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Accounting

Tax issues for Don and Jane in withdrawing money

The ABC Company was incorporated (as an LLC) two years ago. The success of the company is exceeding the owners' expectations. The land owned by the company is used as a site for special events and parties. The rental income from the events and fees for services rendered at these events are substantial for a new business. The

Computation for a retirement fund

Please help, I do not understand... Stephen Bosworth, a super salesman contemplating retirement on his 55th birthday, decides to create a fund on an 8% basis that will enable him to withdraw $25,000 per year on June 30th, beginning in 2014 and continuing through 2017. To develop this fund, Stephen intends to make equal contri

Politicalization of Accounting Standards

Some accountants have said that politicalization in the development and acceptance of generally accepted accounting principles (i.e., standard setting) is taking place. Some use the term politicalization in a narrow sense to mean the influence by governmental agencies, particularly the Securities and Exchange Commission, on the

Journalize Long-Term Investments in Stock-Equity Method

On January 1,2008,Compustat Co.bought 30% of the outstanding common stock of Freelance Corp. for $258,000 cash. Compustat Co. accounts for this investment by the equity method. At the date of acquisition of the stock, Freelance Corp. 's net assets had a carrying value of $590,000. Assets with an average remaining life of five ye

Compute cash flow from operating and from investing

EXERCISE 14-41 GAIN AND LOSSES AND THE STATEMENT OF CASH FLOWS Miss Maggie Company entered into the following transactions during the year: Miss Maggie had no investment securities at the beginning of the year. The cost of the trading securities sold was $300; the cost of the available-for-sale securities sold was $150.

Managerial Accounting

1.What is the appropriate journal entry if $100,000 of materials were purchased on account for the month of August? a. Manufacturing Overhead Control 100,000 Accounts Receivable Control 100,000 b. Manufacturing Allocated 100,000 Accounts Receivable Control 100,000 c. Materials Control 100,000 Accounts Payab

Assume that in the two-server system, an arriving car will join the shorter queue. When the queues are equal length, there is a 50-50 chance the driver will enter the queue for either window. a. Simulate both the one and two teller systems. Compute the average queue length, waiting time, and percentage utilization for each system. b. Suggest a decision about which system to employ.

See attached excel spreadsheet (example) for queing simulation. I need help to put the info from problem #1 into Excel. 1.) First American Bank is trying to determine whether it should install one or two drive-thru teller windows. The following probability distribution for arrival intervals and service times have been dev

Total fixed cost per month produced

A.) The Bear and Bull Company produces two products: bears and bulls. The following information is available: Bears Bulls Unit Selling Price $6 $9 Unit Variable Costs 2 3 Unit Contribution Margin 4 6 Sales Mix 65% 35% Additional information: Total company-wide fixed costs are $156,200. Given the sta

Compute earnings per share data - Schroeder Corporation

Please help me to better understand this problem. Please put in excel with explanations so I can understand it better. At December 31, 2009, Schroeder Corporation had the following stock outstanding. 8% cumulative preferred stock, $100 par, 107,500 shares $10,750,000 Common stock, $5 par, 4,000,000 shares 20,000,0

Case Study: Blue Ridge Manufacturing

Attached is an excel spread sheet that I need assistance with... Thank you for your help! ------------- Blue Ridge Manufacturing Blue Ridge Manufacturing produces knit apparel in a modern plant located in the Blue Ridge Mountain-region of North Carolina. Overall, the company is profitable, as the segmented income state

Johnson's Effectiveness in Preparing his Report

Jeff Johnson is the sales manager for Sunny Days Greeting Cards, Inc. At the beginning of the year, the organization introduced a new line of humorous birthday cards to the U.S. market. Management held a strategic planning meeting on August 31 to discuss next year's operating activities. One item on the agenda was to review t

Tarquin's Trophies: Calculating Accounting Costs

See attached file. Tarquin's Trophies makes trophies, plaques, and medallions and operates at capacity. Tarquin does large custom orders, for example the participant trophies for the Mishawaka Little League. The Controller has asked you to compare plantwide, department, and activity-based cost allocation. 1. Calculate th

Fairly Reliable Manufacturing: Entry to record warranty expense, liability amount

LTB5-1: The Fairly Reliable Manufacturing Company offers a 3-year warranty with all of its products. The Company estimates its warranty costs at 5% of sales and assumes that warranty claims will occur equally over the 3-year warranty period. However, the company does not remove any unused estimated liability under warrantie

Accounting: Flexible budgets

8-2 "The flex in the flexible budget relates solely to variable costs." Do you agree? Explain 8-3 "We want a flexible budget because costs are difficult to predict. We need the flexibility to change budgeted costs as input prices change." Does a flexible budget serve this purpose? Explain.

Internal Accountant's Report to Management

You are the internal accountant at a company that is preparing for an upcoming government contract bid. The management in your company is deciding if it is necessary for the company to perform a full financial status review prior to the bid. As an internal accountant, prepare a report for management that provides supporting info

Economic versus accounting income

Economists and accountants agree that the concept of income is vitally important. However, the two disciplines disagree on what income is and how it should be measured. A. Present an argument in favor of the economist's view of the concept of income. B. Present an argument in favor of the accountant's view of the concept of

Recording Petty Cash Transactions

On July 1, Acton Company established an Imprest (petty cash) fund in the amount of $400.00 in cash from a check drawn for the purpose of establishing the fund. On July 31, the petty cash fund has cash of $31.42 and the following receipts on hand: for merchandise received $204.30; freight-in, $65.74; laundry service, $84.00; and

Another explanation needs

17.) On June 30, 2009, Sampras Company reported the following account balances: Receivables $ 80,000 Current liabilities $ (10,000) Inventory 70,000 Long-term liabilities (50,000). Buildings (net) 75,000 Common stock (90,000)' Equipment (net) 25,000 Retained earnings (100,000) Total assets $250,000 Total li

Prepaid and Regular Expenses

How does prepaid expenses differ from regular expenses? What are the seven objectives of internal controls for various business cycles, such as, revenue, purchasing, and payroll cycles?

Return on investment and residual income

Can you please assist me with this problem? It is the same problem that has already been answered on Posting ID: 258518 (Compute the return on investment and residual income for the current situation). I just want you to verify if the answer is correct. I trust your judgment. The answer given in Posting ID: 258518 is in th

Multiple Choice Accounting Questions

1. Which of the following terms best describes the assumption made in applying the four inventory methods? Cost flow Goods flow Asset flow Physical flow 2. An understatement of year 1's beginning inventory will: Cause year 2's margin to be overstated Cause year 1's cost of goods sold to be understated Cause year

Analyze the business use of insurance for various risks

Please help answer the following questions. Include references in the solution. Why might an issuer seek to perfect his or her security interest in a piece of collateral? Is this a guarantee of payment? May the issuer take the collateral under any circumstance, and why might the issuer do this?

Negotiable instruments

Week 4 DQ 1 - Due NLT 1-21 Describe various types of negotiable instruments. Why might a person choose one over the other? What are the financial and regulatory limitations of each negotiable instrument and who can issue negotiable instruments? Country: USA Approx. 250-300 words

True/False Accounting

True or False: 1. In order for a taxpayer to deduct a medical expense, the amount must be paid to a certified medical doctor (M.D.). 2. Generally, tax legislation is introduced first in the Senate and referred to the Senate Finance Committee. 3. Medical expenses incurred on behalf of children of divorced parents are d