• Q : How should the business financing be recorded on the books....
    Accounting Basics :

    Mack: "Hi, I'm Mack. My best friend Peter Charles (aka: PC) and I have been best friends for 10 years. Both of us have an extensive background in computers.

  • Q : Why the upgraded computers has not been set....
    Accounting Basics :

    The Tingey Company has 400 obsolete microcomputers that are carried in inventory at a total cost of $576,000. If these microcomputers are upgraded at a total cost of $150,000, they can be sold for a

  • Q : Evaluate long-term projects....
    Accounting Basics :

    The new equipment will cost $300,000 and a one-time cost of $15,000 will be incurred to remove the old equipment and install the new equipment.

  • Q : Discuss the combined total department costs....
    Accounting Basics :

    Premium Corporation has two service departments whose direct department costs are $75,000 and $10,000, respectively, and two producing departments whose direct department costs are $60,000 and $250,

  • Q : How this information should be gathered....
    Accounting Basics :

    Miller has asked managers to submit an estimate of the production space occupied by their respective product lines. Heating costs are in a separate pool Cost driver.

  • Q : Calculate one predetermined rate per minute to allocate....
    Accounting Basics :

    Sanilac County has a lease on a lawn mower for $2500 per month and $.02 per minute of operation. Operating costs for fuel, oil, technicians, and so on are all variable at $.03 per minute.

  • Q : What would be the impact on the companys overall profit....
    Accounting Basics :

    What would be the impact on the company's overall profit? (Input the amount as a positive value. Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amoun

  • Q : Determine degree of operating leverage for each approach....
    Accounting Basics :

    For nearly 20 years Custom Coatings has provided painting and galvanizing services for manufacturers in its region. Manufacturers of various metal products have relied on the quality and quick turna

  • Q : Discuss the incremental profit or loss per unit....
    Accounting Basics :

    Mizzou Mining Company mines an iron ore called Alpha. During the month of December, 400,000 tons of Alpha were mined and processed at a cost of $742,500.

  • Q : Explain minimum profit margin needed to operate the business....
    Accounting Basics :

    Rainbow Cruises operates a week-long cruise tour through the Hawaiian Islands. Passengers currently pay $1,800 for a two-person cabin, which is an all-inclusive price that includes food, beverages,

  • Q : Explain why the amounts reported for the two cases....
    Accounting Basics :

    On January 10, 2010 Shore Company purchased a block of these shares in the open market at $20 per share for long-term investment purchases.

  • Q : Explain to her why her production cost report showed....
    Accounting Basics :

    Her department has had a history of not keeping enough inventory on hand to meet demand. She has come to you, very angry, and wants to know why you credited her with only 1,000 units when she knows

  • Q : What is the amount of interest expense on this loan....
    Accounting Basics :

    Using a financial statements model like the one shown below, record the appropriate amounts for the following two events. (1) January 1, 2012 issue of the note payable. (2) December 31, 2012 payment

  • Q : Explain how this report can be used in this way....
    Accounting Basics :

    In addition to being an effective means of estimating uncollectible accounts, the Aging of A/R is often used as a guide in managing and analyzing Accounts Receivable. Explain how this report can be

  • Q : Prepare an absorption costing income statement of quarter....
    Accounting Basics :

    Prepare an absorption costing income statement of the quarter ending march 31 as shown.Prepare a balance sheet as of march 31

  • Q : Who are the stakeholders in this case....
    Accounting Basics :

    The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts for Ruiz Co. should be 2% of net credit sales. The president of Ruiz Co., nervous that the stockholders might expe

  • Q : How to selected transactions occurred....
    Accounting Basics :

    On January 1, 2010, Kloppenberg Company had Accounts Receivable $139,000, Notes Receivable $25,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Sara Rogers Company.

  • Q : Explain the liability for this contingency as of december....
    Accounting Basics :

    During 2010, Maverick Inc. became involved in a tax dispute with the IRS. Maverick's attorneys have indicated that they believe it is probable that Maverick will lose this dispute.

  • Q : Ledger of hixson company at the end....
    Accounting Basics :

    The ledger of Hixson Company at the end of the current year shows Accounts Receivable $120,000, Sales $840,000, and Sales Returns and Allowances $30,000.

  • Q : What is the ending balance in accounts recievable....
    Accounting Basics :

    A newly created design business called Smart Art is just finishing up its first year of operations. During the year there were credit sales of 40,000 and collections of 36,000. One account for $65

  • Q : Office space rented to another business....
    Accounting Basics :

    On December 1, 2009, Lakeview Company collected rent of $3,600 for office space rented to another business. The rent collected was for two months from December 1, 2009, to January 31, 2010.

  • Q : Calculate which machine should be purchased....
    Accounting Basics :

    Calculate the net present value and profitability index of each machine. Assume a 9% discount rate. (Round net present value to 0 decimal places, e.g. 125 and profitability index to 2 decimal places

  • Q : Amount of the cash discount allowed....
    Accounting Basics :

    Assume that the credit memorandum was received prior to payment and that the invoice is paid within the discount period. Determine the following.

  • Q : Describe the unit product cost for the month under....
    Accounting Basics :

    What is the unit product cost for the month under variable costing?What is the unit product cost for the month under absorption costing?

  • Q : Compute markup as a percentage of full cost....
    Accounting Basics :

    Maui Inc. is deciding on the price for a new product. The company uses cost-plus pricing based on target return on investment. The following information is available for the product.

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