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# Accounting

### Introduction to Accounting Information Systems

1. Why do auditors prepare analytic flowcharts of processing systems? 2. Is flow charting useful in analyzing the resources required to implement a system? If so, explain its benefits towards implementing a system.

### Teng Manufacturing: Calculate a selling price for units produced in January & February

Please help with the following problem. Please provide step by step calculations. Teng Manufacturing Co. expects to produce 30,000 units of product A during 2007. The company made 4,000 units in January. Materials and labor costs for this month were \$16,000 and \$24,000, respectively. Teng produced 2,000 units in February. Ma

### Standard versus budget, optimum levels, variances, WIP

Question 1 Consider the following statements. Statement A: A standard is a unit amount. Statement B: A budget is a total amount. Option 1: Statement A is true and Statement B is false Option 2: Statement A is false and Statement B is true Option 3: Both Statements A and B are true Option 4: Both Statements A and B

### Partnership Liquidation - ABC Partnership

Partnership Liquidation The balance sheet of the ABC partnership just prior to liquidation appears below: ABC PARTNERSHIP Balance Sheet December 31, 2010 Assets Liabilities and Owners' Equity Cash \$ 70,000 Liabilities \$120,000 Noncash assets 190,000 Agler, Capital 20,000 Bell, Capital 80,000 Colaw, Capital

### Accounting Problem: Don's aunt Natalie gave him a house

Please help with the following problem. Provide step by step calculations. During the current year, Don's aunt Natalie gave him a house. At the time of the gift, the house had a FMV of \$42,000 and his aunt's adjusted basis was \$32,000. After deducting the annual exclusion, the amount of the gift was \$30,000. His aunt paid

### I:8-13 Passive activities rules for Laura's rentals; Kami's partnerships

I:8-13 Which of the following activities are considered passive for the year? Explain. Consider each situation independently. a. Laura owns a rental unit that she rents out to students. The rental unit is Laura's only business and she spends approximately 875 hours per year managing, collecting the rent, advertising, and

### Spain Inn: method of financing to maximize EPS, stock issue or debt

1. Spain Inn has a total value of \$21 million. Its stock sells at \$32 a share. At present, it has a loan of \$5 million at 8% interest. It needs \$3 million to renovate the building. It can get the financing by selling 100,000 shares of stock at \$30 (net) per share, or by borrowing the money at 9% interest. The expected EBIT after

### Holding Period Return, After Tax HPR, Jensen Alpha, etc.

Scenario: Mary and Nick Stalcheck have an investment portfolio containing 4 vehicles. The portfolio contains common stock, industrial bonds, mutual fund shares and options. They are interested in measuring the return on their investment and assessing how well they have done relative to the market. They hope that the return e

### Effect of large transaction; Compute Global's EBIT, income, P/E

1. Suppose your firm receives a \$5 million order on the last day of the year. The customer picks up the entire order the same day and pays \$1 million in upfront in cash; you also issue a bill for the customer to pay the remaining balance of \$4 million within 30 days. Suppose your firms tax rate is 0 (ignore taxes). Determine the

### FASB Asset/liability Approach to record taxes

Please provide your professional opinion on the following: Do you think that the asset/liability approach used by the FASB to record taxes is valid? Why or why not.

### Compute Value of Equity, Net Income, Retained Earnings

See the attached file. 2-1 Total Assets Use the following information, compute total assets. Equipment . . . . . . . . . . . . . . . \$10,000 Accounts payable . . . . . . . . ....... 900 Capital stock . . . . . . . . . . . . .... 1,500 Cash . . . . . . . . . . . . . . . . . . ....... 800 Loan payable . . . . .

### Accounting: Plant assets, Depreciation, Prepaid insurance, interest on a note

1. A main accounting issue for plant assets is: A) Computing the cost of the plant assets. B) Matching the costs of plant assets against revenues for the periods they benefit. C) Accounting for repairs and improvements to plant assets. D) The disposal of plant assets. E) All of the above. 2. Nelson Company purcha

### Questions Involving Sales and Production

Sell or process further (adapted from CMA exam) The department of Biggs Company is considering a proposal to install a third production department within its exiting factory building. With the company's present production setup, 200.000 pounds per year of direct materials pass through Department 1 to Produce 100,000 pounds each

### Waldo and Company: Transfer pricing in a service business

Waldo and Company, LLP, is a partnership that provides public accounting services. Waldo has three offices located in New Orleans, Baton Rouge, and Lafayette. Each of the offices employs approximately 30 professional accountants who are hired by and work solely for the office to which they are assigned. The offices are run indep

### Job Order costing for Snappy Company; Activity based costing for Anfuso Corp

See the attached file. Snappy Company, estimated the following for 2009: Manufacturing Overhead \$100,000 Direct Labor hours 40,000 At year end (12/31/2009), actual DLH = 45,000 And actual overhead costs were \$110,250. A. Compute the overhead application rate for 2009.

### Michigan Mining and Manufacturing has a debt obligation

Michigan Mining and Manufacturing has a debt obligation of \$100 million and assets with a value of \$90 million. This debt must be paid off very shortly. When this happens, the value of the debt will be \$90 million and the value of equity will be \$0. Prior to paying off the debt, MMM has an opportunity to make a high-risk investm

### Intercompany transactions: why use them, what are types? Upstream and downstream.

Why would a company engage in intercompany transactions? What are some types of intercompany transactions? What is the difference between upstream and downstream intercompany transactions? Why is it important to know the difference?

### Change in Accounting Principles and Financial Statements

BE13- 1 On June 30 Rojas Corporation discontinued its operations in Mexico. On September 1 Rojas disposed of the Mexico facility at a pretax loss of \$ 480,000. The applicable tax rate is 25%. Show the discontinued operations section of Rojas's income statement. BE13- 3 On January 1, 2007, Cannon Inc. changed from the LIFO met

### Journal Entries Necessary for Accounts

See the attached file. 1. On July 23, Plitt Company factored \$300,000 in accounts receivable for cash of \$280,000. The factor withheld 7 percent of the cash proceeds to allow for possible customer returns. An allowance for doubtful accounts of \$13,000 had previously been established by Plitt in relation to these accounts.

### Thompson Construction: Using the Eichleay Formula, propose an equitable adjustment.

THOMPSON CONSTRUCTION Thompson Construction has a contract to remodel two Government warehouses for use as modern office space. The \$900,000 contract was on March 1, with completion scheduled for 240 days after contract award. For 150 days, work proceeded as expected. Thompson completed work on Warehouse 1 and began work on Wa

Company B's production budget for the year ended December 31, 2005 was based on 10,000 units. Each unit requires two standard hours of labor for completion. Total overhead was budgeted at \$90,000 for the year, and the fixed overhead rate was estimated to be \$6.00 per unit. Both fixed and variable overhead are assigned to the pro

### For each case, identify and discuss the accounting concept or principle being violated.

1. For each of the following cases, identify the accounting concept(s) or principle(s) that are being violated. In each case, give a general description of the requirements of the concept(s) or principle(s) and state exactly how they are being violated. A. A company used the FIFO costing method for valuation of its inventory

### Jafar Company allowance for doubtful accounts; Starkey Co assets & depreciation

See attached files for problems. P9-3B Presented below is an aging schedule for Jafar Company: Number of Days Past Due Customer: Total: Not yet due: 1 ~ 30 31 ~ 60 61 ~ 90 Over 90 Akers \$30,000 \$13,500 \$16,500 Baietto 45,000 \$45,000 Comer 75,000 22,500 7,500 \$45,000 DeJong 57,0

### Managerial Accounting: Hamilton Stage Supplies variable & full costing. Problem P5-2 Variable and Full Costing: Sales Constant but Production Fluctuates

See attached file. Managerial Accounting, Third Edition by James Jiambalvo "Solving Managerial Accounting Problems Using Microsoft Excel or Windows Templates by Rex A Schildhouse" Problem P5-2 Variable and Full Costing: Sales Constant but Production Fluctuates Hamilton Stage Supplies is a

### Managerial Accounting: New Light Hotel account analysis, high-low, contribution margin

See attached file. Managerial Accounting, Third Edition by James Jiambalvo "Solving Managerial Accounting Problems Using Microsoft Excel for Windows Templates by Rex A Schildhouse" PROBLEM P4-6 - Account Analysis, High-Low, Contribution Margin Information on occupancy and costs at the New

### Managerial Accounting for Regal Polish: Compute cost per unit and work in process

See attached file. Managerial Accounting, Third Edition by James Jiambalvo "Solving Managerial Accounting Problems Using Microsoft Excel for Windows Templates by Rex A Schildhouse"(Spreadsheet template is attached to assist in better understanding problem) Problem P3-1 Comprehensive Problem, One Dep

### Alcoa's/ford

Using Alcoa's & Ford's most current 10-K or the company's annual report analize both companies. Post comments about the comparison between the two companies. Compare the income statement elements and comment if the ratios are comparable or not and which company may be doing better and why. I am having such a hard time even f

### Consolidated retained earnings

I am having trouble with the following three questions: 1. What is "consolidated retained earnings"? 2. Distinguish between "transfer at cost" and "transfers at a profit or loss" in intercompany transactions? 3. What is the eliminating entry when one subsidiary sells merchandise to another subsidiary?

### Rental Cost per Unit and Variability

See the attached file. V- Each of the following events describes acquiring an asset that requires a year-end adjusting entry. 1- Paid \$7,000 cash on January 1 to purchase printers to be used for administrative purposes. The useful life is estimated of three years and a \$1,000 salvage value. 2- Paid \$7,000 cash on January 1

### The solution computes, net income, book value, retained earnings,common stock outstanding, market value of asset is given examples of Romo Inc, Fyre Inc & Klington Widgets Inc.

Romo, Inc., has current assets of \$1,100, net fixed assets of \$14,500, current liabilities of \$ 600, and long-term debt of \$4,000. The value of the shareholders' equity account for this firm is \$ ? The amount of net working capital is \$ ...... . Fyre, Inc., has sales of \$485,000, costs of \$190,000, depreciation expense