• Q : Statement of cash flows-direct method in the amount....
    Accounting Basics :

    On December 31, 2011, Wellstone Company reported net income of $70,000 and sales of $210,000. The company also reported beginning and ending accounts receivable at $20,000 and $25,000, respectively.

  • Q : Woody pretax accounting income....
    Accounting Basics :

    Woody Corp. had taxable income of $8,000 in the current year. The amount of MACRS depreciation was $3,000 while the amount of depreciation reported in the income statement was $1,000. Assuming no ot

  • Q : What deferred tax liability would isaac report....
    Accounting Basics :

    Ignoring operating expenses, what deferred tax liability would Isaac report in its year-end 2011 balance sheet?

  • Q : Income tax payable for its first year of operations....
    Accounting Basics :

    Tringali's tax rate is 40%. Assume that no estimated taxes have been paid. What should Tringali report as income tax payable for its first year of operations?

  • Q : Basic earnings per share computation concept....
    Accounting Basics :

    On December 31, 2010, Albacore Company had 300,000 shares of common stock issued and outstanding. Albacore issued a 10% stock dividend on June 30, 2011. On September 30, 2011, 12,000 shares of commo

  • Q : What is basic earnings per share....
    Accounting Basics :

    Flyaway also paid $10,000 cash dividends on its common stock. Flyaway had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on April 1, 2011. What is 2011 ba

  • Q : Treasury stock account shows a balance....
    Accounting Basics :

    Coy, Inc. initially issued 200,000 shares of $1 par value stock for $1,000,000 in 2009. In 2010, the company repurchased 20,000 shares for $200,000. In 2011, 10,000 of the repurchased shares were re

  • Q : Paid-in capital-excess of par increase for the transaction....
    Accounting Basics :

    Montgomery & Co., a well established law firm, provided 500 hours of its time to Fink Corporation in exchange for 1,000 shares of Fink's $5 par common stock. Mitchell's usual billing rate is $70

  • Q : What is total paid-in capital at the end....
    Accounting Basics :

    Poodle Corporation was organized on January 3, 2011. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2011, Poodle had the following transactions relating to shareholde

  • Q : Amount of dividends common shareholders will receive....
    Accounting Basics :

    The shareholders' equity of Green Corporation includes $200,000 of $1 par common stock and $400,000 of 6% cumulative preferred stock. The board of directors of Green declared cash dividends of $50,0

  • Q : What is total shareholders equity at the end....
    Accounting Basics :

    Roberto Corporation was organized on January 1, 2011. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2011, Roberto had the following transactions relating to sharehol

  • Q : Concept of expanded affiliated group....
    Accounting Basics :

    Boasso Corporation manufactures an exercise machine at a cost of $800 and sells the machine to Kershaw Corporation for $1000 in 2009. Kershaw incurs TV advertising expenses of $300 and sells the mac

  • Q : Profit from the imported merchandise....
    Accounting Basics :

    Maria Corporation manufactures and sells ceramic dinnerware. The company also sells dinnerware that is purchased from unrelated foreign producers. During the tax year 2009, Maria had a U.S. profit o

  • Q : Loss from the imported dinnerware....
    Accounting Basics :

    Tayshaun, Inc., manufactures and sells glassware. The company also sells dinnerware that is purchased from unrelated foreign producers. During tax year 2009, Tayshaun had a U.S. profit of $1.2 milli

  • Q : How much total combined income tax pay in the current year....
    Accounting Basics :

    Assuming that Black Corporation distributes all after-tax income as dividends, how much total combined income tax do Black and George pay in the current year? (Ignore any employment tax consideratio

  • Q : Consolidated balance sheet made immediate after combination....
    Accounting Basics :

    At the time, Rudd held land with a book value of $100,000 and a fair value of $260,000; Wilton held land with a book value of $50,000 and fair value of $600,000. Using the parent company theory, at

  • Q : Foreign-based entity that uses a functional currency....
    Accounting Basics :

    Which of he following defines a foreign-based entity that uses a functional currency different from the local currency?

  • Q : What is the trusts net accounting income....
    Accounting Basics :

    Assue the Uniform Act (1962) governs an item's classification as principal or income. The trustee's fee is charged one-half to principal and one-half to income. What is the trust's net accounting in

  • Q : Determination of beneficiary''s income....
    Accounting Basics :

    A trust is authorized to make discretionary distributions of income and principal to its two beneficiaries, Roy and Sandy. Separate shares are not required. For the current year, it has DNI and net

  • Q : Consolidated income statement of push company....
    Accounting Basics :

    In the consolidated income statement of Push Company and its subsidiary, Shove Corporation, the noncontrolling interest was assigned $24,000 of income for 2009. What amount of net income did Shove r

  • Q : What amount must james report as total infrequent losses....
    Accounting Basics :

    In its 2010 income statement, what amount should James report as total infrequent losses that are not considered extraordinary.

  • Q : Sas made their rental payments....
    Accounting Basics :

    It must be a correction of an error, but how are you going to do this since the 2009 books were closed a long time ago? Assume that the 12/31/10 books are still open and that SAS has made their rent

  • Q : Impairment in value prior to transfer....
    Accounting Basics :

    Assuming no impairment in value prior to transfer, assets transferred by a parent company to another entity it has created should be recorded by the newly created entity at the assets':

  • Q : Imputed interest rate for evaluating....
    Accounting Basics :

    A company uses residual income to evaluate their Div. performance. The Div. had operating profit of $1,000,000 and invested capital of $20,000,000. The imputed interest rate for evaluating a Div. is

  • Q : Journal entry beneath a standard costing system....
    Accounting Basics :

    A company purchased materials costing $12,000 that, according to standards, should have cost $11,000. They used $8,000 of the materials (at standard cost) in the current period. The journal entry un

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