• Q : Determine the interest expense graves....
    Accounting Basics :

    On January 1, 2004, Graves Inc sold a $1,000,000, 8%, 10 year semi-annual bond to the public for $934,960 yielding 9%. Determine the interest expense Graves will report on June 30, 2004.

  • Q : What is the balance in estimated....
    Accounting Basics :

    What is the balance in Estimated Warranty Liability at 12-31-X4 and the balance in Warranty Expense for 20X4, respectively?

  • Q : Why the company wants to earn net income....
    Accounting Basics :

    Pitre, Inc. earned net income of $150,000 during 2010. The company wants to earn net income of $25,000 more during 2011. The company's fixed costs have been and are expected to remain at $40,000.

  • Q : The discounted value of the note receivable....
    Accounting Basics :

    SDD has also developed a second software package. They incurred development costs of $410,000. They are trading this software package in exchange for a small office building. The fair market value o

  • Q : What is the depreciation base of this asset....
    Accounting Basics :

    Ferguson Company purchased a depreciable asset for $100,000. The estimated salvage value is $10,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation

  • Q : The sky blue corporation....
    Accounting Basics :

    For each of the following transactions for the Sky blue Corporation, give the accounting equation effects of the adjustments required at the end of the month on December 31, 2009.

  • Q : Why must uncollectible accounts receivable be estimated....
    Accounting Basics :

    Under the allowance method of accounting for bad debts, why must uncollectible accounts receivable be estimated at the end of the accounting period?

  • Q : Calculate the employer payroll taxes....
    Accounting Basics :

    According to a summary of the payroll of Newman Publishing Co. $600,000 was subject to the 7.5% FICA Tax. Also $50,000 was subject to state and federal unemployee taxes.

  • Q : William farmer has just harvested....
    Accounting Basics :

    William Farmer has just harvested his wheat crop. He put the grain in a local elevator and was given a warehouse receipt. The wheat will be sold within a few months.

  • Q : How much depreciation expense should danford record....
    Accounting Basics :

    Danford Trucking purchased a tractor trailer for $147,000. Danford uses the units-of-activity method for depreciating its trucks and expects to drive the truck 1,000,000 miles over its 12-year usefu

  • Q : What is the amount of depreciation for the first full year....
    Accounting Basics :

    Equipment with a cost of $240,000 has an estimated salvage value of $15,000 and an estimated life of 4 years or 15,000 hours. It is to be depreciated using the units-of-activity method.

  • Q : Explain direct labor-hours per year on a single-shift basis....
    Accounting Basics :

    What is the highest price, in terms of a rate per hour, that Brandilyn Toy Company should be willing to pay for additional capacity (that is, for added direct labor time)?

  • Q : Small toys in a one-department....
    Accounting Basics :

    Funtime Inc. makes small toys in a one-department production process. Plastic is added at the beginning of the process; all other maters are considered indirect.

  • Q : Why the new machine will allow the bakery....
    Accounting Basics :

    Doughboy Bakery would like to buy a new machine for putting icing and other toppings on pastries. These are now put on by hand.

  • Q : What amount of interest income should be included....
    Accounting Basics :

    Mason Company sold some machinery to the Finney Company on January 1, 2004. The cash selling price would have been $473,850. Finney entered into an installment sales contract.

  • Q : Discuss the actual variable factory overhead....
    Accounting Basics :

    Primm Company produces a product that requires four standard gallons per unit. The standard price is $24.50 per gallon. The 2,500 units required 10,600 gallons, which were purchased at $23.75 per ga

  • Q : How much gross margin should link realty....
    Accounting Basics :

    In 2004, Link Realty Company purchased a tract of land for $9,000,000. Link developed the land into an industrial park at an additional cost of $750,000. the park was subdivided in 10 lots.

  • Q : Which statistical analysis technique should be used....
    Accounting Basics :

    If the data set represents a normal distribution. Which statistical analysis technique should be used? What is the null hypothesis? Can an analysis be performed? Why or why not?

  • Q : Excess capacity to produce....
    Accounting Basics :

    The Cramer Cookie Company is a relatively new company and so far has sold its products only in its home country, Denmark. In December, Cramer determined that it had excess capacity to produce more o

  • Q : How much will she need to save each year....
    Accounting Basics :

    Chris like to save $30,000 to send his son to college in 18 years. If he uses an account that averages a 9% R, about how much will she need to save each year?

  • Q : Calculate the annual cost of the truck....
    Accounting Basics :

    Calculate the annual cost of the truck at 7% per year. And if Brent estimates that Beck cleared at most $20,000 per year added revenue from using the truck, was the purchase economically advantageou

  • Q : Using diffrent depreciation methods....
    Accounting Basics :

    The diffrences between the straight line method of depreciation and the accelerated methods. Why do companies use diffrent depreciatons methodsfor tax reporting and financial reporting.

  • Q : What is the journal entry to record the retirement....
    Accounting Basics :

    On january 1, 2010, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96 1/2. six years later, on january 1, 2016, Jacob retires 20% of these bonds by buying them on the open market at 105 1/

  • Q : Compute the cost of goods destroyed....
    Accounting Basics :

    Zidek Corp. requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,000. Purchases since January 1 were $92,000.

  • Q : Balances of the inventory accounts....
    Accounting Basics :

    Maddox Specialty Company, a division of Lost World Inc., manufactures three models of gear shift components for bicycles that are sold to bicycle manufacturers.

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