• Q : What was the total amount of dividends....
    Accounting Basics :

    Rugby Rocks, Inc. had a Retained Earnings balance of $12,000 at December 31, 2012. The company had an average income of $7,500 over the next 3 years.

  • Q : How much total interest will you pay....
    Accounting Basics :

    You borrow $165,000 to buy a house. The mortgage rate is 7.5 percent and the loan period is 30 years. Payments are made monthly. If you pay the mortgage according to the loan agreement, how much tot

  • Q : Record the journal entry to reflect....
    Accounting Basics :

    Assume that Lyn Addie is an unmarried employee. Her $1,040 of wages are subject to no deductions other than FICA Social Security taxes, FICA Medicare taxes.

  • Q : How much more could you have earned over....
    Accounting Basics :

    You invested $1,650 in an account that pays 5 percent simple interest. How much more could you have earned over a 20-year period if the interest had compounded annually?

  • Q : How much additional money will you have to gift....
    Accounting Basics :

    You just received a $5,000 gift from your grandmother. You have decided to save this money so that you can gift it to your grandchildren 50 years from now.

  • Q : Used in production each month....
    Accounting Basics :

    The predetermined manufacturing overhead rate is $10 per direct labor hour ($15.00 ÷ 1.5). It was computed from a master manufacturing overhead budget based on normal production of 7,500.

  • Q : Standard quantity in kilograms....
    Accounting Basics :

    Mcgann Corporation is developing standards for its products. Each unit of output of the product requires .50 kilogram of a particular input. The allowance for waste and spoilage is .

  • Q : Earning before interest and taxes....
    Accounting Basics :

    Adjust Sunbeam's 1997 Earning before interest and taxes for one-time events and apparent (e.g., doubtful accounts, depreciation expense, and etc.) changes in accounting policy. You may want to comp

  • Q : Why is classified as a deduction for agi....
    Accounting Basics :

    Mitch is in the 28% tax bracket. He may receive a different tax benefit for a $2,000 expenditure that is classified as a deduction from AGI than he will receive for a $1,000 expenditure that is cla

  • Q : Tooth began to suffer from severe migraine....
    Accounting Basics :

    Dr. Tooth is a 40-year old dentist in Small Town, USA. He graduated from dental school seven years ago and built a thriving practice. In 2001, however, Dr. Tooth had an ugly billing disagreement wit

  • Q : Why indicate the missing amount for each letter....
    Accounting Basics :

    Incomplete manufacturing cost data for Ikerd Company for 2012 are presented as follows for four different situations. Indicate the missing amount for each letter.

  • Q : Describing the situation and the implications....
    Accounting Basics :

    In recent months there have been many news stories in the press about executive compensation with stock options. This type of compensation occurs when an executive is granted the "option.

  • Q : Determine the impact of the preceding errors....
    Accounting Basics :

    The income statements of Diamond Company for the years ended Decem¬ber 31, 19X1, and 19X2 follow. 19X1 19X2 Net sales Cost of goods sold Beginning inventory

  • Q : What is the amount of cash flows from operations....
    Accounting Basics :

    A company's cash flow on total assets ratio equals 16%. If average total assets equal $2,937,500 and total cash flows equal $600,000, what is the amount of cash flows from operations?

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

    North Wind Aviation received its charter during January 2010. The charter authorized the following capital stock:Preferred stock: 8 percent, par $10, authorized 20,000 shares.

  • Q : Calculate the budgeted contributory income....
    Accounting Basics :

    Assume that at the end of next year, actual revenue was on 21,700 rooms occupied at an average rate of $68.40; actual housekeeping wages (before employee fringe benefits) were $108,208.

  • Q : What is the minimum transfer price it should accept....
    Accounting Basics :

    The Can Division of Fruit Products Inc. manufactures and sells tin cans externally for $0.30 per can. Its unit variable costs and unit fixed costs are $0.12 and $0.04, respectively.

  • Q : Why the data is available for this product....
    Accounting Basics :

    Bryson Company has just developed a new product. The following data is available for this product: Desired ROI per unit $18 Fixed cost per unit 30 Variable cost per unit 45 Total cost per unit 75 Th

  • Q : How many liters were started and completed....
    Accounting Basics :

    The Mountain Springs Water Company has two departments. Purifying and Bottling. The Bottling department recieved 67,000 liters from the purifying department.

  • Q : Why the target selling price using the absorption-cost....
    Accounting Basics :

    Papillon Co. has determined the following per unit amounts: Direct materials $20 Fixed selling and administrative $40 Direct labor 24 Variable overhead 16 Desired ROI 22 Variable selling and adminis

  • Q : Discuss the level of production in direct materials....
    Accounting Basics :

    Ortiz Co. produces 5,000 units of part A12E. The following costs were incurred for that level of production: Direct materials $45,000 Direct labor 160,000 Variable overhead 75,000

  • Q : Per unit normal price....
    Accounting Basics :

    Manager cant quote more than 70$ per timing cant pay more than 9$ per unit normal price 12.50 total purchased price 30.00 variable cost 20.75 fixed overhead and administrative cost 10.00.

  • Q : The straight-line method of depreciation....
    Accounting Basics :

    The cash price of this machine was $38,000. Related expenditures included: sales tax $1,700, shipping costs $150, insurance during shipping $80, installation and testing costs $70.

  • Q : Identify the two accounts on the year end balance sheet....
    Accounting Basics :

    Due to a clerical error, a company overstated by $50,000 the amount of inventory on hand at the end of the year. Will net income for the year be overstatd or understated? Identify the two accounts o

  • Q : Discuss the major sources and uses of cash for the year....
    Accounting Basics :

    For the most recent accounting year, a company reported the following operating and cash activities: Investments in other companies (8,628)

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