Exercise 10-2 Material Variances [LO2] Harmon Household Products, Inc., manufactures a number of consumer items for general household use. One of these products, a chopping board, requires an expensive hardwood. During a recent month, the company manufactured 4,000 chopping boards using 11,000 board feet of hardwood. The hardwo
Mary is a dentist and Ed is an accountant. They are getting divorced from each other and have agreed on issues dealing with child custody and child support and alimony. In addition, they have agreed to sell their house and to split the proceeds equally. Not wanting to get into prolonged disputes with each other about the cont
Frank Pierce is the sole stockholder and director of Ajax, Inc., a construction company in Anytown, U.S.A. Times are getting tough, and Frank is worried about his finances. He is mostly worried about keeping up the mortgage payments on his relatively new home that he purchased during the housing boom. The house, which is titl
1. Describe the mechanics of a stock redemption. 2. A stock redemption may be viewed either as a distribution or as a sale/exchange. From a tax perspective, which view is more advantageous for the shareholder and why? 3. List the four circumstances when redemption is tax-advantaged. 4. What is a stock dividend? 5. What
Monroe, a 1/3 partner with a basis in the interest of $60,000 at the beginning of the year, received a guaranteed payment in the current year of $40,000. Partnership income before consideration of the guaranteed payment was $25,000. Monroe must report a $5,000 ordinary loss from partnership operations, and the $40,000 guaranteed
Any 7 of the following 10 questions may be answered: 1. If a digging dog found some deadly dirt, what government agency would you contact about it? Why would you contact the agency you have named? 2. Michael and Lisa were married in 1980 and immediately moved into a house that was titled in Michael's name only. In 1982, Lisa
Tatman Corp. uses an activity-based costing system with the following 3 activity cost pools: Activity Cost Pool Total Activity Fabrication...................10,000 machine-hours Order processing..............800 orders Other.........................Not applicable The Other activity cost pool is used to accumulat
ABC Company's total overhead costs at various levels of activity are presented below: Machine Hours Total Overhead Costs March 60,000 $216,800 April 50,000 $194,000 May 70,000 $239,600 June 80,000 $262,400 Assume that the overhead costs above consist of utilities, supervisory salaries, an
Frizell Co. at the end of 2007, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 750,000 Estimated litigation expense 1,000,000 Extra depreciation for taxes (1,500,000) Taxable income $ 250,000 The estimated litigation e
(a) For each of the observed reactions, indicate whether they are functional or dysfunctional behavioral responses. Explain your answer in each case. (b) Assuming that one or more of the preceding were dysfunctional, recommend procedures the company could employ to eliminate the dysfunctional behavior and to prevent its recu
Design a system that would collect data on a daily basis at the central office regarding the need for food supplies by the individual stores. Your system should incorporate a database that keeps track of the sales and inventories for food supplies at individual stores. Your answer should be expressed in general terms. It is not
The Poster Company intends to redesign its purchasing system from the point in time when an item needs to be ordered until payment is made. The system should be designed to ensure that all the proper controls are incorporated into the system. (a) Identify the internally and externally generated documents that would be require
This question requires using the check-digit formula presented in this chapter. (a) Calculate check digits for teh following hypothetical account numbers: 4388, 5100, and 9106. (b) Verify the following codes (which include a check digit): 10307, 50008, and 22222. SEE ATTACHED EXPLANATION OF CHECK DIGIT.
The Electrocomp Corporation manufactures two electrical products: air conditioners and large fans. The assembly process for each is similar in that both require a certain amount of wiring and drilling. Each air conditioner takes 3 hours of wiring and 2 hours of drilling. Each fan must go through 2 hours of wiring and 1 hour of
See attached file.
1. Which of the following entity types cannot NOT become a 501(c)(3)? a. A Delaware LLC b. A Partnership c. An Illinois Corporation d. A Charitable Trust 2. Which of the following is most likely true about an Unincorporated Association that was a 501(c)(3)? a. It was formed by filing its Charter with the applicable S
Part I. Budgeting Use the following problems in answering A. and B below: Durham Electric Corporation manufactures two different types of coils used in electric motors. In the fall of 2008 Jessica Martin, the controller, compiled the following data: Use of raw material: Amount Used per Unit Raw Material Lig
Problem 12-5AA: Cash flows spreadsheet (indirect method) L.O. P1, P2, P3, P4 Golden Corp., a merchandiser, recently completed its 2008 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debit
Concerns over the recognition, administrative, and operational lags as well as the concern that discretionary fiscal policy is subject to political biases have caused some economists to believe Congress and the president should do nothing in the face of a recession. Even if they are correct, is it realistic to expect the public
(1) A single taxpayer provided the following information for 2006: Salary $40,000 Interest on local government bonds $4,000 (qualifies as a tax exclusion) Allowable itemized deductions $8,000 What is taxable income? a. $28,700 b. $31,700 c. $32,700 d. $32,000 (2) This year, Alan purchased prop
Accounting Regulatory Bodies Paper: examine at least four accounting regulatory bodies, and discuss how an organization complies with the standards of the regulatory bodies
Accounting Regulatory Bodies Paper Prepare a 300-750-word paper, in which you examine at least four accounting regulatory bodies, and discuss how an organization complies with the standards of the regulatory bodies you selected. Be sure to cite at least two references. Properly cite your references. If you used an electronic
#2 The following differences enter into the reconciliation of financial income and taxable income of A Company for the year ended December 31, 2007, its first year of operations. The enacted income tax rate is 30% for all years. Pretax accounting income $700,000 Excess tax depreciation (320,000) Litigation accrual 70,000
Adams Brothers Outdoor Adventures currently owns a 12-passenger van that is used to transport clients to and from its outdoor adventure sites. The van was purchased 4 years ago at a cost of $20,000. At that time, its useful life was estimated to be 5 years with a salvage value of $5,000 at the end of its useful life. The van is
1. Company A manufactures and sells small paper goods. They sell to major retailers such as Costco, Sam's Club and Wal-Mart. These large retailers demand that should goods be unsold at any time in the future, they may return the goods, without limitation, to the Company A and charge back transportation and a repack charge.
1.Chaney Co. is a retail store operating in a state with a 5% retail sales tax. The retailer may keep 1% of the sales tax collected. Chaney Co. records the sales tax in the Sales account. The amount recorded in the Sales account during May was $147,000. The amount of sales taxes payable (to the nearest dollar) to the state f
What is fund accounting? How does it compare to proprietary accounting? Why is it necessary? What are the major fund types? Use the following website, www.charitynavigator.org, find a charities financials and identify the various aspects such as excess of revenues over expense. Then pick one of the worst and compare.
1) What are some examples of government/not-for-profit organizations? How do proprietary businesses measure success following the FASB accounting guidelines? How do government organizations measure success following the GASB accounting guidelines? Compare and contrast the differences between GASB and FASB.
1.Deficit in accumulated E&P is $(20,000) Current E&P is $15,000 On 12/31/x1, the Corp distributed $50,000 to its sole SH How much is considered to be dividend? 2. Accumulated E&P is $15,000 Deficit in current E&P $(20,000) On 12/31/x1, the Corp distributed $50,000 to its sole SH How much is considered to
1. What is the difference between debt and equity? (5 points) 2. What is the difference between common and preferred stock? (5 points) 3. What are the tax consequences to a corporation that distributes property to stockholders if the property distributed is less than the corporation's basis in the property? (5 points)
1. You are the independent auditor engaged to audit Christine Agazzi Corporation's 12/31/07, financial statements. Christine Agazzi manufactures household appliances. During the course of your audit, you discovered the following contingent liabilities. a. Christine Agazzi began to production of a new dishwasher in 2007 and, b