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Accounting

Wages accrued at the end of an accounting period

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?

Accounting for Accounts and Notes Receivable

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

Implications for tax proposals in Illinois

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?"

Determining Departmental Contribution to Overhead & Net Income

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

Calculate the transfer price and profit of each of the divisions.

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

Guaranteed Payments in a Partnership

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?

Predetermined overhead rate and computations

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

Comparing after-tax income

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

Accounting Practice Quiz

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

Public Company Accounting Oversight Board

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

IFRS, Global Reporting Initiative, SOX

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

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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),

What is the company's warranty expense for the month of November?

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

Difference Between Book Value of Equity and the Value Implied by Purchase Price

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 Action Products access database queries

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

Tax Credit & Deduction

Please help me with the following questions. I am having some difficulty approaching them. The IRS code provides for deductions and credits. - List 5 possible deductions. - List 3 possible tax credits. - Compare and contrast a $10,000 adjustment, $10,000 tax credit and $10,000 of itemized deductions.

Tahoma Corporation: Application of Overhead

The following calendar year information about the Tahoma Corporation is available on December 31: [See the attached file] The company applies overhead on the basis of 125% of direct labor costs. a. Calculate the amount of over- or under-applied overhead. b. What is the significance of this over- or under-applied

Schedule for Recorded Amounts

A company made the following expenditures in connection with the construction of its new building: [See the attached file] A company made the following expenditures in connection with the construction of its new building: architect $12,000.00 land with run down building $300,000.00 removal of old building $18,00

Irregular Items and Horizontal Analysis

1. What are examples of irregular items? How does a change in accounting principles affect the financial statements? Who in the company is responsible for the application of a change in an accounting principle? Why? 2. What is a horizontal analysis? What is the value in using horizontal analysis? Why would a company use horiz

Liquidity and Operating Income Return on Investment: Bill Arts Company

Below are financial statements for Bills Art Company. Question 1: How Liquid is the firm? Select one of two recongized approaches to answering this question. Question 2: Calculate the operting income return on investment (OIROI). Explain your answer. Question 3: Are the Owners (stockholders) receiving an adequate return on

Taxable Income Rules

1. In 2012, Warren sold his personal use automobile for a loss of $9,000. He also sold a personal coin collection for a gain of $10,000. As result of these sales, $1,000 is subject to income tax. 2. The realization requirement give to own assets that have increased in value and to sell assets whose value has decreased 3. T

Estimate Net Operating Income for Investment Real Estate

Based on the following data, estimate net operating income. Show your work in good form. Two-bedroom units rent for $600 per month (total of 40 units) One-bedroom units rent for $450 per month (total of 20 units) Vacancy and uncollectible rent losses typically amount to six percent of potential gross rent. Operating expenses

Federal Tax and ALF Partnership

(Question 1) During the current year, ALF Partnership reported the following items of receipts and expenditures: $200,000 sales, $10,000 utilities, $12,000 rent, $50,000 salaries to employees, $30,000 guaranteed payment to partner Lloyd, investment interest income of $3,000, a charitable contribution of $5,000, and a distributi

Borrowing Supplies from Your Office

1. If you need a rubber band or paperclip and do not have time to pick-up a pack on your way home from work, would it be acceptable to "borrow" it (expecting never to return it)? Too often, companies don't want to consider the thought of someone on their team stealing from the company. They believe that by creating a ultra-t

Accounting Roles and Business Organization

Accounting does not exist in isolation and changes in counting roles and enforcement impact business organization on a global basis Please assist in answering these questions and provide factual opinions with references. 1. How widespread are IFRS? What will happen to U.S. GAAP? 2. How has SOX (Sarbanes-Oxley) affec

Corgan Inc: Overhead cost analysis

Corgan, Inc., manufactures two types of beds, Standard and Luxury. The Standard range is a mass market range sold through large furniture retailers, whereas the Luxury range is higher quality, sold through small furniture shops. The company currently applies overhead on the basis of machine hours worked. It is considering movi

Justification of Discretionary Spending Accounts

I would appreciate assistance with the following questions. The highest discretionary spending accounts are from the state of VA (http://dpb.virginia.gov/budget/buddoc12/index.cfm). 1. Assume that your state is expecting a 25 percent rate increase of its 2011 population based on your previous analyses and forecast. Give t