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Accounting

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

Comprehensive Net Income

What is included in other comprehensive income? Why are items included in other comprehensive income, but not included in net income? Should these items be included in net income or not included at all? Explain your answer.

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

pretax financial income, income tax expense, deferred income payable

The following facts relate to McKane Corporation 1. Deferred tax liability, January 1, 2010, $60,000 2. Deferred tax asset January 1, 2010 $20,000 3. Taxable income for 2010, $115,000 4. Cumulative temporary difference at December 31, 2010 giving rise to future 5. Cumulative temporary difference at December 31, 2010 giving

This posting addresses the presentation of deferred taxes.

At December 31, 2010 Cascade had a net deferred tax liability of $45,000. An explanation of items that compose the balance is as follows Temp differences: Resulting balance in deferred taxes: -Excess tax depreciation over book depreciation $200,000 -Accrua

Gain realized and recognized

Kevin exchanges an office building used in business for one owned by Charlene. The FMV of Kevin's building is $280,000 (basis $150,000) and it is subject to a mortgage of $50,000, which is assumed by Charlene. Kevin receives $30,000 cash and Charlene's office building, which has a FMV of $200,000 (basis of $180,000). a. What is

fiduciary duty

What is a manager's fiduciary duty? It is not management that has this responsibility per se, but the owner of an incorporated business selling stocks. Such businesses MUST make money for their shareholders as part of their fiduciary duty/responsibility.

Supply, demand, and price controls of beef and eggs

Research the elasticity of beef and eggs in regards to price changes. How do supply, demand, and price controls interact to affect equilibrium price of eggs? Why do customers have a more elastic buying response to beef than to eggs?

Accounting Standards and Activity Based Management

Please help answer the following question. Provide at least 200 words and include references. How do you think Accounting Standards and Activity Based Management will affect the accounting profession and the work accountants perform?

Partnership's bottom line net income

Keenie Beenie Partners has gross operating revenue of $400,000, cost of sales of %150,000, employee salaries of $40,000, a $25,000 Section 179 expense deduction, $10,000 of other depreciation, interest income of $3,000, a $4,000 capital loss, and a $600 charitable contribution deduction. a. What are the partnership's bottom

Comment on the firm's (XYZ Corporation's) performance measures.

Scenario XYZ Corporation is a law firm in Spain. Started in 2007 with just 2 lawyers, the firm has now grown to 30 lawyers and 4 branches in Spain. The firm services mainly Small Medium Companies and walk-in retail clients. Their business has been doing well as they are known for their quality legal services at affordable