The differences between the book basis and tax basis of the assets and liabilities at the end of 2008 are as follows: Book Basis Tax Basis AR $50,000 -0- Litigation Liab 30,000 -0- It is esti
ABC Corporation has 10,000 shares of $100 par value, 8%, preferred stock and 50,000 shares of $10 par value common stock outstanding at December 31, 2008. a. If the preferred stock is cumulative and dividends were last paid on the preferred stock on December 31, 2005, what are the dividends in arrears that should be reported
Prepare the entry to record the interest earned. Prepare the journal entry to record collection of the note and interest at maturity. Agrico, Inc., accepted a 10-month, 13.8% (annual rate), $4,500 note from one of its customers on June 15; interest is payable with the principal at maturity. Prepare the entry to record the in
See attached file. Write the journal entry, for each of the following transactions that occurred during the first year of operations at Kissick Co. (Omit the "$" sign in your response.) a. Issued 250,000 shares of $6-par-value common stock for $1,500,000 in cash. b. Borrowed $500,000 from Oglesby National Bank and signed
P 11-11 Collins Corporation purchased office equipment at the beginning of 2009 and capitalized a cost of $2,000,000. This cost figure included the following expenditures: The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to deter
E 11-24 General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand for the product manufactured at the Arizona site, an impairment test is deemed appropriate. Management has acquired the following information for the assets at the plant: Cost
Ortega Riding Academy: Identify correct and incorrect journal entries; calculate correct net income and cash balance.
See attachment. Lisa Ortega is president of Ortega Riding Academy, Inc. The academy's primary sources of revenue are riding fees and lesson fees, which are paid on a cash basis. Lisa also boards horses for owners, who are billed monthly for boarding fees. In a few cases, boarders pay in advance of expected use. For its rev
Presented here are selected transactions for Lulu Corporation for 2010. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2000. The machine cost $71,000 on that date and had a useful life of 10 years with no salvage value. June 30 Sold a computer that was purchased on January 1, 2007. The computer cost
In providing accounting services to small businesses, you encounter the following situations pertaining to cash sales. Grainger Company rings up sales and sales taxes separately on its cash register. On April 10 the register totals are sales $25,000 and sales taxes $1,750. Darby Company does not segregate sales and sales
I have a phone interview with the Asst. Controller for a Senior Accountant position. How should I answer the questions what are your strengths and weaknesses? Why should I hire you? What are your career goals. Here's a brief description of the job. Summary of Role: Prepares income and balance sheet statements, consolidate
E11-2 On June 1, Melendez Company borrows $90,000 from First Bank on a 6-month, $90,000, 12% note. Instructions (a) Prepare the entry on June 1. (b) Prepare the adjusting entry on June 30. (c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30. (d) What
First mover Last mover theory and explanation of both.
E3-7. The ledger of Piper Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. Debit Credit Prepaid Insurance $ 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciationâ?"Equipment $ 8,400 Notes Payable 20,000 Unearned Rent 9
Lower-of-Cost-or-Market Fortner Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the companyâ??s inventory records as of December 31, 2006. Estimated Completion Norma
Mikor has an account payable of 7,700$ due to Smiley Inc. one of its suppliers. The amount was due to be paid on October 15, 2007. Mikor only had enough cash on hand then to pay $1,700 of the amount due, so Mikors treasurer called and Smiley's treasurer and agreed to sign a note payable for the balance. The note was dated Octobe
1. The City of Wetteville has a fiscal year ending June 30. Examine the following transactions for Wetteville: (A) On 6/1/10, Wetteville enters into a 5-year lease on a copying machine. The lease meets the criteria of a capital lease and carries an implied interest rate of 10%. The copier has a present value of $2
On January 1, 2007, Lucy Corporation issued $1,200,000 face value, 7% 10 -year bonds at $1,119,479 This price resulted in an effective-interest rate of 8% on the bonds. Lucy uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1. Instr
Your company is in financial trouble and is in the process of reorganizing. Your manager wants to know how you will report on restructuring the debt. Use the following information to help with this assignment. This is the liability section of your company's balance sheet: CURRENT LIABILITIES Accounts payable
See excel for better formatting. Peru Corporation sold $1,500,000 6% 10 -year bonds on January 1, 2007. The bonds were dated January 1, 2007, and pay interest on January 1. Peru Corporation uses the straight-line method to amortize bond premium or discount. Instructions: (a) Prepare al
1. Cram Company collected $42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are: A. Total assets decrease and equity increases. B. Both total assets and total liabilities decrease. C. Total assets, total liabilities, and equity are unchanged
At the end of the fiscal year, an adjusting entry was made for accrued salaries of $2,000. The salaries for one week, $4,250, were paid on the first Friday of the new fiscal period. When the weekly salaries are paid on the first Friday of the new accounting period, what will be the general journal entry? A. Salaries Expense
Lehman Pottery Company manufactures clay molded pottery on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conv
2. Assume that the County of Katerah maintains its books and records in a manner that facilitates preparation of the fund financial statements. The County formally integrates the budget into the accounting system and uses the encumbrance system. All appropriations lapse at year-end. At the beginning of the fiscal year, the Co
The fiscal year of Duchess County ends on December 31. Property taxes are due March 31 on the year they are levied. 1. Prepare journal entries(excluding budgetary and closing entries) to record the following property tax related transactions in which the country engaged in 2007 and 2008. a. Jan 15, 2007 the county council
Please see attachment for selected article. The aim of the critique is to describe how the study followed or failed to follow the criteria for good research. Kindly include the following topics in the critique: -Study design -Problem or objective -Literature review -Population sampling for study -Measurement -D
Maso Company recorded journal entries for the issuance of common stock for $40,000, the payment of $13,000 on accounts payable, and the payment of salaries expense of $21,000. What net effect do these entries have on owners' equity? Increase of $40,000. Increase of $27,000. Increase of $19,000. Increase
What is the impact of not balancing intercompany payables/receivables on a monthly basis? What is the impact on not eliminating intercompany payables/receivables during the consolidation? Is there an instance where either of these two practices would be acceptable?
In 2010, Bailey Corporation discovered that equipment purchased on January 1, 2008, for $50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 30%. Prepare Bailey's 2010 journal entry to correct the error.
Uddin Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms f.o.b. shipping point, and payment is due 60 days after shipment. The retailer may return a maximum of 30% of an order at the retailer's expense. Sales are made only to retailers who
P3_28a questions P3-28a Journalize the adjusting entry needed on December 31, the end of the current accounting year, for each of the following independent cases affecting Wisconsin alps. No other adjusting entries have been made for the year. A- Prior to making the adjusting entry on December 31, the balance in Prepaid I