What is one contingency that would concern an auditor and how would the auditor become aware of this contingency?
Problem 6 - 5A Internal Control Abbott Inc. is expanding and needs to hire more personnel in the accounting office. Barbara Barker, the chief accounting clerk, knew that her cousin Cheryl was looking for a job. Barbara and Cheryl are also roommates. Barbara offered Cheryl a job as her assistant. Barbara will be responsible for
Colt Inc. has two types of handbags, standard and custom. The controller has decided to use a plantwide overhead rate (DL costs). The president wants to see what activity-based costing results might be. Estimated overhead costs are $270,000. Machine pool is $170,000 and Setup pool is $100,000. Compute overhead rates under b
What is the rationale that would lead to a desire to speed production in the face of increasing costs and declining productivity?
During the late 1970s, Harley-Davidson, the motorcycle manufacturer, was losing money and was very close to bankruptcy. Management believed that one of the problems was low productivity and as a result, asked middle managers to speed up the production. The employees who made the motorcycles were told that the priority was to g
Rust Inc. manufactures a variety of desks for retail sale. The desks are normally distributed through several wholesalers. Energen Inc., a mid-size retailer, has offered to purchase 60,000 custom desks over the next three months, to be sold under the retailer's house brand. Energen offers to pay $190/unit, which is much less
Purposes of national income accounting and the components of GDP in the output (expenditures) approach and in the income approach. Also, the economic costs of unemployment.
1) State the purposes of national income accounting. List the components of GDP in the output (expenditures) approach and in the income approach. 2) Identify the economic costs of unemployment and the groups that bear unusually heavy unemployment burdens. Response is 1,108 words
Unless otherwise indicated, each of the following parts is independent. In all cases, show computations to support your answer. A. Andrews Home Center has two departments, Bath and Kitchen. The most recent income statement for the company follows: Department Total Bath Kitchen
Four (4) tax questions: S Corporation vs C Corporation, sale of company, s-election, operating loss carry forward and stock options.
Tax questions 1. Joe has received an offer to sell his company to Microsoft Inc. for $40 million. The selling price will consist of 20% cash and the balance in Microsoft stock. Joe asks your advice on the different tax structure possibilities for the sale of the company and your recommendation for which method he should consi
The following information relates to Jorgensen Manufacturing for calendar year 2011, the company's first year of operation: Units produced 8,000 Units sold 7,000 Selling price per unit $ 4,500 Direct material per unit $ 2,000 Direct labor per unit $ 1,200 Variable manufacturing overhead per unit $ 900 Variable selling
Campus Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered: Copy Machine Month Repair Expense Copies Made May $ 8,500 300,000 June 12,500 500,000 July 20,500 900,000 August 16,500 700,000 September 10,500
What is a flow-through entity? What advantages do flow-through entities have over a regular corporation? Compare and contrast the tax characteristics of an S corporation and a partnership. 860 words
46. Elaine exchanges a van that is used exclusively for business purposes for another van that also is used exclusively for business. The adjusted basis for the old van is $18,000 and its FMV is $14,500. a. Calculate Elaines recognized gain or loss on the exchange. b. Calculate Elaine's basis for the va
1. Hagar, Inc. is a retail chain with 125 stores organized into 5 regions. The most recent annual income statement for the Snert, ND store is given below (in $000). It is typical of recent years, and Hagar is considering closing the store because of chronic losses. What factors should Hagar consider in making the decision?
The Walter Jewelry Company produces a bracelet which normally sells for $79.95. The company produces 1,500 units annually but has the capacity to produce 2,000 units. A special order for manufacturing and selling 200 bracelets at $49.95 has been received which would not disrupt current operations. Current costs for the bracel
Many accounting writers have emphasized the effect that the allocation of fixed overhead can have on managerial incentives to overproduce. When fixed overhead is allocated to product, the greater the production level, the lower the fixed cost per unit. The lower fixed cost per unit might increase perceived profitability, but is
(In the first column, indicate whether the transaction would be a Source, Use, or Neither. In the second column, indicate whether the transaction would be classified as Operating, Investing, or Financing, or None on the Statement of Cash Flows. In the last two columns, indicate whether or not the transaction would be reported
Access the FASB Codification at http://asc.fasb.org/home to prepare responses to the following exercises. Provide Codification references for your responses. 1.(a) What is the definition of amortization? (b) What is the definition of impairment? (c) What is the definition of recoverable amount? (d) What are activ
Consider the following scenarios: (Please respond to each scenario) * When we talk about "bad checks," are those always checks our customers have written to us? Explain. Would the company also write any bad checks and what are the repercussions for the same? Give examples to support your answer. * Suppose one person
See attached file. Recognizing and Minimizing Tort and Regulatory Risk Plan Resources: Business Regulation Simulation Write a plan using a company such as Alumina, Inc., explaining how regulatory risks may be identified and managed through preventive, detective, and corrective measures. Identify common torts and ris
How do current earnings and profits differ from accumulated earnings and profits? Is there any reason to keep the two accounts separate? How does a corporation's computation of earnings and profits? How do current earnings and profits differ from accumulated earnings and profits? Is there any reason to keep the two accounts s
Compare and contrast the requirements for the formation and termination of an S corporation and a partnership. What is the effect on both the business entity and its owners?
Compare and contrast the requirements for the formation and termination of an S corporation and a partnership. What is the effect on both the business entity and its owners? 819 words
A comparative balance sheet for Hartman Corporation is presented below: HARTMAN CORPORATION Comparative Balance Sheet 2010 2009 Assets Cash $ 46,000 $ 31,000 Accounts receivable (net) 70,000 60,000 Prepaid insurance 25,000 17,000 Land 18,000 40,000 Equipment 70,000 60,000 Accumulated depreciation (20,
Russell Manufacturing Company developed the following data: Beginning work in process inventory $180,000 Direct materials used 140,000 Actual overhead 220,000 Overhead applied 160,000 Cost of goods manufactured 240,000 Ending work in process 300,000 Russell Manufacturing Company's tota
What are the distinctions between net ordinary income and separately stated income and deductions? What is the rationale for separately stating those items as individual K and the K-1?
Please help with answer the following question: Include at least 300 words and step by step calculations. In analysis of overhead cost variances, what is the controllable variance and what causes it?
Computing cash flows from operating activities- indirect method: Street cellular accountants have assembled the following data for the year ended june 30, 2012: Cash receipt from sale of land 29,000 Net income 64,000 Depreciation expense 19,000 Purchase of equip
1. Accounting for R & D Costs Martinez Company incurred the following costs during 2010 in connection with its research and development activities. Cost of equipment acquired that will have alternative uses in future R & D projects over the next 5 years (uses straight-line depreciation). $330,000 Mater
1. Classic Irons, Inc. purchased Manufactoring equipment with an expected useful life of five years or 5,000 hours of usuage. The equipment was purchased on January 1, 2008 for $460,000. It is expected to have a salvage value of $60,000 at the end of five years. During 2008, the equipment was used for 1,200 hours. Assume the usa
The primary objective in job order costing is to determine the cost of materials, labor, and factory overhead used to produce a specific order or contract. Cost estimates are made when the order is taken, and the job order procedures are designed to reveal costs as the order goes through production, thereby giving an opportunity
Please help with the following accounting problem. Provide at least 300 words in the solution. Include references. Find information in company footnotes about the intercompany transactions.