E1-23 Hootie and the Blow Fish, Inc., organized in 2002, has the following transactions related to intangible assets. 1/2/02 Purchased patent (7-year life) $490,000 4/1/02 Goodwill purchased (indefinite life) 360,000
Why is it important for accounting information to be accurate and timely? How can this be achieved?
1. A profit-making business that is a separate legal entity and in which ownership is divided into shares of stock is known as a: A. sole proprietorship B. single proprietorship C. partnership D. corporation 2. The properties owned by a business enterprise are called: A. assets B. liabilities C. the accounting equation
11. (Warranties) Sheryl Crow Equipment Company sold 500 Rollomatics during 2004 at $6,000 each. During 2004, Crow spent $20,000 servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis. Instructions a. Prepare 2004 entries for Crow using the expense warranty approach. A
Calculate the gross profit using the percentage-of-completion method for revenue recognition. (See attached file for full problem description) The Construction Company was the low bidder on the office building construction contract. The contract bid was $7,000,000, with an estimated cost to complete the project of $6,000,000
1. What is "Sale of Stock in Secondary Markets"? 2. What is "Stock Issued for Noncash Assets or Services"? 3. What is "Component Percentages"? 4. What is "Tests of Solvency." 6. Do you think financial statement measures have to conform with GAAP to be useful to analysts? Why or why not? 7. How does recognizing a
1. Please help to research on Internet about any new product that Ford company www.Ford.com has recently introduced. 2. Please discuss steps that the company took in establishing standard costs for this new product.
What pros and cons of cash flow reporting versus accrual income reporting?
Big-batch restructuring charge, identified by former SEC Chairman Arthur Levitt in his famous 1998 speech. What are benefits, both from economic and financial reporting perspective, that a company might expect to enjoy through recognizing big-batch restructuring charge?
1. Prepare an income statement, balance sheet, and statement of changes in owners' equity; analyze results. The following information was obtained from the records of Shae, Inc.: Merchandise inventory................................................ $132,000 Notes payable (long term).........................................
I have about 10 Multiple Choice questions, if you answer the questions please provide me with detailed work so I can understand how the problem was solved. --- This information is common for questions 1 and 2: Imperial Products has a budget of $600,000 in 20x1 for prevention costs. If it decides to automate a portion of
Describe how information systems are changing the various aspects of the accounting profession. Include a description of a variety of new technologies and their effects on accounting processes. In addition, discuss how these technologies have changed the way accounting is performed at your organization or an organization of your
I need to add some more to my report can you answer the following questions in regards to Sketchers USA 10K 1. Does sketchers use the direct method for its statement of cash flows? 2. What were Sketchers USA Inc net income (net earnings) reported for 2001 and 2002? 3. What were Sketchers USA Inc's net cash flows from operat
I need some help with these remaining questions. 23-1, 23-3 and 23-7 24-2, 24-5 and 24-8 (See attached file for full problem description)
1. (Lower of Cost or Market) The inventory of 3T Company on December 31, 2005, consists of the following items. Part No. Quantity Cost per Unit Cost to Replace per Unit 110 6 00 $90
Presented below are a number of independent situations. For each individual situation, determine the amount that should be reported as cash. If the item(s) is not reported as cash, explain the rationale. 1. Checking account balance $925,000; certificate of deposit $1,400,000; cash advance to subsidiary of $980,000; utility d
Problem #1. The Harding Company manufactures skates. The company's income statement for 2001 is as follows: HARDING COMPANY Income Statement For the Year Ended December 31, 2001 Sales (10,000 skates @ $50 each) $500,000 Less: Variable costs (10,000 skates at $20)
(See attached file for full problem description) --- P6-2A The management of Borealis Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part called, WISCO, is a component of the company's finished product. The following in
6-18 Funnifaces , inc. manufactures various Halloween masks. Each mask is shaped from a piece of rubber in the molding department. The masks are then transferred to the finishing department where they are painted and have elastic bands attached. In April, the molding department reported the following data: a. In molding,
My company lost $600,000 during 2004(its net income was -$600,000). The corporate tax rate is 40 percent. The company paid the following amount in taxes over the past five years: Year Taxes Paid 1999 $ 50,000 2000 75,000 2001 60,000 2002 40,000 2003 160,000 Assume that current carry back and carry forward provis
Refineries Incorporated uses chemical X to manufacture oil products. Variance data for the month follows (F indicates a favorable variance, U indicates unfavorable variance): Chemical X Materials Price Variance $84,000 F Materials Efficiency Variance 80,000 U Net Materials Variance 4,000 F Oil prod
Discussion Questions: 1, 2, 3, 5 and 7 1. Discuss the various uses for break-even analysis. 2. What factors would cause a difference in the use of financial leverage for a utility company and an automobile company? 3. Explain how the break-even point and operating leverage are affected by the choice of manufacturing f
Automobile companies give rebates, etc to get people to buy now and pay later. They are trying to increase sales in the current period. At what point would this become unethical?
Please see the attached file. --- Perdon Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs.
(See attached file for full problem description) --- P4-4A Mendocino Corporation produces two grades of wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called CoolDay. It sells this in 600,00 5-liter jugs. Mendocino also produ
#1. Widgets Incorporated produces 2 types of widgets: the Basic Widget and the Delux Widget. The company has recently adopted an activity based costing (ABC) system with the following activities and cost drivers related to overhead costs. Activity Total Costs Cost Driver Units of Cost Driver Material ordering $400,000
Case Study #2 Listed below are the annual rates of return on the stocks for companies A, B, C, ..., G for each year 1975-2004. (1) Determine the efficient frontier using portfolios generated from combining just these seven risky assets. Graph the results. In listing the results in tabular form, show the weights for each le
(See attached file for full problem description) --- Week 4 - Problem 5 O,Meara, Inc., plans to issue $6 million of perpetual bonds.The face value of each bond is $1,000 The semi-annual coupon on the bonds is 4.5% Market interest rates on one-year bonds are 8%
1. Sunk Cost A cost that has already occurred and is not affected by the capital project decision. Sunk costs are not relevant to capital budgeting decisions. Example: I own Jai's Ice Cream Shop and noticed that it is not worth it to continue the business in the winter because people do not want to buy ice cream in c
"The PurWater System Company manufacutures two models of a particular water purification system. For 2005, the company wants to allocate manufacturing overhead using activity-based-cost (ABC) allocation methods. Based on a thourough study of their manu" 2005 Cost Driver Fixed Overhead Used As Activi