PARENT COMPANY CONCEPT David Company Book Value Current Assets: $620,000 Equipment: $260,000 Buildings: $410,000 Liabilities:($390,000) Revenues: ($900,000) Expenses: $500,000 Investment income: not given Mark Company Book Value Current assets: $300,000 Equipment: $200,000 Buildings: $150,000 Liabilities: ($120
A Grocery store makes pricing decisions based on cost of the products. All other costs are fixed at $800,000 per year. The average cost of inventory at the store is $1,000,000. The inventory turns over eight times a year. a. If prices are set at 12% above costs, what is the profit of the grocery store for the year? b. What
According to portfolio theory, people should hold more than one asset (or investment) in their portfolios. The idea is that if some investments do poorly, other investments in the portfolio can compensate for the poor investments. Some experts claim, however, that not all people in a society follow this prescription. In other wo
During the last 10 months, Arcade Corporation has had the following indirect costs. It is tryng to determine a good cost driver for the indirect costs. That usage of two potential cost drivers, direct labor hours and machine hours has been recorded over the last 10 months. Month Indirect Costs Direct Labor Hours Machine Hour
I need assistance with these three problems regarding a break-even problem solving. 6-12 Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at selling price of $20 per game. Fixed costs associated with the game total $182,000 per year, and variable costs are $6 per game. Pro
Martin, Inc.'s, income statement is shown below. Based on this income statement and the other information provided, calculate the net cash provided by operations using the indirect method. See attached file for full problem description.
Accounting and ABM. See attached file for full problem description. Katherine Mitchell Salem Enterprises How are accountants likely to response? How does ABM helps uncover what causes cost. What are types and level of details required for ABC Pitfalls or barriers for successful implementation of ABC
D.C. Dawg started a business, Cats and Dogs Company, by contributing $6,000. The Cats and Dogs Company borrowed $2,000 from the bank on March 1. The note is a 1-year, 12% note, with both principal and interest to be repaid on February 28 of next year. The company earned $900 in revenue. Expenses amounted to $650. Dis
Explain Direct write off method and Allowance method of estimating bad debts expense. Give general journal entries for the following transactions separately for (Direct write off (2) Allowance method (Percentage of sales and (3) Allowance method (Percentage of accounts receivable. 1 during year 1 a corporation made credi
Compute the balance in each of the three accounts for Jobs P-20 and P-43. Compute the 6/1 balance in each account, post June events, and calculate the 6/30 ending balances. You will be calculating unit costs for products A and B using both traditional and activity-based costing methodologies. See attached file for full pro
Calculate the net cash provided by operations using the indirect method. See attached file for full problem description. (see attached file for data)
Ending balance for retained earnings. See attached file for full problem description. The accountant for Robinson Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: What is the ending balance for retained earnings?
What do you think of when you hear the word debit? What do you think of when you hear the word credit? Why does your bank statement show a credit for an increase in your cash balance? Why are T-accounts such a valuable tool for analyzing accounting transactions?
Far North Telecom, Ltd., of Ontario has organized a new division to manufacture and sell specialty cellular telephones. The division's monthly costs are shown below. Manufacturing Costs: Variable Cost per Unit: Direct materials: $48 Variable manufacturing overhead: $2 Fixed manufacturing overhead costs (total): $360,000
Describe some considerations useful in the design of accounting codes. For each consideration you name, provide an example to illustrate your point.
** Please see the attached file for the complete problem description ** Payroll accounting. The problem asks to have a payroll register prepared and then the journal entries to record the payroll and the related tax expense.
Why would a company choose to form as a corporation? What are the steps that are required to become a corporation? What are the advantages and disadvantages of the corporate form of doing business?
1. Does cost accounting differ from financial accounting? If so, how? When is cost accounting valuable to an organization? Where is cost accounting information stored and maintained? 2. If cost accounting serves internal more than external purposes, do ethics matter not only in the development of the cost accounting system b
Explain Gross method and Net method of recording sales discount allowed to account receivables. Give general journal entries for the following transactions separately for gross and Net methods of collecting account receivables. I (a)Gross method assuming that the Payment is made within discount period Jan 1 2006 A corpora
PLEASE INCLUDE EXPLANATION FOR EACH QUESTION'S ANSWER. 1.Which of the following statements typifies defined contribution plans? A)Investment risk is borne by the corporation sponsoring the plan. B)The plans are more complex than defined benefit plans. C)Present value factors are used to determine the annual contribu
AFN Co. produces plastic that is used for injection-molding applications such as gears for small motors. In 2005, the first year of operations, AFN produced 4,000 tons of plastic and sold 3,000 tons. In 2006, the production and sales results were exactly reversed. In each year, the selling price per ton was $2,000, variable mfg.
How can an accounting information system add value to an organization's processes and/or products?
Accounting practices for interest expenditures may neither reflect actual economic costs nor mirror those for interest revenues. A town plans to borrow about $10 million and is considering three alternatives. A town official requests your guidance on the economic cost of each of the arrangements and advice as to how each woul
1. High -Low Method; Scattergraph Analysis (LO2, LO3) Zerbel Company, a wholesaler of large, custom-built air conditioning units for Commercial buildings, has noticed considerable fluctuation in its shipping expense from month to month, as shown below: Month
Identify and explain significant aspects associated with the task of measuring unemployment.
Toffee (bars) Cashews (bags) Units Marginal Total Marginal Total Utility Utility Utility Utility 1 10 10 12 12 2 8 18 10 22 3 5 23 7 29 4 3 26 5 34 5 1 27 2 36 6 0 27 1 37 TABLE 6-1 5) Refer to Table 6-1. If the prices of both toffee bars and bags of cashews are both $1 and this consumer has
1) Diminishing marginal utility implies that the A) first unit of a good consumed will contribute most to the consumer's satisfaction. B) last unit of a good consumed will contribute most to the consumer's satisfaction. C) total utility is negative. D) total utility is increasing. E) marginal utility of a good diminishe
High-income bracket. The expression 90,514.5 +(plus) 0.35(x - (minus) 311,950) represents the amount for the 2003 federal income tax in dollars for a single taxpayer with x dollars of taxable income, where x is over $311,950 (www.irs.gov). a) Simplify the expression. b) Use the graph in the accompanying figure to estimate
Part One: Balance Sheet and Income Statement Classifications. Specify on the answer sheet the letter of the financial statement classification the account would appear in. Use only the classifications shown. Balance Sheet Income and Retained Earnings Statement a. Current Assets j. Sales Revenue b. Investments k. Cost of
1. Estimate Short-Run and Long Run Price Elasticity of Demand for Selected Commodities, United States Commodity Short-Run Long Run Clothing 0.90 2.90 Household natural gas 1.40 2.10 Tobacco Prod