In 2003, Nichols Co. issued 200,000 of its 500,000 authorized shares of $10 par value common stock at $35 per share. In January, 2004, Nichols repurchased 10,000 shares at $30 per share. Assume these are the only stock transactions the company has ever had. INSTRUCTIONS (a) What are the two methods of accounting fo
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Franco Company acquired 16,000 shares of its own common stock at $20 per share on February 5, 2003, and sold 8,000 of these shares at $27 per share on August 9, 2004. The market value of Franco's common stock was $24 per share at December 31, 2003, and $25 per share at December 31, 2004. The cost method
12/31/03, the stockholders' equity section of Clark Inc was Common stock, par value $10; authorized 30,000 shares; issued and outstanding 18,000 shares $180,000 Additional paid in capital 232,000 Retained earnings 522,000
Dryer Co had 300,000 shares of common stock issued and outstanding 12/31/03. During 2004, no additional common stock was issued. On 1/1/04 Dryer issued 400,000 shares of nonconvertible preferred stock. During 2004 Dryer declared and paid $240,000 cash dividends on the common stock and $200,000 on the nonconvertible preferred sto
Question 18: Bottum Corporation, a manufacturing company, has provided data concerning its operations for May. The beginning balance in the raw materials account was $21,500 and the ending balance was $36,700. Raw materials purchases during the month totaled $63,200. Manufacturing overhead cost incurred during the month was
Question 16: On January 1, Schaf Corporation had $25,000 of raw materials on hand. During the month, the company purchased an additional $56,000 of raw materials. During January, $56,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materia
Question 12: Avery Co. uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. For the month of October, Avery's estimated manufacturing overhead cost was $279,000 based on an estimated activity level of 93,000 direct labor-hours. Actual overhead amounted to $310,000 with actua
Question 7: Darrow Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the company worked 9,900 direct labor-hours and incurred $89,400 of actual manufacturing overhead cost. If overhead was underapplied by $2,100, the predetermined overhead rate for the c
See attached Mallet Company has only Job 844 in process on March 1 of the current year. The job has been charged with $2,100 of direct material cost, $2,600 of direct labor cost, and $1,850 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate of 71% of direct labor cost. Any undera
Huang Aerospace Corporation manufactures aviation control panels in two departments, Fabrication and Assembly. In the Fabrication department, Huang uses a predetermined overhead rate of $29 per machine-hour. In the Assembly department, Huang uses a predetermined overhead rate of $14 per direct labor-hour. During the current year
Question 2: Daffe Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $164,800. At the end of the year, actual direct labor-hours for the year were 12,500 hours, manufacturing overhead for the year was overapplied by $10,550, and
See attached problems. Kohler Clothiers manufactures women's business suits. The company uses a standard cost accounting system. In March 2005, 11,800 suits were made. The following standard and actual cost data applied to the month of March when normal capacity was 15,000 direct labor hours. All materials purchased were use
Can a auditor recommend that a business unit be eliminated?
I have several questions that need to be answered. Attached is a excel spreadsheet for guidance. Presented below are the components in Clearwater Company's income statement. Determine the missing amounts. Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income (a) $75,000 ? $28,600 ? $10,800
The cash account shows a balance of $45,000 before reconciliation. The bank statement does not include a deposit of $2300 made on the last day of the month. The bank statement shows a collection by the bank of $940 and a customer's check for $320 was returned because it was NSF. A customer's check for $450 was recorded on the bo
Porter Corporation reports the following information: Net Income $250,000 Depreciation Expense $70,000 Increase in accounts receivable $30,000 Porter should report cash provided by operating activities of what?
Do you think what's going on with the Mortgage Industry now is a result of poor Risk Management, Fraud or mismanagement?
Teixo Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 15,000 of the components each year. The unit product cost of the component according to the company's absorption cost accounting system is given as follows: Direct materials $7.90 Direct labor $2.10
Claire's Antiques was ready to submit a sealed quote (bid) for a new customer who desired to purchase 150 clocks during the upcoming year. The sealed quote was for 150 clocks at $650 each, for a total selling price of $97,500. Claire's Antiques gained knowledge that its competitor was also placing a bid with this client. The com
Monique is a self-employed manufacturer's representative who solicits business for clients and receives a commission based on sales. She incurs the following expenditures during the current year: Airfare and lodging while away from home overnight $ 4,000 Business meals while traveling at which business is discussed 1,000 Lo
Please see the attached file(s). 1) A stock that currently trades for $40 per share is expected to pay a year-end dividend of $2 per share. The dividend is expected to grow at a constant rate over time. The stock has a beta of 1.2, the risk-free rate is 5%, and the market risk premium is 5%. What is the stock's expected price
Please see attached. Petson Company's financial information is presented below. Sales $ ???? Purchase Returns and Allowances $ 15,000 Sales Returns and Allowances 30,000 Ending Merchandise Inventory 35,000 Net Sales 250,000 Cost of Goods Sold 180,000 Beginning Merchandise Inventory ???? Gross Profit ????
Please provide an answer to the following questions below that contains 250 to 300 words for each. 1. What is the purpose of the statement of cash flows? We already discussed the Balance Sheet, Income Statement and Statement of Retained Earnings. If you wanted to invest in a company, what information would you look for in th
The Adams Independent School District desires to sell a parcel of unimproved land that it does not need. Its three best offers are as follows: from State Department of Public Safety (DPS), $2.3 million; from Second Baptist Church, $2.2 million; and from Baker Chevrolet Company, $2.1 million. DPS would use the property for a new
As the Federal estate tax is scheduled to be phased out, making lifetime gifts unnecessarily incurs a transfer tax that could have been avoided by passing the property by death. a. Evaluate this statement. In what way is it correct? Incorrect? Misleading? b. What could be some justification for lifetime giving?
Product Costing and Cost Accumulation Exercise 3-27 Bordin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inventories at the beginning and end of the month of January. January 1 January 31 Finished goods $125,000 $117,000 Work in process
I need help in understanding what would be the tax consequences of the two options to the three sisters, who are active in managing Delray. Amanda, Sue, and Mary each own 100 of the 300 outstanding shares of Delray Corporation stock. Amanda wants to sell her shares, which have a $40,000 basis and a $100,000 FMV. Either Sue
State two generally accepted accounting principles that relate to adjusting the accounts.
In which of the following situations would the taxpayer realize taxable income? a. A mechanic performs work on his own automobile. The mechanic would have charged a customer $400 for doing the same work. b. A mechanic repairs his neighbor's personal automobile. In exchange, the neighbor, an accountant, agrees to prepare me
Don is the beneficiary of a $50,000 insurance policy on the life of his mother, Anna. To date, Anna paid premiums of $16,000. What amount of gross income must be reported in each of the following cases? a. Anna elects to cancel the policy and receives $20,000, the cash surrender value of the policy. b. Anna dies and Don rece