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Accounting

Accounting Errors/Corrections

1. Rodney Company's December 31 year-end financial statements contained the following errors: December 31, 2010 December 31, 2011 Ending inventory .......... $4,000 understated $3,600 overstated Depreciation expense ...... 800 understated -- An insurance premium of $3,600 was prepaid in 2010 covering the years 2010,

Reconciling Pretax Income and Taxable Income

19-2 (One Temporary Difference, Tracked for 4 Years, One Permanent Difference, Change in Rate) The pretax financial income of Parker-Gregory Company differs from its taxable income throughout each of 4 years as follows. Pretax Taxable Year Financial Income Income Tax Rate 2007 28

underinvesting and overinvesting, transfer price strategies

E 12-13 Explain why the senior managers at Quantum have an incentive to overinvest: Explain why senior managers at Aquafinn have incentive to underinvest: P 12-16 Suggest a transfer price for the fabric assuming that the Fabric Division is operating at only 60% capacity due to a surge in popularity of easy care fabri

Accumulated Value - Before-tax Vs. After-tax Contributions

What is the accumulated value of a $1,000 contribution to a qualified defined contribution plan under each of the circumstances described in the table below? Tax Rate Before-tax Rate of Return Investment Period 10% 8% 5 years 30% 8% 5 years 30% 4% 5 years 30% 4% 10 years Suppose instead that the $1,000 is paid

Basis for property owned by person and corporation, and tax

I have this problem for a practice exam, and am stumped. For the corporation's basis of $40,000, since corporations don't get stepped-up basis, however I am not sure if that is right. Parts b-d I really don't have a clue (was eric's basis $100,000 or $125,000?), and would appreciate help from a qualified professional. Probl

LLC profit and losses - selling interest in LLC

Tony had a 40% interest in the Apollo LLC's profits and losses. The balance in his capital account was -$240,000 (negative capital). The LLC's only liability was $1,000,000 nonrecourse mortgage. a. What would be the tax consequences to Tony if he sold one-half of his interest in the LLC to Zach for $100? b. What would be th

Financial Data Reported by Mac Company

Please see attachment for better formatting. AE10-7 The following financial data were reported by Mac Company for 2007 and 2008 ($ in millions). MAC COMPANY Balance Sheets (partial) 2008 2007 Current assets Cash and cash equivalents $2,406 $1,799 Accounts receivable, net 3,824 3,349 Inventories

Fehr Co: Prepare a computation of the carrying value of the patent

24. Fehr Co. purchased a patent from Wells Co. for $180,000 on July 1, 2005. Expenditures of $51,000 for successful litigation in defense of the patent were paid on July 1, 2008. Fehr estimates that the useful life of the patent will be 20 years from the date Directions: Prepare a computation of the carrying value

EOQ and Finanical Effecs Where Disounts Offer on Bulk Buying

Drake Electronics manufactures a number of electronic devices. The company got its start during World War II by manufacturing radio communications equipment for the military. However, today one of their major products is a liquid crystal display (LCD). Their LCDs are used in a variety of applications, including cockpit displays.

Joseph T. Wells founder Association of Fraud Examiners(ACFE)

Visit the Association of Certified Fraud Examiners Web site and read a short introduction on Joseph T. Wells (http://www.acfe.com). (Hint: He was not only the founder but is listed as an instructor.) a. What is Well's background before becoming chairman of the Association of Certified Fraud Examiners? What major aspects of h

Generate a Sample from a Random Number Table

See attached file. The management of AAAA Company has observed that the company's cash outflows have been increasing much more rapidly than its inflows. Management cannot understand the change; from its perspective, it has been "business as usual." Management has asked you, a fraud expert, to help them understand what is goin

Accounting: Warranty recognition.

Awesome Audio Works, Inc. warrants its products for one year. The estimated product warranty is 2% of sales. Assume that sales were $5000,000 for January. In February, a customer received warranty repairs requiring $2,500 of parts. A. Determine the warranty liability at January 31, the end of the first month of the current ye

types of costs

Classify each of the following costs incurred in manufacturing bicycles as variable (V), fixed (F), or mixed (M) cost (using number of units produced as the activity measure). Also indicate whether the cost is direct material (DM), direct labor (DL), or overhead (OH). Wayside Machine Tool Company purchased a $600,000 welding

Environmental Green Accounting at Apple Corps Ltd.

Strategic Management Accounting Goal: detailed analysis on Environmental Green Accounting development in accounting information and strategy. Selected: Apple Corps Ltd. 1) Please introduce Apple, highlights its definition of Green Accounting, and presents a chronology of key events in its development of its Green Accoun

Explain the success of the convenience stores

In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as Kwik Shops, 7-Elevens, Gas 'N Shops), although their prices are generally much higher than prices in large supermarkets. What explains the success of the convenience stores?

types of fraud

In each of the following examples, I need assistance identify whether it is an employee embezzlement, management fraud, investment scam, vendor fraud, customer fraud, or miscellaneous fraud. Marcus bought a $70 basketball for only $30, simply by exchanging the price tags before purchasing the ball. Craig lost $500 by inve

Cal Smith Jr. is the night manager at a local doughnut shop that is doing very well. The shop sells doughnuts 7 days a week, 24 hours a day. Cal runs the graveyard shift by himself, since none of the other employees want to work at night. Since opening six months ago, Cal has not been able to find anyone to work for him and therefore has never missed one day of work. Cal makes his deposit every morning before going home. Cal feels that he is overworked and underpaid. The franchise owner, Kenny Jones, has praised Cal for his hard work and dedication to the company. Kenny's only concern is that, once or twice a week, an entire batch of traditional glazed doughnuts has been thrown away because of over-baking. Despite these problems, Cal maintains a clean work environment and is considered a valuable employee. Recently, Cal has yelled at people on shifts before and after him for seemingly insignificant reasons. He was hired as manager because he gets along with everyone and is usually easygoing. His recent irritability could stem from the fact that business is slowing down and he does not have much interaction with anyone at night. He also has been complaining that he has not been getting very much sleep. One day, Cal came to work in a new BMW M3, the car of his dreams. Cal said that his dad helped him buy the car. 1. What areas of the business are most at risk for fraud? 2. Identify any symptoms of fraud that appear to exist at the doughnut shop. 3. What steps could be taken to reduce opportunities for fraud?

Cal Smith Jr. is the night manager at a local doughnut shop that is doing very well. The shop sells doughnuts 7 days a week, 24 hours a day. Cal runs the graveyard shift by himself, since none of the other employees want to work at night. Since opening six months ago, Cal has not been able to find anyone to work for him and the

Confused on MC Questions - Must know the material.

Some questions I am confused on. Please explain? I have some notes underneath some. 1) On January 1, 2011, Nana Company paid $100,000 for 8,600 shares of Papa Company common stock. These securities were classified as trading securities. The ownership in Papa Company is 10%. Papa reported net income of $56,000 for the year end

Calculating Ending Cash Balances After Deficits

Oleans, Inc. projects sales to be $100,000; $90,000; $95,000 during the months of August, September, and October respectively. Salaries are projected to be $12,000 plus 5% of sales. Purchases are made in the month of the sale, are 50% of sales for the month and paid in the month of purchase. A tax payment of $60,000 a

Accounting

THIRD CORPORATION IS CONTEMPLATING INTRODUCING A NEW LINE OF WIDGETS. THE WIDGETS WILL SELL FOR $30 EACH. THE VARIABLE COSTS ASSOCIATED WITH EACH WIDGET ARE $22. IF THE WIDGETS ARE TO BE INTRODUCED NATIONWIDE, THE COMPANY WILL HAVE TO OBTAIN ACCEPTABLE PROFIT ON A TEST MARKET BASIS. THE FIXED COSTS ASSOCIATED WITH THE TEST M

Accounting Operating Expenses Net Income

PROBLEM I FIRST, INC. HAS THE FOLLOWING ACCOUNT BALANCES AT THE END OF MARCH, 2001 ADMINISTRATIVE EXPENSES $ 53,000 DIRECT LABOR 56,000 DIRECT MATERIAL BEG. INV. 12,000 DIRECT MATERIAL END. INV. 10,000 DIRECT MATERIAL PURCHASES 55,000 FINISHED GOODS BEG. INV. 36,000 FINISHED GOODS END. INV

proprietary theory

Why would a firm want to operate under the proprietary theory? What are the advantages? the proprietary theory: It is particularly applicable to a sole proprietorship - couldn't it be argued that all businesses are operated under the proprietary theory? shouldn't all members of management be looking out for themselves and to

Enterprises Manufacturing New Products

E5-2 (b-d) Kozy Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below. Output in Units Rent Expense Direct Materials 1,000 $5,000 $4,000 2,000 5,000 6,000 3,000 5,000 7,800 4,000 7,000 8,000

NCI Sale of Fixed Asset by Subsidiary to Holding Company

On January 1, 2008, Adam Company sold equipment with a book value of $40,000 and a remaining economic life of 10 years to Aldor Company for $95,000. Aldor Company owns 90 percent of the outstanding voting common stock of Adam. During 2008, Adam reported net income of $70,000 and paid dividends of $10,000; Aldor reported net inco

Green Environmental Accounting Details

Please explain in detail what is environmental accounting? Please explain in detail what is Green environmental accounting? Please explain with UK accounting standard point of view. I will be doing an essay on what is environmental accounting and I will be using empirical studies to support my essay. Please suggest some p

Amount of trade receivables and total cost per unit

Please answer the following problems (see attached file for data) During July, sales of $350,000 were made of which 20% were in cash. Credit customers paid $303 800 after deducting a 2% cash discount. How much did the trade receivables (debtors) owe to the business at 31 July? A factory produces a product with a variable

Hunter Company's Consolidated Net Income

Hunter Company's separate operating income for 2009 is $1,400,000. Its 80-percent-owned subsidiary, Moss Company, reported net income for 2009 of $1,140,000. On January 1, 2005, Hunter sold equipment with a book value of $80,000 to Moss for $110,000. The equipment had a remaining economic life of ten years at the time of sale to