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Accounting

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

Calculating annual total return on assets

The total assets of Perez Company were $1,950,000 at the beginning of the year and $1,830,000 at the end of the year. The company reported a net income of $225,000 and an interest expense of $30,000 during the year. The company's income tax rate was 30%. What was the company's return on total assets for the year?

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

Peluso Company: Make or buy decision

Peluso Company, a manufacturer of snowmobiles, is operating at 70% of plant capacity. Peluso's plant manager is considering making the headlights now being purchased from an outside supplier for $11 each. The plant has idle equipment that could be used to manufacture the headlights. The design engineer estimates that each headli

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.

Intermediate Accounting: Journal Entries

Scenario: My Client Ricky Gervais has come to my office with the following information: 1. On February 1, the company purchased 12% bonds of Melissa McCarthy Co. having a par value of $500,000 at 100 plus accrued interest. Interest is payable April 1 and October 1. 2. On April 1, semiannual interest is received. 3. On Ju

Proposal for appropriate controls to cover the account receivable

1. Design a proposal for the appropriate controls to cover accounts receivable. 2. the proposal must be based on the Apollo Shoes case. Your reading of the Apollo Shoes case should include board minutes and auditor messages and notes. 3. Be sure to obtain an understanding of (1) existing controls and (2) whether the contro

Dwight Corporation Accounting

At December 31, 2010, Dwight Corporation reported current assets of $390,000 and current liabilities of $200,000. The following items may have been recorded incorrectly. Dwight uses the periodic method. Please see attachment. At December 31, 2010, Dwight Corporation reported current assets of $390,000 and current liabilities

Fundamental Economics Definitions

Please provide the following definitions: - Trade-Offs - Prices and Markets - Theories and Models - Positive versus Normative Analysis - Competitive versus Noncompetitive Markets - Market Price - Market Definition-The Extent of a Market - Real Versus Nominal Prices: - Corporate Decision Making - Public Policy Design

HI-resolution Ltd manufactures Blu-ray players un its perth plant

HI-resolution Ltd manufactures Blu-ray players un its perth plant. The following costs are budgeted for January. Raw material and components $2950000 Insurance, plant $600000 Electricity, machinery $120000 Electricity, light $60000 Engineering design $610000 Depreciation, plant $700000 Depr

Elaine Shumate at GSM: Briefly examine the differences between ROI, Residual Income, and EVA. Is ROI the best technique to apply in this particular scenario? Why or why not?

Elaine Shumate has been working for GSM, a pharmaceutical research company, for more than seven years. It is her first job since finishing her graduate work in molecular biology and her performance evaluations have been exemplary. She has received increasing responsibility as opportunities have become available at GSM. Unfortuna

PROBLEM 8-4 Profit- Maximizing Price RoverPlus

PROBLEM 8- 4. Determining the Profit- Maximizing Price [ LO 1] RoverPlus, a pet product superstore, is considering pricing a new RoverPlus- labeled dog food. The company will buy the premium dog food from a company in Indiana that packs the product with a RoverPlus label. Rover pays $7 for a 50- pound bag delivered to its store.

accounting review help

- The essentials of record-keeping. - Preparation of simple financial statements. - Balance sheet: Asset and Liability measurement and recognition. - Income Statement: Revenue and expense recognition and measurement - Account receivable; advances form customers; revenue recognition. - Measuring and reporting working capi

Operating Activity for Cash Flows

Why may net cash flow from operating activities on the cash flow statement be different from the amount of net income reported on the income statement? Use a specific example to justify your answer.

Special order and Operating Capacity

Please help me with this question: What is a "special order"? Why does whether a company is operating at capacity or has excess capacity matter in deciding whether to accept the special order or not?

Constructive Receipt Argument

I think this problem may concern accrual accounting vs cash accounting for tax purposes. However, the argument has to be structured for the taxpayer to win in Tax Court. If you know the IRC Code(s), please provide. A taxpayer, who uses the cash method of accounting for tax purposes, received income in 1989, 1990, 1991 and 199