• Q : Find the balance of accumulated depreciation....
    Accounting Basics :

    On January 10, 2006, Maxim Corporation acquired equipment for $124,000. The estimated life of the equipment is 3 years or 24,000 hours. The estimated residual value is $10,000. What is the balance o

  • Q : What journal entry was made to correct the error....
    Accounting Basics :

    When this error was uncovered in 1995 after the 1994 reporting year had been closed, what journal entry was made to correct the error?

  • Q : Journalize the transactions-issuance of the bond....
    Accounting Basics :

    Block Company issued a $20,000, 10-year Bond on 7/1/2008, when the Market Interest Rate was 6.5%. Assume that the accounting year of Block Company ends on December 31. Journalize the following tran

  • Q : Identify whether the following costs are relevant....
    Accounting Basics :

    The only additional selling expense on this order will be a $0.50 per unit shipping cost. There will be no additional administrative expenses because of this order. State operating income as well.

  • Q : Same ending inventory balance....
    Accounting Basics :

    What is the key difference between absorption and variable costing? Assuming identical companies (one using absorption costing and the other using variable costing) in their first year of operation,

  • Q : Management acting in the shareholders best interests....
    Accounting Basics :

    Suppose you own stock in a company. The current price is $25. Another company has just announced that it wants to buy your company and will pay $35 per share to acquire all the outstanding stock. Yo

  • Q : Prepare the journal entries for above transactions....
    Accounting Basics :

    May 21 Obtained a 60-day extension on a $36,000 trade account payable owed to a supplier by signing a 60-day, $36,000 note.

  • Q : Process inventory of the assembly department....
    Accounting Basics :

    The Assembly Department started the month with 59,000 units in its beginning work in process inventory. An additional 274,000 units were transferred in from the prior department during the month to

  • Q : Determine the due date and the amount of interest due....
    Accounting Basics :

    Determine the due date and the amount of interest due at maturity on the following notes: Oct. 1 fee amount 10,500, interest rate 8%, and term of the note is 60 days, Aug. 30 18,000, 10%,120 days, M

  • Q : Interest to be paid semiannually....
    Accounting Basics :

    On January 1, 20xx, alpha Corporation isuued $800,000 of 10%, 30-year bonds to lenders at par (100). Interest is to be paid semiannually on July 1 and January 1. Journalize the following entries

  • Q : Allocated and actual overhead directly to cost of goods sold....
    Accounting Basics :

    Prepare a journal entry to write off the difference between allocated and actual overhead directly to Cost of Goods Sold. Be sure your journal entry closes the related overhead accounts.

  • Q : What amount should be added to gore''s deferred income tax....
    Accounting Basics :

    which will allow a cost recovery deduction of $64,000 for 2011. Assume a present and future enacted income tax rate of 30%. What amount should be added to Gore's deferred income tax liability for th

  • Q : What is the amount of net income to the controlling interest....
    Accounting Basics :

    Denber Co. acquired 60% of the common stock of Kailey Corp. on September 1, 2010. For 2010 Kailey reported revenues of $810,000 and expenses of $630,000, all reflected evenly throughout the year. Th

  • Q : Net operating income in a month....
    Accounting Basics :

    Scobie Corporation's fixed monthly expenses are $16,000 and its contribution margin ratio is 57%. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's n

  • Q : Briefly explain the double taxation problem....
    Accounting Basics :

    Shareholders in closely held C-corporations often pay themselves large salaries in order to avoid double taxation on corporate income. a. Briefly explain the double taxation problem and how paying l

  • Q : What is the net amount to be paid the employee....
    Accounting Basics :

    cumulative earnings for year prior to current week, $96,780; social security tax rate, 6.0% on maximum of $103,004; and Medicare tax rate, 1.5% on all earnings. What is the net amount to be paid the

  • Q : Formula for calculating the adjusted basis of property....
    Accounting Basics :

    Leon sold a piece of business equipment that had an adjusted basis to him of $40,000 for $65,000 cash plus artwork that had a fair market value of $15,000. The buyer assumed Leon's $20,000 loan on

  • Q : What is the accounts receivable turnover....
    Accounting Basics :

    Assume an organization has total current assets of $200,000, total current liabilities of $75,000, inventories of $50,000, prepaid expenses of $25,000, net sales of $770,000, and beginning accounts

  • Q : Gain recognize on the exchange problem....
    Accounting Basics :

    How much gain does Kyle recognize on his exchange? What is the basis to Kyle of his 1,000 shares?

  • Q : What would be the necessary journal entry....
    Accounting Basics :

    On December 31, 2007, Drew Company issued $170,000, five-year bonds for $155,000. The stated rate of interest was 6 percent and interest is paid annually on December 31.what would be the necessary j

  • Q : How losses influence the taxable income....
    Accounting Basics :

    Sara owns a sole proprietorship and Phil is the sole shareholder of a C (regular) corporation. Each business sustained a $9,000 operating loss and a $2,000 capital loss for the year. Evaluate how t

  • Q : Prepare sesame''s enrty to record 2011 depreciation expense....
    Accounting Basics :

    Sesame company purchased a computer system for $74,000 on January 1,2009. It was depreciated based on a 7-year life and an $18,000 salvage value. on january 1, 2011, Sesame revised these estimates t

  • Q : Proprietorship or a c-corporation....
    Accounting Basics :

    XYZ Company had a net loss of $90,000 from operations in 2007. Tina owns XYZ and works 20 hours a week in the business. She has a large amount of income from other sources and is in the 33% marginal

  • Q : What is the cost of the land that should be recorded....
    Accounting Basics :

    Wilson Co. purchased land as a factory site for $600,000. Wilson paid $60,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigat

  • Q : Find the accounting rate of return on investment....
    Accounting Basics :

    A company projects annual cash inflows of $85,000 each year for the next five years if it invests $300,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $75,

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