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    Accounting variances on price and efficiency

    Materials and manufacturing labour variances, standard costs. Consider the following selected data regarding the manufacture of a line of upholstered chairs: Direct materials 2 square metres of input at $10 per square metre Direct manufacturing labour 0.5 hour of input at $20 per hour The following data were compiled reg

    Missing Numbers Business Problem

    The eastern Spruce equity accounts for last year are as follows: Common stock, $1 par (500 shares outstanding) _________ Capital surplus $50,000 Retained earnings 100,000 Total _________ Fill in the missing numbers (this should be completed in Excel).

    Shares outstanding and average price

    Following are the equity accounts for Kerch Manufacturing (this should be completed in Excel). Common stock, $2 par $135,430 Capital surplus 203,145 Retained earnings 2,370,025 Total $2,708,600 How many shares are outstanding? At what average price were the shares sold?

    Sustainable Growth Rate for MBI Company

    The MBI Company does not want to grow. The company's financial management believes it has no positive NPV projects. The company's operating financial characteristics are: Profit margin = 10% Assets-sales ratio = 150% Debt-equity ratio = 100% Dividend-payout ratio = 50% Calculate the sustainable growth rate for the MBI C

    Taxation - Apportionment

    In most states, a taxpayer's income is apportioned on the basis of a formula measuring the extent of business contact, and allocated according to the location of property owned or used. True or False?

    Tax Questions

    An S corporation has a lesser degree of limited liability than a C corporation. True or False? A limited partner in a limited partnership has limited liability whereas a general partner in a limited partnership has unlimited liability. True or False?

    Example of Exclusions in Taxation

    Which of the following is not immune from state income taxation, even if P.L. 86-272 is in effect? A. Sale of a factory building. B. Sale of office equipment that constitutes inventory to the purchaser. C. Sale of office equipment to be used in the taxpayer's business. D. All of the above are protected by P.L. 86-272 immu

    Taxation- Gift

    In which, if any, of the following independent situations has Geraldine made a gift? A. Geraldine gives her 19-year old son $20,000 to be used by him for his college expenses. B. Geraldine buys her grandfather a new Jaguar for his birthday. C. Geraldine sends $20,000 to Duke University to cover her nephew's tuition. The ne

    Business Taxation Questions.

    For a limited liability company with four owners, A. An election can be made to be taxed as an S corporation. B. The entity is taxed as a corporation. C. An election can be made to be taxed as a partnership. D. None of the above. E. All of the above. I know that they would normally be taxed as a partnership so that

    Treasury Stock

    Camby Corporation's balance sheet reported the following: Capital stock outstanding, 5,000 shares, par $30 per share $150,000 Paid-in capital in excess of par 80,000 Retained earnings 100,000 The following trans

    Tax Questions about corporations and partnerships

    All should be answered true or false. (1) An S corporation shareholder's stock basis is increased by that shareholder's share of corporate profits, but not by a share of increases in corporate liabilities. (2) The general objective of the tax on unrelated business income is to tax such income as if the entity were a corp

    CPA Profession and Audit Process

    The privately owned company that you work for has been awarded a contract that will require submission of the company's audited financial statements. The owner of the company is not familiar with audits and audited financial statements. As the Controller, prepare a 700-1,050-word report to the owner explaining the work of indepe

    Important information about Accounts and Notes Payable

    Described below are certain transactions of Carson Company for 2007: 1. On May 10, the company purchased goods from Jay Company for $50,000, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. 2. On June 1, the company purchased equipment for $60,000 from Nolan Compa

    Basic and Diluted EPS

    Berry Company 1) Net income (including an extraordinary gain (net tax) of $70,000 $230,000 2) Capital Structure a) cumulative 8% preferred stock, $100 par 6,000 shares issued/outstanding $600,000 b) $10 par common stock, 74,000 shares outstanding on January 1. $1,000,000 On A

    Accounting for Merchandising Operations

    I don't understand how to account for the different shipping terms (FOB shipping point, destination and etc.) How do you specially account for terms such as 1/10, n/30? For your convenience and as per your instructions, I have attached a APA formatted MS Word file, which explains the meaning of the different shipping terms (

    Minimizing Costs

    PROBLEM: The Bunker Manufacturing firm has five employees and six machines and wants to assign the employees to the machines to minimize cost. A cost table showing the cost incurred by each employee on each machine follows: Machine Employee A B C D E F

    Provide an overview of the external uses of accounting.

    Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number of annual units sold of 1000. Item: Raw Materials (cost for hamburgers) Total Annual Cost: 650

    Three Year Evaluation

    Cost of capital is 10% Net investment is calculated as total assets less than all liabilities. Critically evaluate performance for 2009 to 2011. ($000,000) 2009 2010 2011 Net income $14.0 $14.3 $14.4 Total assets 125 130 135 Return on net investment 20% 22% 24%

    Doubtful Accounts of Elburn Company

    E9-2 The ledger of Elburn Company at the end of the current year shows Accounts Receivable $110,000, Sales $840,000, and Sales Returns and Allowances $28,000. Instructions (a) If Elburn uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Elburn d

    Recording Treasury Stock Under Cost Method

    The original sale of $50 par value common shares of Eddy Company was recorded as follows: Cash 290,000 Common Stock 250,000 Paid in capital in excess of par 40,000 Record the treasury stock (given below) under the cost method 1) Bought 300 shares of common stoc

    Accounting Analysis

    A new snowboard rental store rents snowboards for skiing on a weekly basis for $75/week including the boots. The skiing season is 20 weeks long. The store owner can buy a snowboard and boots for $550, rent them for a season and sell them for $250 at the end of the season. The store rent is $7,200/year. During the off-season, the

    Administration and Accounting Departments

    I have been running my own business for the last 15 years and I have BS degree in accounting. Because of my business management experience and accounting education, as a partner of a newly established business consulting firm, the consulting has appointed me be the manager for the administrative and accounting departments. I

    Variable and Absorption Cost Comparison

    Variable and absorption costing are two cost methods. A comparison between the absorption and direct costing methods is thoroughly explained in the attached MS Word and MS Excel files.

    Partnership Basis in Land

    Betty's basis in her partnership interest is $90,000 and she receives distributions of $35,000 cash and inventory (basis to the partnership of $22,000 and a fair market value of $28,000). No land is distributed. (A) How much gain or loss, if any, must Betty recognize as a result of the distribution. (B) What basis will Betty

    Variance Analysis for Materials and Labour Costs

    Based on the following: Direct materials: Standard price per pound: $9 Actual price per pound: $8 Price variance: $20,000 F Total of direct-material variances: $2,000 F Direct labor: Actual hours worked: 40,000 Actual rate per hour: $15 Efficiency variance: $28,000 F