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Accounting

Error Analysis and Correcting Entry: Gottschalk Corporation

You have been engaged to review the financial statements of Gottschalk Corporation. In the course of your examination you conclude that the bookkeeper hired during the current year is not doing good job. You notice a number of irregularities as follows: 1. Year-end wages payable of \$3,400 were not recorded because the bookkee

Determining Allowable Charitable Contribution Deductions

In each of the following independent cases determine the amount of charitable contributions allowed the individual before consideration of any percentage limitations. A. Charitable Chubbs contributed an item of inventory from his sole proprietorship to a public charity for its use. The fair market value of the asset was \$800

"Rick's Bags"

Rick's Bags manufactures both golf bags and tennis totes. Fixed manufacturing overhead is budgeted to be \$187,200, variable manufacturing overhead is budgeted to be \$1.10 per direct labor hour, and fixed selling and administration costs are budgeted to be \$346,000. Each golf bag is expected to use 2.5 direct labor hours and each

Calculations Around a Water Plant's Overhead

The Densain Water plant in Naples, Florida, bottles purified and flavored waters in a variety of sizes (20, 36, 48, and 64 ounces) for sale through vending machines and retail stores. Volume is measured as bottled ounces. The plant's annual budgeted fixed manufacturing overhead amounts to \$1.8 million, and variable manufacturin

Using regression for high-low method of variable costing

Question 7: (10 points) Exercise 5-5 (Appendix 5A) Least-Squares Regression [LO5] EZ Rental Car offers rental cars in an off-airport location near a major tourist destination in Florida. Management would like to better understand the behavior of the company's costs. One of those costs is the cost of washing cars. The comp

Holton Company Variable Costs

Holton Company makes three products in a single facility. Data concerning these products follow: Products A B C

Proper Interpretation of Variable Overhead Spending

You recently were hired as an accountant for Northern Pacific Manufacturing. One of your responsibilities is to develop and maintain a standard costing system for overhead as well as materials and labor standard for the company. During a recent planning meeting, the company's production manager expressed concern regarding the

Annual Payment and Principal Balance

P 3-4 Just One, Inc, has two mutually exclusive investment projects, P and Q, shown below. Suppose the market interest rate is 10 percent? Project Initial Investment Year 1 Year 2 IRR NPV (r = 10%) P -\$200.00 \$140.00 \$128.25 22.4% \$33.26 Q -100.00 80.00 56.25 25.0 19.2

Taxable payroll

1- Timmons Co., which has a taxable payroll of \$500,000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.4%. However, because of stable employment experience, the company's state rate has been reduced to 2%. What is the total amount of federal and state unemployment tax for Timmons Co.? a. \$58,500 b.

Company XYZ attempting to determine costs associated with various jobs. Current production records show the following information for two recent jobs: Job 1 Job 2 Direct materials costs \$15,600 \$31,200 Direct labor costs: Assembly Department \$ 3,900 \$ 5,200 Cutting Department \$10,400 \$ 2,600 Machine hours used in t

Break even analysis and current margin of safety

Contribution Margin Concepts The following information is taken from the 2007 records of Navajo Art Shop. Fixed Variable Total Sales \$750,000 - Goods sold

Variable/ fixed/ mixed costs

The Salvage Company incurred the following costs for the month of August when it observed an activity level of 10,000 units. Activity level in units --------- 10,000 Variable Costs ----------------- \$30,000 Fixed Costs -------------------- \$50,000 Mixed Costs -------------------- \$40,000 Total Costs -------------------- \$

Holes Company: Variable Costs

The Holes Company realizes 3 products from a single mining process: Products A1, A2, and A3. Each product may be sold as is in its raw form or processed further into a more refined state. The additional processing requires no expanded capacity and production costs are entirely variable. Sales values and cost information are:

Net Operating Loss (NOL)

Shep King Corporation reported the following pretax financial income (loss) for the years 2000 through 2007. Pretax Financial Income (Loss) Tax Rate 2000 \$80,000 30% 2001 \$34,000 35% 2002 \$96,000 50% 2003 (\$300,000) 40% 2004 \$180,000 40% 2005 \$60,000 40% 2006 \$210,000 40%

Compute Full Cost and Processing

Joint Products, Inc., produces two joint products, X and V using a common input. These are produced in batches. The common input costs \$8,000 per batch. To produce the final products (X and V), additional processing costs beyond the split-off point must be incurred. There are no beginning inventories. The accompanying data summa

Allocation System at Reed Park

Reed Park, Inc., is a bottler/supplier of bottled spring water to both commercial and residential customers. Reed Park's corporate headquarters is located in Clearwater Springs, Colorado. It operates distribution centers (DCs) in three territories throughout the metro Clearwater Springs area. The company began by selling to res

Allocation of Costs..

Problem 7-8 "Winterton Group" The Winterton Group is an investment advisory firm specializing in high-income investors in upstate New York. Winterton has offices in Rochester, Syracuse, and Buffalo. Operating as a profit center, each office receives central services, including information technology, marketing, accounting, and

In your team's investigation of Fitness Solutions, your interviews with current and past employees and an initial review of the accounting books reveal the following events:

In your team's investigation of Fitness Solutions, your interviews with current and past employees and an initial review of the accounting books reveal the following events: Fitness Solutions constantly overstates purchases to produce high cost of sales and lower net income for income tax purposes. Last year, Fitness Soluti

Two Short Accounting Problems

Please help with the following problems. 1) On October 1, 2006, Parton Industries borrowed \$12 million cash to provide working capital. The loan was made by Second Bank under a short-term line of credit. Parton issued an 8-month, "noninterest-bearing note." 8% is the bank's stated "discount rate." Parton's fiscal period is t

How do the transactions in the divorce agreement affect Arnold's and Barbara's taxable income?

2. Arnold and Barbara Cane were divorced in June 2008. Pursuant to the divorce decree, Arnold is obliged to preform as follows: A. Transfer title of their personal home to Barbara. They purchased the house in 1992 and their basis today is \$400,000. The fair market value of the house is \$500,000. The house is subject to a 25 y

Tax: Fred Peters \$10,000 payment on behalf of son Jack. Is it a deduction for tax purposes for Fred?

Please help with the following problem. In the current year, Fred Peters paid \$10,000 of the business interest expense on a loan made to his son Jack, age 30, during the year. Jack was planning to file for bankruptcy and avoid making the interest payment, but Fred made the payment in order to avoid embarrassment for the fami

Partnership: What are the tax consequences of liquidating a partnership?

Please help with the following problem. Provide at least 300 words. What are the tax consequences of liquidating a partnership?

Taxation II

1. Robert Reed, a bachelor, maintains his parents in a nursing home. They have no income of their own and are completely dependent on their son. His parents are 75 and 72 years of age. Robert has the following sources of income. Salary... \$45,000 Interest on municipal bonds... 750 Interest on bank accounts... 800 Dividends

Notes Payable: Grant Co partial refunding of debt. Journalize the entry including the adjusting entry at December 31.

Notes payable On August 31, Grant Co. partially refunded \$180,000 of its outstanding 10% note payable made one year ago to Arma State Bank by paying \$180,000 plus \$18,000 interest, having obtained the \$198,000 by using \$52,400 cash and signing a new one-year \$160,000 note discounted at 9% by the bank. Instructions (1) M

Study Guide

Please help with this study guide. Study Guide Managerial Accounting 1. Whirl Company sells cordless razors for \$50. Variable costs are 40% of sales and total fixed costs are \$40,000. What is the firm's magnitude of operating leverage if 2,000 units are sold? A) 3.0 B) 2.0 C) 1.5 D) None of the above 2. Select

Wildlife Escapes generates average revenue of \$4,000 per person on its five-day tours of top wildlife parks in Kenya. The variable costs per person are

The problem is attached herewith. Description Amount Airfare \$1,500 Hotel accommodations 1,000 Meals 300 Ground transportation 600 Park tickets and other costs 200 Total \$3,600 Annual fixed costs \$480,000 Wildlife Escapes generates average revenue of \$4,000 per person on its five-day tours of top wildlife parks i

Calculating Depreciation and Book Value

Your firm uses return on assets (ROA) to evaluate investment centres and is considering changing the valuation basis of assets from historical cost to current value. When the cost of the asses is updated, a price index is used to approximate replacement value. For example, a metal fabrication press, which bends and shapes metal

Activity Table for Total Costs

Question 1: (11 points) Exercise 5-1 Fixed and Variable Cost Behavior [LO1] Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is \$1,100 and the variable cost per cup of coffee served is \$0.26. Requirement 1: Fill in the following table with your

PROBLEM I6-51

Hobby Loss Presumptive Rule. Rachel Schutz is a high school English teacher. In her spare time, she likes to make her own body lotion, lip-gloss, and bath and shower gel. She uses the bath products herself and gives them to her friends and relatives as gifts. In 2005, Rachel started attending arts and crafts festivals to sell

PROBLEM I6-34: Calculate taxable income for Kent

For vs. from AGI. During the current year, Kent, a single taxpayer, reports the following items of income and expense: Income: Salary \$170,000 Dividends from Alta Corporation 800 Interest income from a savings account 1,500 Rental income from a small apartment he owns 8,000 Expenses: Medical 6,000 Interest on a prin