• Q : Explain the percentage of net sales method....
    Accounting Basics :

    The general ledger account for Accounts Receivable shows a debit balance of $40,000. The Allowance for Uncollectible Accounts has a credit balance of $2,000.

  • Q : Discuss the ground shipping boxes....
    Accounting Basics :

    United Express (UnEx) is a package delivery company, which offers two types of service: Air Delivery (Overnight) and Ground Shipping (standard).

  • Q : What is the amount of cash dividends....
    Accounting Basics :

    The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired.What is the amount

  • Q : Discuss how much should the company be willing to pay....
    Accounting Basics :

    Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained

  • Q : Explain the value stock outstanding....
    Accounting Basics :

    A corporation has 60,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the number of shares outstanding will be

  • Q : Why the customer would like modifications made to product....
    Accounting Basics :

    The customer would like modifications made to product Y45 that would increase the variable costs by $8.10 per unit and that would require an investment of $20,000 in special molds that would have no

  • Q : Determine and compare their net profit margin....
    Accounting Basics :

    Choose two competitor companies of your choice that are U.S. GAAP publicly traded companies. Determine and compare their net profit margin and debt to asset ratio for the most recent year reported.

  • Q : Calculate the net book value of the machine at that date....
    Accounting Basics :

    Using the double-declining-balance depreciation method, calculate the depreciation expense for the year ended December 31, 2012, and the net book value of the machine at that date.

  • Q : Effects of forfeitures and income taxes....
    Accounting Basics :

    On January 1, 2006, Sooner or Later Inc. granted 1,000 "at-the-money" employee stock options. To align the compensation of the employees with the financial performance of the company.

  • Q : What benefit does this restatement provide to external users....
    Accounting Basics :

    Why do you think GAAP requires restatement of prior financial statements if there is a change in reporting entity? What benefit does this restatement provide to external users such as investors?

  • Q : What would the amount of purchases be for june....
    Accounting Basics :

    A sales budget has been prepared for June. Management wants the amount of ending inventory each month to be equal to 10% of the next month's cost of goods sold.

  • Q : Discuss the effect on income if paz decides to make....
    Accounting Basics :

    The required volume of output to produce the motors will not require any incremental fixed overhead. Incremental variable overhead cost is $21 per motor.

  • Q : Explain the total cash collections....
    Accounting Basics :

    The company's past records show collection of credit sales as 60% in the month of sale and the balance in the following month. If inventory units are sold for $25, the total cash collections in Nove

  • Q : Calculate the idle capacity to rework these items....
    Accounting Basics :

    Sandlewood Company has 15,000 units of its sole product that it produced last year at a cost of $43 each. This year's model is superior to last year's and the 15,000 units cannot be sold for their r

  • Q : Describe the amount of gross profit to be recognized....
    Accounting Basics :

    During 2010 Nielsen Company started a construction job with a contract price of $1,886,400. The job was completed in 2012. The following information is available.

  • Q : Why dunkin company manufactures and sells a single product....
    Accounting Basics :

    Dunkin Company manufactures and sells a single product that sells for $480 per unit; variable costs are $300. Annual fixed costs are $990,000. Current sales volume is $4,200,000. Compute the break-

  • Q : Using the discounted cash flow technique....
    Accounting Basics :

    Morgan Company is considering a capital investment of $180,000 in additional productive facilities. The new machinery is expected to have a useful life of 6 years with no salvage value.

  • Q : What is the correct calculation to determine dollar amount....
    Accounting Basics :

    Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?

  • Q : How to increase the companys profits the most....
    Accounting Basics :

    Wave-Zone Company has 10,000 units of its sole product that it produced last year at a cost of $50 each. This year's model is superior to last year's and the 10,000 units cannot be sold for their re

  • Q : Two levels of monthly production....
    Accounting Basics :

    Edde corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.

  • Q : Using sales dollars as an allocation base....
    Accounting Basics :

    Konig Enterprises, Ltd., owns and operates three restaurants in Vancouver, B.C. The company allocates its fixed administrative expenses to the three restaurants on the basis of sales dollars.

  • Q : What is the gross profit for the month....
    Accounting Basics :

    An end of the month (1/31/08) inventory showed that 120 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

  • Q : What accounting rules could he use to support his position....
    Accounting Basics :

    How would you defend Mr. Hastings' position, no matter which side of the argument he chooses. Defend your position with accounting rules, practical knowledge, and by any other means necessary.

  • Q : Compute the amount of cash received from total sales....
    Accounting Basics :

    Kent Company anticipates total sales for April, May, and June of $800,000, $900,000, and $950,000 respectively. Cash sales are normally 25% of total sales.

  • Q : How to prepare an incremental analysis for the special order....
    Accounting Basics :

    Prepare an incremental analysis for the special order. (If answer is zero, please enter 0. Do not leave any fields blank. If amount decreases the income, use either a negative sign preceding the num

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