• Q : What amount of interest expense is accrued....
    Accounting Basics :

    On December 1, Martin Company signed a 90-day, 6% note payable, with a face value of $5,000. What amount of interest expense is accrued at December 31 on the note? (Use 360 days a year for calculati

  • Q : Record the exercise of the warrants....
    Accounting Basics :

    Prepare the journal entries in January 1, 2007 to record the conversions of the bonds. 2). Prepare the journal entries in January 1, 2007 to record the exercise of the warrants.

  • Q : Margin of safety percentage....
    Accounting Basics :

    Young Inc. has a margin of safety percentage of 10% (recall the MOS percentage is computed as a percentage of actual sales). The break-even point in units is 45,000, the selling price is $12 per uni

  • Q : Who are the stakeholders in this case....
    Accounting Basics :

    The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts for Ruiz Co. should be 2% of net credit sales. The president of Ruiz Co.

  • Q : What is the number of juices per day....
    Accounting Basics :

    Upon further investigation, the owner learns that the new machine requires substantial maintenance, which will increase the variable cost by $.50 per juice. How would this information affect your an

  • Q : Direct labor cost per unit to make the lamp shades....
    Accounting Basics :

    The direct materials and direct labor cost per unit to make the lamp shades are $4.00 and $6.00 respectively. Normal production is 40,000 of fixed manufacturing overhead currently being charge to th

  • Q : How much will hale save or lose if the cases are bought....
    Accounting Basics :

    if the case production were stopped, the space that it is using could be rented out for $20,000 per year. The outside supplier has offered to supply the cases for $2.80 per case. How much will Hale

  • Q : What are the contribution margin and net income....
    Accounting Basics :

    Thomas Company has total fixed costs of $360,000 and variable costs of $14 per unit. If the unit sales price is reduced from $24 to $20 and advertising is increased by $10,000, sales will increase f

  • Q : Partners tax year-ends....
    Accounting Basics :

    Gold Corporation, Silver Corporation, and Copper Corporation are equal partners in the GSC Partnership. The partners' tax year-ends are as follows:

  • Q : What is the amount of the amortization deduction for 2010....
    Accounting Basics :

    Of the purchase price, $150,000 was paid for the patent and $48,000 for the covenant. The amount of the excess of the purchase price over the identifiable assets was $87,000. What is the amount of

  • Q : How much is the amount of gross profit for the year....
    Accounting Basics :

    If the cost of goods manufactured during the year amounted to $665,000 and annual sales were $998,000, how much is the amount of gross profit for the year?

  • Q : How accounting equation be affected....
    Accounting Basics :

    How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

  • Q : Working and hiring the painter....
    Accounting Basics :

    On a particular Saturday, Tom had planned to paint a Room in his house, but his employer gave him the opportunity to work that day. If Tom works, he must hire a painter for $100. For Tom to have a p

  • Q : What tomlinson packaging would report....
    Accounting Basics :

    Tomlinson packaging Corporation began business in 2010 by issuing 20,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%, $10 par preferred stock for par. At year end, the comm

  • Q : Alternatives to finance its construction....
    Accounting Basics :

    Burden Inc. is considering these two alternatives to finance its construction of a new $2 million plant:

  • Q : Prepare the appropriate entries-inception of the lease....
    Accounting Basics :

    Prepare the appropriate entries for Winn Heat Transfer from the inception of the lease through the end of 2011. Winn's fiscal year is the calendar year. Winn uses straight-line depreciation.

  • Q : Make summary entries to record the realized gross profit....
    Accounting Basics :

    "Sawyer Furniture Company concluded its first year of operations in which it made sales of $800,000, all on installment. Collections during the year from down payments and installments totaled $300,

  • Q : Problem based on regular taxable income....
    Accounting Basics :

    Jerusha is married and she files a separate tax return in 2010. She claims two exemptions (2 x 3,650 = $7,300). She claimed the standard deduction for regular tax purposes ($5,700). She had no other

  • Q : What is the amount of standard deduction this year....
    Accounting Basics :

    This year the only significant expense that they incurred was an unreimbursed medical expense of $3,200. If Jon and Holly together have AGI of $42,000, what is the amount of their standard deduction

  • Q : Salesperson or work as a self-employed sales....
    Accounting Basics :

    Belinda is trying to decide whether she should accept employment as a salesperson or work as a self-employed sales representative.

  • Q : Prepare a multistep income statement....
    Accounting Basics :

    Purchased inventory costing $5,600 on account from smoot company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $500 were paid in cash.

  • Q : Cost per unit of activity....
    Accounting Basics :

    Expense A is a fixed cost; expense B is a variable cost. During the current year the activity level has increased, but is still within the relevant range. In terms of cost per unit of activity, we w

  • Q : Prepare a multistep income statement....
    Accounting Basics :

    The little Black Dress Shop (TLBDS) started the 2008 accounting period with the balances given in the financial statements model shown below. During 2008 TLBDS experienced the following business eve

  • Q : Prepare the journal entry to record the issuance of the bond....
    Accounting Basics :

    Southeast Airlines is considering tow alternatives for the financing of a purchase of a fleet of airplanes. These two alternatives are:

  • Q : Making the stockholders equity section....
    Accounting Basics :

    Prepare the stockholders' equity section of Mundo Health Food's balance sheet at December 31, 2012.

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