The Pacific Manufacturing Company operates a job-order costing system and to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $139,500 of manufacturing overhead for an estimated allocation base of $93,000 direct labor dollars. The company has provided the followi
P14-2 Issuance and Retirement of Bonds Venezuela P14-5 Comprehensive Bond Problem Sanford Co., Effective Interest Method.
P14-2 (Issuance and Retirement of Bonds) Venezuela Co. is building a new hockey arena at the cost of 2,000,000.It received a down payment of 500,000 from local businesses to support the project,and now needs to borrow 2,000,000 to complete the project.It therefore decided to issue 2,000,000 of 10.5%,10 year bonds. These bonds we
Martha's Wonderful Cookie Company makes a special super chocolate-chip peanut butter cookie. Martha's used the number of chocolate chips as a proxy measure for the weight of chocolate chips in a cookie. The company would like the cookies to average approximately eight chocolate chips a piece and wants to base its statistic
Deskins Manufacturing Company has four operating divisions. During the first quarter of 2010 the company reported total income from operations of $61,000 and the following results for the divisions. Analysis reveals the following percentages of variable costs in each division. Division: Denver Miami San Diego Tacoma Sal
Balance sheets for Prego Company and Sprague Company as of December 31, 2010, follow: Prego Company Sprague Company Cash $ 700,000 $111,000 Accounts receivab
a. State how the concept of "professionalism" in the public accounting industry shifted or evolved between Federal Trade Commission's "restraint of trade" decision in the early 1970s and today, several years following passage of the Sarbanes-Oxley Act of 2002, and b. State seven factors responsible for such changes
1. What is an example of a significant accounting estimate? What is the importance of these estimates? How do ethics play into the decision-making process? Which financial statements include significant accounting estimates? Why? 2. What are internal controls? Why do companies need them? What are some examples of internal con
Identify the following transactions: a. C Inc. distributes all stock in its wholly-owned subsidiary, B Inc. to its shareholders. b. C Inc. distributes all stock in its wholly-owned subsidiary, B Inc., to a 30 percent shareholder in exchange for the c. shareholder's stock. d. C Inc. liquidates B Inc. and distributes the procee
1) Companies depend on banks to help oversee their accounts and in some cases a breakdown in controls happens at the bank. With internet and remote capture banking becoming more popular, what controls should banks have in place to insure proper controls over remote deposits? 2) What procedures, if any, can we use during the
Wilson Corporation currently uses the calendar year as its financial and tax annual accounting period. Management wishes to changes this to a fiscal year beginning October 1st and going through September 30th. Look at the tax law criteria that would be required to make this change and summarize them in a few paragraphs. Based on
Complete the 10-column worksheet for Briscoe Company.
What makes the historical cost accounting model irrelevant and what alternative model should we look at? Looking for a starting point, some helpful research sources maybe a short introduction.
Mr. Ray is a married business consultant. His wife Jackie earned $3,000 during 2011 by working at a local non-profit association. Ray earned $28,000 through his business consulting services and will report this activity in Schedule C on his Form 1040 for 2011. Explain how Ray will report the following items on his Form 1040
In each of the following independent situations, determine Winston's filing status for 2012 and why. Winston is NOT married. These 5 situations either fall into the categories of Single Taxpayers, Married Individuals, Marriage Penalty, Surviving Spouse, Head of Household, or Abandoned Spouse. a). Winston lives alone, but he m
Jobs completed and sold . . . . . . . . . . . . . . . . . $420,000 Jobs in finished goods inventory . . . . . . . . . . . 84,000 Jobs in goods in process inventory . . . . . . . . . 56,000 Total actual direct labor cost . . . . . . . . . . . . . $560,000 In December 2010, Perez Company established its predeter
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded. What amount of goodwill should be attributed to Perch at the date of acquisition? What a
On January 1st, Cub Company issued 8% stated rate bonds with a face amount of $100 million. The term of the bonds is 20 years and semiannual interest payments are due on June 30th and December 31st. The market rate of interest for similar bond issues was 9%. Calculate the issue price for the bonds.
Sandy just graduated from college. She accumulated $15,000 in student loans. She will pay the loans off over 10 years and the first monthly payment is due in 1 month (assume an 6% interest rate). Calculate the amount of her payment.
You just received notice that you have won the $2 million Indiana Lottery. You will receive $100,000 per year for 20 years with your first payment received today. What is the present value of these payments if the appropriate discount rate is 8%?
Job 102 Job 103 Job 104 Direct Materials 30,000 66,000 54,000 Direct Labor 16,000 28,400 42,000 Overhead 8,000 14,200 21,000 Job 102 was started in production in May and the f
The press report carried the following news item: General Motors, Ford, and Chrysler are expected to post losses on fourth-quarter operations despite sales gains. Automakers' revenues are based on factory output rather than retail sales by dealers, and last quarter's sales increases were from the bulging inventories at the end o
I need help in deriving three financial questions that a manager might ask, regarding the link below (annual report from 2011 for Capital Blue Cross). Link: https://www.capbluecross.com/Visitors/AnnualReport/
A company makes three types of shirts: Athletic, Varsity, and Surfer. The shirts are made from different combinations of cotton and rayon. The cost per yard of cotton is $5 and of rayon is $7. The company can receive up to 4000 yards of cotton and 3000 yards of rayon per week. The table below shows relevant manufacturing informa
When may a liquidating corporation recognize a loss on a liquidating distribution?
Diamond Beauty supply Shop projects the following sales: April - $75,000 May - $95,000 June - $100,000 Seventy percent of Diamond Beauty Supply shop sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables collected in the second month after the sale. February s
I have answered the following questions; however, I wanted to see what your responses would be. What are earnings and profits? How and why are they computed? What difference do earnings and profits make to a corporation? To the stockholders of a corporation?
You are preparing an accounting report for your peers. How formal should this report be? Might this be different if the report was for your manager? Might this report be different if the owner of a business was your client?
What are some examples of long formal reports? When might an accounting department or accounting firm use these reports?
Frenchy's Company needs to determine the variable utilities rate per machine hour in order to estimate cost for August. Relevant information is as follows: April - 4500 machine hours and $9,560 Utilities expense May - 4200 machine hours and $9,440 Utilities expense June - 6500 machine hours and $11,725 Utilities expense
The following selected information was extracted from the 20x3 accounting records of Baker Products: Raw Materials Used $284,000 Direct Labor 178,000 Indirect Labor