Mona, a calendar-year taxpayer, uses the cash-basis method of accounting for her whole proprietorship. In late December she received a $20,000 bill from her accountant for consulting services related to her small business. Mona can pay the $20,000 bill any time before January 30 of next year without penalty. Assume her margin
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The ABC Floral Shop sold the following number of geraniums during the last 2 weeks: Day Demand Day Demand 1 200 8 150 2 134 9 182 3 157 10 197 4 165 11 136 5 177 12 163 6 125 13 157 7 146 14 169 Develop a spreadsheet to answer the following questions. > Calculate a forecast of the above demand using a 3- and 5-p
ROOSTERFISH CORPORATION Roosterfish had a tax liability for 20X7 of $20,000 based on a tax rate of 40%. The accounting staff of Roosterfish is having trouble putting together the 20X7 financials. They need your help in determining the tax expense and deferred tax amounts for 20X7. The enacted tax rates for the future peri
How has the Internet affected price considerations? Analyze several different industries, such as airlines, sales, hotel reservations, and book sales.
What are tax loopholes? How do loopholes arise? Do you think it is ethical to take advantage of tax loopholes?
Could you please help me with the given questions?: What is the effective tax rate? When is this used?
Smithton, Inc. makes and sells one product, the standard costs of which are as follows: Direct materials (2 kg at 3.00/kg) = 6.00 Direct labour (30 minutes at 10.00/hr) = 5.00 Fixed overheads = 2.50 Total = 13.50 Selling price = 20.00 Standard profit margin = 6.50 The monthly production and sales are planned to be
Zhang Incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100% of the corporation's stock. The property transferred to the corporation had the following Fair Market Value and Tax Adjusted Basis. FMV Tax
Client Consultation: The internal auditor from a Fortune 500 company would like to have a consultation with your forensic accounting firm. The internal auditor and members of the staff suspect irregularities in cash outflows, specifically in the areas of check tampering and employee reimbursements. Question 1: What is ch
Explorer Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were: Materials costs $10,500 -- 75% complete Conversion costs $6,400 --
Billy Bing Ping Pong Corporation manufactures a single product, premium pink ping pong balls. Each premium pink ping pong ball sells for $500.00 each. Selected operating information from last month is as follows: Variable costs per unit: Direct materials $17.50 Direct labor $5.33 Manufacturing overhead $2.50 Selling &
The small table of figures has been provided by a semi-new company called Prodigy Corp. that has requested your assistance as a financial analysts. Please read the data below and answer the question beneath it.: Sales per period 5,000 units Selling price $60 per un
Wise Company sells walkers for $750 per walker. The unit variable cost per walker is $325. Fixed manufacturing costs total $5,500 per month, and fixed selling and administrative costs total $10,000. How many walkers must be sold to earn a pretax income of $10,000?
Reaves Professional Services has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Consultant Computer Programmer Administrator Regular earning $3000 per week $2
What is the purpose of depreciation? Does the book value of a fixed asset (cost minus accumulated depreciation) communicate to a user what the asset is worth? Explain why or why not. Should the financial statements reflect the value of fixed assets? Explain why or why not.
Question 1 Smith Corp. received cash of $20,000 that was included in revenues in its 2011 financial statements, of which $12,000 will not be taxable until 2012. Smith's enacted tax rate is 30% for 2011, and 25% for 2012. What amount should Scott report in its 2011 balance sheet for deferred income tax liability? Show calcula
The city of Brookville maintains its books to prepare fund accounting statements. It prepares worksheet adjustments in order to prepare government-wide statements. As such, Brookville's internal service fund--a print shop fund--is included in the proprietary funds statements. Required: Prepare necessary adjustments in orde
Prepare a schedule of direct and overlapping debt for the city of Forest, which is located within Forest County and Forest School District. The net assessed valuation of properties in the three governments was as follows: City, $150 million; County, $500 million; School District, $200 million. The net debt for each of the govern
Southern State University has chosen to report as a public university, reporting as a special-purpose entity engaged only in business-type activities. Deferred revenues were reported as of July 1, 2004, in the amount of $5,500,000. Record the following transactions related to revenue recognition for the year ending June 30, 2005
Problem 1 The Pearce Company had the following actual data for 2008: Units of finished goods Opening inventory - Production 14,000 Sales 12,500 Ending inventory 1,500 The basic production data at standard unit costs for the two years were: Direct materials $25 Direct labor 17 Variable factory overhead 3 St
Provide assistance with this problem. Given the following data please calculate both the accounting profit and the economic profit. Sales = $500 Cost of Goods Sold = $350 General & Administrative = $100 The Opportunity cost of the two owners foregoing their salaries estimated at $50K each.
The Garvey Corporation, a C corporation, during its first five years of operation, reported the following taxable incomes (losses): Year Taxable Income Effective Tax Rate 1 $ 60,000 25 % 2 20,000 20 3 (90,000) - 4 30,000 15 5 (40,000) 18 Required: a. Explain the net operating loss provisions of the ta
Basic Budget Units in beginning inventory 0 Units produced 400,000 Units sold 400,000 Units in ending inventory 0 Variable costs per unit: Direct materials $57.20 Direct labor 15.00 Variable manufacturing overhead 5.00 Variable selling and administrative 10.00 Total variabl
Jack has taxable income of $65,000. He is a single tax filer, and his federal income tax rates on the first $8,350 is 10 percent; it is 15 percent on income from $8,350 to $33,950 and 25 percent on income from $33,950 up to $82,250. What is Jack's federal income tax liability; what is his marginal rate and why would he care? Fin
Activity-based costing versus traditional overhead allocation methods. Galvest Industries manufactures and sells custom made windows. Its job costing system was designed using and activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three manufa
Product Costing - Manufacturing Overhead-Over/Under applied LampArt Co. makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During November, the first month of the company's fiscal year, $173,250 of manufacturing overhead was applied to work in process inventory using th
Below are selected ratios for Widget Corporation and Tools Inc. Use this information answer the following questions. Tools Corp. Widget Inc. Total asset turnover 2.0 2.0 Inventory turnover 3.6 4.0 Accounts receivable turnover 12.0 12.0 Fixed assets turnover 1.8 2.0
Determine a firm's earnings per share from the following information. (all in $) Corporate income tax rate 25% Number of shares outstanding 10,000 Cost of goods sold $60,000 Interest earned 2
Please help answer the following questions regarding accounting. How can different accounting methods impact an organization's net income? Who was the father of accounting?
Distinguish between product costs and period costs as they relate to inventory. Please give examples of both. In what type of business would we find product costs?