• Q : What amount of earnings would be created....
    Accounting Basics :

    Brown, Jones and Smith formed a partnership with Brown contributing $60,000, Jones contributing $50,000 and Smith contributing $40,000.

  • Q : What should be the recorded cost of the van....
    Accounting Basics :

    Horner Company buys a delivery van with a list price of $30,000. The dealer grants a 15% reduction in list price and an additional 2% cash discount on the net price if payment is made in 30 days.

  • Q : Why are the percentages of ownership....
    Accounting Basics :

    Under what circumstances would you use the cost or equity method of accounting for an investment? Why are the percentages of ownership only a guideline when accounting for an investment?

  • Q : Indian river groves borrowed....
    Accounting Basics :

    On January 2, 2010, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2011. Expenditures for the constructi

  • Q : Explain the number of shares of common stock....
    Accounting Basics :

    Convertible preferred stock: 2,500 shares of 8.5%, $50 par, preferred stock were issued on January 2, 2011, for $60 per share. Each share of preferred stock is convertible into 3 shares of common st

  • Q : Cost of the land that should be recorded by wilson....
    Accounting Basics :

    Wilson Co. purchased land as a factory site for $600,000. Wilson paid $60,000 to tear down two buildings on the land. Salvage was sold for $5,400. Legal fees of $3,480 were paid for title investigat

  • Q : Why the number of options granted to each executive....
    Accounting Basics :

    Based on past trends, on the grant date, James predicts that its market share will increase about 3% by the end of 2015. At the end 0f 2014, due to its improved market position over the previous 2 y

  • Q : What is the inventory balance on dell....
    Accounting Basics :

    What is the inventory balance on Dell's January 28, 2005 balance sheet? Why the inventory balance is so small compared to the other current asset balances?

  • Q : Determine the total deduction for the stolen items on jacob....
    Accounting Basics :

    Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowner's insurance policy paid Jacob $7,000 for the stolen computer, Jacob's employer did not reimburse

  • Q : What the company earnings per share....
    Accounting Basics :

    Shamrock Company had net income of $30,000. On January 1, the number of shares of common stock outstanding were 8,000. On April 1, the company issued an additional 2,000.

  • Q : Determine how much should the bond discount be reduced....
    Accounting Basics :

    On June 30, 2006, Mabry Corporation issued $5 million of its 8% bonds for $4.6 million. The bonds were priced to yield 10% (i.e., market rate). The bonds are dated June 30, 2006, and mature on June

  • Q : Discuss the prepaid expenses and accounts payable....
    Accounting Basics :

    Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances.

  • Q : Management substitute the armadillo car....
    Accounting Basics :

    Home Auto Parts is a large retail auto parts store selling the full range of auto parts and supplies for do-it-yourself auto repair enthusiasts. The store is arranged with three prime displays in th

  • Q : How to explain the physical-measure method....
    Accounting Basics :

    Elsie Dairy Products Corp. buys one input, full-cream milk, and refines it in a churning process. From each gallon of milk Elsie produces three cups of butter and nine cups of buttermilk.

  • Q : What amount should larsen report for deferred income....
    Accounting Basics :

    Larsen Corporation reported $100,000 in revenues in its 2010 financial statements, of which $44,000 will not be included in the tax return until 2011. The enacted tax rate is 40%.

  • Q : What is the net impact on black lion companys year....
    Accounting Basics :

    What is the net impact on Black Lion Company's Year 2 net income as a result of this hedge of a forecast foreign currency purchase? Assume that the raw materials are consumed and become a part of co

  • Q : Determine consolidated totals for father company....
    Accounting Basics :

    Assume instead that the acquisition-date fair value of the noncontrolling interest was $112,500. What balances in the December 31, 2013, consolidated statements would change?

  • Q : The sweetwater candy company....
    Accounting Basics :

    The Sweetwater Candy Company would like to buy a new machine that would automatically "dip" chocolates. The dipping operation is currently done largely by hand.

  • Q : Prepare contribution margin income statement....
    Accounting Basics :

    British Productions performs London Shows. The avg. show sells 1200 tickets at $50/ticket. There are 120 shows a year. The avg. show has a cast of 70, each earning an avg.

  • Q : What is the initial outlay associated with this project....
    Accounting Basics :

    What is the terminal cash flow in year 10 (that is, what is the free cash flow in year 5 plus any additional cash flows associated with termination of the project)?

  • Q : Sansomite inventory consisted of suitcases....
    Accounting Basics :

    Sansomite Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, Sansomite's inventory consisted of suitcases costing $1,200.

  • Q : Yoder enterprises generated revenues....
    Accounting Basics :

    During 2010, Yoder Enterprises generated revenues of $60,000. The company's expenses were as follows: cost of goods sold of $30,000, operating expenses of $12,000 and a loss on the sale of equipmen

  • Q : Discuss the constant gross margin percentage nrv method....
    Accounting Basics :

    Elsie chooses to process the butter further into spreadable butter by mixing it with canola oil, incurring an additional cost of $1.60 per pound.

  • Q : Capital budgeting emphasizes the key....
    Accounting Basics :

    Capital budgeting emphasizes the key role management has in value creation by taking projects and expanding the size of the firm if profitable.Do you agree or disagree? Why or why not?

  • Q : How to calculate the diluted earnings per share....
    Accounting Basics :

    McWade Company has 36,000 shares of common stock outstanding at the beginning of 2014. McWade issued 4,500 additional shares on May 1 and 3,000 additional shares on September 30.

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