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    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

    Net realizable value method

    Here, two or more units of the software are sold as a single package. Managers at Software For You are keenly interested in individual product-profitability figures. Information pertaining to its three bundled products and the stand-alone selling prices of its individual products is as follows: Stand-Alone Selling Price

    Contribution Margin

    Aromatic Coffee, Inc., sells two types of coffee, Colombian and Blue Mountain. The monthly budget for U.S. coffee sales is based on a combination of last year's performance, a forecast of industry sales, and the company's expected share of the U.S. market. The following information is provided for March:

    Operating Income and Transfer Price

    The Mill Flow Company has two divisions. The Cutting Division prepares timber at its sawmills. The Assembly Division prepares the cut lumber into finished wood for the furniture industry. No inventories exist in either division at the beginning of 20x3. During the year, the Cutting Division prepared 60,000 cords of wood at a cos

    ROI Analysis for Mikey Co.

    Mikey Co. group managers are evaluated annually with bonuses awarded based on ROI. In the previous fiscal year, Mikey produced 12% return on investments. This year Mikey is considering an investment that will assist in future growth in the Cooper group. Relevant data is as follows: Cooper

    Variances

    ABC Company has developed the following standard costs for its product Product 1 cost element:Standard Quantity x Standard Price = Unit Standard Cost Direct Materials 3 pounds x $2 = $6 Direct Labor 2 hours x $8 = $16 Manufacturing Overhead2 hours x $4 = $8 Total = $30 ABC Company expected to produce 20,000 units of

    Full accounting for one month operation

    Sally Brown has decided to go to business for herself by running the company Tapes 4 You. Tape 4 You will rent tapes, DVDs, VCRs, and DVD players. In addition, it will also rent video games and the necessary machinery. Finally, a small amount of inventory will be kept on hand of VCRs and DVD players for sale. The following trans

    Rate of return on gross book value

    The asset section of the January 1, 20X9, balance sheet of Junction Company has only one machine (and nothing else) which was acquired on January 1, 20X5. The machine's original cost was $500,000, and the estimated life was determined to be 10 years. The estimated residual value was zero, and the straight-line method of deprecia

    Variable and Fixed Costs

    Express Company has the capacity to produce 100,000 juicers per month. They are currently producing and selling 80,000 juicers. The cost of producing 80,000 juicers is $1,200,000 (800,000 variable and $400,000 fixed). The juicers are normally sold directly to retailers at @ $25 each. Express has an offer from Apple Company (fo

    Processing Decision Split-Off Point

    Express Company incurs $200,000 of joint product costs to produce three plant growth products: 40,000 pounds of GrowK; 35,000 of GrowL; and 25,000 of GrowG. The 3 products can be sold at split-off or processed further into GrowK Super, GrowL Super and GrowG Super. Determine which products should be sold at split off point and wh

    Accounting Information System

    1. If AIS (Accounting Information Systems) are so vital to business success, why do so many businesses have problems in this area? 2. What opportunities has the advent of business use of the Internet created for AIS development? 3. Do external individuals who interact with the organization have a right to know what infor

    Tax Impact by Investing in My Company's 401K

    I want to start contributing into my employer's 401(k) plan to save money for retirement. I'm interested in knowing how much I can save on my income taxes by contributing to the plan. I can invest up to 7% of my income into the plan. My current income is US$45,000 per year, and I am in the 15% tax bracket. I'd like a spreads

    Finance-Related Multiple Choice Problems

    Please help with the following problems. A) Why do annual reports include more than 1 year of the balance sheet and statements of income and cash flows? Is it... 1) SEC requires only 1 year's data or... 2) Financial statements for only 1 year would have no reference point for indicating changes in a company's fin