• Q : How to calculate the total amount reported in the cash flows....
    Accounting Basics :

    If a loss of $12,500 is incurred in selling (for cash) office equipment having a book value of $50,000, the total amount reported in the cash flows from investing activities section of the statemen

  • Q : What factors should turner manager....
    Accounting Basics :

    Acme is a decentralized corporation. Divisions are treated as investment centers. In recent years, Acme has been running about 11% ROA for the corporation as a whole.

  • Q : Explain the difference between actual and budgeted costs....
    Accounting Basics :

    Stone Industries uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is $ 48,000 variable and $270,000 fixed.

  • Q : How many care hours must it provide per day....
    Accounting Basics :

    If a full-time equivalent (FTE) is paid for 2,080 hours and nonproductive hours are 382 per FTE, how many FTEs will be required to provide the required care hours?

  • Q : Evaluate the practice of using a contra account....
    Accounting Basics :

    Your accounting supervisor has instructed you to verify the accuracy of the day s bank credit card sales, and then deposit that amount into the business checking account. Summarize the steps that yo

  • Q : How much will be received by preferred shareholders....
    Accounting Basics :

    Permabilt Corp. was incorporated on January 1, 2010, and issued the following stock for cash: 3,600,000 shares of no-par common stock were authorized; 1,050,000 shares were issued on January 1, 2010

  • Q : Two alternative budget plans....
    Accounting Basics :

    Litwin Industries has sales in 2011 of $4,900,000 (700,000 units) and gross profit of $1,187,500. Management is considering two alternative budget plans to increase its gross profit in 2012.

  • Q : Why the gain must troy recognize on his home sale....
    Accounting Basics :

    Troy (single) purchased a home in Hopkinton, Massachusetts, on April 6, 2005, for $515,500. He sold the home on October 6, 2012, for $547,000.

  • Q : What is the factory overhead volume variance....
    Accounting Basics :

    The Joyner Corporation originally budgeted for $360,000 of fixed overhead. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit.

  • Q : Version of their most recent annual....
    Accounting Basics :

    Jackies is a large, locally-owned general retail business operating out of a single location. A condensed version of their most recent annual segmented income statement is given below (all amounts i

  • Q : Calculate the retained earnings balance as of december....
    Accounting Basics :

    From the following data: Retained earnings, December 31, 2011 $ 490,400 Net decrease in total assets during 2011 74,800 Net increase in accounts receivable in 2011 17,200

  • Q : What is the difference between actual and budgeted costs....
    Accounting Basics :

    Chambers, Inc. uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is : $64,000 variable and $ 180,000 fixed.

  • Q : The fair value option pricing model....
    Accounting Basics :

    On January 1, 2010, Magilla Inc. granted stock options to officers and key employees for the purchase of 20,000 shares of the company's $10 par common stock at $25 per share.

  • Q : Calculate the total amount of cash that would be paid....
    Accounting Basics :

    Common stock without par value, 2,000,000 shares authorized, 400,000 shares issued, and 360,000 shares outstanding $2,600,000 If a cash dividend of $.60 per share were declared, calculate the total

  • Q : How much is total overhead costs at this level of activity....
    Accounting Basics :

    1. Best Shingle's budgeted manufacturing costs for 50,000 squares of shingles are : Fixed manufacturing costs $12,000. Variable manufacturing costs $ 16 per square. Best produced 40,000 squares of s

  • Q : Parent company intercompany investment income....
    Accounting Basics :

    Under the equity method of accounting, depreciation and amortization of the date-of-business-combination differences.

  • Q : Why the power should show warranty expense....
    Accounting Basics :

    Power Company sells merchandise with a one year warranty. In 2012, sales consisted of 1,600 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will b

  • Q : Determine the value-added....
    Accounting Basics :

    RAD Technologies Inc. is considering a new just-in-time product cell. The present manufacturing approach produces a product in four separate steps.

  • Q : The date of a business combination....
    Accounting Basics :

    On the date of a business combination resulting in a parent-subsidiary relationship, the differences between current fair values and carrying amounts of the subsidiary's identifiable net assets.

  • Q : How long will it take karen to pay off the mortgage....
    Accounting Basics :

    Assume that you have graduated from College and are a practicing CPA. One of your clients, Karen Sharpley, a practicing surgeon comes to you for consulting services.

  • Q : Why the new equipment has a payback period....
    Accounting Basics :

    The Higgins Company has just purchased a piece of equipment at a cost of $120,000. This equipment will reduce operating costs by $40,000 each year for the next eight years.

  • Q : Calculate the amount of bonus to be allocated to john....
    Accounting Basics :

    John and Joe formed a partnership on January 2, 2011. John invested $100,000 in cash and Joe invested machinery valued at $40,000, which he had purchased for $60,000 in 2004.

  • Q : Account for them under the fair value option....
    Accounting Basics :

    Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2011. Management intends to have the investment available for sale when c

  • Q : How large would the annual cash inflow have....
    Accounting Basics :

    The management of Hirsh Corporation is investigating an investment in equipment that would have a useful life of 9 years. The company uses a discount rate of 13% in its capital budgeting.

  • Q : Affect normal production or domestic....
    Accounting Basics :

    A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data

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