• Q : Discount is being amortized....
    Accounting Basics :

    On January 1 of Year 1, Drum Line Airways issued $3,400,000 of par value bonds for $3,100,000. The bonds pay interest semiannually on January 1 and July 1.

  • Q : Osborn company allocates interest and unamortized discount....
    Accounting Basics :

    On January 1, 2012, Osborn Company sold 12% bonds having a maturity value of $800,000 for $860,651.79 which provides the bondholders with a 10% yield.

  • Q : Uses the straight-line method to amortize....
    Accounting Basics :

    On January 1, a company issued and sold a $405,000, 5%, 10-year bond payable, and received proceeds of $400,000. Interest is payable each June 30 and December 31.

  • Q : Explain the zero-interest-bearing promissory note....
    Accounting Basics :

    Purchases land having a fair market value of $300,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount of $505,518.

  • Q : What is the gain or loss on this retirement....
    Accounting Basics :

    A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,500. The company retired these bonds by buying them on the open market at 97. What is the

  • Q : Xtreme sports paid cash dividends....
    Accounting Basics :

    Xtreme Sports has $150,000 of 8% noncumulative, nonparticipating, preferred stock outstanding. Xtreme Sports also has $550,000 of common stock outstanding.

  • Q : Calculate the maximum separate cost of processing....
    Accounting Basics :

    Assume that the ground beef could be processed into sausage that could be sold for $2.10 per pound to a distributor that wants a special label costing $0.15 per pound attached to the sausage.

  • Q : The current period retained earnings....
    Accounting Basics :

    A company had a beginning balance in retained earnings of $43,900. It had net income of $6,900 and paid out cash dividends of $5,850 in the current period. The ending balance in retained earnings e

  • Q : Prepare a schedule for january and february....
    Accounting Basics :

    Cash production costs are $5.00 per unit produced and each unit is sold on account for $35. Of the production costs, 20% are paid in the month in which they are incurred, 35% in the following month,

  • Q : Explain the operating activities....
    Accounting Basics :

    Wilton Company reported net income of $40,000 for the year. During the year, accounts receivable decreased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was rec

  • Q : Differential cost increase or decrease from making the part....
    Accounting Basics :

    A business is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15 per unit. The unit cost for the business to make the part is $20, including

  • Q : Describe how you could use different variances....
    Accounting Basics :

    As discussed in this module, it is important to have performance measures to evaluate managers as they control resources and invest in assets for the company. Describe how you could use different va

  • Q : Determine the computers in their present condition....
    Accounting Basics :

    Tawstir Corporation has 500 obsolete personal computers that are carried in inventory at a total cost of $720,000. If these computers are upgraded at a total cost of $210,000, they can be sold for a

  • Q : The capacity to handle the special order....
    Accounting Basics :

    Falcon Co. produces a single product. Its normal selling price is $30.00 per unit. The variable costs are $19.00 per unit. Fixed costs are $25,000 for a normal production run of 5,000 units per mont

  • Q : Explain the maximum percentage of social security benefits....
    Accounting Basics :

    For its year ended December 31, 2012, Cupressa Corporation, an S corporation, had net income per books of $216,000 which included $180,000 from operations and a $36,000 net long-term capital gain.

  • Q : Compute the break-even point in units for the company....
    Accounting Basics :

    Complete Golf Accessories sells golf shoes, gloves, and a laser-guided range­finder that measures distance. Shown below are unit cost and sales data.

  • Q : Explain the return on common stockholders equity....
    Accounting Basics :

    The return on common stockholders' equity. (Stockholders' equity at the beginning of last year was $1,279,000.) (Round your answers to 1 decimal place.

  • Q : Compute the new machine''s net present value....
    Accounting Basics :

    The Sweetwater Candy Company would like to buy a new machine that would automatically "dip" chocolates. The dipping operation is currently done largely by hand.

  • Q : Why is the identification of favorable and unfavorable....
    Accounting Basics :

    Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control costs. Please explain.

  • Q : What is the relation to the construction of the building....
    Accounting Basics :

    On December 31, 2011, Hurston Inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2012, the company made the following expenditures related to this bui

  • Q : Appropriate method of accounting for development costs....
    Accounting Basics :

    Research this issue and write a brief memorandum for the working papers describing the issue and summering the appropriate method of accounting for the development costs.

  • Q : How to maintain ending finished goods inventory....
    Accounting Basics :

    Rolen, Inc., is in the process of preparing the fourth quarter budget for 2010, and the following data have been assembled.

  • Q : How to compute avoidable interest for hanson company....
    Accounting Basics :

    Hanson Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $1,800,000 on March 1, $1,200,000 on June 1, and $3,000,000 on Decembe

  • Q : Calculate how much is cost of goods manufactured....
    Accounting Basics :

    Red Runners Work in Process Inventory account has a beginning balance of $50,000 and an ending balance of $40,000. Direct materials used are $70,000, and direct labor used totals $35,000.

  • Q : What is the direct labor rate....
    Accounting Basics :

    Galvaset Indutries manufactures and sells custom-made windows. Its job costing system was designed using an activity-based costing approach.

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