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Recording the Issuances of Common Stock & Treasury Stock-Cost Method

During the first year of operation, Sitwell Corporation had the following transaction pertaining to its common stock. Jan 10 Issued 80,000 shares for cash at $8 per share Mar 1 Issued 5,000 shares to attorneys in payment of a bill for $35,000 for services rendered in helping the company to incorporate. July 1 Issued 30

Different Types of Centers and Decentralization

Please help me understand these questions: What is the difference between a "Revenue Center" and a "Profit Center"? Discuss the Differences Between Responsibility Centers and Decentralization. What other reasons are there to indicate decentralization is a better way of doing business? Discuss types of control systems

Audition and Sampling

1) What are some ways that auditors can be sure that the sample sizes will be fair enough to provide a look at internal controls, yet comprehensive enough to detect any irregularities? Is there a way? 2) Let's say that we have 1500 invoices that need to be reviewed. We will say that 25% of the invoices belong to one client

Over what range of radio production would it prefer each of the radio designs?

Ray-D-O's! is considering modifying the design of its popular radio so that the component boards can be soldered without flux, a substance that requires the use of toxic solvent in the cleanup process. The company is currently spending $4 to manufacture each additional unit. The new design would save $0.75 per unit, as the flux

Weighted method with the following information.

I need help with the layout and calculating the 5 steps of process costing using the weighted average method. The details are as follows: Production occurs in three departments- spinning, molding and testing. Materials and conversion costs are added throughout all three processes. The table represents units and cost flows:

Determining the null and research hypothesis

Bay Area community College collected Data and compared the starting salaries of the graduating students with last names beginning with the letters A thru M with those whose last names begin with N thru Z. A thru M provided 47 random responses and N thru Z had 52 random responses. I have to figure out the null and research h

Analysis of Pledge Data

Instructions: Harold Dinklesdorf is the director of fund-raising for the Bobcat Symphony. The symphony relies on donations to fund operations and special programs. Harold created an Excel table to track information about donors and their pledges. You will analyze the data in the list. Complete the following: 1. Open the P

Tax Consequences and Stock Redemption

I am completely lost with the following problem. My text does a very poor job explaining this. Please thoroughly explain. Falzone Compay has two shareholders, Rita and Sal Corporation. Rita acquired her 300 shares in 2002 for $30,000 and Sal Corporation acquired its 200 shares in 1998 for $15,000. On August 2, 2012, Falzone C

E & P Calculation for 2013

Please help with the following problem. I did the computation, but I am unsure if I did it correctly. My answer is $86,750. Given the following information for 2012, compute Shardee Corporation's current E & P for 2013. Taxable Income: $100,000 Federal Income taxes: $22,250 Other information (items from 2013): Tax-exemp

Accounting (Equivalent Units of Production)

The PVC Company manufactures a high-quality plastic pipe that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May: Production data: Pounds in process, May 1: materials 100% complete; conversion 90% complete

Dog Hunt

In January 1971, a Gallup Poll asked, "A proposal has been made in Congress to require the US government to bring home all US troops before the end of the year. Would you like to have your congressman vote for or against this proposal?" Guess the results, for respondents in each education category, and fill out the table. Tab

Assessing Short Term Liquidity

** Please see the attached Excel file for the complete solution ** Working Capital Activity Ratios: 1. Days Inventory Held 73.0 108.2 93.9 2. Days Accounts Receivable Outstanding 0.0 90.2 0.0 3. Days Accounts payable outstanding 43.8 116.5 49.6 Operating Cycle (1 + 2) 73.0 198.4 93.9 Cash Conver

Equivalent Units of Production: Brady Products

Brady Products manufactures a silicone paste wax that goes through three processing departmentsâ?" Cracking, Blending, and Packing. All raw materials are introduced at the start of work in the Cracking Department. The Work in Process T-account for the Cracking Department for a recent month is given below:

Scott MacDonald Transfers Land with an Adjusted Basis.

I am having problems with calculating basis. Scott MacDonald transfers land with an adjusted basis of $150,000 for stock in P. D. Graphics, Inc. worth $250,000, $50,000 in cash, nonqualified preferred stock worth $100,000, and P. D. Graphics' agreement to assume an $80,000 liability on the land. After the transfer, Scott owns 9

Corporation's Taxable Income and Regular Income Tax Liability.

Capital Corporation had the following results in 2012: Gross receipts from operations: $200,000 Net short-term capital gain: $50,000 Net long-term capital loss: ($75,000) Cost of goods sold: $60,000 Operating expenses: $40,000 Dividends received from 30% owned domestic corporation: $80,000 What is Capital Corporation'

Expensing Start-Up Costs

Recently, a group of university students decided to incorporate for the purposes of selling a process to recycle the waste product from manufacturing cheese. Some of the initial costs involved were legal fees and office expenses incurred in starting the business, state incorporation fees, and stamp taxes. One student wishes to c

Collecting and Evaluating Accounting Evidence, and the Use of Sampling.

1) Explain procedures for collecting accounting evidence, 2) Explain the use of sampling in performing an examination 3) Evaluate accounting evidence using analytical and inferential tools. Taking those objectives talk about what they mean to you personally in a professional setting if applicable or maybe of the three obje

Varying and Fixed Costs

1. What issues will create variances within a company? 2. What other information can we derive from our variance analysis? 3. What expenses would you imagine to be fixed in nature?

Section 351

If the transferor of property which is considered a 351 exchange, never recognizes the gain and he leaves the stock to his wife in his will, what is the impact to the wife? What if he leaves the stock to his estate to be divded among his family members?

Section 351 Exchange

I was wondering, let's assume a 351 exchange occurred whereby the transferor had a realized gain. Since the realized gain did not involve boot, the transferor does not recognize any gain until the stock is sold. Let's also assume when the transferor sells the stock, the stock's value is below the basis. Am I correct that the tra

Avoiding the gain on a Section 351 transaction

Is there another way to avoid recognizing the gain on a 351 transaction besides the one given below? There are ways to play this system. The reason that the tax on a 351 transaction is deferred until the stock is sold is because the person's basis in the stock received in a 351 transaction is the same as the basis in the pro

Correcting a Vendor Account

Vendor stated we owed last 2 months invoices. I looked in the system and showed those 2 invoices were paid and cleared the bank. I then went back and looked at the entire year and discovered the following: The February 2012 invoice was actually a voided invoice from May 2011 AND the incorrect payment ID was used so no cash w

Accounting Information Sysytem

See the attachment. Jessica, the financial manager at Chila restaurant, is checking to see if there is any relationship between newspaper advertising and sales revenues at the restaurant. She has accumulated the following data for the past 10 months: Month Revenues Advertising Costs March $150,000 $20,000 Ap

Tax - Gross Income

Robin is working overseas on a temporary assignment beginning on March 1 of this year through January 31 of next year. Her salary is $10,000 per month while overseas, but only $8,000 per month for January and February of this year. What is the minimum amount of Robin's salary that she must include in gross income this year? (Rou

Determine Initial Tax Basis

An apartment house was purchased on July 8 of last year, by a taxpayer who computes her taxes on a calendar basis. Her depreciation deduction last year was $7,902. The building accounted for 65 percent of the property's market value at the time of purchase. What was the taxpayer's initial tax basis in the property?