Mr. Ray is a married business consultant. His wife Jackie earned $3,000 during 2011 by working at a local non-profit association. Ray earned $28,000 through his business consulting services and will report this activity in Schedule C on his Form 1040 for 2011. Explain how Ray will report the following items on his Form 1040
In each of the following independent situations, determine Winston's filing status for 2012 and why. Winston is NOT married. These 5 situations either fall into the categories of Single Taxpayers, Married Individuals, Marriage Penalty, Surviving Spouse, Head of Household, or Abandoned Spouse. a). Winston lives alone, but he m
Jobs completed and sold . . . . . . . . . . . . . . . . . $420,000 Jobs in finished goods inventory . . . . . . . . . . . 84,000 Jobs in goods in process inventory . . . . . . . . . 56,000 Total actual direct labor cost . . . . . . . . . . . . . $560,000 In December 2010, Perez Company established its predeter
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What amount of goodwill should be attributed to Perch at the date of acquisition? What a
Job 102 Job 103 Job 104 Direct Materials 30,000 66,000 54,000 Direct Labor 16,000 28,400 42,000 Overhead 8,000 14,200 21,000 Job 102 was started in production in May and the f
I need help in deriving three financial questions that a manager might ask, regarding the link below (annual report from 2011 for Capital Blue Cross). Link: https://www.capbluecross.com/Visitors/AnnualReport/
A company makes three types of shirts: Athletic, Varsity, and Surfer. The shirts are made from different combinations of cotton and rayon. The cost per yard of cotton is $5 and of rayon is $7. The company can receive up to 4000 yards of cotton and 3000 yards of rayon per week. The table below shows relevant manufacturing informa
I have answered the following questions; however, I wanted to see what your responses would be. What are earnings and profits? How and why are they computed? What difference do earnings and profits make to a corporation? To the stockholders of a corporation?
The following selected information was extracted from the 20x3 accounting records of Baker Products: Raw Materials Used $284,000 Direct Labor 178,000 Indirect Labor
During the first year of operation, Sitwell Corporation had the following transaction pertaining to its common stock. Jan 10 Issued 80,000 shares for cash at $8 per share Mar 1 Issued 5,000 shares to attorneys in payment of a bill for $35,000 for services rendered in helping the company to incorporate. July 1 Issued 30
Starkey Company's sales, current assets, and current liabilities (all in thousands of dollars) have been reported as follows over the last five years (Year 5 is the most recent year): (See attachment.)
Please help me understand these questions: What is the difference between a "Revenue Center" and a "Profit Center"? Discuss the Differences Between Responsibility Centers and Decentralization. What other reasons are there to indicate decentralization is a better way of doing business? Discuss types of control systems
1) What are some ways that auditors can be sure that the sample sizes will be fair enough to provide a look at internal controls, yet comprehensive enough to detect any irregularities? Is there a way? 2) Let's say that we have 1500 invoices that need to be reviewed. We will say that 25% of the invoices belong to one client
Please help me with the following attached problem.
Ray-D-O's! is considering modifying the design of its popular radio so that the component boards can be soldered without flux, a substance that requires the use of toxic solvent in the cleanup process. The company is currently spending $4 to manufacture each additional unit. The new design would save $0.75 per unit, as the flux
I need help with the layout and calculating the 5 steps of process costing using the weighted average method. The details are as follows: Production occurs in three departments- spinning, molding and testing. Materials and conversion costs are added throughout all three processes. The table represents units and cost flows:
Instructions: Harold Dinklesdorf is the director of fund-raising for the Bobcat Symphony. The symphony relies on donations to fund operations and special programs. Harold created an Excel table to track information about donors and their pledges. You will analyze the data in the list. Complete the following: 1. Open the P
I am completely lost with the following problem. My text does a very poor job explaining this. Please thoroughly explain. Falzone Compay has two shareholders, Rita and Sal Corporation. Rita acquired her 300 shares in 2002 for $30,000 and Sal Corporation acquired its 200 shares in 1998 for $15,000. On August 2, 2012, Falzone C
The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: Production data: Pounds in process, May 1: materials 100% complete; conversion 90% complete
** Please see the attached Excel file for the complete solution ** Working Capital Activity Ratios: 1. Days Inventory Held 73.0 108.2 93.9 2. Days Accounts Receivable Outstanding 0.0 90.2 0.0 3. Days Accounts payable outstanding 43.8 116.5 49.6 Operating Cycle (1 + 2) 73.0 198.4 93.9 Cash Conver
Pick one subject from each website listed below that interests you and elaborate in more detail about its content. Sites to visit: www.aicpa.org www.taxsites.com www.pcaob.org.
Brady Products manufactures a silicone paste wax that goes through three processing departmentsâ?" Cracking, Blending, and Packing. All raw materials are introduced at the start of work in the Cracking Department. The Work in Process T-account for the Cracking Department for a recent month is given below:
I am having problems with calculating basis. Scott MacDonald transfers land with an adjusted basis of $150,000 for stock in P. D. Graphics, Inc. worth $250,000, $50,000 in cash, nonqualified preferred stock worth $100,000, and P. D. Graphics' agreement to assume an $80,000 liability on the land. After the transfer, Scott owns 9
Capital Corporation had the following results in 2012: Gross receipts from operations: $200,000 Net short-term capital gain: $50,000 Net long-term capital loss: ($75,000) Cost of goods sold: $60,000 Operating expenses: $40,000 Dividends received from 30% owned domestic corporation: $80,000 What is Capital Corporation'
Recently, a group of university students decided to incorporate for the purposes of selling a process to recycle the waste product from manufacturing cheese. Some of the initial costs involved were legal fees and office expenses incurred in starting the business, state incorporation fees, and stamp taxes. One student wishes to c
1) Explain procedures for collecting accounting evidence, 2) Explain the use of sampling in performing an examination 3) Evaluate accounting evidence using analytical and inferential tools. Taking those objectives talk about what they mean to you personally in a professional setting if applicable or maybe of the three obje
1. What issues will create variances within a company? 2. What other information can we derive from our variance analysis? 3. What expenses would you imagine to be fixed in nature?
Is there another way to avoid recognizing the gain on a 351 transaction besides the one given below? There are ways to play this system. The reason that the tax on a 351 transaction is deferred until the stock is sold is because the person's basis in the stock received in a 351 transaction is the same as the basis in the pro
Vendor stated we owed last 2 months invoices. I looked in the system and showed those 2 invoices were paid and cleared the bank. I then went back and looked at the entire year and discovered the following: The February 2012 invoice was actually a voided invoice from May 2011 AND the incorrect payment ID was used so no cash w
See the attachment. Jessica, the financial manager at Chila restaurant, is checking to see if there is any relationship between newspaper advertising and sales revenues at the restaurant. She has accumulated the following data for the past 10 months: Month Revenues Advertising Costs March $150,000 $20,000 Ap