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
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
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
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.
Define the challenges of teamwork when all participants do not contribute? Please provide two references.
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
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
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
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
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
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?
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...
Fixed costs are really variable. The more you produce the smaller the unit cost of production. Is this statement correct?
The standard cost of Product B manufactured by TLC Company includes 3 units of direct materials at $6.20 per unit. During June, 28,000 units of direct materials are purchased at a cost of $5.83 per unit, and 28,000 units of direct materials are used to produce 9,000 units of Product B. Compute the total materials variance and
(TCO D) The management of Drummer Corporation is considering dropping product D84L. Data from the company's accounting system appear below. Sales $800,000 Variable Expenses $440,000 Fixed Manufacturing Expenses $248,000 Fixed Selling and Administrative Expenses $184,000 All fixed expenses of the company are full
(TCO D) Ferro Wares is a division of a major corporation. The following data are for the latest year of operations. Sales $33,040,000 Net Operating Income $1,453,760 Average Operating Assets $8,000,000 The company's minimum required rate of return 18% Required: i. What is the division's ROI? ii. What is the
Mr. Jones wants to buy Smithon Manufacturing because it is very profitable. Right now it has 30 shareholders but no single majority shareholder. It is a C corporation with a fiscal year-end of December 1. In order for Mr. Jones to buy this company, he will need to invest a lot of money in new manufacturing equipment, which means
Justification for the method of determining periodic deferred tax expense is base on the concept of?
Justification for the method of determining periodic deferred tax expense is base on the concept of: a) matching of periodic expense to periodic revenue b) objectivity in the calculation of periodic expense c) recognition of assets and liabilities d) consistency of tax expense measurements with actual tax planning st
What statement best describes some of the general characteristics of Accounting Information Systems?
What statement best describes some of the general characteristics of Accounting Information Systems? a) All AIS systems are uniform since all businesses must deal with the same issues b) AIS systems generally have similar capabilities; however, the applications implemented for a particular business are generally modified t
In a multi-state business where the firms sell products to other firms for the same price, how can transfer pricing be best structured in order to minimize state income taxes?
1. Monthly production costs in Pesavento Company for two levels of production are as follows. Cost 2,000 Units 4,000 Units Indirect Labor $10,000 $20,000 Supervisory Salaries 5,000 5,000 Maintenance
Please see attached. ______________________________________________________________________________________________________________ 1. Brad and Kate received $9,500 for rent from Mike and Janet, who are renting their home in California. Brad and Kate did not use this property for personal use. The rent covers eight months
Lager Corp. produces and supplies automotive manufactures with the mechanisms used to adjust the positions of front seating units. Several competitors have recently entered the market, and management is concerned that the quality of the company's current products may be surpassed by the quality of the new competitors' products.
The Doe Company sells three products: sliced pineapples, crushed pineapples, and pineapple juice. The pineapple juice is a by-product of sliced pineapple, while crushed pineapples and sliced pineapples are produced simultaneously form the same pineapple. Some pineapple slices break, and these are used to make crushed pineapple.
What is incremental analysis? Provide an example, using numbers, of how incremental analysis might be used to make business decisions.
1) Consider the following information, prepared based on a capacity of 40,000 units: Category Cost per Unit Variable manufacturing costs $5.00 Fixed manufacturing costs $1.50 Variable marketing costs $1.00 Fixed marketing costs $0.50 Capacity cannot be added in the short run and the firm currently sells the product for
Eddie Kelly is running for reelection as mayor of a small town in Alabama. Jessica Martinez, Kelly's campaign manager during this election, is planning the marketing campaign, and there is some stiff competition. Martinez has selected four ways to advertise: television ads, radio ads, billboards, and newspaper ads. The costs of
One thing to keep in mind is that defined benefit plans are far less used today that they were in years past
One thing to keep in mind is that defined benefit plans are far less used today that they were in years past. In fact, the article in the link below indicates defined benefit plans may be on the way out or at least severely reduced in the coming years. http://www.forbes.com/2009/06/22/pension-plans-economy-business-oxford-ana
Every organization's accounting is affected in some way by the time period assumption. Looking at your present or past work experiences, how does this assumption affect the operation of the "business"? What types of adjusting entries did your organization face?
All of the outstanding stock of a closely held C corporation is owned equally by David Smith and Steve Bufusno. In 2011, the corporation generates taxable income of $30,000 from its active business
All of the outstanding stock of a closely held C corporation is owned equally by David Smith and Steve Bufusno. In 2011, the corporation generates taxable income of $30,000 from its active business activities. In addition, it earns $20,000 of interest from investments and incurs a $40,000 loss from a passive activity. How much i