• Q : Issue a report on the compiled financial statements....
    Accounting Basics :

    You are about to issue a report on the compiled financial statements of ABC Company. However, you feel you lack independence because you are an officer and 20% stockholder in the company.

  • Q : Why would you invest in more data acquisition....
    Accounting Basics :

    You are thinking of investing in a field that may have commercial amounts of oil. Based on the existing data of the field you believe there is a 15% chance that if you drilled immediately you would

  • Q : Present the analysis or though process....
    Accounting Basics :

    An oil and gas investor is considering the acquisition of two fields. Both fields have the same production profiles:

  • Q : The cost per equivalent units for materials....
    Accounting Basics :

    The company uses the weighted-average cost method in its process costing system. The ending inventory is 50% complete with respect to conversion costs.

  • Q : What is hidden valleys net income for the year....
    Accounting Basics :

    The balance sheet of Hidden Valley Farms reports total assets of $450,000 and $550,000 at the beginning and end of the year, respectively. The return on assets for the year is 10%.

  • Q : Identified an activity cost pool with allocated....
    Accounting Basics :

    Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups. Simpson has identified an activity cost pool with allocated overhead of $480,000 for w

  • Q : Should duncombe pursue the investment....
    Accounting Basics :

    Analyze the following scenario: Duncombe Village Golf Course is considering the purchase of new equipment that will cost $1,200,000 if purchased today and will generate the following cash disburseme

  • Q : Nulymade inc. computed an overhead....
    Accounting Basics :

    NulyMade Inc. computed an overhead rate for machining costs ($1,000,000) of $10 per machine hour. Machining costs are driven by machine hours.

  • Q : What is victoria groups cash flow from financing activities....
    Accounting Basics :

    During 2012, Victoria Group: (1) received cash of $5,000 billed to a customer in 2011; (2) earned $20,000 of net income; (3) paid interest of $6,000 on a corporate bond issued; (4) paid dividends of

  • Q : What amount of deprecation expense should supplies....
    Accounting Basics :

    During 2012 and 2013, Supplies, Inc. drove the truck 15,000 and 22,000 miles, respectively, to deliver merchandise to its customers. The company originally purchased the truck at the beginning of 20

  • Q : What was the net sales figure for these two transactions....
    Accounting Basics :

    Garber Plumbers offers a 20% trade discount when providing $2,000 or more of plumbing services to its customers. In March 2012, Garber provided $4,000 of plumbing services to Red Oak, Inc. and $1,50

  • Q : Sphere uses a traditional costing system....
    Accounting Basics :

    Sphere Company produces two products, Alpha and Beta. Alpha is a high-volume item totaling 20,000 units annually. Beta is a low-volume item totaling only 6,000 units per year.

  • Q : How would you explain this to the owner....
    Accounting Basics :

    As an accounting manager for a growing graphic design company you are responsible for preparing the monthly financial statements and presenting them to the owner for evaluation.

  • Q : Prepare the journal entry to record the admission....
    Accounting Basics :

    Dresden agrees to pay Choi and Amal $20,000 each for a one third (33 1/3%) interest in the Choi and Amal partnership. Immediately prior to Dresden admission, each partner had a $60,000 capital balan

  • Q : What is the level of activity within the relevant range....
    Accounting Basics :

    Blore Corporation reports that at an activity level of 7,300 units, its total variable cost is $511,803 and its total fixed cost is $76,650. What would be the total cost, both fixed and variable, at

  • Q : How many dependency exemptions....
    Accounting Basics :

    How many dependency exemptions are the following taxpayers entitled to, assuming the people involved are U.S. citizens? Which dependents qualify for the child credit?

  • Q : Why the perpetual inventory records are maintained....
    Accounting Basics :

    For each of the 4 accounts below, prepare an example of a journal entry that would cause the account to be (1) debited and (2) credited using a process costing system.

  • Q : How to sleney company applies overhead....
    Accounting Basics :

    Sleney Company applies overhead on the basis of direct labor dollars, using a rate of $1.65 per labor dollar. How much overhead would be applied to products in January if $18,600 of labor costs wer

  • Q : How to company sold the bonds....
    Accounting Basics :

    The Batson Corporation issued $800,000 of 12% face value bonds for $851,705.70. The bonds were dated and issued on April 1, 2010, are due March 31, 2014, and pay interest semiannually on September

  • Q : Assume straight-line amortization of discount....
    Accounting Basics :

    On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a one-year, 12% note for the balance of the purchase price.

  • Q : Prepare a cash budget for sharpe covering....
    Accounting Basics :

    Of Sharpe's sales, 10 percent is for cash, another 60 percent is collected in the month following the sale, and 30 percent is collected in the following month following the sale.

  • Q : Prepare a schedule showing the intangible assets section....
    Accounting Basics :

    On January 1, 2010, Sandro signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $75,000. Of this amount, $15,000 was paid when the agreement was

  • Q : Calculate the percentage increase in sales....
    Accounting Basics :

    In the annual report, where would a financial statement reader find out if the company's financial statements give a fair depiction of its financial position and operating results?

  • Q : What cost of making the component should be compared....
    Accounting Basics :

    Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 30% is avoidable if the component were bought from the outside supplier.

  • Q : What would be the total cost and variables....
    Accounting Basics :

    Blore Corporation reports that at an activity level of 7,300 units, its total variable cost is $511,803 and its total fixed cost is $76,650. What would be the total cost, both fixed and variable, at

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