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The bank also requires you to maintain a compensating balance of 6 percent against the unused portion of the credit line, to be deposited in a noninterest-bearing account.
A company has the choice of either selling 1,000 defective units as scrap or rebuilding them. The company could sell the defective units as they are for $4.00 per unit.
The firm's 34-cent-per-share cash dividend on the new (postsplit) shares represents an increase of 10 percent over last year's dividend on the presplit stock.
Roxie Company has 17,500 units of its sole product that it produced last year at a cost of $45 each. This year's model is superior to last year's and the 17,500.
The trial balance below was taken from the records of R. Martin, executor for the estate of J. Mitchell, on October 31, 20X1. Martin had acted as executor since the date of Mitchell's death, June 12
Joint products A and B are produced in a single operation from Material M. Three hundred gallons of Material M, costing $450, produced 200 gallons of Product A, selling for $2 per gallon, and 100 ga
At the beginning of the year, a firm leased equipment on a capital lease, capitalizing $60,000 in its lease receivable account. The contract calls for Decem ber 31 payments of $15,000.
Assume the partners DO wish to record goodwill and no adjustments are necessary to the asset values other than goodwill. Prepare journal entries to record transactions. (Do not assume capital accoun
In 2011, a company changed from the LIFO method of accounting for inventory to FIFO. The Company's 2010 and 2011 comparative financial statements will reflect which method or methods?
Coolit Company installed a new air conditioning system in their main office on January 1, 2008. The system cost $300,000 and was expected to last 10 years (no Salvage Value).
Rey and Carmen Martinez are not your tax clients, but they come to you with a question. They migrated to the United States from Guatemala five years ago and they have been self employed in Chandler,
Parrett Corp. acquired one hundred percent of Jones Inc. on January 1, 2009, at a price in excess of the subsidiary's fair value. On that date, Parrett's equipment (ten-year life) had a book value o
Wolverine Corporation purchased a machine for $132,000 on January 1, 2008, and depreciated it by the straight-line method using an estimated useful life of eight years with no salvage value.
Price reminded Gamm that if the account is written off, 750 employees will be out of work, and that Gamm's accounting firm probably could not collect its fee for this engagement.
Assume cash paid to suppliers for the current year is $350,000, merchandise inventory increased by $5,000 during the year, and accounts payable decreased by $10,000 during the year. What was the co
The general ledger account for Accounts Receivable shows a debit balance of $40,000. The Allowance for Uncollectible Accounts has a credit balance of $2,000.
On December 31, 2012, Hampton declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2013.
On December 1, 2011, UMD Company purchased $15,000 of equipment by issuing a 120-day, 10% note payable to Bank of Maryland. Assuming the company's accounting period ends on December 31, the journal
Revenue and expense data for Martinez Company are as follows: 2012 2011 Administrative expenses $37,000 $20,000 Cost of goods sold 350,000 320,000 Income tax 40,000 32,000 Net sales 800,000 700,000
On September 1, 2011, Donna Equipment signed a one-year, 8% interest bearing note payable for $50,000. Assuming Donna maintains its books on a calendar year basis, the amount of interest expense th
Ginvold Co. began operating a subsidiary in a foreign country on January 1, 2013 by acquiring all of the common stock for §50,000.
A company had a $56,000 unfavorable direct material efficiency variance during a time period when the standard rate per pound of direct material was $7 and the actual rate per pound of direct materi
Net assets of the acquired company are maintained at book value and any excess of consideration transferred over book value of net assets acquired is allocated to goodwill.
Barrett's Fashions forecasts sales of $125,000 for the quarter ended December 31. Its gross profit rate is 20% of sales, and its September 30 inventory is $32,500. If the December 31 inventory is ta
The Hills Company purchased inventory from a foreign supplier on November 30, 2013 for 80,000 local currency units (LCU). Payment was made to the supplier on January 23, 2014.