• Q : Civil lawsuit for damages....
    Accounting Basics :

    Assume that auditors lost a civil lawsuit for damages and the court found total losses of $5 million. if the auditors were determined to be 30 percent at fault and were the only solven tdefendent.

  • Q : Close the income summary and dividend accounts....
    Accounting Basics :

    Oct. 31 Revenues of $750,000 were earned during the month; all cash. Expenses, all cash, totalling $250,000 were incurred in October. Close the Income SUmmary and dividend accounts

  • Q : What are the tax status of the property....
    Accounting Basics :

    Miguel receives tangible personal property as an inheritance in 2011. The property was depreciated by the deceased (Miguel's father), and Miguel will also depreciate it.

  • Q : Compare the new levels of profit to the levels....
    Accounting Basics :

    Which provides the best information on profitability-a single overhead cost pool with headcount as the allocation base ,or multiple cost pools using headcount ,sales,and space occupied?

  • Q : Calculate the proceeds from the bond issue....
    Accounting Basics :

    On January 1, 2012 Morgan's Motors issued $500,000 of 3-year, 8% bonds when the market yield was 6%. The bond agreement stated that compounding was semi-annual with payments due on June 30 and Dece

  • Q : Type of chicken using the physical units method....
    Accounting Basics :

    Mike's Meats incurs costs of $4,000 while processing raw chicken meat into three products: breasts, wings, and thighs. The meat is then sold to local grocery stores based on the following.

  • Q : Compute the use tax that firm h owes to jurisdiction h....
    Accounting Basics :

    Firm H operates its business in Jurisdiction H, which levies a 6% sales and use tax. This year the firm purchased a $600,000 item of tangible property in jurisdiction K and paid $18,00 sales tax to

  • Q : Bubble corporation manufactures....
    Accounting Basics :

    Bubble Corporation manufactures two products, I and II, from a joint process. A single production costs $4,000 and results in 100 units of I and 400 units of II. To be ready for sale, both products

  • Q : Calculate the net effect on county g current year....
    Accounting Basics :

    Because of a local economic boom created by a new facility the aggregate assessed value of County G's property tax base increased by $23 million.

  • Q : Compute the tax on real property valued....
    Accounting Basics :

    The city of Springvale levies a tax on the value of real property located within the city limits. The tax equals 2 percent of the property assessed value up to $500,000 plus 4 percent of the value i

  • Q : Journalize the entry to record the bond purchase....
    Accounting Basics :

    On January 2, 2010, Parsons Company purchased $80,000, 10 year, 7% government bonds at 104, including the brokerage commission. January 2, is an interest payment date.

  • Q : Describe the basis of direct labor hours....
    Accounting Basics :

    Derf Company applies overhead on the basis of direct labor hours. Two direct labor hours are required for each product unit. Planned production for the period was set at 9,000 units.

  • Q : Describe the procedures jeff should use in setting standards....
    Accounting Basics :

    The Tippa Canoe Company makes fiberglass canoes. The fiberglass resin is initially molded to the shape of a canoe, then sanded and painted.

  • Q : What amount of profit should fast builders recognize....
    Accounting Basics :

    The City of Gunnison awarded a $5,000,000 road-construction contract to the Fast Builders Construction Company. Construction was expected to take three years.

  • Q : Calculate the direct materials price variance for may....
    Accounting Basics :

    Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the direct costs of one unit of pro

  • Q : Calculate how much overhead is allocated....
    Accounting Basics :

    The Alphonse Company allocates fixed overhead costs by machine hours and variable overhead costs by direct labor hours. At the beginning of the year the company expects fixed overhead costs to be $6

  • Q : Calculate the cost of msb using relative sales value....
    Accounting Basics :

    Sonimad Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSBs) and unseasoned commercial building lumber (CBL).

  • Q : What is the application rate for the maintenance department....
    Accounting Basics :

    The maintenance department's costs are allocated to other departments based on the number of hours of maintenance use by each department. The maintenance department has fixed costs of $500,000 and v

  • Q : Estimate the average cost per unit for each plant....
    Accounting Basics :

    A soft drink company has three bottling plants throughout the country. Bottling occurs at the regional level because of the high cost of transporting bottled soft drinks.

  • Q : What is the differential cost of producing product c....
    Accounting Basics :

    Pheasant Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $28 per pound to produce. Product C would sell for $60 per pound and would

  • Q : What is the probable role of the monthly report....
    Accounting Basics :

    The controller of a small private college is complaining about the amount of work she is required to do at the beginning of each month. The president of the university requires the controller to sub

  • Q : Explain the appropriate columns and total each column....
    Accounting Basics :

    Using the straight line method prepare the December 31st adjusting entries to record depreciation for the 12 months of 2011 when these assets were in use.

  • Q : Do the tax consequences in parts a through c change....
    Accounting Basics :

    Do the tax consequences in Parts a through c change if it was realistically expected that the work would be completed in ten months but after the ten-month period Marilyn is asked to continue for se

  • Q : What average tax rate will result....
    Accounting Basics :

    If the income effect is in effect for all taxpayers, what average tax rate will result in a 10 percent increase in tax revenues? This is an example of what type of forecasting?

  • Q : Explain why warner might want to allocate security....
    Accounting Basics :

    Warner Development Company has a security department that provides security services to other departments within the company.

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