On March 14, batting co. traded in one of it's cages for one that cost $300,000. The seller of the batting cage is willing to allow a trade in amount of $20,000. The initial cost of old equipment was $100,000 with an accumilated depreciation of $80,000. Depreciation has been taken up at the end of the year. The difference will b
Company Background: Smiths Incorporated makes model cars to sell to toy stores & has a repair dept to repair clients cars for a fee & in business for 5 yrs. At the end of 2005, the accting records reflect total assets of $500,000 and total liabilities of $200,000. During the current year, 2006 the following events took place.
Diaz Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order. Instructions Analyze the foregoing transactions using the following column headings. Insert the number of each transaction in the Item space, and insert the amounts
Buckeye Company purchased a machine on January 1, 2004. The machine had a cost of $260,000 with a $10,000 residual value. The estimated useful life of the machine was 8 years. On January 1, 2006, due to technological innovations, the total estimated useful life was reduced by 2 years from the original life and the residual v
Woolery, Inc. had 50,000 shares of common stock outstanding at January 1, 2006. On March 31, 2006, an additional 12,000 common shares were sold for cash. Woolery also had $4,000,000 of 6% convertible bonds outstanding throughout the year. The bonds are convertible into 40,000 shares of common stock. Net income for the year
The information that follows pertains to Raymond Company. Temporary differences for the year 2006 are summarized below. Expenses deducted on the tax return, but not included on the income statement: Depreciation $60,000 Prepaid expense 8,000 Expenses reported on the income statement, but not deducted on the
What happens to your estate after your death.
Prepare the disclosure notes required for the entries made in the problem, detailing the errors in and the changes you have made to the journal entries, and the changes will affect the financial statements. (Accounting Change and Error Analysis) On December 31, 2008, before the books were closed, the management and accountant
Emerson Corporation which uses throughput costing just completed its first year of operations. Planned and actual production equaled 10,000 units and sales total 9600 units at $72 per unit. Costs data for the year are as follows: Direct material per unit $12.00 Conversion Costs Direct Labor $45,000 Variable manufa
Can you help me with accounting spreadsheet with the following problem? I think I am trying to make to much into the financial information and continue to miss steps on the accounting spreadsheet and responses. Overview Company organized 1/1/205 by 4 people. Each person invested $10,000 in the company and issued 8,000 shares
If a company is risk adverse, will this status increase or decrease its return on investment? Why or why not? How can statistics be used to calculate the financial risk of a single project or of a multitude of projects?
I am working on a problem with married couple, Donna and Paul Decker who file a joint tax return. The wife is the custodial parent of two children, ages, 17 and 18, that reside with the married couple during the 9 month school year and then with the father, Bob, 3 months during the summer. Bob pays child support of $150 per mo
During the current year, Hugh, a self-employed individual, paid the following amounts: Real estate tax on Iowa residence $3,800 State income tax 1,700 Real estate taxes on land in Puerto Rico (held as an investment) 1,100 Gift tax paid on gift to daughter 1,200 State sales taxes 1,750 State occupat
Iris collected $100,000 on her deceased husband's life insurance policy. The policy was purchased by the husband's employer under a group policy. Iris's husband had included $5,000 in gross income from the group term life insurance premiums during the years he worked for the employer. She elected to collect the policy in 10 equa
What will strong economic growth do for the U.S. balance on current account? How about a U.S. recession?
In 1990, Japan's Ministry of International Trade and Investment (MITI) proposed that firms be given a tax credit equal to 5% of the value of its increased imports. The purpose of this tax subsidy is to encourage Japanese imports of foreign products and thereby reduce Japan's persistent trade surplus. At the same time, the Japane
How does a trade deficit affect the current account balance?
Suppose Lufthansa buys $400 million worth of Boeing jets in 1994 and is financed by the U.S. Eximbank with a five year loan that has no principal or interest payments due until 1995. What is the net impact of this sale on the U.S. current account, capital account, and overall balance of payments for 1994?
A current-account surplus is not always a sign of health; a current-account deficit is not always a sign of weakness. Comment.
Flood Motors is an all-equity firm with 200,000 shares outstanding. The company's EBIT is $2,000,000, and EBIT is expected to remain constant over time. The company pays out all of its earnings each year, so its EPS equals its DPS. The company's tax rate is 40%. The company is considering issuing $2 million worth of bonds
It would be great help if you help me to write atlease 1 or two paragraph by answering this question. I have try couple lines if that make any sense to you. Help me to expand if you read this book called "WHO MOVED MY CHEESE". Thank you. Question: Historical contribution of the book (How does it fit into the prevailing int
Company A has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs Cost driver Activity level Supervision of direct labor $320,000 Direct labor-hours 800,000 Machine maintenance $120,000 Machine-hours 960,000 Facility rent $200,0
Nicole holds three stocks in her portfolio: A, B, and C. The portfolio beta is 1.40. Stock A comprises 15% of the dollar value of her holdings and has a beta of 1.0. If Nicole sells all of her investment in A and invests the proceeds in the risk-free asset, her new portfolio beta will be: a. 0.60 b. 0.88
In 1987, the British government cut taxes significantly, raising the after tax return on investments in Great Britain. What would be the likely consequence of this tax cut on the equilibrium value of the British pound?
Use the Internet to acquire a copy of the most recent annual report for the publicly traded company you selected in Learning Team Meeting One. Then, use the information contained in the balance sheet and income statement to answer the following questions: The Company that I chosed is Motorola. I need help in answering the que
Illustration 8.1 states the six principles of control (below). How do you think these principles of controls apply any organization. Ø Establishment of responsibility Ø Segregation of duties Ø Documentation procedures Ø Physical, mechanical, and electronic controls Ø Independent int
Moon and Chittenden are considering a new Internet venture to sell used textbooks. The project requires $300,000 in financing. Two alternatives have been proposed. Plan 1 (Common equity financing). Sell 30, 000 shares of stock at a net price of $10 per share. Plan 2 (Debt equity financing). Sell a combination of 15,000 sha
McFrugal, Inc. has expected sales of $20 million. Fixed operating costs are $2.5 million, and the variable cost ratio is 65 percent. McFrugal has outstanding a $12 million, 8 percent bank loan. The firm also has outstanding 1 million shares of common stock ($1 par value). McFrugal's tax rate is 40 percent. a. What is McFrugal
Hi, I have a Rollover IRA and a money market IRA account. If I make contributions to bothe these accounts (transfer money into the IRA account from my checking account), what is the tax implication? Is it a good tax implication? Thanks.
Blossom's Flowers purchases roses for sale for Valentine's Day. The roses are purchased for $10 a dozen and are sold for $20 a dozen. Any roses not sold on Valentine's Day can be sold for $5 per dozen. The owner will purchase 1 of 3 amounts of roses for Valentine's Day: 100, 200, or 400 dozen roses. Given 0.2, 0.4, and 0.4 are t