Partnerships are allowed to deduct guaranteed payments to partners for services rendered or use of capital without regard to partnership income or profit and loss sharing ratios. What kind of situation would make guaranteed payments a logical way of starting a two-person partnership?
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I need to know how to record the amount of federal income taxes (FIT) using the wage-bracket method (For wages paid in 2011). Please see attached for details. Weekly $71.15 <--One Withholding Allowance
Just when you are starting to grasp the flow of costs from raw materials (direct materials) into work-in-process and then into finished goods, and think you might survive the managerial accounting course, you get hit with the Predetermined Overhead Rate. What? What is predetermined overhead rate and how do you compute it?
The attached Microsoft Word file contains detailed information and sources in regards to the U.S Government's Internal Revenue Service's Self Employment (SE) Tax.
BunaBuna has been growing at a 15 percent annual rate and is expected to continue to do so for 3 more years. At that time, growth is expected to slow to a constant 4 percent rate. The firm maintains a 30 percent payout ratio, and this year's retained earnings net of dividends were R1.4 million. The firm's beta is 1.25, the ri
Three advanced accounting problems that illustrate the following concepts: Upstream and Downstream Sales Workpaper Journal Entries and Income Statement Balances Multiple Stock Purchases
Upstream and Downstream Sales Pace Company owns 85% of the outstanding common stock of Sand Company and all the outstanding common stock of Star Company. During 2012, the affiliates engaged in intercompany sales as follows (see attached Excel file). Please show all work for the following: A. Prepare in general journal f
Sonja is a United States citizen who has worked in Spain for the past 10 months. She received $5,000 a month as compensation. Her employer has offered to extend Sonja's contract to work in Spain for another 5 months at the same rate of pay. If she rejects the offer, she can return to the United States and receive the same salary
Explain disclosure requirements for nonprofit organizations, such as the tax-exempt determination letters required by Congress and the IRS.
The FASB's Conceptual Framework and Statements of Financial Accounting Standards (SFASs) require full disclosures to be made in a business enterprise's financial statements. These disclosures requirements are applicable to corporations and nonprofit organizations. The purpose of these disclosures is to provide reliable and relev
At March 31, 2010, the end of the first year of operations at Jaryd, Inc., the firm's accountant neglected to accrue payroll taxes of $2,737 that were applicable to payrolls for the year then ended. 1. Requirement 1: (a) Prepare the horizontal model to show the effect of the accrual that should have been
Evaluate the effectiveness of the PCAOB's oversight related to both corporate management's and a certified public accountant for addressing a material weakness in internal controls
Q1. How widespread are IFRS and what do you think will happen to US GAAP? Q2. What is the difference between a rule-based and principle-based system? Q3. Discuss the Global Reporting Initiative, its purpose, the standard setting process, the use of its reporting system, etc. Q4. How has SOX affected business organiz
1) Explain situations where the opposite could be true In normative theory. For example: our personal experiences, educational levels, cultures, religions, and other aspects of our background can actually enrich our decision making ability. 2) Why does it appear that to be highly successful (particularly in a financial sense),
The three most important accounting ratios: Why are they important?
A company sells computers at a selling price of $1,800 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 2% of all computers sold will be returned under the warranty at an average cost of $150 each. During November, the company sold 30,000 computers, and 400 computers were
Consolidated Balance Sheet Problem On January 1, 2012, Perry Company purchased 8,000 shares of Soho Company's common stock for $120,000. See below for statement of financial position for both Perry and Soho shortly after acquisition: Please see attachment for associated table. Problem: A. Calculate the percentage of
Sabina and Associates has the following current year costs: Variable costs $4 per unit Fixed costs $20,000 Next year, the company plans to enter into an arrangement with a supplier that will result in a 15% decrease in variable costs. They also plan on reducing their rental space, which will decrease fixed costs by 10%.
In 2006, Dillon Inc. had a total contribution margin of $100,000 and net income of $60,000. For the upcoming year, the company would like to earn a target profit of $80,000. Assuming sales volume is expected to be the same in the upcoming year as it was in the past year, give three separate options the company could implement i
XXX Company's sales department wants to establish a database to track key information about its salespersons. Salespersons are assigned to either industrial or commercial customers and to one of four sales regions (East, North, South, and West). Action Products wishes to record the flowing information for each salesperson: Their
Please help me with the following questions. I am having some difficulty approaching them. The IRS code provides for deductions and credits. - List 5 possible deductions. - List 3 possible tax credits. - Compare and contrast a $10,000 adjustment, $10,000 tax credit and $10,000 of itemized deductions.
The following calendar year information about the Tahoma Corporation is available on December 31: [See the attached file] The company applies overhead on the basis of 125% of direct labor costs. a. Calculate the amount of over- or under-applied overhead. b. What is the significance of this over- or under-applied
A company made the following expenditures in connection with the construction of its new building: [See the attached file] A company made the following expenditures in connection with the construction of its new building: architect $12,000.00 land with run down building $300,000.00 removal of old building $18,00
1. What are examples of irregular items? How does a change in accounting principles affect the financial statements? Who in the company is responsible for the application of a change in an accounting principle? Why? 2. What is a horizontal analysis? What is the value in using horizontal analysis? Why would a company use horiz
Below are financial statements for Bills Art Company. Question 1: How Liquid is the firm? Select one of two recongized approaches to answering this question. Question 2: Calculate the operting income return on investment (OIROI). Explain your answer. Question 3: Are the Owners (stockholders) receiving an adequate return on
Please see the attached document. 1- Emma had the following transactions for 2012: Salary $80,000 Alimony received
1. In 2012, Warren sold his personal use automobile for a loss of $9,000. He also sold a personal coin collection for a gain of $10,000. As result of these sales, $1,000 is subject to income tax. 2. The realization requirement give to own assets that have increased in value and to sell assets whose value has decreased 3. T
Based on the following data, estimate net operating income. Show your work in good form. Two-bedroom units rent for $600 per month (total of 40 units) One-bedroom units rent for $450 per month (total of 20 units) Vacancy and uncollectible rent losses typically amount to six percent of potential gross rent. Operating expenses
(Question 1) During the current year, ALF Partnership reported the following items of receipts and expenditures: $200,000 sales, $10,000 utilities, $12,000 rent, $50,000 salaries to employees, $30,000 guaranteed payment to partner Lloyd, investment interest income of $3,000, a charitable contribution of $5,000, and a distributi
1. If you need a rubber band or paperclip and do not have time to pick-up a pack on your way home from work, would it be acceptable to "borrow" it (expecting never to return it)? Too often, companies don't want to consider the thought of someone on their team stealing from the company. They believe that by creating a ultra-t
Accounting does not exist in isolation and changes in counting roles and enforcement impact business organization on a global basis Please assist in answering these questions and provide factual opinions with references. 1. How widespread are IFRS? What will happen to U.S. GAAP? 2. How has SOX (Sarbanes-Oxley) affec
Accounting for Bad Debts Information related to Hamilton Company for 2014 is summarized below: Total credit sales : $2,500,000 Accounts receivable at December 31 : 970,000 Bad debts written off : 66,000 a) What amount of bad debts expense will Hami