• Q : What is an example of a gain contingency....
    Accounting Basics :

    What is an example of a gain contingency? What is the accounting treatment for gain contingencies? Please discuss the rationale for this approach.

  • Q : Determine the value of the bonds if the market interest....
    Accounting Basics :

    Cactus Construction sells $1,000,000 of 8% bonds on January 1, 20XX. The bonds are unsecured but registered to the name of the purchaser. The bonds are due in 5 years, with interest payable annually

  • Q : Calculate the legal life of goodwill....
    Accounting Basics :

    Our company purchased equipment for $36,000 on January 1, 2013. The equipment is expected to have a 5-year life and a residual value of $3,000. Using the straight-line method, accumulated depreciati

  • Q : Record the issuance of the bonds....
    Accounting Basics :

    Journalize the entry to record the first semi- annual intrest payment on June 30 and the amortization of the bond discount using the straight line method.

  • Q : Calculate the division of the net income....
    Accounting Basics :

    For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $420,000 and (2) net income of $150,000.

  • Q : Rhino landscaping sells a quality....
    Accounting Basics :

    Rhino's Landscaping sells a quality brand of hoes, shovels, and rakes in a sales mix of 2:4:2 (25%, 50%, 25%). The company's fixed costs are $61,000. Product data include the following:

  • Q : What would be the tax consequences....
    Accounting Basics :

    A new investor became a member of the LLC and as a result, T's interests were reduced from 10% to 5%. The new investor's contributed capital was used to reduce the mortgage to $2,000,000.

  • Q : Which is the annual stated interest rate on the bonds....
    Accounting Basics :

    Our company issued callable bonds on January 1, 2013. The price of the bonds was $207,020, and the face value of the bonds is $200.000. Interest is paid semiannually.

  • Q : How many units should be purchased in november....
    Accounting Basics :

    The Aliena Corporation buys automotive equipment for $1,800 and sells it for $2,500; the company has the following sales forecast: 100 units for October.

  • Q : What are the two additional criteria for the lessor....
    Accounting Basics :

    What are the two additional criteria for the lessor in a capital lease? How many of these criteria does the lease need to meet to be a capital lease? What happens if these criteria are not met?

  • Q : Which amount changes with every payment....
    Accounting Basics :

    Please explain how the semiannual cash interest payment and the semiannual interest expense are calculated using the effective interest method. Which amount changes with every payment? Which amount

  • Q : What are examples of irregular items....
    Accounting Basics :

    Who in the organization is responsible for the application of a change in an accounting principle? Why?How does a change in accounting principles affect the financial statements?

  • Q : Determine the balance in accounts payable spratt....
    Accounting Basics :

    Determine the balance in accounts payable Spratt will report on the end-of-quarter pro forma balance sheet. (Round your intermediate calculations and final answers to the nearest dollar amount.Omit th

  • Q : Journalize the entry to record the issuance....
    Accounting Basics :

    On January 1, 2011, a company issued 1,000,000, of 5 year, 12% bonds at an effective interest rate of 13% , receiving cash of 964,060. Intrest on the bonds is payable semiannually on June 30 and Dec

  • Q : Which alternative should your bank use....
    Accounting Basics :

    You are the CFO of a bank which has three options for purchasing a piece of land. First, you can pay $200,000 today. Second, you can pay $24,000.

  • Q : Depreciation on the company equipment....
    Accounting Basics :

    For each of the followig separate cases prepare adjusting entries required of financial statements for the year ended (date of) December 31, 2013.

  • Q : Window used to record it is incorrect....
    Accounting Basics :

    Which of the following activities and Quickbooks window used to record it is incorrect? a) Sell goods and bill customers; Invoice b)Record inventory information; Inventory List c) Record vendo

  • Q : What are examples of irregular items....
    Accounting Basics :

    What are examples of irregular items? How does a change in accounting principles affect the financial statements? Who in the organization is responsible for the application of a change in an accoun

  • Q : Determine the amount of sales revenue mccarty....
    Accounting Basics :

    Determine the amount of accounts receivable as of March 31, 2012. (Round your intermediate calculations and final answer to the nearest dollar amount. Omit the "$" sign in your response.)

  • Q : Create an income statement for the year ended december....
    Accounting Basics :

    Assume NGS sold the hydrotherapy tub system for $2,100 at the end of 2016. Prepare the journal entry to account for the disposal of this asset under the three different methods.

  • Q : Discuss the warranty-related information....
    Accounting Basics :

    Historically, warranty expenditures have been equal to 4% of sales. Total sales for the year were $650,000. Actual warranty repairs made during the year totaled $29,000.

  • Q : Embezzling funds from his employer....
    Accounting Basics :

    Rankin, the comptroller of Lazy, Inc. has been embezzling funds from his employer for many years, To date, he has taken almost $5,000,000.

  • Q : Discuss any taxable income resulting to daisy mae....
    Accounting Basics :

    Daisy Mae Yockum is very proud of the garden she has created behind her home in Landfill, WV. She and her family consume $600 worth of vegetables.

  • Q : What year is it taxable....
    Accounting Basics :

    Rankin, the comptroller of Lazy, Inc. has been embezzling funds from his employer for many years, To date, he has taken almost $5,000,000.

  • Q : What improvements would make it the financial statements....
    Accounting Basics :

    US GAAP follows the Historical Cost Concept in valuing the cost of Long-Term Assets. Explain this principle and why it may cause difficulties in analyzing the financial statements. What improveme

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