• Q : Compute fredas passive loss deduction and passive loss....
    Accounting Basics :

    Freda acquired a passive activity this year for $870,000. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were 122,000.

  • Q : Explain the accounts and balances of cruz company....
    Accounting Basics :

    Prepare the December 31, 2013, closing entries for Cruz Company. Assume the account number for Income Summary is 901

  • Q : Identify the most successful division according....
    Accounting Basics :

    Johnson Products Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance.

  • Q : How much values can be positive or negative....
    Accounting Basics :

    How much (values can be positive or negative). The answer choices are Cash, accounts receivable, inventory, prepaid rent, fixtures and equipment, accounts payable, interest payable, wages payable,

  • Q : The equipment is computed on a straight-line basis....
    Accounting Basics :

    On March 1, fixtures and equipment were purchased for $5,500 with a downpayment of $1,000 plus a $4,500 note payable in one year. Interest of 5% per year is due when the note is repaid.

  • Q : Pertains to family video company....
    Accounting Basics :

    The following information pertains to Family Video Company.Prepare a bank reconciliation at July 31,Journalize the adjusting entries at July 31 on the books of Family Video Company.

  • Q : Substantial amount of time....
    Accounting Basics :

    We spent a substantial amount of time in Week 4 discussing the payment and taxation of corporate dividends. Some of this discussion simply begs the question as to how commonplace dividend distributi

  • Q : Prepare an adjusting journal entry as of the end....
    Accounting Basics :

    Prepare an adjusting journal entry as of the end of November (Phoenix Brick Yard's fiscal year-end), assuming bad debts are estimated to be $20,400 by aging accounts receivable.

  • Q : The balance sheet of organic....
    Accounting Basics :

    Organic Health Co. is an HMO for businesses in the Chicago area. The following account balances appear on the balance sheet of Organic Health Co.

  • Q : Prepare the bank reconciliation for the king kong kam....
    Accounting Basics :

    Debits on the Ho's bank statement that are not yet recorded include a $23 charge for check printing and an NSF check for $20 plus a $10 processing fee. The NSF check is dated April 16 and was includ

  • Q : Determine the amounts before the stock dividend was declared....
    Accounting Basics :

    Determine the amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders' equity.

  • Q : Determine the amounts after the stock....
    Accounting Basics :

    Determine the amounts after the stock dividend was declared and closing entries were recorded at the end of the year:total paid-in capital, total retained earnings, and total stockholders' equity.

  • Q : The periodic method for recording merchandise transactions....
    Accounting Basics :

    Wizard Industries purchased $12,500 of merchandise on February 1, 2012, subject to a trade discount of 9% and with credit terms of 3/15, n/60. It returned $3,600 (gross price before trade or cash di

  • Q : Why is it important for an accounting system....
    Accounting Basics :

    Why is it important for an accounting system to force the user to add a vendor to the system instead of just typing out the vendor's name on a check?

  • Q : Goal of earning a minimum return....
    Accounting Basics :

    On January 2, Fred Critchfield paid $18,000 for 900 shares of the common stock of Acme Company. Mr. Critchfield received an $0.80 per share dividend on the stock at the end of each year for four yea

  • Q : What accounts are affected in order....
    Accounting Basics :

    The corporation quickly acquired $36,000 in inventory, 40% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.

  • Q : Collection agency and legal fees....
    Accounting Basics :

    An allowance can be set up (a) on the basis of a percentage of sales or (b) on the basis of a valuation of all past due or otherwise questionable accounts receivable.

  • Q : What is the amount of jacks realized gain on the exchange....
    Accounting Basics :

    Jack exchanged land with an adjusted basis of $65,000 subject to a liability of $22,000 for $50,000 (FMV) of stock owned by Hayden. Hayden takes the land subject to the liability. Jack incurs $500 o

  • Q : Determine the operations under the two costing approaches....
    Accounting Basics :

    Cutting Edge Corp. produces sporting equipment. In 2012, the first year of operations, Cutting Edge produced 25,000 units and sold 20,000 units.

  • Q : Use the indirect method....
    Accounting Basics :

    Bracewell Company reported net income of $195,000 for 2014. Bracewell also reported depreciation expense of $40,000 and a gain of $5,000 on disposal of plant assets.

  • Q : On commissions from airlines....
    Accounting Basics :

    On April 1, 2011, Jennifer Stafford created a new travel agency, See-It-Now Travel. The following transactions occurred during the company%u2019s first month.

  • Q : The straight line method of depreciation was used....
    Accounting Basics :

    An asset was purchased for 12,000. The asset's estimated useful life was 3 years and its residual value was 2000. how much gain or loss is reported if the asset is sold for 5,333 at the begining for

  • Q : Prepare the current assets section of the statement....
    Accounting Basics :

    The statement of financial position for Ruiz Company includes the following accounts (in British pounds): Accounts Receivable £12,500; Prepaid Insurance £3,600; Cash Â

  • Q : Uses a plantwide overhead rate....
    Accounting Basics :

    A company allocates $7.50 overhead to each unit produced. The company uses a plantwide overhead rate with direct labor hours as the allocation base. Given the amounts below, how many direct labor h

  • Q : Is there a potential for fraud using fake vendors....
    Accounting Basics :

    Peachtree allows you to add vendors and process vendor invoices for payment. What would be the transaction cycle? (hint: for sales cycle it was Sales- AR-Cash Receipts.

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