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Accounting

Transactions and Adjustments

Hi, please assist me with this group project. Complete the answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance sheet category and on net income by selecting for each account affected the account

Long-lived asset and imparment with FASB codification

1. How is "Impairment" defined in the Master Glossary? 2. Give one example of an event or change that would require a long-lived asset to be tested for recoverability. (Provide the Codification reference for your answer) 3. Should a long-lived asset that is held for sale be depreciated? (Provide the Codification referenc

Computation of AFN

Problem 12-9 Financing Deficit Garlington Technologies Inc.'s 2013 financial statements are shown below: Balance Sheet as of December 31, 2013 Cash $ 180,000 Accounts payable $ 360,000 Receivables 360,000 Notes payable 156,000 Inventories 720,000 Line of credit 0 Total current assets $1,260,000 Accruals 180

What cost allocation methods are used for National Linen

National Linen launders commercial tablecloths, bedding, garments and rags for restaurants, medical facilities, hotels and auto repair shops. Why is the cost allocation method used by an organization an important part of its cost accounting system? Also, going back to the company (National Linen) what type of cost allocation

Analysis of Key Accounts: McDonald's & Wendy's

1. For 2011 and 2012, analyze the trends and compare revenues, cost of goods sold, accounts receivable, accounts payable, and inventory. 2. Which company shows the best performance? Explain. 3. How is the information you reviewed helpful from a managerial point of view? Explain. 4. Comment on how the income state

Intermediate Accounting: account classifications

1. The following are the common classifications used in a balance sheet: A. Current assets F. Current liabilities B. Investments G. Long-term liabilities C. Property, plant and equipment H. Paid-in-

Effect of transactions on assets, liabilities and net income

Can you assist with this project question? For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Tran

Allocation of Administrative Costs

Nashville Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and long-run monthly usage of staff hours for Operating Departments 1 and 2 follow: Dept. 1 Dept. 2 Total Short-run usage (hours) 45,000 55,000 100,000 Long-usage (hours)

Job and Process Costing

Distinguish between job costing and process costing. Describe the difficulties associated with each type. What can companies do in order to price products competitively and avoid some of these difficulties?

Global Book and Music Store, Direct, Sequential (step down) methods

Global Book and Music Store, Direct, Sequential (step down) methods Global Book and Music Store has two service departments, Warehouse and Data Center. Walter Burke, controller of Global Book and Music Store, wants department managers to be aware that their use of other service departments costs the firm a substantial amount

Activities, assets and capitalization of interest

1. Locate the Master Glossary in the FASB Codification, and answer the following questions: a. What is the formal definition in the glossary of the term "Activities" as it relates to property, plant & equipment? b. PFW Company is constructing a specialized machine for use in manufacturing its product. Construction had been on

Schedule D, Taxation

Gabe sold his business for $120,000 and transferred a building, FMV $80,000, land FMV $10,000; and furniture and fixtures, FMV $30,000 and adjusted basis $22,500. What is the value of goodwill and ongoing concern? An investment-use casualty loss is carried from Form 4684 to which line. Schedule A, Itemized deductions. line

The Influence of Equipment Sales on TD Industries

TD Industries has a piece of equipment that has a cost of $400,000. The equipment has accumulated depreciation of $305,000. If the equipment is sold for $95,000, TD will: - credit a loss for $5,000. - credit equipment for $400,000. - debit a gain for $5,000. - credit cash for $95,000.

Recording for the Cost of Furniture

Axel Logistics purchased the following long term assets with market values: Asset Market Value Equipment $200,000 Land $250,000 Furniture $150,000 Building $400,000 If Axel pays $800,000 for all of the long term assets in a basket purchase, what amount would be the recorded as the cost o

Solve: Repayment of the Loan

Patriot Bank loans P+P Company $200,000 on a 1 year promissory note on January 1, 2009. The interest rate of this loan is 8.5%. The principle and interest are due on 12-31-2009. The journal entry to record the receipt of interest and repayment of the loan on 12-31-09 is: A) Cash 200,000 Notes receivable Interest reve

Determining the Cost of Equipment

Axel Logistics purchased the following long term assets with market values: Asset Market Value Equipment $200,000 Land $250,000 Furniture $150,000 Building $400,000 If Axel pays $800,000 for all of the long term assets in a basket purchase, what amount would be the recorded as the cost of the equ

Will this Company Earn or Lose?

TD Industries has a piece of equipment that has a cost of $400,000. The equipment has accumulated depreciation of $305,000. If the equipment is sold for $120,000, TD will: - credit a gain for $25,000. - credit cash for $120,000. - debit a loss for $25,000. - debit equipment for $200,000.

Solve: Payroll Tax Expense

The bi-weekly payroll for Oddessy Consulting was: Gross pay for Salaries $25,000 Employee payroll deductions: Employee income tax $7,400 FICA(8%) $2,000 401 K Retirement plan contributions $2,500 Employer payroll taxes State Unemployment Tax (SUTA) 5.4% Federal Unemployment Tax (FUT

Cash Handling and Internal Controls

With good internal controls, the person who handles cash can also: - issue credits to customers for merchandise returned to us. - account for cash receipts from customers. - account for cash payments. - do none of the above.

Requirements of the Sarbanes-Oxley Act

Which of the following is a requirement of the Sarbanes-Oxley Act? - The outside auditor must issue an internal control report for each public company, and the Public Company Oversight Board evaluates the client's internal controls. - The Public Company Oversight Board issues an internal control audit report for every publicly

Considering the Role of Certified Public Accountants

Why are certified public accountants expected to maintain higher standards than society in general? - They are required to do so by federal law. - Their ability to attract business depends entirely upon their reputation. - They are only required to do so if they are auditing publicly held companies. - They are not employees.

Working with Straight Line Depreciation

Leah, Inc. has machinery with a cost of $100,000. The machinery has an estimated useful life of 10 years, and an estimated salvage value of $10,000. The machinery is expected to be able to produce a total of 1,000,000 units during its estimated life. What is the amount of deprecation expense in the second year under straight

Using the Gross Profit Method to Estimate Inventory Lost

Lisa's School Supplies suffered a fire loss. The company needs to estimate the cost of the goods destroyed. Beginning inventory was $500,000, purchases totaled $700,000, and sales came equaled $1,000,000. Lisa's normal gross profit percentage is 50%. What is the estimated cost of the inventory lost in the fire using the gross pr

Solve: Estimating Bad Debt Expense

Question: Oddessy consulting has the following for year ended 12-31-09 before adjustments. Accounts receivable $330,000 Net Credit Sales $1,200,000 Allowance for doubtful accounts $4,700 credit balance Estimated percentage of Bad debts on credit sales 2% Oddessy uses the net credit sales method of

Determining your Year-End Balance

Damons uses the allowance method to account for uncollectible receivables. At the beginning of the year, allowance for doubtful accounts had a debit balance of $100. During the year you recorded bad debt expense of $1,800 and wrote off bad receivables of $1,100. What is your year-end balance in allowance for doubtful accounts?

Solve: Units in Ending Inventory

Emerson Electronics had the following information related to its September inventory. Number of Units Cost Sept. 1 Beginning Inventory 200 Units $10 8 Purchase 200 Units $12 29 Sold 200 Units $14 200 units were sold @ $15 per unit and Emerson uses the perpetual inventory system. How many units does Emerson have in Endi

Working with Interest Revenue

Chase Bank loans P+P Company $120,000 on a 1 year promissory note on July 1, 2009. The interest rate of this loan is 12%. The principle and interest are due in one year. The journal entry to accrue interest earned on 12-31-09 is: A) Cash 7,200 Interest revenue 7,200 B) Cash 14,400 Interest revenue 14,40

The Effects on Net Income

At December 31, 2008, McGovern Company overstated ending inventory by $50,000. How does this error affect net income for 2009? - Has no effect on Net Income - Overstates Net Income by $50,000 - Understates Net Income by $50,000 - None of the above