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Accounting

When does Disney recognize its film and television costs on its income statement?

Go to the website of Walt Disney Studios at http://corporate.disney.go.com. Click on Investor Relations and then Financial Information and Filings. Open the most recent Annual Report. Find the Consolidated Balance Sheets and examine the line item, "Film and television costs." Also, find the supplemental section on Accounting Pol

Sultan Company

3-7 Refer to the data in exercise 3-6 (above) for Sultan Company. Activities during the year were distributed across the company's four products as follows: Actule activities Activity cost pool Product A Product B Product C Product D Labor related( DHL's) 6,000 10,000 4,000 5,000 P

Wings Corp: Post Entries Into T accounts

Post entries into T accounts. 1) February 1: The firm pays the 2 year insurance premium of $2,400 for fire and liability coverage beginning February 1. 2) February 5: Acquires merchandise costing $1,050,000. Of this amount, $1,455.00 is from suppliers to whom Wings returned defective merchandise during January but for whic

Matching Accounting Organizations to their Activities

Several private and public sector organizations are associated with the accounting profession. Listed below are activities pertaining to these organizations: 1. License individuals to practice as CPAs. 2. Promulgate GAAP. 3. Issue Statements on Auditing Standards. 4. Regulate the distribution and trading of securities off

Bond pricing, record issuance & calculating interest

On January 1, 2008, Whitefeather Industries issued 300, $1,000 face value bond. The bonds have a five-year life and pay interest at the rate of 10%. Interest is paid semiannually on July 1 and January 1. The market rate on January 1 was 10%. Required: 1. Calculate the issue price of the bonds and record the issuance of the

Statement of Retained Earnings

Landon Corporation was organized on January 2, 2006, with the investment of $100,000 by each of its two stockholders. Net income for its first year of business was $85,200. Net income increased during 2007 to $125,320 and to $145,480 during 2008. Landon paid $20,000 in dividends to each of the two stockholders in each of the thr

Market and book value per share

Superior Medical System's 2005 balance sheet showed total common equity of $2,050,000. The company had 100,000 shares of stock outstanding which sold at a price of $57.25 per share. By how much did the firm's market value and book value per share differ? $36.75 $38.25 $39.50 $40.25

Creating a Flexible Budget

What is a flexible budget? o What are the steps to developing a flexible budget? o What information is found on a flexible budget report? o How is that information used to evaluate performance?

Readily Attainable EOQ Assumptions

The EOQ model has a number of assumptions. List them and explain whether they are readily attainable. For example, will the adjustment for quantity discounts easily work?

Exchange of assets..

On August 1, 2007, Alpha Company exchanged productive assets with Beta Company. The following facts pertain to these assets as of August 1, 2007: Alpha Company Original Cost $96,000 Accumulated Depreciation $45,000 Fair Market Value $60,000 Cash Paid by Alpha $15,000 A) Assuming that the exchange has commerci

Relevant costs and Operating Income

The Flint Fan Company is considering the addition of a new model fan, the F-27, to its current product lines. The expected cost and revenue data for the F-27 fan are as follows: Annual Sales in units 4,000 Unit Selling Price $58 Unit Variable Costs: Production

Yards of cloth to purchase

Rhett Co. manufactures and sells dress shirts. Each shirt requires 3 yard of cloth. Budget data is shown below: Shirts: April May June Budgeted sales: 26,000 28,000 32,000 Budgeted production 28,000 32,000 36,000 Desir

Effects on the Accounting Elements

Please complete the attached practice sheet. ________________________________________ For each situation below, indicate its effects on the accounting elements shown on the accompanying chart. Use the following letters to indicate your answer (you do not need to enter amounts): Increase = I Decr

Managerial accounting: Make or Buy

A company produces 1,000 units of a component per month. The total manufacturing costs of the component are as follows: Direct materials $10,000 Direct labor 5,000 Variable overhead 5,000 Fixed overhead 30,000 Total manufacturing cost $50,000 An outside supplier has offered to supply the component at $30 per uni

Financial Accounting Standards Board (FASB): impact of fair value accounting

The Financial Accounting Standards Board (FASB) has been requiring some fair value reporting as it allows for more transparency than reporting using historical costs. What do you think will be the impact to investors as the FASB requires all assets and liabilities to be presented at fair value? Will this make financial

Compare and contrast the two methods of accounting for bad debts

Compare and contrast the two methods of accounting for bad debt - direct write-off and the allowance method. What are the primary features of each method? What are the pros and cons to each method? What impact does each method have on the financial statements?

Accounting Info and Decisions

Please see attached xls for more information. Maggie Earnest is purchasing manager for a clothing store. On April 12, Maggie received the following weekly report for women's suits purchased from one of the company's supplies. Maggie immediately ordered another 12 wool suits and another 20 cotton suits from the manufacturer.

A distinguishing feature of managerial accounting is

Hello, See attachment for the problem. Multiple Choice 1.) A distinguishing feature of managerial accounting is a. external users. b. general-purpose reports. c. very detailed reports. d. quarterly and annual reports. 10.) In an open-fact situation the tax advisor a. must consider tax policy issues. b. is us

Doral Company: Depreciation on machine for third year after accounting change

Please help with the following problem by providing step by step calculations. Purchased a machine on January 1, 2002, for $900,000. At the date of acquisition, the machine had an estimated useful life of six years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2005, Doral determin

Quanity variance, Price variance

Standard and actual costs for direct materials for the manufacture of 1,000 units of product were as follows: Actual costs 1,550 lbs. @ $9.10 Standard costs 1,600 lbs. @ $9.00 Determine the (a) quantity variance, (b) price variance, and (c) total direct materials cost variance.

Contribution margin and Break even point

Perrson Company makes two types of backpacks. Data for the company's activity during a typical month are presented below: School Hiker Model Model Sales units 40,000 40,000 Selling price per unit $6 $18 Variable expense per unit

Production combination will produce the greatest profit

What production combination will produce the greatest profit for the firm? Justify your choice. See attached file. The HighTech Corporation manufactures sound systems for the retail market. It makes two product lines: super model and deluxe model. Annual cost and production information is summarized below:

Activity Cost Pool - Absorption and Variable Costing; Kuzio; Eccles

Assuming that direct labor is a variable cost, the primary difference between the absorption and variable costing is that: A. variable costing treats only direct materials and direct labor as product cost while absorption costing treats direct materials, direct labor, and the variable portion of manufacturing overhead as prod

Gandy and Rice: Sunk Cost and Operating Income (loss)

Gandy Company has 5,000 obsolete desk lamps that are carried in inventory at a manufacturing cost of $50,000. If the lamps are reworked for $20,000, they could be sold for $35,000. Alternatively, the lamps could be sold for $8,000 for scrap. In a decision model analyzing these alternatives, the sunk cost would be: A. $8,000

License Requirements for a CPA: the Value that a CPA Adds to a Company

A contract is awarded to the privately owned company that you work for. It will require the company to submit it's audited financial statements. Audits and audited financial statements are not familiar to the company's owner. Design a report for the owner as the Controller, and explain the work of independent CPAs, auditing stan