What is shareholder's equity, how is it calculated, and where and how is it reported? What is comprehensive income and how does it influence equity? What happens to shareholder's equity when the firm issues more shares or buys back shares in the open market? What are retained earnings and how and where are they accounted? What a
Problem 1 Aaron Corporation reported the following data in the balance sheet of its 2008 annual report: 2007 2008 Accounts Receivable .................................... $172,500 $270,000 Less: Allowance for credit losses ........................ ..8,550 12,000 a. What is the amount of accounts receivable w
1. Sawaya Company had depreciation and amortization expenses of $522,311, interest expenses of $114,077, and an EBITDA of $1,521,087 for the year ended June 30, 2010. What is the Times Interest Earned for this company? 2. Efficiency ratio: Jet, Inc., has net sales of $712,478 and accounts receivables of $167,435. What are the
1. Interest cost included in pension expense recognized for a period by an employer sponsoring a defined-benefit pension plan represents the A) shortage between the expected and actual returns on plan assets B) increase in the projected benefit obligation due to the passage of time C) increase in the fair value of plan
Bar Corporation has been looking to expand its operations and has decided to acquire the assets of Vicker Company and Kendal Company. Bar will issue 30,000 shares of its $10 common stock to acquire the net assets of Vicker Company and will issue 15,000 shares to acquire the net assets of Kendal Company. Vicker has the follow
Jane Alexander currently has $6,750 in a money market account paying 6.35 percent annually. She plans to use this amount and her savings over the next 8 years to make a down payment on a house. She estimates that she will need $20,000 in 8 years. How much should she invest in the money market account each year for the next 8
What conditions/factors cause a business to have a high degree of operating leverage as compared to others? It is a good idea to understand the percentage of margin we are creating. In this way, we can keep an eye on the amount of revenue, cost and gross profit; and compare these to prior periods so we can review the trends
Journalizing Accounting Transactions Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July the following transactions were completed: Date Transaction July 1 Issued 15,529 shares of common stock for $15,529 cash. July 1 Purchased used truck for $11,529, paying $2,018 cash and bal
Please comment on the text below and answer the question beneath it. --- One of the most common fraud schemes used for information assets is employees gaining access to customer data, including social security numbers and checking account numbers, and then using the info. to commit various types of fraud. H&R Block had a h
1. Allen visits Reno, Nevada once a year to gamble. This year his gambling loss was $25,000. He commented to you, "At least I didn't have to pay for my airfare and hotel room. The casino paid that because I am such a good customer. That was worth at least $3,000." What are the relevant tax issues for Allen? 2. A Series EE U.S
Section 351 allows the tax-free creation of a corporation, or, rather, the tax free contribution of money or property to a corporation in exchange for stock in that corporation. Is this really a "tax-free" provision or is it something else?
Please help me understand: 1. Cons of using Variable Costing 2. Cons of using Absorption Costing 3. Indicate what contribution margin is and how it can be expressed. 4. What is "Operating Leverage"? How does this affect Profitability?
Hollowell Audio, Inc., manufactures military-specification compact discs. The company uses standards to control its costs. The labor standards that have been set for one disc are as follows: Standard Hours: 6 minutes Standard Rate per Hour: $ 24.00 Standard Cost: $ 2.40 During July, 2,125 hours of direct labor time
1. Which of the following is NOT one of the three phases which is needed when changing an accounting system, either in its entirety or in part? Analysis Design Review Implementation 2. Which of the following is NOT an element of Internal Controls? To protect assets from misuse Ensure the accuracy of busine
The following data were taken from Jamison Company financial statements: Retained earnings, December 31, 2007 $30,000 Retained earnings, December 31, 2008 44,000 Dividends payable, December 31, 2007 450 Dividends payable, December 31, 2008 600 Dividends declared during 2008 2,125
2. The following data were taken from Jamison Company financial statements: Retained earnings, December 31, 2007 $30,000 Retained earnings, December 31, 2008 44,000 Dividends payable, December 31, 2007 450 Dividends payable, December 31, 2008 600 Dividends declared during 2008
a) Mostly, people want to avoid "overhead" or indirect costs, but as you can see, it is important to have support systems, building and insurance, human resources, etc. Most businesses would prefer to have no overhead, but it is a necessary part of business. After all, you have to have a building to have your factory in, you m
Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its production facility. These costs (in Argentinian pesos) at high and low levels of activity over recent years are given below: Level of Activity
Dana La Fontsee opened Pro Window Washing Inc. on July 1, 2012. During July the following transactions were completed: July 1 Issued 15,529 shares of common stock for $15,529 cash. 1 Purchased used truck for $11,529, paying $2,018 cash and the balance on account. 3 Purchased cleaning supplies for $933 on account. 5
Bob has organized a new business called Bob's Shovels Inc. I need help posting transactions from Bob's Shovels to his General Ledger, posting adjusting entries and closing entries, closing out the Income Summary account to Retained Earnings, and preparing a Balance Sheet and Income Statement for the year end. I also need
Using the present value function in MS Excel, verify that the present value of $100,000 to be received in five years at an interest rate of 16%, compounded annually, is $47,610. Calculate the present value of $100,000 for each of the following items (parts a-f) using these facts: a. Interest is compounded semiannually b. Int
Explore these 3 websites www.aicpa.org, http://taxsites.com and www.pcaobus.org. In a narrative form, explain the different tools, reference material and resources available on the 3 websites.
15. (Comprehensive EOQ calculations) Knutson Products Inc. is involved in the production of airplane parts and has the following inventory, carrying, and storage costs: 1. Orders must be placed in round lots of 100 units. 2. Annual unit usage is 250,000. (Assume a 50-week year in your calculations.) 3. The carrying cost is
Some firms pool overhead into a single plantwide overhead pool, while others collect overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. Which approach is likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation?
Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all
The man-hour estimate for test and evaluation was based on using expert opinion to come up with optimistic, pessimistic and most likely positions. This resulted in a triangular distribution with a minimum estimate of 425 hours, a most likely estimate of 500 hours, and an expected maximum of no more than 650 hours. Calculate the
When the present value analysis of a proposed investment results in an indication the proposal has a rate of return greater than the cost of capital, the investment may not be made because: a. the quantitive analysis indicates that it should not be made b. management assessment of qualitatitve factors overrides the quantitiv
The sensitivity and importance of payroll and payroll information cannot be overstated. The managing and protecting of this information deserves and has the attention of any number of managers within an organization. Most everyone has experienced or has heard of situations where either payroll information has been stolen or some
Under IFRS, a sponsoring company must consolidate a special purpose entity (SPE): a) when the company is the primary beneficiary of SPE b) only if the company has a > 50% interest in theSPE c) if the company controls the SPE d) when the company has voting rights that are disproportionate to its economic interest
Whether recognized or unrecognized in an entity's financial statements, disclosure of the fair values of the entity's financial instruments is required when: It is practicable to / Aggregated fair values estimate those values / are material to the entity a no