• Q : Budget and actual results for the month....
    Accounting Basics :

    The theater managers' compensation depends on the profitability of their the-aters. Max Burgman, the manager of the Park Theater, had the following master budget and actual results for the month.

  • Q : What is the trust''s dni....
    Accounting Basics :

    Determination of Accounting Income and Distribution. The Trotter Trust has the receipts and expenditures listed below for the current year. Assume the Uniform Act (1962) governs an item's classifica

  • Q : What amount of revenue should acme recognize....
    Accounting Basics :

    due on October 1, 1996, 25% due on first delivery and 25% due on the second delivery. What amount of revenue should Acme recognize from this sale during 1996?

  • Q : Prepare a combined statement of income....
    Accounting Basics :

    The Massoud Consulting Group reported net income of $1,354,000 for its fiscal year ended December 31, 2011. In addition, during the year the company experienced a foreign currency translation adjust

  • Q : How much of the first $3,000 payment should larry include....
    Accounting Basics :

    The IRS tables indicate that given Larry's age, he should expect to receive 310 monthly payments. The cost of the annuity to Larry was $620,000. How much of the first $3,000 payment should Larry inc

  • Q : New overall contribution margin ratio....
    Accounting Basics :

    Suppose that the sales mix changes to 40% Aye, 25% Bee, and 35% Cee, what would be the new overall contribution margin ratio for the company?

  • Q : Problem related to transportation industry....
    Accounting Basics :

    Select a company that you are familiar with from the transportation industry.

  • Q : Calculate the costs assigned to completed units....
    Accounting Basics :

    The ending inventory units were 100 percent complete as to mate­rial and 50 percent complete as to labor. Overhead is applied to production at the rate of 60 percent of direct labor cost.

  • Q : How much do they have to deposit for a lump sum....
    Accounting Basics :

    Two parents have decided to establish an investment program. They estimate it will cost $40,000 per year for four years. Their investment program will earn them 10 % over the years. How much do they

  • Q : Utility-maximizing combination of bread-milk....
    Accounting Basics :

    Is she buying the utility-maximizing combination of bread & milk? How should she reallocate her expenditures between the two goods?

  • Q : Lliability for corporate obligations....
    Accounting Basics :

    A big advantage of corporate existence is the limited liability protecting individuals from liability for corporate obligations. But Courts will look at the legitimacy of corporate existence and ask

  • Q : Net realizable of accounts receivable....
    Accounting Basics :

    Cash collections of receivables amounted to $745,000. The company estimates that it will be unable to collect 2% of accounts receivable. The net realizable of accounts receivable on the December 31,

  • Q : Benefits and costs of sarbanes-oxley....
    Accounting Basics :

    What are the benefits and costs of Sarbanes-Oxley? Should Sarbanes-Oxley be reformed? What provisions would you include in a revised Sarbanes-Oxley?

  • Q : What is its self-supporting growth rate....
    Accounting Basics :

    How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate?

  • Q : What amount of the bond issue proceeds....
    Accounting Basics :

    On March 1, Year 4, the quoted market value of Evan's common stock was $20 per share, and the market value of each warrant was $4. What amount of the bond issue proceeds should Evan record as an inc

  • Q : Prepare the entries for the two periods....
    Accounting Basics :

    Sales for the second period were $720,000 and the coupons redeemed totaled 750,000. The record shop bought 20,000 posters at $1.50/poster and 20,000 albums at $2.00/album. Prepare the following entr

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

    The company is granted a charter that authorizes issuance of 15,000 shares of $100 par value preferred stock and 40,000 shares of no-par common stock.

  • Q : Trends of sales and profits over time....
    Accounting Basics :

    Investors are vitally interested in a company's sales and profits, and its trends of sales and profits over time. Consider Foot Locker's sales and net income (net loss) during the period from 2005 t

  • Q : What was the net income reported by benny''s repair....
    Accounting Basics :

    During the year the business recorded $210,000 in revenues, $110,000 in expenses, and dividends of $20,000. what was the net income reported by Benny's Repair Shop for the year ?

  • Q : Book value per share of common stock-market value per share....
    Accounting Basics :

    What is the difference between book value per share of common stock and market value per share? Why does this disparity occur?

  • Q : What is the net present value of the presentation equipment....
    Accounting Basics :

    The equipment is expected to generate net cash inflows of $35,000 per year in each of the 10 years. Isomer's discount rate is 16%. Isomer uses the straight-line method of depreciation for its assets

  • Q : Compute the ratio of ending inventory to next months sale....
    Accounting Basics :

    (1) Prepare the merchandise purchases budget for the months of July, August, and september.(2) Compute the ratio of ending inventory to the next month's sales for each budget prepared in part 1.(3)

  • Q : What is the simple rate of return on the investment....
    Accounting Basics :

    the company would save $108,000 per year in cash operating costs. what is the simple rate of return on the investment ?

  • Q : Six-month note payable with the amount borrowed....
    Accounting Basics :

    On September 1, 2010, Daylight Donuts signed an $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2011. Daylight Donuts should repo

  • Q : What is the simple rate of return on the investment....
    Accounting Basics :

    The annual depreciation on the new machine would be $25,000. what is the simple rate of return on the investment ?

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