In the equity section of Jeans Incorporated the following is listed: Preferred stock, 5% cumulative, 6,000 shares issued and outstanding $120,000 Common stock, 1$ par value, 36,000 shares issued $180,000 Retained earnings
Powell Company produces a single product. Its income statement under absorption costing for its first two years of operation follow. 2010 2011 Sales ($44 per unit) $ 968,000 $ 1,848,000 Cost of goo
a) What is the total direct material price variance for November when standard price is $1.80, actual price is $1.90 and actual quantity used is 142500? b) Calculate the total direct labor rate variance for November given that actual hours is 5000 and the actual labor rate is 7.72 whereas the standard labor rate is 8.
A Inc is currently operating at 80 % capacity. Worried about the company's performance, the general manager reviewed the company's operating performance. (All fixed costs are allocated to the segments) Segment North South East West Sales 30 40 20 10 Less: variable costs 11 8 21 8 Contribution margin 19 32 (1) 2 Less
Company A uses 12,000 units of a product in production each year. Presently, this component is purchased from an outside supplier at $9.50 per unit. There has been idle capacity in the factory that could be utilized to make this product. The costs associated with manufacturing the product internally rather than buying it from th
As a financial adviser to individual investors, your boss has asked you to write a memo to him analyzing a choice of two bonds for a client seeking to invest $350,000. The Florida-based client has a relatively high taxable income, and while she has an affinity for municipal bonds, she is looking for interesting fixed income alte
(see template attached) Using the information about Western Manufacturing Company provided below, complete the following two tabs in this MS Excel Workbook: - Cost-volume-profit (CVP) Analysis prepared in February 20X1 regarding planned operations for month of March 20X1 - Contributio
On January 1, 2001, Company A buys a Building and Land totaling $50,000 ($30,000 and $20,000 respectively) by placing a down payment of $10,000, and a mortgage payable of 40,000. December 31, 2001 - the depreciation method used is straight-line, the residual value of the building is $5,000, and the life of the building is 16
At the beginning of the current year, Donna Harp was employed as a cinematographer by Farah Movie, Inc., a motion picture company in Los Angeles, California. In June, she accepted a new job with Ocala Production in Orlando, Florida. Donna is single and her Social Security number is 223-77-6793. She sold her house in California o
Problem 1 Suppose new instruments for a firm cost $18,000 with an additional installation fee of $2,000, both of which are depreciable. Complete the depreciation schedule shown below using the Modified Accelerated Cost Recovery System (MACRS) 3-year class. Year Rate Basis Depreciation 1 2 3 4 Proble
The return on investment measure of performance: a) Is not as important a measure of management effectiveness as the amount of net income. b) Relates dividends paid to the entity's assets c) Is calculated using net income as the amount of return d) Is calculated by dividing average assets for a period by the amount of net in
Bad debt expense is recognized in the same accounting period as the revenue that is related to the receivable because: a) the accounts receivable asset should be stated at original cost b) the exact amount of the losses from bad debts is known c) revenues should be stated at realized value d) all costs incurred in the curren
Kordel Inc. acquired 75% of the outstanding common stock of Raxston Corp. Raxston currently owes Kordel $500,000 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of this debt should be eliminated?
A company has 33,000 units of its sole product that it produced last year at a cost of $71 each. This year's model is superior to last year's and the 33,000 units cannot be sold for their regular selling price of $127 each. The company has two alternatives for these items: (1) they can be sold to a wholesaler for $45 each, or (2
Taylor Chains Taylor designs and manufactures high performance bicycle chains for professional racers and serious amateurs. Two new titanium chain sets, the challenger and the Tour, sell for $110 and $155, respectively. The following data summarize the cost structure for the two chain sets: Taylor uses an absorption costing
Tom and Jerry are considering forming a partnership. Both taxpayers use the calendar year and are cash basis taxpayers. The partnership will not be a tax shelter. The partners are uncertain as to whether the partnership should use the cash or accrual method of accounting. Also, the idea of a tax deferral in the first year of ope
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
On November 1, 2012, Walmart sold land used for 5 years in its trade or business on the installment basis. Under the terms of the installment agreement, Walmart received $500,000 in 2012 and $250,000 annually for 4 years beginning in 2013. Walmart purchased the land on January 5, 2007 for $600,000. What is the character and amou
On June 4, 2012, Tyler purchased 2,000 shares of Target stock for $20,000. On October 15, 2012, Tyler sold the 2,000 shares for $14,000. On November 8, 2012, he purchased 1,000 shares of Target stock for $5,000. What is Tyler's realized and recognized gain or loss on the October 15, 2012 sale and his basis in the stock fr
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