• Q : Explain why the bonds were issued at a discount....
    Accounting Basics :

    On June 30 of the current year, Rural Gas & Electric Co. issued $50,000,000 face value, 9 percent, 10-year bonds payable, with interest dates of December 31 and June 30. The bonds were issued at

  • Q : How the company to continue to produce the handlebars....
    Accounting Basics :

    After seeing these figures, Roaming's president remarked that it would be foolish for the company to continue to produce the handlebars at $35 each when it can buy them for $32 each.

  • Q : Explain the method to amortize bond premium....
    Accounting Basics :

    Gatlin Company issued $300,000, 8%, 15-year bonds on December 31, 2011, for $288,000. Interest is payable annually on December 31. Gatlin uses the straight-line method to amortize bond premium or di

  • Q : How produces and sells a small digital clock....
    Accounting Basics :

    Prepare a contribution margin income statement for the special order. (Input all amounts as positive values. Omit the "$" sign in your response.)

  • Q : What would be the cost of equity....
    Accounting Basics :

    Goods are never delivered under forward contracts, but are almost always delivered under futures contracts.Lepage Co. has an expected D1 of $1.375, it's expected constant divided growth rate is 6%,

  • Q : Which of the most likely to occur as a result....
    Accounting Basics :

    Biemker Corporation has $500 million of total assets, it's basic earning power is 15%, and it currently has no debt in its capital structure. The CFO is contemplating a recapitalization where it wil

  • Q : How might this risk be best addressed....
    Accounting Basics :

    Starsky is an internal auditor and the lead on the company's fraud risk assessment. In the past, he and Hutch, an accounts receivable clerk, have had several heated disagreements over accounting pro

  • Q : What might they have found....
    Accounting Basics :

    For each of the preceding lettered items A-F, select one or more of the following procedures 1-10 that you beleive the auditor should perform to obtain evidence about the item.

  • Q : Discuss the net present value of this investment....
    Accounting Basics :

    A company can buy a machine that is expected to have a three-year life and a $3,290 salvage value. The machine will cost $179,362 and is expected to produce a $20,370 before-tax net income to be rec

  • Q : Prepare journal entries to record the sale of merchandise....
    Accounting Basics :

    On June 30, 2013, the Esquire Company sold some merchandise to a customer for $30,000 and agreed to accept as payment a noninterest-bearing note with an 8%.

  • Q : Explain the designer and manufacturer of prom dresses....
    Accounting Basics :

    Classic Attire is the designer and manufacturer of prom dresses. The president of Classic wants to switch to an activity-based approach in the upcoming year to assign prices to the gowns.

  • Q : Using the appropriate foreign currency conversion....
    Accounting Basics :

    You have just won a free trip to the destination of your choice and all airline or other transportation costs are provided, but you need to budget for your expenses during the three days you will be

  • Q : What should tringali report as its income tax expense....
    Accounting Basics :

    Pretax accounting income $340,000 Permanent difference (14,500) 325,500 Temporary difference-depreciation (19,900) Taxable income $305,600 Tringali's tax rate is 36%.

  • Q : How reducting all expenses except depreciation....
    Accounting Basics :

    Dill Enterprises pays $243,200 for equipment that will last five years and have a $54,286 salvage value. By using the equipment in its operations for five years, the company expects to earn $76,500

  • Q : How much is budgeted sales revenue....
    Accounting Basics :

    At January 1, 2012, Bella Company has beginning inventory of 2,000 DVD players. Bella estimates it will sell 10,000 units during the first quarter of 2012 with a 12% increase in sales each quarter.

  • Q : Discuss the need for an accounting standards-setting body....
    Accounting Basics :

    Several not-for-profit organizations use television campaigns to obtain pledges to contribute cash. Some people think that not-for-profit entities should recognize pledges as revenues when the cash

  • Q : What is the difference between actual and budgeted costs....
    Accounting Basics :

    Groom Company uses flexible budgets. At normal capacity of 16,000 units, budgeted manufacturing overhead is: $48,000 variable and $270,000 fixed. If Groom had actual overhead costs of $321,000 for

  • Q : Explain the cost allocation base....
    Accounting Basics :

    Laundry costs for the whole hospital is $210,00 for 600,000 pounds or.$. 35/lb.Laundry for radiology revealed that 7,500 of 15,000 pounds for radiology were 5 times more expensive to process in the

  • Q : Prepare the journal entry that manual should make to record....
    Accounting Basics :

    Manual Company sells goods to Nolan Company during 2014. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are 10,000 units, it will grant a rebate of 2%.

  • Q : Describe the income telephone sellers should recognize....
    Accounting Basics :

    Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone Sellers then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the p

  • Q : How much will kessler''s average operating....
    Accounting Basics :

    Kessler Industries is evaluating its Mountain division, an investment center. The division has a $90,000 controllable margin and $600,000 of sales.How much will Kessler's average operating assets b

  • Q : Calculate the profit margin on sales....
    Accounting Basics :

    The 2013 income statement for Anderson TV and Appliance reported sales revenue of $220,000 and net income of $85,000. Average total assets for 2013 was $800,000.

  • Q : Prepare a four-column proof of cash covering....
    Accounting Basics :

    The auditors of Steffey, LTD., decided to study the cash receipts and disbursements for the month of July of the current year under audit. They obtained the bank reconciliations and the cash journal

  • Q : What were the firms budgeted collections for april....
    Accounting Basics :

    Quattro began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 30% are collected in the month of sale; 60% are collected in the first mon

  • Q : How to discover several payments....
    Accounting Basics :

    Suppose you are auditing cash disbursements and discover several payments to a company you were unfamiliar with and cannot find information about this company on the Internet or in the local telepho

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