Share
Explore BrainMass

Accounting

Accounting problems for Bogus Company

At December 31st, 2007, The Accounts Receivable balance of "Bogus Company" is $300,000. The Allowance for Doubtful Accounts has a $3,900 credit balance. "Bogus Company" prepares the following aging schedule for its accounts receivable. Age of Accounts: total balance 1-30 days

Cash Flow Multiple choice

Answer the following multiple-choice questions: a) Which of the following could lead to cash flow problems? 1. Tightening of credit by suppliers 2. Easing of credit by suppliers 3. Reduction of inventory 4. Improved quality of accounts receivable 5. Selling of bonds b) Which of the following would not contribute to bankru

Flexible Budgets, ROI & Residual Income

1. Barrick Company has established a flexible budget for manufacturing overhead based on direct labor-hours. Total budgeted costs at 200,000 direct labor-hours are as follows: Variable costs (total): Packing supplies $120,000 Indirect labor $180,000 Fixed costs (total): Utilities $100,000 Rent $

Costs of Eliminating a Division and Buying Wheels

For the following problems, please see attached for full formatting of tables, etc. 1. The Cook Company has two divisions--Eastern and Western. The divisions have the following revenues and expenses: - Sales - Variable costs - Direct fixed costs - Allocated corporate costs Net income (loss) Eastern

Direct Labor Variance, Material Quantity, etc.

Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product. (see chart in attached file) During May, Arrow purchased 160,000 pounds of direct material at a total cost of $304,000. T

Business and Inherent risks of Chemeq Ltd.

I'm having problems in identifying the risk factors for Chemeq Ltd. --- Problem: You are the Senior Audit Partner of Cassidy and Sundance, Chartered Accountants. Your firm is one of the Big 4 accounting and audit firms in Australia and has significant experience in the audit of ASX listed companies and all industries. I

Prepare the operating activities

Prepare the operating activities section?indirect method. (SO 3) E14-3 The current sections of Blues Traveler Co. balance sheets at December 31, 2005 and 2006, are presented below. BLUES TRAVELER CO. Comparative Balance Sheets (partial) December 31, 2006

Net Income as a standard for investors

Net income of the organization is the standard by which many investors and lenders use to gage the success of the organization. Discuss the reasons why this figure can be deceiving and how the accounting profession has tried to structure the income statement to make this decision process more accurate. Is net income a standard f

Milwaukee Metallurgy Corporation (MMC)

Milwaukee Metallurgy Corporation (MMC) has two divisions. The Fabrication Division transfers partially completed components to the Assembly Division at a predetermined transfer price. /The Fabrication Division's standard variable production cost per unit is $450. The division has no excess capacity, and it could sell all of its

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

Compute amounts

Compute the missing amount for each of the following notes: Principal Annual Interest Rate Time Total Interest ???????????????????????????????????? (a) $10,000 10% 2.5 years ? ???????????????????????????????????? (b) $120,000 ? 9 months

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