., in a purchase that resulted in the recognition of goodwill. Luebs owns a piece of land that cost $200,000, but was worth $500,000 at the date of purchase. What value would be attributed to this land in a consolidated balance sheet at the date of tak

Calculations Based on Account Balances

21. Jefferson, Inc., purchases Hamilton Corporation on January 1, 2004. Immediately after the acquisition, the two companies have the following account balances. Hamilton's equipment (with a five year life) is actually worth $450,000. Any goodwill is considered to have an indefinite life. Jefferson Hamilton Current assets .

Why we assign account numbers

Why do we assign account numbers to accounts and in what format or listing we assign them? Example: a) inventory (d) Withdrawals b) Accounts Payable (e) Service Revenue c) Capital (f) Depreciation Expense Here are the list of numbers t

Regulatory Boards - FASB and GASB

Do you think it is necessary to have two different regulatory boards, FASB and GASB, for accounting and financial reporting? Why? What would the benefits be of having one regulatory board and do you think the benefits outweigh the drawbacks?

Accounting - Cost-Volume Analysis and Return on Investment (ROI)

Cost-Volume Analysis and Return on Investment (ROI) (LO1) Images.com is a small Internet retailer of high-quality posters. The company has $800,000 in operating assets and fixed expenses of $160,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5 million per year.

CAFR

Use the internet to locate a Comprehensive Annual Financial Report (CAFR) for a large entity. 1. Review the CAFR and prepape a list of components contained in the various sections of the selected CAFR.

Describe how the challenge will test the contestant's accounting skill(s) and knowledge, as well as the what skills the contestant should have to do to successfully complete each challenge.

A major network is launching a reality program called "The Accountant," A group of recent accounting graduates will be competing for a spot in a national accounting firm. What would make someone a good candidate for "The Accountant?" Describe three challenges the candidates should complete on the program, using as much detail as

Accounting

9-26 Fill in the missing amounts in the following schedules. July August September 1. Sales* $240,000 $180,000 ? Cash Receipts: from cash sales ? ? $135,000 From sales on account (t) ? $102,000 ? Total Cash receipts

Flexible Budgeting: variable and fixed overhead variances

11-25 Starlight Glassware Company has the following standards and flexible budget data. Standard variable overhead rate $18.00 per direct labor hour Standard quantity of direct labor 2 hours per unit of output Budgeted fixed overhead $300,000 Budgeted output 25,000 units Actual results for February are as fo

5-61 (Internal Controls-Office Service Client)

5-61 (Internal Controls-Office Service Client) Brown Company provides the following office support services for more than 100 small clients: 1. Supplying temporary personnel 2. Providing monthly bookkeeping services 3. Designing and printing small brochures 4. Copying and reproduction services 5. Preparing tax reports

Shares, Common Stock, Treasury Stock

The corporate charter of Gordon Corporation allows the issuance of a maximum of 2,000,000 shares of $1 par value common stock. During its first three years of operation, Gordon issued 1,200,000 shares at $15 per share. It later acquired 30,000 of these shares as treasury stock for $20 per share. Based on the above informati

Journalize Transactions of the John Diego Company

Instructions Journalize the transactions. On January 1, 2002, John Diego Company had Accounts Receivable $146,000, Notes Receivable of $15,000, and Allowance for Doubtful Accounts of $13,200. The note receivable is from Trudy Borke Company. It is a 4-month, 12% note dated December 31, 2001. John Diego Company prepares financ

A few Questions

(See attached file for full problem description) 1. Which of the following transactions would be considered a financing activity in preparing a statement of cash flows? a. Amortizing a discount on bonds payable b. Recording net income from operations c. Selling common stock d. Purchasing inventory 2. The net i

Accounting

(See attached file for full problem description) --- PROBLEM 6-18 Basic CVP Analysis (LO1, LO3, LO4, LO5, LO6, LO8) Marjolein & Co, make a designer alarm clock that sells for $20 per unit. Variable costs are $6 per unit, and fixed costs total $210,000 per year. Required: Answer the following independent questions:

Tax accounting questions

16. The deferred tax expense is the a. increase in balance of deferred tax asset minus the increase in balance of deferred tax liability. b. increase in balance of deferred tax liability minus the increase in balance of deferred tax asset. c. increase in balance of deferred tax asset plus the increase in balance of deferred t

Capitalization vs. expensing

1. What is the fundamental issue surrounding capitalization versus expensing? 2. Which approach do you believe management would prefer? 3. Which approach do you believe auditors would prefer? Why? In addition can you list your references, because I also read the articles, websites, etc. for my information. Than

Layt Clock Company

Layt Clock Company has developed the following flexible budget for its overhead costs. Manufacturing overhead at Layt is applied to production on the basis of standard machine-hours: (see chart in attached file) Layt was expecting to produce 22,000 clocks last year. The actual results for the year were as follows

Multiple choice

The amount of salable merchandise a company buys during the period is called a. beginning inventory. b. purchases. c. goods available for sale. d. ending inventory. Cost of goods sold is computed by a. begnning inventory plus purchaes. b. goods available for sale less beginning i

Multiple choice

If Reneta's CDs purchases a new cash register for $2,700 and plans to use it for three years before disposing of it for an estimated $300, how much depreciation will Renata recognize the first year under the double-declining-balance method? a. $1,800 b. $ 900 c. $1,600 d. $ 800 Tanner owns and o

Governmental Fund Balance Sheets

The combined governmental fund balance sheet of the town of Paris is presented below. Per schedules included in the notes to the financial statements, the town had $1450 of capital assets (net of accumulated depreciation) and $1314 in long-term liabilities associated with the capital assets.

Paying for Shares

What would you pay for a share of ABC Corporation stock today if the next dividend will be $2 per share, your required return on equity investments is 12%, and the stock is expected to be worth $110 one year from now?

Liquidity of Short term assets; related to debt paying ability

It is proposed at a stockholders' meeting that the firm slow its rate of payments on accounts payable in order to make more funds available for operations. It is contended that this procedure will enable the firm to expand inventory, which will in turn enable the firm to generate more sales. Comment on this propsosal.

2 questions

An entry for depreciation has what effect on the financial statements: a) increases assets and decreases liabilities. b) decreases net income and increases assets. c) increases expenses and decreases assets d) decreeases assets and increases liabilities The primary difference between deferred and accrued expense

Accounting and Internal Controls Multiple Choice Problem Set

Internal Control CheckPoint SE1: Ann Mogen owns a gourmet coffee shop. Identify four ways in which good internal controls can help her operate her business. SE2: Schell Company is a men's clothing store. Indicate whether each of the following components of internal control is part of the: a. control environment b. risk

Fraud question/analysis

Pacific Corporation conducted its operations in San Diego, California. It was a dominant player in the surfboard industry. Pacific was started in the late 1900's, and its customers were remarkably loyal. The mom-and-pop shop was steadily growing in an industry continually saturated by thousands of start ups. The loyalty of i

What formulas would I use to solve the following?

A company estimates that to build a new company it would cost $300 million in present value terms or they could purchase an existing company. The book value of the company's they are looking at purchasing has assets of $200 million and its EBIT is $40 million. Similar companies are selling around 10 times current earnings. The

Inflation, Taxes, and Pensions

An asset is acquired at a cost of $10,000 with a five-year life and no anticipated salvage value. Straight-line depreciation is considered appropriate. The asset was acquired on January 2, 2000. Price indexes for the five years are: First, prepare data for each given year. Second, answer the questions below.