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
P19.34 Transfer Pricing: Performance Evaluation Issues. Tallahassee Division of Gulf South. The Tallahassee Division (TO) of Gulf South Corporation, operating at capacity, has been asked by Jaydee division to supply it with electrical fitting no. 1726. TD sells this part to its regular customers for $15.00 each. Jaydee, whi
Differentiate between the various rates of pay among the different major groups of employees, and include information about the differences between exempt and nonexempt employees. Discuss how wage and hour legislation has affected employment practices.
Yazmin began a new business and set up her company as an S-Corporation. At formation, she contributed cash of $20,000 and property that had a value of $200,000 and basis of $150,000. In year one, Yazmin also lent the S-corporation an additional $100,000 in a properly executed note. The corporation paid Yazmin $5,000 in intere
When someone say the gains or losses is an element of pension expense, can this mean the company would have to take action if the pension is over or under funded?
When someone say the gains or losses is an element of pension expense, can this mean the company would have to take action if the pension is over or under funded? If the pension is under funded the company needs to increase funding and thus expense is increased. But, if the pension was under funded, what action is the company re
Do these gains or losses impact the benefits the employee will eventually receive? Pension expense components include interest costs, service costs, related fees, gains and losses on the plan, and amortization from the prior service costs on the plan. The interest rate for pension expense is determined by using the projected
Phan Mai is a single taxpayer with two dependent children under age 17. Phan estimates her wages for the year will be $36,000 and her itemized deductions will be $11,000. Assuming Phan files as head of household, determine the number of withholding allowances Phan should claim. Whcih form should be used to report following pa
Santo Corporation was granted a patent on a product on January 1, 1999. To protect its patent, the corporation purchased on January 1, 2008 a patent on a competing product which was originally issued on January 1, 2004. Because of its unique plant, Santo Corporation does not feel the competing patent can be used in producing a
Colin Boyd, "The Structural Origins of Conflicts of Interest in the Accounting Profession" details the events that led to the collapse of Enron and scandals at other companies
Colin Boyd, "The Structural Origins of Conflicts of Interest in the Accounting Profession" details the events that led to the collapse of Enron and scandals at other companies. Do you believe that corporate capital punishment was a just outcome for Arthur Andersen and its many employees and partners? Why, or why not? Appeal to
13. Bella Company is considering purchasing new equipment for $450,000. It is expected that the equipment will produce net annual cash flows of $50,000 over its 10-year useful life. Annual dpreciation will be $45,000. Compute the cash payback period. 17. Caine Bottling Corporation is considering the purchase of a new bottlin
Which of the following is another term for mixed costs? 1 semi mixed costs 2 semi variable 3 componenet costs 4 none of the above
A 10% change in a firm's revenues is likely to result in a change of more than 10% in the firm's operating income because?
A 10% change in a firm's revenues is likely to result in a change of more than 10% in the firm's operating income because: 1 not all of the firm's costs will change in proportion to the revenue change. 2 the firm has financial leverage. 3 the contribution margin ratio will change in proportion to the revenue change.
Products A, B, and C are produced from a single raw material input. The Raw material costs $90,000 from which 5,000 units of A, 10,000 units from B, and 15,000 units of C can be produced each period. Product A can be sold at the split off point for $2 per unit, or it can be processed further at a cost of $12,500 and then sold fo
Division x of charter corporation makes and sells a single product which is used by manufacturers of forklift trucks. Presently, it sells 12,000 units per year to outside customers at $24 a unit. The annual capacity is 20,000 units and the variable cost to make each unit is $16. Division Y of Charter Corporation would like to bu
1 - You just got hired as an adjunct professor for a local university. You are teaching introductory accounting and just beginning a chapter on depreciation. A student asks, "Why is it necessary to have depreciation, depletion, and amortization expense? Aren't they all basically the same thing? Can't we just use one term for eac
a) How would you describe the difference between a tax refund and a tax benefit? b) What are the chances that a company will have 20 years of losses to actually use a loss carryforward (and still be in business)? How do accounting principles support holding an asset in the balance for this long? c) There are situations whe
Identify the social structure and income levels of the social classes in the United States. In your own words describe why a compensation specialist needs to understand this structure.
Please help with the following accounting problem - figure out the financial ratios for the company "Yahoo" over the last 5 years. Below are the ratios needed: Ratios: ROI ROE Price Earnings Cash Dividends per share Dividend Yield Dividend Payout Ratio Working Capital Acid Test Ratio Asset Turnover Inventory Turno
Rachel Rey recently opened her own basketweaving studio. She sells finished baskets in addition to the raw materials needed by customers to weave baskets of their own. Rachel has put together a variety of raw material kits, each including materials at various stages of completion. Unfortunately, owing to space limitations, Rac
1) Sanchez Manufacturing purchases $45,000 of raw materials on account, and it incurs $50,000 of factory labor costs. Journalize the two transactions on March 31 assuming the labor costs are not paid until April. Hint: Journalize entries for accumulating costs. 2) Data for Sanchez Manufacturing are given in 1. Suppor
At the beginning of 2013, Pitman Co. purchased an asset for $900,000 with an estimated useful life of 5 years and an estimated salvage value of $75,000. For financial reporting purposes the asset is being depreciated using the straight-line method; for tax purposes the double-declining-balance method is being used. Pitman Co.'s
1. What do you understand by acting in the public interest? 2. Select the FOUR factors below which distinguish a profession from an occupation A. Qualification required B. Highly skilled C. Continuing professional development D. Self-regulation E. Highly valuated services F. Training requirement G. Licensed practice H.
It has been said that individual opinions, values and ethics can have an impact of the way that accounting theories are constructed. Discuss what is meant by this statement. In your discussion you will need to make reference to at least two (2) accounting theories. In your opinion, what are the key principles for 'sound' meas
Use T accounts to record transactions involving assets, liabilites and owners equity for the following: 1. James walker made an additional investment of $16000 in cash. 2. A firm purchased equipment for $9000 in cash 3. A firm sold some surplus office furniture for $1200 in cash 4. A firm purchased a computer for $2700 to
Kendal County engaged in the following transactions. For each, prepare an appropriate journal entry and indicate the type of fund in which it would most likely be recorded. It levied and collected $1 million in taxes and dedicated to the repayment of outstanding general obligation bonds. It billed sponsors of a charity bic
July December E12.2 Production level, in units........... 5,000 10,000 Variable costs........................... $12,000 $ ? Fixed costs.............................. ? 18,000 Mixed costs............................
Taxes and user fees provide much of the revenue for public organizations that is necessary to fund public programs. Yet, despite these revenue streams, local, state, and federal governments consistently face budgetary shortfalls in attempting to fund public programs. What changes, if any, would you make to the way governments ob
Part 1: On July 1, 2005, Jones Beauty Supply, a calendar-year company, sold special-order merchandise on credit and received in return an interest-bearing note receivable from the customer. Jones Beauty Supply will receive interest at the prevailing rate for a note of this type. Both the principal and interest are due in one lum
I have no idea how this thing works. Could really use some to tell me how to makes the numbers make sense. Below find production and sales information for Herrestad Company. Product information Beginning inventory 0 Units produced 10,000 Units sold 8,000 Selling price per unit $250 Variab