• Q : Present-day business advisor....
    Accounting Basics :

    If you were brought on board as their present-day business advisor, you would explain to them that all partnerships have at least one general partner (known as the senior partner) and one limited pa

  • Q : Proposed waste-water treatment plant....
    Accounting Basics :

    The operating cost for a proposed waste-water treatment plant is estimated as $500,000 per year, increasing by $100,000 each year after the first. Assume i = 6 percent. Find the following:

  • Q : Amount of accumulated depreciation on the machine....
    Accounting Basics :

    Calculate the amount of accumulated depreciation on the machine shown in the December 31, 2004 balance sheet assuming the company uses the double-declining balance depreciation method. Do not use de

  • Q : Calculate the depreciation expense recorded on the machine....
    Accounting Basics :

    Assume the company employs the sum-of-the-years-digits' method of depreciation. Calculate the depreciation expense recorded on the machine in 2004. Do not use decimals in your answer.

  • Q : Production method of depreciation problem....
    Accounting Basics :

    Assume the company employs the units of production method of depreciation. Calculate the amount of depreciation expense related to the truck shown in the company's 2009 income statement. Do not use

  • Q : Net income and on the company total assets....
    Accounting Basics :

    What is the effect of this error on the company's 2001 net income and on the company's total assets at December 31, 2001?

  • Q : Capitalized as part of the cost of machinery....
    Accounting Basics :

    Which of the following costs would not be capitalized as part of the cost of machinery?

  • Q : What are the equivalent units for direct materials....
    Accounting Basics :

    The John Clock Shop manufactures clocks on a highly automated assembly line. Its costing system utilizes two cost categories, direct materials and conversion costs.

  • Q : How much interest is recognized....
    Accounting Basics :

    Collier borrowed $350,000 on October 1 and is required to pay $360,000 on March 1. What amount is the note payable recorded at on October 1 and how much interest is recognized from October 1 to Dece

  • Q : Total cost and marginal cost for each quantity....
    Accounting Basics :

    Prepare a table that computes the total cost and marginal cost for each quantity between 1 and 10 units.

  • Q : Adjustment for uncollectible accounts....
    Accounting Basics :

    The company estimates that 14% of accounts receivable will not be collected over the next year. Record the adjustment for uncollectible accounts.

  • Q : Not-for-profit healthcare organization....
    Accounting Basics :

    Wakefield Home is a private not-for-profit healthcare organization offering services for a fee. In the first quarter of 2011, Wakefield Home rendered services of $300,000 to patients.

  • Q : Prepare a memo for your firm client files....
    Accounting Basics :

    Subsequent to the dividend payment, Canary can be sold for its remaining value of $11.5 million ($11 million in property, plant, and equipment plus $500,000 in cash), resulting in no gain or loss to

  • Q : What amount the company should be willing to pay....
    Accounting Basics :

    What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 30,000 units required each year?  

  • Q : Tax planning strategy....
    Accounting Basics :

    She recently read a magazine article on the benefits of tax-deferred annuities and wonders if she should transfer her $50,000 savings into an annuity. Discuss whether this tax planning strategy is a

  • Q : What is anne realized gain....
    Accounting Basics :

    Anne's insurance company reimbursed her for $13,500 -Paid street paving assessment of $7,000 and added sidewalks for $8,000 -installed an elevator for medical reasons. the total cost was $20,000, an

  • Q : Incremental research activities....
    Accounting Basics :

    Sarah, a calender year taxpayer, informs you that during the year she incurs expenditures of $30,000 that qualify for the incremental research activities credit. In addition, in it determined that

  • Q : What should the capital lease liability....
    Accounting Basics :

    On January 1, 2011, Blaugh Co. signed a long-term lease for an office building. The terms of the lease required Blaugh to pay $10,000 annually,

  • Q : Share in perpetuity if the firm makes no new investments....
    Accounting Basics :

    The annual earnings of Avalanche Skis Inc will be $4 per share in perpetuity if the firm makes no new investments. Under such a situation, the firm would pay out all of its earnings as dividends.

  • Q : Net tax benefit from alternative....
    Accounting Basics :

    Dean's marginal tax rate is 35%. Should Dean sell the stock and then donate the cash, or should he donate the stock directly? Compute the net tax benefit from each alternative and explain the differ

  • Q : Prepare a bank reconciliation problem....
    Accounting Basics :

    Amount of $491 had been entered in the cash journal as $419, and check no. 747 in the amount of $58.20 had been entered as $582. (a) Prepare a bank reconciliation dated June 30, 2012.

  • Q : Company policy for paying salaries....
    Accounting Basics :

    The company presently pays on the last day of each month. The company is considering changing its policy so that the December salaries will be paid on the first day of the following year. What would

  • Q : Prepare a tax research memo in good form....
    Accounting Basics :

    You are sitting in an office in Fargo, North Dakota with Joanne Dwood, Human Resources Director of Black Hill Gas Company. Due to the Natural Gas boom in the Dakotas, Black Hill needs to hire a subs

  • Q : Holding the bonds until their maturity....
    Accounting Basics :

    On August 1, 2004, the McCellen Company acquired $100,000, 8% bonds of Lankford Co. for $104,000 plus accrued interest. The bonds were dated August 1, 2004, and mature on July 31, 2009, with interes

  • Q : Static and flexible budget variance....
    Accounting Basics :

    If the static budget variance is unfavorable and the flexible budget variance is unfavorable, can we draw a conclusion about the sales volume variance?

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