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# Accounting

### Net Income Calculation

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

### Calculating Net Income - Sample Problems

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

### The overhead costs associated with companies

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

### Finding the Components of Mixed Overhead Costs

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

### An analysis of company transactions and adjustments.

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

### Accounting transactions for Bob's shovels

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

### Calculate the present value of \$100,000 in the given cases

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

### PCAOB, American Institutive of CPAs, various accounting

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.

### Comprehensive Economic Order Quantity (EOQ) Calculation

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

### Approach to allocating overhead expenses will be more accurate

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

### Calculate the Variance

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

### Accounting - Investments

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

### Privacy of payroll information

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

### Special Purpose Entity

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

### Disclosures of fair values

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

### Budgeting with Incremental or Zero-based Budgets

1)What is the difference between two types of line-item budgeting approaches: incremental budgeting and zero-based budgeting? Which of the two approaches is more widely used by governments? Which do you think is more beneficial in developing realistic budgets? 2)"The sole objective of budgeting in a governmental entity is to

### Retained Earnings - Recording an Expense

Under the disclosure provisions of SFAS No.123, the estimated stock option expense for 2006 would be \$15,500 for W Co.. When the company records this expense: A) retained earnings account has no effect B) the equity on b/s has no effect C) the total assets increase by 15,500 D) the capital decreases by 15,500

### Tax Accounting Facts

I need help with the attached question. Thank you! Which one is not correct in the context of tax accounting: Deferred tax liability might result when tax expense on an income statement is less than tax payment based on the tax code. Corporate income tax is an expense, not a distribution of the profits to the government

### Agency Costs

Please help with the attached question. To reduce agency cost, accounting should provide the information for management stewardship. Then, which item can be more directly related to the management stewardship information? A) goodwill impairment loss B) projected benefit obligation C) employee stock option expense D) gai

### Least Possible Item in MD&A

Which one is the least possible item in MD&A? A) market sales trend B) discussion for the accounting policy change C) detail information for the executive comparison D) the effect of oil price on the firm's performance.

### Mizzou Mining Company. E16-4 Sell or process further?

1. E16-4 Sell or process further? Mizzou Mining Company mines an iron ore called Alpha. During the month of December, 400,000 tons of Alpha were mined and processed at a cost of \$742,500. As the Alpha ore is mined, it is processed into Delta and Pi, where 60% of the Alpha output becomes Delta and 40% becomes Pi. Each produ

### Accounting: Business Partnership & Consequences

1) Describe this Basic Type of Business Formation: Partnership 2) Explain the Following Consequences of the type of Business Organization: - Tax Implications - Legal Implications - Accounting Implications, such as: SOX and FASB.

### Analysis and justification of business investment

Based on financial statements from three differernt companies, why is Google a good company to invest in?

### Accounting for Nonmonetary Exchanges

Which of the following statements correctly describes the proper accounting for non-monetary exchanges that are deemed to have commercial substance? a) It defers any gains and losses b) It defers losses to the extent of any gains c) It recognizes gains and losses immediately d) It defers gains and recognizes losses immedia

### High Quality Earnings and Sustainable Income

What is the Definition of the "High Quality of Earnings"? Why is this important in an organization? What is the Definition of "Sustainable Income"?

### Various Questions on Accounting

Please see attachment. 1. Polly Enterprises manufactures lamps that normally sell for \$75 each. There are 300 defective lamps in inventory, which cost \$55 each to manufacture. These defective units can be sold as-is for \$20 each, or they can be processed further for a cost of \$45 each and then sold for the normal selling pric

### Deciding to Manufacture of Purchase

Consider the following scenario: The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable research, a cross-country ski line h

### Control Environment

The control environment sets the tone of the organization. It is the foundation for all other components of internal control. It provides discipline and structure. Control environment factors include the integrity, ethical values, and competence of the company's people. Personnel policies and practices also come under the co

### How much cash will Intrepid distribute to the common stockholders?

Intrepid Inc. declared a \$1,000,000 cash dividend. It currently has 15,000 shares of 6%, \$100 par value cumulative preferred stock outstanding. It is one year in arrears on its preferred stock. How much cash will Intrepid distribute to the common stockholders? a. \$910,000 b. \$1,000,000 c. \$180,000 d. \$820,000