• Q : Costs and benefits of a merger....
    Accounting Basics :

    For many years you have used your local small-town bank. One day you hear that the bank is about to purchased by Bank of America. From your vantage point as a retail bank customer what are the costs

  • Q : Entries to record the issuance of bonds and bond interest....
    Accounting Basics :

    prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2014, assuming that the bond sold at 102

  • Q : Employers monthly payroll tax expenses....
    Accounting Basics :

    What is the amount of the employer's monthly payroll tax expenses for this employee? (Round your intermediate calculations and final answer to two decimal places.)

  • Q : Gross salary to a retirement program....
    Accounting Basics :

    Arena Company provides health insurance to its employees that costs $15,200 per month. In addition, the company contributes 3% of the employees' $152,000 gross salary to a retirement program. The en

  • Q : Amount of depreciation recorded for second year....
    Accounting Basics :

    In the second year, production increased to 116,000 units. Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year? (Do not round interme

  • Q : Problem on warranty covering replacement of defective parts....
    Accounting Basics :

    A company sells computers at a selling price of $1,450 each. Each computer has a 2 year warranty that covers replacement of defective parts. It is estimated that 3% of all computers sold will be ret

  • Q : Prepare necessary journal entrie to account for depreciation....
    Accounting Basics :

    On 1 July 2011, Kookaburra Ltd acquired an item of plant at a cost of $200 000. The machine has an expected useful life of eight years, and Kookaburra Ltd adopts the straight-line method of deprecat

  • Q : Estimated warranty expense for the month....
    Accounting Basics :

    The warranty liability account has a balance of $11,700 before adjustment. Customers returned product for warranty repairs during the month that used $8,300 in parts for repairs. The entry to record

  • Q : Explain how exploration and development costs create....
    Accounting Basics :

    Analyse the arguments presented by the directors in light of the AASB Framework for the Preparation and Presentation of Financial Statements and the requirements of AASB 112 Income Taxes, and discu

  • Q : Amount of vacation benefit expense....
    Accounting Basics :

    Employees earn vacation pay at the rate of one day per month. During the month of July, 19 employees qualify for one vacation day each. Their average daily wage is $94 per day. What is the amount of

  • Q : Prepare general journal entries to record transactions....
    Accounting Basics :

    Prepare the general journal entries to record the transactions of Piper Ltd for the events outlined above. Show all workings. Ignore preference share dividend payments.

  • Q : Lifo assumption for determining the basis of shares sold....
    Accounting Basics :

    When a taxpayer sells part of his/her holdings in a stock which has been purchased in different lots at different prices, he/she should employ the LIFO assumption for determining the basis of shares

  • Q : Elaine current basis in partnership interest....
    Accounting Basics :

    Elaine did not recognize any gains as a result of the distributions. Calculate Elaine's current basis in her partnership interest.

  • Q : Information in context of senior management in corporation....
    Accounting Basics :

    Which of the following best represents the form of information in the context of senior management in a corporation?

  • Q : Misstatement due to fraudulent financial reporting....
    Accounting Basics :

    Which of the following best represents a misstatement due to fraudulent financial reporting?

  • Q : Calculate the standard deviation for the two stocks....
    Accounting Basics :

    Calculate the standard deviation for the two stocks.

  • Q : What will the balance be after 5 years....
    Accounting Basics :

    American National is willing to make a loan for $750,000 on a commercial property at a 9% interest (accrual) rate with payments calculated using a 7% rate and a 30-year loan term. After the first fi

  • Q : Create a portfolio with an expected return....
    Accounting Basics :

    You have $26,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with an expected return of 11.0 percent. If your goal is to create a portf

  • Q : What would be the value for this property today....
    Accounting Basics :

    There is the expectation that Citadel, LLC should be able to earn a 10% return on an investment like this venture. And, starting from year 6 to year 7 and every year thereafter, the NOI is expected

  • Q : Explain the disclosure requirements....
    Accounting Basics :

    Explain the disclosure requirements under the Truth-In-Lending Act. In your discussion, include several examples of disclosures that are required for a fixed-rate mortgage note, as well as an adjust

  • Q : Journal entries in the accounts to record the event....
    Accounting Basics :

    On 30 June 2014, the directors declared an ordinary dividend of $0.05 per share. The company's constitution gave them the power to make such a declaration legally binding. Provide the journal entri

  • Q : Which alternative should be selected....
    Accounting Basics :

    Joshua and Jim have owned a property for 15 years, the value of which is now $200,000.The balance on the original mortgage is $100,000, and the monthly payments are $1,100, with 15 years remaining.

  • Q : Acquisition of internode....
    Accounting Basics :

    How did the acquisition of Internode affect iiNet? You should briefly discuss the impacts in different aspects, e.g., how iiNet's liquidity and solvency was affected. Overall, do you think the acqui

  • Q : What are the tax consequences of this distribution....
    Accounting Basics :

    Under Illinois Corporation's plan of liquidation, the corporation distributes land to one of its shareholders, Springer. The land, which is used in Illinois trade or business, has a $20,000 adjusted

  • Q : Modified and standard accrual basis accounting....
    Accounting Basics :

    What is the primary difference between modified accrual basis accounting and standard accrual basis accounting? Why is modified accrual basis accounting appropriate for government agencies?

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