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Accounting

Problems Involving Net Income

Net Income for Levin-Tom partnership for 2012 was 125000. Levin and Tom have agreed to distribute partnership net income according to the following plan. Levin Tom Interest on average capital balances

This addresses how to read and compare annual reports.

With respect to the three reports in comparison: Income Statement, Cash Flow Statement, and Balance Sheet how can I "zero" in, or in laymen's terms, do an efficient comparison. I cannot give too much detail. I am seeking the valuation method for Sears, Wal Mart & Target, including types of inventory and fiscal year-end dolla

use or sell

ABC Corp. owns a piece of land and building a few miles from its headquarters. The land originally cost ABC $500,000 to purchase. ABC is considering using the facility for a new training program. It could also rent a building about the same distance from its headquarters for $20,000 a year. A developer has offered ABC $2.5 mill

Accounting - Dividends and Stock Outstanding

Could you please help me with the following question: A corporation had the following stock outstanding when the company's board of directors declared a $95,000 cash dividend the current year: Preferred stock, $100 par, 6%, 5,000 shares issued $ 500,000 Common stock, $10 par, 75,000 shares issued $

Super Bakery Inc., ABC, Costing Methods

Resource: Feature Story on Super Bakery Inc. Read the attached feature story on Super Bakery Inc. 1. What strategies did the management of Super Bakery, Inc. use? 2. Why did Super Bakery's management think it was necessary to install an ABC system? Do you agree with their reasoning? If you disagree, identify your recomm

Accounting Vertical Analysis

1. What is vertical analysis? When would you use vertical analysis instead of horizontal? Do companies use one or the other? Please explain. What about industry averages? How do people use industry averages for comparative analysis? 2. What are the formulas of the following liquidity ratios and their formulas and what do

ROI

A new cardiac catheterization lab was constructed. The investment for the lab was $450,000 in equipment costs and $50,000 in renovation costs. A desired return on investment is 12 percent. Once the lab was constructed, 5,000 patients were served in the first year and were charged $340, for each procedure. The annual fixed cost f

Transfer prices

What are transfer prices? Discuss their major disadvantages.

Multiple Partnership & S Corp Questions

1. The stock of Cardinal Corporation is held as follows: 85% by Blue Jay Corporation (basis of $800,000) and 15% by Samuel (basis of $60,000). Cardinal Corporation is liquidated on October 20, 2009, pursuant to a plan adopted on January 9, 2009. Pursuant to the liquidation, Cardinal Corporation distributed Asset A (basis of $550

Tax - Partnerships and S Corporations

1. The December 31, 2009, balance sheet of the BCD General Partnership reads as follows. Basis FMV Cash Receivables Capital assets Total Ben, capital Cassie, capital Deidra, capital Total $180,000 -0- 42,000 $222,000 $ 74,000 74,000 74,000 $222,000 $180,000 90,000 63,000 $333,

Capitalized Assets Costs for Depreciation

Capitalized asset cost and first year depreciation, and identifying depreciation results that meet management objectives On January 3, 2012, Trusty Delivery Service purchased a truck at a cost of $90,000. Before placing the truck in service, Trusty spent $3,000 painting it, $1,500 replacing tires, and $4,500 overhauling the e

Accounting for petty cash transactions

Accounting for petty cash transactions Suppose that on June 1, Rockin' Gyrations, a disc jockey service, creates a petty cash fund with an imprest balance of $500. During June, Michael Martell, fund custodian, signs the following petty cash tickets: Petty Cash ticket # Item Amount 1 Postage for package recei

Frequent-Flier Miles; asset classes

Frequent-Flier Miles. - Take a position on whether or not employees who travel for business should be required to include the value of frequent-flyer miles in their gross income. Support your position with examples or other evidence. - Explain how your position changes if the employer reports to the IRS the value of the emp

Journalize Transactions for Durham

See the attached files. Journalize the withdrawal of Durham under each of the following assumptions. Each of the continuing partners agrees to pay $18,000 in cash from personal funds to purchase Durham's ownership equity. Each receives 50% of Durham's equity. 1. Ames agrees to purchase Durham's ownership interest for $25,00

business auto expense

Teresa is a civil engineer who uses her automobile for business evenly throughout the year. Teresa drove her automobile a total of $22,650 miles evenly during 2011, of which 95% was business mileage. The actual cost of gasoline, oil, depreciation, repairs and insurance for the year was $8,300. 1. How much is Teresa's transpo

Accounting for uncollectible accounts using the allowance method

Accounting for uncollectible accounts using the allowance method, and reporting receivables on the balance sheet At September 30, 2012, the accounts of Mountain Terrace Medical Center (MTMC) include the following: Accounts receivable $145,000 Allowance for uncollectible accounts (credit balance)

PARTNERSHIP ACCOUNTING AND TAXATION...

Jim Johnson has 40% interest in Richards and Johnson, LLP. The partnership has the following activity for the year: Sales $180,000 Cost of Goods Sold 105,000 Guaranteed Payment to Ron Richards 25,000 Depreciation 11,000 Interest Expense

Benefit plans

What are the differences and similarities between a defined contribution plan and a defined benefit plan? As an employee, would you rather have a defined contribution plan or a defined benefit plan? Explain why. As an employer, would you rather offer a defined contribution plan or a defined benefit plan? Explain why. Dis

Braemar Saddlery flexible budgeting

Braemar Saddlery uses department budgets and performance reports in planning and controlling its manufacturing operations. The following annual performance report for the custom saddle production department was presented to the president of the company: (see attached) Although a production volume of 5,000 saddles was original

Quantity discount problem:Bay Area Transit (BAT)

Bay Area Transit (BAT) is reevaluating its ordering policy for the tires used on its fleet of buses. Under BAT's current policy, an order of 1440 tires arrives every 90 days. As input to its ordering decision, BAT has made the following assumptions: . There are 360 days per year . Demand for new tires rarely deviates by mu

Lump sum liquidation

On March 1 2009, the ABC partnership decides to complete a lump-sum liquidation as soon as possible.The partnership balance sheet prepared on March 1appears below: cash 50,000 Account Pay 200,0000 Account Receivable 60,000 due to partner A 30,000 Inventory

Comparisons: Cash Flow From Operating Activities

More Company's net income last year was $37,000. The company paid a cash dividend of $2,000 and did not sell or retire any property, plant and equipment last year. Changes in selected balance sheet accounts for the year appear below: Assets & Contra-Assets Increase/(Decrease) Accoun

Formulas for break even

What are the formulas for: The basis break-even equation The basis breakeven equation expanded to include indirect costs and desired profit

This post addresses the income statement & cash transactions

The following areas could be deceiving parts of the income statement: 1) Revenues 2) General Expenses 3) Depreciation Expense Think of reasons why the above three items might be recorded on the income statement, but possibly no cash transactions.