Regents Supply completed the following transactions during 2008 and 2009: 2008 Dec 31 Estimated that Uncollectible accounts expense for the year was 3/4 of 1% on credit sales of $400,000 and recorded that amount. Dec 31 Made the closing entry for Uncollectible accounts Expense 2009 Jan 17 Sold inventory to Abe Gomez, $6
Several states have declared sales tax holidays, in which the state does not collect sales tax on certain items for a given period of time. In most instances, the holiday has applied to purchases of clothing and the period has been a week to 10 days in August, the idea being to give a "back-to-school" discount as families to get
Eddie & Company is a small manufacturer located in the North Central part of the United States. The company manufactures auto and truck axles for automobile producers. Most of its output is sold to one of the larger auto companies. Because its sales have recently increased beyond all expectation, that company now wants Eddie & C
In 2012, Wilson had ordinary taxable income of $325,000 before considering any property transactions. Wilson had no prior year Section 1231 losses. During 2012, Wilson had the following property dispositions. - Wilson sold two blocks of stocks held for investment. The sale of one block of stock yielded a short-term capital g
Kelley has a warehouse, which it owned for five years and used in trade or business to store inventory, that was destroyed by a tornado on October 30, 2012. Kelley paid $1,200,000 for the warehouse and its adjusted basis was $1,000,000 on the day it was destroyed by the tornado. Assume that Kelley received insurance proceeds of
Joel owned land purchased five years ago for use in business operations at a cost of $300,000. The land was worth $800,000 and was encumbered by a $400,000 mortgage. Sara owned land purchased three years ago as an investment for $500,000. The land was encumbered by a $320,000 mortgage and was worth $750,000. On November 1, 2012,
1. Urban Company manufactures a product through a continuous single-step process. All materials are added at the beginning of processing. Production and cost data for the company for February 2009 are as follows: Production data: In process, beginning of month (20% converted) 1,000 units Started during February 5,
A number of specific transactions do not necessarily follow the general tax provision applicable to property transactions. Following are a group of transactions that are subject to specific tax provisions. For each of the situations, you are to answer the questions and cite the source for your answer. 59a. Martin, a securitie
a) List and describe four potential problems with a "traditional" overhead allocation system. b) List and describe four "red flags" that may indicate you should consider revising your overhead allocation system.
The ABC Company manufactures widgets. It competes and plans to grow by selling high-quality widgets at low prices and by delivering them to customers quickly. There are many other companies in the industry producing similar widgets. ABC believes it needs to continuously improve its manufacturing and delivery processes and that h
a) Describe the differences between unit-related, batch-related, and product-sustaining activities. Give one example of each type of activity. b) Describe the difference between transaction drivers and duration drivers. When would one type be preferred over the other?
Hi, I need some assistance with the following business questions. I am not too sure how to approach all of these exactly. Any help would be appreciated. Questions: 1) What is the agency issue between a private practice accountant, as most of us will be, and their clients? What are the related ethical challenges? 2) What i
To be a valid Negotiable Instrument certain requirements are necessary. Suppose a taxpayer wanted to protest the amount he had to pay to the Internal Revenue Service. While playing a round of golf under the hot Florida sun, he writes on the back of his old, sweaty, golf shirt "To: Bank of Mine, account #4312, Pay to the order of
Sage, INC. has 20 employees who earn $100 per day and are paid every Friday. The end of the accounting period is on a Wednesday. How much wages should the firm accrue at the end of the period?
Question one: Love Inc factored $800,00 of accounts receivable with Jaz Finance on a without recourse basis on June 30. The terms of the contract stated that Jaz Finance was to make collections, handle sales discounts and absorb the credit losses. Other terms included Love Inc to pay a finance charge of 8% of the total account
Based on the "Tax Proposals in the 2011 Budget: What's in It for You?" explain the implications of the proposal for your state's budget of your state (Illinois) with respect to: Individual taxation Corporate taxation Payroll taxation Review "Tax Proposals in the 2011 Budget: What's in It for You?"
Renton Co. has two operating (production) departments supported by a number of service departments. The following information was collected for a recent period: (see attachment for table) Indirect costs are allocated as follows: salaries on the basis of sales, office expenses on the basis of the number of employees, and al
A chair manufacturer has two divisions: framing and upholstering. The framing costs are $100 per chair and the upholstering costs are $200 per chair. The company makes 5,000 chairs each year, which are sold for $500. Un-upholstered chair frames can be sold at cost to other chair manufacturers. a) What is the minimum transfer
Partnerships are allowed to deduct guaranteed payments to partners for services rendered or use of capital without regard to partnership income or profit and loss sharing ratios. What kind of situation would make guaranteed payments a logical way of starting a two-person partnership?
Just when you are starting to grasp the flow of costs from raw materials (direct materials) into work-in-process and then into finished goods, and think you might survive the managerial accounting course, you get hit with the Predetermined Overhead Rate. What? What is predetermined overhead rate and how do you compute it?
Three advanced accounting problems that illustrate the following concepts: Upstream and Downstream Sales Workpaper Journal Entries and Income Statement Balances Multiple Stock Purchases
Upstream and Downstream Sales Pace Company owns 85% of the outstanding common stock of Sand Company and all the outstanding common stock of Star Company. During 2012, the affiliates engaged in intercompany sales as follows (see attached Excel file). Please show all work for the following: A. Prepare in general journal f
Sonja is a United States citizen who has worked in Spain for the past 10 months. She received $5,000 a month as compensation. Her employer has offered to extend Sonja's contract to work in Spain for another 5 months at the same rate of pay. If she rejects the offer, she can return to the United States and receive the same salary
Explain disclosure requirements for nonprofit organizations, such as the tax-exempt determination letters required by Congress and the IRS.
The FASB's Conceptual Framework and Statements of Financial Accounting Standards (SFASs) require full disclosures to be made in a business enterprise's financial statements. These disclosures requirements are applicable to corporations and nonprofit organizations. The purpose of these disclosures is to provide reliable and relev
At March 31, 2010, the end of the first year of operations at Jaryd, Inc., the firm's accountant neglected to accrue payroll taxes of $2,737 that were applicable to payrolls for the year then ended. 1. Requirement 1: (a) Prepare the horizontal model to show the effect of the accrual that should have been
Evaluate the effectiveness of the PCAOB's oversight related to both corporate management's and a certified public accountant for addressing a material weakness in internal controls
Q1. How widespread are IFRS and what do you think will happen to US GAAP? Q2. What is the difference between a rule-based and principle-based system? Q3. Discuss the Global Reporting Initiative, its purpose, the standard setting process, the use of its reporting system, etc. Q4. How has SOX affected business organiz
1) Explain situations where the opposite could be true In normative theory. For example: our personal experiences, educational levels, cultures, religions, and other aspects of our background can actually enrich our decision making ability. 2) Why does it appear that to be highly successful (particularly in a financial sense),
A company sells computers at a selling price of $1,800 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty at an average cost of $150 each. During November, the company sold 30,000 computers, and 400 computers were
Consolidated Balance Sheet Problem On January 1, 2012, Perry Company purchased 8,000 shares of Soho Company's common stock for $120,000. See below for statement of financial position for both Perry and Soho shortly after acquisition: Please see attachment for associated table. Problem: A. Calculate the percentage of
XXX Company's sales department wants to establish a database to track key information about its salespersons. Salespersons are assigned to either industrial or commercial customers and to one of four sales regions (East, North, South, and West). Action Products wishes to record the flowing information for each salesperson: Their