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    Bankruptcy and Default- Creditors' Concessions

    In a troubled debt situation, why might the creditor grant concessions to the debtor? b. What type of concessions might a creditor grant the debtor in a troubled debt situation? c. What is meant by "impairment" of a loan? Under what circumstances should a creditor or debtor recognize an impaired loan?

    Bond Indebtedness and Maturity

    Why would a company want to reduce its bond indebtedness before its bonds reach maturity? Indicate how this can be done and the correct accounting treatment for such a transaction.

    Interest revenue of Bismarck

    On July 31, 2012, Bismarck Company engaged Duval Tooling Company to construct a special-purpose piece of factory machinery. Construction began immediately and was completed on November 1, 2012. To help finance construction, on July 31 Bismarck issued a $628,800, 3-year, 12% note payable at Wellington National Bank, on which inte

    Activity-Based Costing and Pricing

    1. What is activity-based Costing? How can banks use it in their business? Explain. 2. How can banks link activity-based costing to performance management? Explain. 3. How can activity-based costing provide useful information on costs? Explain. 4. How is activity-based costing useful in measuring customer profitability?

    Business as Hobby

    Explain how a business can be classified as a hobby. Give examples of businesses that can be for profit-seeking or for personal pleasure.

    Activity-based costing information

    Jog Road Company's cost system assigns MSDA expenses to customers using a rate of 33% of sales revenue. The new CFO has discovered that Jog Roads's customers differ greatly in their ordering patterns and interaction with the company's sales force. Because the CFO believes Jog Road's cost system does not accurately assign MSDA ex

    Beeline Manufacturing Activity Based Costing

    Beeline Manufacturing produces two types of industrial ventilation machines: heavy-duty and standard. The assignment basis for overhead costs has always been direct labor hours. For 2013, Beeline compiled the following data for the two products: Heavy-duty Standard Sales in units 4,000 45,000 Sales price per unit

    When are gains on similar asset exchanges deferred?

    On the issue of exchange (trade-in) of old asset for a new one, pre-FASB153's rule was based on exchange of similar and dissimilar assets, where gains on similar trade-ins are deferred (if cash was paid), much like how they are treated for taxes. FASB153 (implemented as a part of the harmonization effort with international stan

    Tests for ceiling and floor value of inventory using the LCM rule

    Year-end inventory cannot merely be based on a company's cost and whichever cost flow method the company is currently using. It needs to be further tested under the Lower of Cost or Market Rule for the potential need to mark it down. What are the "tests" used to determine the ceiling and the floor values to which the market va

    Standards, Reporting, and Enforcement

    In need some help in answering these questions: 1) What is your opinion on the questions below? FASB promulgates US GAAP (Generally Accepted Accounting Standards) and IASB creates IFRS (International Financial Reporting Standards). US GAAP is a rule-based system while IFRS are principle-based. The accounting standards only

    Three Powerful Pricing Strategies

    I need some help in answering these questions: 1. What is life-cycle costing? Under what circumstances can it be most useful? What are some potential problems with this approach? 2. What is target pricing? Under what circumstances can it be most useful? What are some potential problems with this approach? 3. What is cost-p

    Statement of cash flow & balance

    Review the information in the Los Lobos Ledger Data. Prepare a statement of cash flows using the direct and indirect methods. Prepare a classified balance sheet. 12-31 2007 2006 Cash $35,000 $32,000 Accounts receivable 33,000 30,000 Allowance for doubt

    The tax effect of permanent and temporary timing differences

    When it comes to taxes, one should always be mindful of the fact that without the Internal Revenue Service, there would not be tax issues to worry about. As a follow-up question to this statement, consider the tax issues brought about by permanent differences and temporary differences. Define each type of timing difference and g

    Utilizing NOL carryforwards effectively

    What happens if a company doesn't expect to become profitable for the foreseeable future, thus calling into question whether the company will ever get to use the tax benefit of its deferred tax asset from the NOL carryforward?

    Federal Exemptions for Jane and Sid

    Jane O'Reilly is a staff accountant and earns $39,000 annually. She is married to Sid Metcalf, a full-time student at State University. Sid earned $1,200 from securities his grandmother had given him in 2007. Jane pays all of the expenses incurred by the family, including their six-year-old adopted daughter, Tari. The three indi

    Slidell Company Derivatives: Accounting for Swaps

    On January 1, 2015, Slidell Company received a two-year, $500,000 loan, with interest payments occurring at the end of each year and the principal to be repaid on December 31, 2016. The interest rate for the first year is the prevailing market rate of 7%, and the rate in 2016 will be equal to the market interest rate on January

    Statement of Cash Flow using indirect method

    Rapture Company's 2011 income statement and selected balance sheet data at December 31, 2010 and 2011, follow ($ thousands). RAPTURE COMPANY Income Statement For Year Ended December 31, 2011 Sales revenue $ 64,000 Expenses Cost of goods sold 19,000 Depreciation expense 5,000

    Calculating dividends for common stockholders

    Quincy Inc. has 20,000 shares of $10 par value common stock and 1,000 shares of $100 par value, 9% cumulative preferred stock. No dividends were paid the previous year. This year Quincy wishes to distribute $30,000 in cash dividends. How much would the common stockholders receive?

    Production and average cost

    (Please see the attached file for the complete problem description). Please assist with this project on Production Cost and explain your answer. The following informtion provides the amount of cost incurred in August for the cost items indicated. During August, 7,700 units of the firm's single product were manufactured.


    Accounting for Leases 1. Which of the following is false? A. The lessee uses the lower of its incremental borrowing rate or the lessor's desired return rate (if known) when determining the present value of minimum lease payments. B. A lease is capitalized if the present value of the minimum lease payments is greater than o

    McDonald's Performance Measures: operating leverage, ROE, EVA

    Explain what operating leverage, ROE, EVA are and how they measure performance. Pick another performance measure of your choice and explain it as well. Give the advantages and disadvantages of each of these measures. For each of these measures, compute them for McDonalds Corporation in 2012. Which measure is your preferred o

    Vulnerabilities and Threats

    Distinguish between vulnerabilities and threats. Provide examples that illustrate these distinctions. In what way are vulnerabilities and threats related to consequences of the threats that are carried out?

    Guiltier Corp: Allowance for uncollectible accts bad debts

    Guiltier Corporation uses allowance method to accounts uncollectible accounts receivables. Credit terms for sales is n30 (net is due at 30 days). Below is the company's uncollectible policy: Monthly provision for uncollectible accounts is 2% of credit sales. Write-off of bad debts is debited to allowance for uncollectibl

    Schedule A Real Estate Deductions for the Sale of a Home

    "The $3,600 of property taxes for the house were prorated with $1,950 being apportioned to the seller and $1,650 being apportioned to the buyer. In December of the current year the buyer paid $3,600 for property taxes." Which number should the buyer include in his Schedule A, tax return (3600+1950 or 3600+1650)?

    Calculating restated cash dividends per share

    Group project journey #8. Please assist with Orbon Inc. For several years Orbon, Inc., has followed a policy of paying a cash dividend of $0.71 per share and having a 3% stock dividend. In the 2014 annual report, Orbon reported restated earnings per share for 2012 of $1.12. a. Calculate the originally reported earnings p

    Critically evaluate: Historic cost or alternative measurement base

    Historic cost should be replaced by an alternative measurement base in order to make financial statement more useful. Critically discuss this statement, concluding with whether or not you agree with it. Consider the following: Critically discuss the role and relevance of financial accounting information to the principal s