How does a subdivision of duties enhance internal control?
Fresh Fruits Corporation wholesales peaches and oranges. Nora Boyd is working with the company's accountant to prepare next years budget. Ms Boyd estimates that sales will increase 5% annually for peaches and 10% for oranges. The current years sales revenue data follow: 1rstq 2nd q 3rd
The Densain Water plant in Naples, Fl, bottles purified and flavored water in a variiety of sizes (20,36,48, and 64 ounces) for sale through vending machines and retail stores. Volumes is measured as bottle ounces. The plant's annual budgeted fixed manufacturing overhead amounts to $1.8 million, and variable manufacturing overhe
Various Accounting Issues
Here are records from manufacturer who used direct labor hours as its cost driver: Month Direct Labor Hours Manufacturing Overhead Jan. 23,000 $454,000 Feb. 30,000 517,000 Mar. 34,000 586,
Please help with the following problem. Frank Caster and George Wilson were equal partners of the F&G partnership, which reported its income on a fiscal year ending september 30. For fiscal year 2007-2008, the partnership's ordinary income was $30,000. It's ordinary income for the months of October-December 2008 was $9,000.
Standard costing and variance analysis techniques are most often associated with manufacturing businesses. You have been contracted by the owner of a small advertising agency to evaluate the use of standard costing techniques for the services provided by his firm. Discuss whether you believe standard costing techniques can b
1. Why is it important to separate current and non-current liabilities? 2. What are the limitations of the balance sheet? 3. Does full disclosure mean more than the notes to the financial statements? Why or why not?
On July 1, 2007, Grape Crushers Company purchased for cash 40% of the outstanding capital stock of Fuzzy Flask Corporation. Both Grape Crushers and Fuzzy Flask have a December 31 year-end. Fuzzy Flask Corporation, whose common stock is actively traded on the American Stock Exchange, paid a cash dividend on November 15, 2007, to
Gentlemen produces and packages his own brand applesauce. A high low cost behavior needs to happen on the inventory on the company's energy cost behavior. Month Pints of applesauce produced Energy cost Jan. 35,000 $23,400 Feb. 21,000
1.Jackie Smith had a fur coat that cost $12,000 when purchased in 1998 and that was worth $14,000 when it was stolen on April 15, 2008. Her t.v. which cost $800 in 2003 and was worth $600, was also stolen. She received $10,000 from her insurance company for the theft of the two items. On July 20, 2008, her summer cottage was a b
1. Boyd Smith acquires 100 shares of Evans Corporation stock for $3,000 on January 8, 2007. He gave the stock to his daughter Susan on January 8, 2008, when the fair market value was $2,400. On March 22, 2008, Susan sold the stock for $1,500. What is the nature and the amount of the gain or loss for Susan in 2008?
Discuss Accounting Internal Controls; what they are? why they exist? who regulates them? Give examples. Identify as many internal control weaknesses as you can in this scenario, and suggest how each could be addressed. (10pts) Emporia Middle School wants to raise money for a new sound system for its auditorium. The primary
E2-8 Analyzing the Effects of Transactions in T-Accounts: L02, L03, L05 Mulkeen Service Company, Inc., was organized by Conor Mulkeen and five other investors. The following activities occurred during the year: 0.Received $60,000 cash from the investors; each was issued 1,000 shares of capital stock. 1.Purchased equipment
(Payroll Tax Entries) Below is a payroll sheet for Jedi Import Company for the month of September 2007. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% F.I.C.A.
Problem:The Book used is: Pope, T. & Anderson, K. & Kramer, J. (2007). Federal taxation comprehensive. Upper Saddle River, NJ: Prentice Hall. Reconciling Book Income and Taxable Income. Zero Corporation reports the following results for the current year: Net income per books (after taxes) $33,000 Federal income
(a) A company purchased a patent on January 1, 2008, for $2,500,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2008, the company paid legal costs of $162,000 in successfully defending the patent in an infringement sui
Some problems from book Investment Analysis and Portfolio Management (9th ed.). Book from: Frank K. Reilly, & Keith C. Brown, (2009). Mason, OH: South-Western/ Cengage Learning.
Chapter 11, question 1, page 350; Discuss the difference between the top-down and bottom-up approaches. What is the major assumption that causes the difference in these two approaches? Problems 1, 2, 4, 5, page 350 1. What is the value to you of a 9 percent coupon bond with a par value of $10,000 that matures in 10 years if
In 2008, Margaret and John Murphy are married taxpayers who file a joint tax return with AGI of $25,000. During the year they incurred the following expenses: Hospitalization Insurance Premiums $1,050 Premiums on an insurance policy that pays 300 $100 per day for each day Margaret
R. Corporation purchased for $855,000 a tract of land on which was located a warehouse and office building. The following data were collected concerning the property: Current Assessed Valuation Vendor's Original Cost Land $300,000 $280,000 Warehouse 200,000 180,000
10.1 read and interpret corporate governance statement. Refer to the "corporate governance" disclosures provided the "link on Intel corporation's web site. Identify the principal topics covered in those disclosures. Are there other topics that you believe would be appropriate to have included in those disclosures? Explain your a
Financial accounting scenario journal for my made up company.
Part A: The luggage department of ABC store has annual revenues of $1,000,000, variable costs of $300,000, direct fixed costs (like special store fixtures, and per square foot rent) of $500,000, and allocated indirect fixed costs of $400,000 (like management salaries and insurance). What would be the effect on total net income
The Big Foam Brewery Company has 30,000 shares of $10 par value common stock authorized and 20,000 shares issued and outstanding. On August 15, 2007, Big Foam Brewery Company purchased 1,000 shares of treasury stock for $16 per share. Big Foam Brewery Company uses the cost method to account for treasury stock. On September 14, 2
Joe Quick and Jane Reddy are equal partners in the Quick and Reddy partnership. On the first day of the current taxable year, Joe's adjusted basis in his partnership interest is $10,000 and Jane's adjusted basis is $2,000. During the year, Joe had withdrawals of $25,000 and Jane had withdrawals of $20,000. Given the following pa
At January 1, 2007, Horse Corporation reported retained earnings of $2,000,000. In 2007 Horse discovered that 2006 depreciation expense was inderstated by $500,000. In 2007, net income was $900,000 and dividends declared were $250,000. The tax rate os 40%. PRepare a 2007 retained earning statement.
Calculate operating income and net income: the following information is available from the accounting records of Spenser Co. for the year ended December 31, 2004: Selling, general and administrative expenses $51,000 Accounts payable 85,000 Extraordinary gain from lawsuit, ne
Our corporation was organized in July 15, 2015. It was authorized to emit 150.000 $25 common stocks of even value and 50.000 cumulative preferred stocks of 14% class A. The class A to of the Favorites the action has an established value of $50. The following transactions related to these actions happened. a. Emission of 55.000
Davis Company provides the following information budgeted for 2007. Sale price $50 by unit Cost to manufacture variable $32 by unit Fixed cost of manufacture $100,000 Fixed cost of sales and administrative $40,000 Davies predic
Engle Manufacturing Company established the following information of prices and costs: Sale Price $50 por unidad Variable cost of production $32 por unidad Fixed costs total of production $100,000 Fixed costs total of sale and administrative