2. State two generally accepted accounting principles that relate to adjusting the accounts. 3. Rick Marsh, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Marshâ?? law firm prepares monthly financial statements, when should it recognize revenue from this engagement? Why?
1) Given that the Alternative Minimum Tax can apply to all forms of businesses, what tax planning strategies do you think need to be utilized? 2) Why do you answer this way?
Do you think online trading platforms have helped investors make money? Does it help to have access to your 401k or brokerage statement all the time? How does this compare to when people in the 1940's, 50's and maybe into the early 60's would keep stocks they bought in a safe deposit box in the bank and maybe hold those stock
A person has earnings of $50,000 this year. The market value value of her condominium that she purchased this year for $100,000 has increased by 5 percent. Assuming that the rate of inflation is 3 percent, and that she has neither capital losses nor earnings, and receives no transfers, calculate her comprehensive income. If she
Phil LaRue and Russ Small have decidied to form a partnership. Various plans for the division of net income are being considered. Complete the calculations.
Phil LaRue and Russ Small have decided to form a partnership. They have agreed that LaRue is to invest $16,000 and Small $24,000. LaRue is to devote full-time to the business and Small one half time. The following plans for division of income are being considered: a. Equal division b. In the ratio of original investments c. I
The balance in Newsprint Corp.'s foreign exchange loss account was $10,000 on December 31, 2008, before any necessary year-end adjustment relating to the following: (1) Newsprint had a $15,000 debit resulting from the restatement in dollars of the accounts of its wholly owned foreign subsidiary for the year ended December 31,
Daniel receives 400 shares of A&M Corporation stock from his aunt on May 20, 2009, as a gift when the stock has a $60,000 FMV. His aunt purchased the stock in 2002 for $42,000. The taxable gift is $60,000 because she made earlier gifts to Daniel during 2009 and used the annual exclusion. She paid a gift tax of $9,300 on the gift
6-After individuals become licensed in accounting, type typically must do what? A. Work for an auditing firm for 120 hours. B. Continue their education by acquiring CPE's. C. Become an Enrolled Agent with the IRS. D. Open a public practice in accounting. 9-If a company has changed accounting principles, the auditor will i
1.Plant assets are: tangible assets used in the operation of a business that have a useful life of more than one accounting period. current assets. held for sale. intangible assets used in the operations of a business that have a useful life of more than one accounting period. 2. An asset's book value is $36,000 on Ja
Discussion: What are the advantages and disadvantages of bond financing?
An accountant has debited an account for $3,500 and credited a liability account for $2,000. Which of the following would be an incorrect way to complete the recording of this transaction? credit another asset account for $1,500 credit another liability account for $1,500 debit another asset account for $1,50
Tillman Company owns a machine that was bought on January 2, 2005, for $376,000. The machine was estimated to have a useful life of five years and a salvage value of $24,000. Tillman uses the sum-of-the-years'-digits method of depreciation. At the beginning of 2008, Tillman determined that the useful life of the machine shou
Several managerial/cost accounting problems are solved with explanations showing the student how it is done.
Provide answer in excel file. 1. (9) The local public library is considering holding a picnic as a fundraiser. They plan to charge $30 per ticket. They can rent a facility at a state park for $400. The food would be catered by a local caterer at a cost of $12 per meal, plus $150 for setting up their equipment. A band woul
Suppose you currently earn taxable income of $100,000 per year. You are subject to an MTR of 50%. Currently, your ATR is 35%. Calculate your annual tax. Calculate the extra tax you would pay per year if your annual income increased to $110,000. What is your ATR when your annual income is $110,000?
Explain why lump-sum taxes will not cause any losses in efficiency. Are lump-sum taxes feasible? Lump-sum taxes do not result in substitution effects, but they do affect prices. Is this a contradiction?
See the attached file for the tables. Using the data presented below, determine which figures should be inserted in the blank spaces Beginning Units in Process Units Started in production Units transferred to finished goods Ending units in process Equivalent units a) 600 8,000 8,600 ? ? b) 900 6,500 ? 400-
Lee wants to know if he will have to keep putting cash into companies after he purchases them. Here are three companies Lee has identified as potential acquisitions along with the information from the most recent cash flow statements (see attached excel sheet). All of these companies have a very small current cash balance. Which
Selected information taken from the financial statements of Fordstar Co. for the year ended December 31, 2010, follows: Net cash provided by operations...$98,000 Cost of goods sold.........................$310,000 Selling, general, and administrative expenses...$124,000 Accounts Payable....$90,000 Extraordinary loss from
Define what it is meant by internal control. Provide a minimum of three examples. It is the end of the accounting period, and your boss asks you to help determine the inventory balance to place in the company's balance sheet. Explain which physical quantities of inventory that you will include, and which you will exclude.
1. The FASB's standard-setting process includes, in the correct order: Exposure draft, research, discussion memorandum, SFAS. Research, exposure draft, discussion memorandum, SFAS. Research, discussion memorandum, exposure draft, SFAS. Discussion memorandum, research, exposure draft, SFAS.
1. Accounting standard setting has been characterized as a political process. Discuss this proposition giving an example. 2. Explain how management's discussion and analysis of its operations and liquidity may be helpful to investors. 3. In a recent press release, Foot Locker Inc. reported that its fiscal first-quarter net
Sacks manufactures embroidered jackets. The company prepares flexible budgets and uses a standar cost system to control manufacturing costs. The following standar unit cost of a jacket is based on the static budget volume of 14,000 jackets per month. -Direct Materials (3.0 sq. ft x $4.00 per sq.ft)
Hector P. Wastre,l a careless employee, left some combustible materials near an open flame in Salter Company's plant. The resulting explosion and fire destroyed the entire plant and administrative offices. Justin, the company's controller and Constance, the operations manager were able to save only a few bits of information as
What is the impact on the accounting equation of receiving a check from customers for work to be performed over the next three periods (none in this period)? A. Assets: increase Liabilities: increase Equity: no change B. Assets: increase Liabilities: no change Equity: increase C. Assets: increase Liabilities:
Scenario You have recently obtained a new position as a manager of an international accounting firm, Smith, Lindsey, and Lueders, CPA (SLL). SLL is primarily an auditing firm. Part of your duties will be to analyze the current state of accounting with an emphasis on the international environment. An additional responsibility
From the Internal Revenue Service website (www.irs.gov). Click on the "Business" tab, then the "Corporations" link. Find the link to "S Corporations" and read the information provided by the IRS. Answer the following question: Explain the reasoning behind the need for the S Corporation provisions in the IRS Tax Code and
Lawford Company's equipment account increased $400,000 during the period; the related accumulated depreciation increased $30,000. New equipment was purchased at a cost of $700,000 and used equipment was sold at a loss of $20,000. Depreciation expense was $100,000. Proceeds from the sale of the used equipment were a. $210,
As of March 11, 2007, Swanson Group, Ltd. had 300,000 shares of 10$ par value common stock authorized and 185,000 shares issued. There were 6,000 shares of treasury stock that had been purchased by the firm at an average cost of 12$. The market value of the stock on March 11, 2007, was 22$ a. how many shares of common stock
On January 1, 2007, Simon Inc issued $500,000 of 9%, 10 year bonds at 101. Interest is payable every June 30 and December 31. Premium is amortized on a straight-line basis. a. Was the market interest rate on Jan. 1, 2007 equal to, more than, or less than the stated interest rate of the bonds? explain your answer. b. how mu
A) Someone in the 36 percent tax bracket can earn 9 percent annually on her investment in a tax-exempt IRA account. What will be the value of a one time $10,000 investment in 5 years? 10 years? 20 years? b) Suppose the preceding 9 percent is taxable rather then tax-deferred and the taxes are paid annually. What will be the