• Q : What percent are variable costs of sales....
    Accounting Basics :

    Aero, Inc. requires sales of $2,000,000 to cover its fixed costs of $700,000 and to earn net income of $200,000. What percent are variable costs of sales?

  • Q : Straight-line depreciation for all of depreciable assets....
    Accounting Basics :

    The machine has an expected useful life of five years and anestimated salvage value of $3,000. Leslie Company uses straight-line depreciation for all of its depreciable assets.

  • Q : Different types of tennis racquets....
    Accounting Basics :

    MacCloud Industries has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available.

  • Q : Explain procedures of apportionment of overhead expenses....
    Accounting Basics :

    Explain the procedures of apportionment of overhead expenses through departmentalization with the help of practical examples.

  • Q : How many units of q-chip would be sold....
    Accounting Basics :

    The sales mix is 30% and 70% (Q-Chip Plus). Q-Chip has variable costs per unit of $36 and a selling price of $60. Q-Chip Plus has variable costs per unit of $42 and a selling price of $78.

  • Q : What kinds of risks do the owners of publicly-traded....
    Accounting Basics :

    When the stock market is going up over a long period of time, investors can become complacent about the risks of being a stockholder. After the significant decline of the stock market in 2008, peopl

  • Q : Selling price of the bonds....
    Accounting Basics :

    Lam Enterprises issued $100,000 face value, 5% coupon, 4-yearbonds on January 1, 2007. The bonds were sold to yield 6% and willpay interest semi-annually.

  • Q : Question-landel corporation....
    Accounting Basics :

    Landel Corporation issued $1,000,000 of 10-year, 9% bonds onJanuary 1, 2009. The bonds pay interest semiannually. How much didthe bonds sell for under each of the following situations?

  • Q : Accelerated depreciation for tax purposes....
    Accounting Basics :

    Why a company would use straight-line depreciation for financial reporting purposes and accelerated depreciation for tax purposes.

  • Q : Schedules of current and long-term liabilities....
    Accounting Basics :

    Prepare schedules of (a) current and (b) long-term liabilities.

  • Q : Write arguments given by academics-accounting policy makers....
    Accounting Basics :

    What is the basic assumption underlying the percentage of completion (POC) revenue recognition method of accounting for long term construction contracts?

  • Q : Annual interest rate....
    Accounting Basics :

    The annual interest rate paid to the bond holders. A lease that is for most of the useful life of the lease resource and which gives the firm control of the resource as if it had been purchased.

  • Q : Problem related to purchase and sale of treasury stock....
    Accounting Basics :

    The cost method of accounting for the purchase & sale of treasury stock is a commonly used method.

  • Q : Alamos customer service department....
    Accounting Basics :

    Alamo's customer service department follows up on customer complaints by telephone inquiry.  During a recent period, the department initiated 7,000 calls and incurred costs of $203,000.

  • Q : What are the companys departmental overhead rates....
    Accounting Basics :

    What are the company's departmental overhead rates if the assembly department assigns overhead based on direct labor hours and the finishing department assignes overhead based on machine hours?

  • Q : What is the interest expense....
    Accounting Basics :

    What is the interest expense(which is on the debit side) for this year. And what is the interest payable (which is on the credit side) for this year.

  • Q : Calculate reported operating profit and actual cash flow....
    Accounting Basics :

    Calculate Ling's reported operating profit & actual cash flows for each year using thecompleted contract method of accounting.

  • Q : True cash balance....
    Accounting Basics :

    What is the true cash balance at December 31, 2009?

  • Q : What are the tax consequences to allie....
    Accounting Basics :

    Within one year of the contribution, Red constructs a building for $800,000 and purchases inventory for $200,000. What basis will Red Corporation have in each of those assets?

  • Q : The fair value of the options on the grant date....
    Accounting Basics :

    Berg Company adopted a stock-option plan on November 30, 2013, that provided that 73,200 shares of $5 par value stock be designated as available for the granting of options to officers of the corpor

  • Q : What amount of gross profit should company report....
    Accounting Basics :

    Haft Construction Company has consistently applied the percentageof completion method. In its income statement for the year ended Dec 31 ,2009, what amount of gross profit should Haft report?

  • Q : Balance sheet and income statement equations....
    Accounting Basics :

    Assume that it is the end of 2006, the first full year of operations for the company. (Hint: Organize the listeditems as they are presented in the balance sheet and income statement equations and th

  • Q : Calculate cindy deduction for home office expenses....
    Accounting Basics :

    Calculate Cindy's deduction for home office expenses. b. Assume Cindy earns income of $2,600 from her business during the year before deducting home office expenses. Calculate Cindy's deduction for

  • Q : Record reinstatement of an account....
    Accounting Basics :

    At year-end (December 31), Chan Company estimates its bad debts as 0.30% of its annual credit sales of $753,000. Chan records its Bad Debts Expense for that estimate.

  • Q : Standard mileage method to calculate the depreciation....
    Accounting Basics :

    In the past he has used the standard mileage method to calculate his depreciation. Using Form 2106 on pages 4-31 to4-32, calculate George's deduction for automobile expenses.

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