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Equity income in Steinbart to be reported by Alex

Alex, Inc, buys 40 percent of Steinbart Company on January 1, 2008 for $530000. The equity method of accounting is to be used. Steinbarts net assets on that date were $1.2 million. Any excess of cost over book value is attributable to trade name with a 20-year remaining life. Steinbart immediatlely begins suppling inventory

Taxing Non-Cash Winnings; Bad Debt Deduction; Tax Base

1.Tom Y, a longtime client and golfing buddy, has asked you to prepare his tax return. In looking at the material he has prepared for you, you notice that he has not mentioned the BMW that he won in the annual club tournament. When you ask Tom about this, he says that he knows that the club never reports these items to the I

Greenleaf Manufacturing: Journalize transactions

Greenleaf Manufacturing Company has two production departments: Cutting and assembly. August 1 inventories are: Raw Material $4,200 Finished Goods $31,900 Work-in Process Cutting $3,900 Work-in Process Assembly $10,600 Journalize these transactions 1. Purchased raw materials for $56,300 2.Incurreed factor labor

Total Contribution Margin and Gross Margin

Pinewood Company, which has only one product, has given the following data regarding its last month of operations: Selling Price.......................................................................$200 Units in beginning inventory....................................0 Units produced.......................................

Accounting multi choice: process costing, job costing, inventories

Which of the following is true about both process costing systems and job costing systems? 1. Either one can be easily implemented in any type of manufacturing situation. 2. The use of finished goods accounts is unnecessary in either method. 3. None of the other answers 4. Both utilize work in process accounts to accumulat

Recording Transactions and their Effects on Financial Statements

Mikor has an account payable of $7,700 due to Smiley, Inc., one of its suppliers. The amount was due to be paid on October 15, 2008. Mikor only had enough cash on hand then to pay $1,700 of the amount due, so Mikor's treasurer called Smiley's treasurer and agreed to sign a note payable for the balance. The note was dated October

The Federal Income Tax System and Tax Reform

1. Is there anything wrong with the current federal income tax system in the U.S.? If so, what? 2. What did President Bush hope to accomplish by appointing the Bipartisan Advisory Council on Tax Reform? 3. What did the Bipartisan Advisory Council on Tax Reform recommend? 4. What is the difference between progressive taxes and

Discuss characteristics of budgets

You recently attended a workshop on budgeting and overheard the following comments as you walked to the refreshment table: 1. "Budgets are the same regardless of the size of an organization or management's role in the budgeting process." 2. "Budgets can include financial or non financial data. In our Organization, we plan th

Accuracy of ABC Systems and Traditional Costing Systems

ABC systems are always more accurate than traditional costing systems. Do you agree? Why? What is an ABC System? The ABC system that identifies the various activities performed in a firm and uses multiple cost drivers (volume and nonvolume based cost drivers) to assign overhead costs (or indirect costs) to products. ABC recog

ABC System for Dakota Office Products

Dakota Office Products by Robert S. Kaplan 1. Why was Dakota?s existing pricing system inadequate for its current operating environment? 2. Provide a brief analysis of the attached (page 2 of this document) activity-based costing system. Do you agree with the activities and/or cost drivers identified for each activity? W

Donegan's Lawn Care Service: Prepare Trial Balance

3.6A Donegan's Lawn Care Service began operations in July 2009. The company uses the following general ledger accounts: Cash Capital Stock Accounts Receivable Retained Earnings Office Supplies Mowing Revenue Mowing Equipment Salaries Expense Accounts Payable Fuel Expense Notes Payable The company engage

Managerial Accounting: BNO Company excess of breakeven point analysis

The exhibit on shows income data for the BNO Company for the year just ended, fiscal year 2009. The company makes industrial power drills at its Alabama plant. The exhibit contains separate columns for the costs of electrical and mechanical components (part A) and the costs of the plastic housing (part B). The direct fixed costs

High-low methods, accounting analysis, CVP, and leverage

EXERCISE4-5. High-Low Method Campus Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered: (see attached) Required Determine the fixed and variable components of repair expense using the high-low method. Use c

Tahoe Company: Return on investment and residual income questions

Tahoe Company has operating assets of $20,000,000. The company's operating income for the most recent accounting period was $2,640,000. The Utah Division of Tahoe controls $7,500,000 of the company's assets and earned $1,170,000 of its operating income. Tahoe's desired ROI is 10 percent. Tahoe has $900,000 of additional funds to

McDonalds - Calculate Contribution Margin

Identify a decision that has recently been made or will be made in the near future in your organization. Identify two relevant and two non-relevant costs in this decision. Support your answers using CM calculations. If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data w

Accounting Problem: WELLER COMPANY

Prepare a statement of cash flows using the indirect method. (List multiple entries with a positive cash flow first and then the negative cash flow. List multiple entries in descending order of amount. For negative cash flows, please put amounts in parenthesis.) ** See attachment **

Accounting Questions (Soldering department, The Springfield Company and more...)

Please help me with the questions below. --------------- Question 6: On January 1, the soldering department had 689 units in inventory. The department transferred 7,449 units to the next department during January and there were 892 units in inventory on January 31. How many units were received by the department during Jan

What is lean accounting and what is it all about?

What is lean accounting and what is it all about? Write a summary. My instructor recommended that I read an article by Van der Merwe & A., Thomson, J. (2007, February). The lowdown on lean accounting. Strategic Finance, 88(8), 26-33.

Investment Portfolios Effects on Income Statements

See attached file for clarity. The investment portfolio of Elle E. Fant Fashions appears below. Security Classification Cost Fair Value 12/31/06 Fair Value 12/31/07 Coram Cola Trading 10,000 9,500 10,000 Rears & Sobuck Trading 5,000 6,000 6,250 JC Dime Trading 15,000 15,000 7,500 Lackawaxen Online Available for Sale 10

Kirsi Products: Calculate ROI and RI (residual income)

Fred Halloway, East Division Manager: "I know headquarters wants us to add on that new product line, but I want to see the numbers before I make a move. Our division has led the company for three years, and I don't want any letdown now." Kirsi Products is a decentralized company with four autonomous divisions. The divisions a

Tax Effects and Method for Changing from partnership to corp.

The partners of JPG Partnership want to change the form of entity from a partnership to a corporation. The corporation can be formed in several ways: The partnership can distribute the assets to the partners who then contribute the assets to the corporation. The partnership can transfer the assets directly to the corporation. Th

Compute basic EPS, diluted EPS, book value per share

As an analyst you have gathered the following information about a company for the year ended December 31, 2009: ? Net income was $10.5 million. ? Stockholders' equity at December 31, 2009 was $100 million. ? Common stock dividends of $3.5 million were paid. ? 20 million shares of common stock were outstanding on January 1,20

Problem 10-13A, Kramer Industries

Problem 10-13A Return on Investment (ROI) and Residual Income; Decentralization (LO1,LO2) Kramer Industries produces tool and die machinery for manufacturers. Several years ago the company acquired Douglas Steel Company, one of its suppliers of alloy steel plates. Kramer Industries decided to maintain Douglas's separate identit

Research and discuss the value of a CMA vs CPA certification

Access the website of the Institute of Management Accountants, Read in the website about the IMA and what management accounting is about (see menu on left at home page). Also read about the process and advantages of the Certified Management Accountant professional designation. Write a summary of this info