• Q : Prepare the entry to close the firms income summary account....
    Accounting Basics :

    Prepare the entry to close the firm's Income Summary account as of its December 31 year-end and to allocate the $410,400 net income to the partners under each of the following separate assumptions:

  • Q : How much will operating income change if sales increase....
    Accounting Basics :

    Salter Inc.'s unit selling price is $50, the unit variable costs are $35, fixed costs are $125,000, and current sales are 10,000 units. How much will operating income change if sales increase by 5,0

  • Q : Compute potter''s budgeted cash receipts for the quarter....
    Accounting Basics :

    Potter's minimum cash balance requirement is $10,000. Should the balance fall below this amount, management negotiates a short-term loan with a local bank. The company's debt ratio (liabilities / as

  • Q : What is the correct make-or-buy decision....
    Accounting Basics :

    If Fornelli, Inc. can purchase the component part externally for $88,000 and only $8,000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

  • Q : How much taxable income will junior recognize....
    Accounting Basics :

    The stock's FMV on Ken's date of death was $90,000. Ken's basis in the stock was $40,000. Jack Corporation had an E&P balance of $300,000. If the redemption qualifies under Sec. 303, how much ta

  • Q : What is jason year-end basis....
    Accounting Basics :

    Jason purchased a 20% interest in JKL Partnership for $20,000 at the beginning of the year. At year-end, the partnership reported net income of $15,000 and distributed $2,000 cash to Jason. What is

  • Q : Shareholder in the two corporations....
    Accounting Basics :

    Ted also owns a 10% of Subco (an S corporation) that had $100,000 of taxable income and distributed a total of $60,000 to its shareholders. How much must Ted include in his gross income as a result

  • Q : Schedule of noncash investing and financing transactions....
    Accounting Basics :

    Answer the following questions that pertain to the investing activities section and the schedule of noncash investing and financing transactions of the statement of cash flows.

  • Q : Compute the direct labor rate and efficiency variances....
    Accounting Basics :

    A company has a standard of 2 hours of direct labor per unit produced and $18 per hour for the labor rate. During last period, the company used 9,500 hours of direct labor at a $152,000 total cost t

  • Q : Decision model analyzing the alternatives....
    Accounting Basics :

    Edison Company has 5,000 obsolete desk lamps that are carried in inventory at a manufacturing cost of $45000. If the lamps are reworked for $20,000, they could be sold for $37,000. Alternatively, th

  • Q : What defnse should lauren yost, co. use....
    Accounting Basics :

    would the issues or outcome be significantly different if the suit was brought under the securities Exchange Act of 1934?

  • Q : Analysis of one sub-activity cost....
    Accounting Basics :

    LLL Corporation has recently performed a value-added analysis and ranking of activities. Presented below is an analysis of one sub-activity cost, sorted by value and cost:

  • Q : Indirect costs assigned to the commercial department....
    Accounting Basics :

    If Deadlock Cooperative uses a bank wide rate based on the number of loans processed, what would be the indirect costs assigned to the Commercial Department?

  • Q : What is the total cost for a month....
    Accounting Basics :

    The variable cost per unit is constant up to a production level of 2,000 units per month but a step up of £6,000 in the monthly total fixed cost occurs when production reaches 1,100 units per

  • Q : Revenue and expenses in the proper period....
    Accounting Basics :

    How important is it to get the revenue and expenses in the proper period within a year? Is it any more important then or at the end of a period?

  • Q : Departures from the standard report....
    Accounting Basics :

    Consider the facts given and prepare an auditor´s report, incorporating any necessary departures from the standard report.

  • Q : Compute the net investment for project....
    Accounting Basics :

    The original cost of the first machine was $200,000 and the original cost of the second was $140,000. The firm's tax rate is 40%. Compute the net investment for this project.

  • Q : Deduction for employment-related expenses....
    Accounting Basics :

    a. What is the amount of Mike's deduction for employment-related expenses? b. How are these items reported in Mike's tax return?

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

    The patent was acquired in January 2011 and has a useful life of 10 years.The copyright was acquired in January 2008 and also has a useful life of 10 years.The following cash transactions may have a

  • Q : Amount column of the revenue journal....
    Accounting Basics :

    At the end of the month, the total of the amount column of the revenue journal is posted as a:

  • Q : Differentiate that disclosure requirement....
    Accounting Basics :

    What is the purpose of the IAS 1 requirement for the entity to disclose in a separate footnote its significant accounting policies? Differentiate that disclosure requirement from the other footnote

  • Q : Acquirer record as goodwill upon acquiring target....
    Accounting Basics :

    Target Inc. has 30 million shares outstanding and trades at $50 per share. Target has net identifiable assets with a book value of $1 billion and a fair value of $1.2 billion. Acquirer Corporation p

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

    A company that uses the perpetual inventory system purchased $8,500 worth of inventory on September 25. Terms of the purchase were 2/10, n/30. The invoice was paid in full on October 4. Prepare the

  • Q : Operating section of the statement of cash flows....
    Accounting Basics :

    Its comparative balance sheets reveal a $42,400 increase in accounts receivable, $21,730 increase in accounts payable, $11,660 decrease in prepaid expenses, and $16,430 decrease in wages payable. Pr

  • Q : How do these transactions affect mac''s taxable income....
    Accounting Basics :

    Assuming MACS is a sole proprietorship, how do these transactions affect Mac's taxable income for the year?

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