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Accounting

An analysis of company transactions and adjustments.

Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July the following transactions were completed: July 1 Issued 15,529 shares of common stock for $15,529 cash. 1 Purchased used truck for $11,529, paying $2,018 cash and the balance on account. 3 Purchased cleaning supplies for $933 on account. 5

Calculate the present value of $100,000 in the given cases

Using the present value function in MS Excel, verify that the present value of $100,000 to be received in five years at an interest rate of 16%, compounded annually, is $47,610. Calculate the present value of $100,000 for each of the following items (parts a-f) using these facts: a. Interest is compounded semiannually b. Int

Comprehensive Economic Order Quantity (EOQ) Calculation

15. (Comprehensive EOQ calculations) Knutson Products Inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs: 1. Orders must be placed in round lots of 100 units. 2. Annual unit usage is 250,000. (Assume a 50-week year in your calculations.) 3. The carrying cost is

Calculate the Variance

The man-hour estimate for test and evaluation was based on using expert opinion to come up with optimistic, pessimistic and most likely positions. This resulted in a triangular distribution with a minimum estimate of 425 hours, a most likely estimate of 500 hours, and an expected maximum of no more than 650 hours. Calculate the

Accounting - Investments

When the present value analysis of a proposed investment results in an indication the proposal has a rate of return greater than the cost of capital, the investment may not be made because: a. the quantitive analysis indicates that it should not be made b. management assessment of qualitatitve factors overrides the quantitiv

Privacy of payroll information

The sensitivity and importance of payroll and payroll information cannot be overstated. The managing and protecting of this information deserves and has the attention of any number of managers within an organization. Most everyone has experienced or has heard of situations where either payroll information has been stolen or some

Budgeting with Incremental or Zero-based Budgets

1)What is the difference between two types of line-item budgeting approaches: incremental budgeting and zero-based budgeting? Which of the two approaches is more widely used by governments? Which do you think is more beneficial in developing realistic budgets? 2)"The sole objective of budgeting in a governmental entity is to

Retained Earnings - Recording an Expense

Under the disclosure provisions of SFAS No.123, the estimated stock option expense for 2006 would be $15,500 for W Co.. When the company records this expense: A) retained earnings account has no effect B) the equity on b/s has no effect C) the total assets increase by 15,500 D) the capital decreases by 15,500

Tax Accounting Facts

I need help with the attached question. Thank you! Which one is not correct in the context of tax accounting: Deferred tax liability might result when tax expense on an income statement is less than tax payment based on the tax code. Corporate income tax is an expense, not a distribution of the profits to the government

Mizzou Mining Company. E16-4 Sell or process further?

1. E16-4 Sell or process further? Mizzou Mining Company mines an iron ore called Alpha. During the month of December, 400,000 tons of Alpha were mined and processed at a cost of $742,500. As the Alpha ore is mined, it is processed into Delta and Pi, where 60% of the Alpha output becomes Delta and 40% becomes Pi. Each produ

Accounting: Business Partnership & Consequences

1) Describe this Basic Type of Business Formation: Partnership 2) Explain the Following Consequences of the type of Business Organization: - Tax Implications - Legal Implications - Accounting Implications, such as: SOX and FASB.

Various Questions on Accounting

Please see attachment. 1. Polly Enterprises manufactures lamps that normally sell for $75 each. There are 300 defective lamps in inventory, which cost $55 each to manufacture. These defective units can be sold as-is for $20 each, or they can be processed further for a cost of $45 each and then sold for the normal selling pric

Control Environment

The control environment sets the tone of the organization. It is the foundation for all other components of internal control. It provides discipline and structure. Control environment factors include the integrity, ethical values, and competence of the company's people. Personnel policies and practices also come under the co

How much cash will Intrepid distribute to the common stockholders?

Intrepid Inc. declared a $1,000,000 cash dividend. It currently has 15,000 shares of 6%, $100 par value cumulative preferred stock outstanding. It is one year in arrears on its preferred stock. How much cash will Intrepid distribute to the common stockholders? a. $910,000 b. $1,000,000 c. $180,000 d. $820,000

Reporting a Casualty

A fire occurred in March 2014 at Lincoln Lumber, Inc., causing damage to nearby properties. By May of 2014, no claims had yet been asserted against Lincoln. However, Lincoln's management and legal counsel concluded that it was reasonably possible that Lincoln would be held responsible for negligence, and that $1,000,000 would be

Calculating Loss of Impairment

Donald Corporation owns machinery with a book value of $670,000. It is estimated that the machinery will generate future cash flows of $560,000. The machinery has a fair value of $520,000. Donald should recognize a loss on impairment of a. $150,000 b. $110,000 c. $40,000 d. $ -0-

Calculating Land and Building Cost

1. On February 10, 2013, Rims Corporation purchased a parcel of land as a factory site for $250,000. An old building on the property was demolished, and construction began on a new building which was completed on September 30, 2013. Salvaged materials resulting from the demolition were sold for $10,000. Costs incurred during thi

Comprehensive checklist for evaluating internal controls

Prepare a comprehensive checklist for evaluating internal controls for a company (real or fictitious). Apply the checklist to outline phases of the control evaluation "Comprehensive" means a complete checklist. You must include company-level controls, significant processes, major classes of transactions, and significant accoun

Property Tax Exclusions and Gains

3. Mathew Murphy, single, sold his home that he had owned for 20 years for $670,000. He purchased it for $110,000 and made $40,000 of capital improvements on the home during his time of ownership. (a) How much gain is excluded? How much is recognized? (b) If Mathew purchased another home for $420,000, how much is excluded an

Absorption and Variable Costing Calculations

The following absorption costing income statement and additional data are available from the accounting records of Bernon Co. for the month ended May 31, 2007. During the accounting period, 17,000 units were manufactured and sold at a price of $60 per unit. There were no beginning inventories.

The Challenges of Teamwork

Define the challenges of teamwork when all participants do not contribute? Please provide two references.

Fixed Costs and Maximizing Firm Value

Golf Specialities (GS) is a Belgian company which manufacture head covers. GS is currently making 500 tiger head covers at 3.50 euros, which includes both variables and allocated fixed cost. GS sell to distributors for 4.25 euros. A distributor from Japan (Kojo) wants to purchase 100 tiger head covers per week from GS and sel

Calculating Variances

During the week ending on August 6th, the following activity took place: - 2390 machine hrs were worked - 11400lbs of raw materials were purchased for inventory at a total cost of $70,680 - 3,800 cases of finished products were produced - 6,720 labor hrs were worked at an average rate of $12.25 per hr - $8,126 actual varia

Control policies: Hamilton Company

Listed below are specific control policies and procedures prescribed by Hamilton Company. Identify the components of internal control to which each policy or procedure relates. For each item, identify one other policy or procedure for that internal control component that is not on the preceding list. - Management is alert

Tax Accounting: Changes made in SFAS 158 and SFAS 132 compared with SFAS 87

1) Which one is false? a) corporate income tax is an expense, not a distribution of the profits to the government b) non taxable revenue causes permanent differences between pretax accounting income and taxable income c) In general, temporary differences are resulted from timing difference between GAAP and tax regulations

Annual Growth Rate in Assets and Free Cash Flow

The first "target" is in a mature industry. The target is held by two brothers who each have 5 million shares of stock. This company has a free cash flow of 20 million and its WACC is 11%. The free cash flow is estimated to grow at a constant rate of 5%. The company has 100 million of marketable securities, 200 million of deb

Total Assets: Pepsico

What are the company's total assets at the end of its most recent annual reporting period? What are the total assets at the end of the previous annual reporting period? How much cash and cash equivalents did the company have at the end of its most recent annual reporting period?

Public Budgeting

Select three revenue sources in public budgeting. Summarize each revenue source and describe which fund the source should fall under or be tracked in. Income taxes are usually collected by...