Get college assignment help at uniessay writers control risk is assessed in terms of what?
Samson Company is a wholesaler of men’s hairproducts. The following transactions relate to certain securities by Samson Company, which has a fiscal year ending on December 31: 2006 Jan. 3. Purchased 4000 shares of the 100,000 outstanding common shares of Nichols Corporation at 55 plus commission and other costs of $480. July 2. Received the regular cash dividend of $1.25 a share on Nichols Corporation stock. Dec. 5. Received the regular cash dividend of $1.25 a share plus an extra dividend of $0.10 a share on Nichols Corporation stock. (Assume that all intervening transactions have been recorded properly and that the number of shares of stock owned have not changed from December 31, 2006 to December 31, 2008). 2009 Jan. 2. Purchased controlling interest in Telico Inc. for $540,000 by purchasing 32,000 shares directly from the estate of the founder of Telico. There are 128,000 shares of Telico Inc. stock outstanding. July 6. Received the regular cash dividend of $1.25 a share and a 4% stock dividend on the Nichols Corporation stock. Oct. 23. Sold 800 shares of Nichols Corporation stock at 68. The broker deducted commission and other costs of $140, remitting the balance. Dec. 10. Received a cash dividend at the new rate of $1.50 a share on the Nichols Corporation stock. Dec. 31. Received $38,000 of cash dividends on Telico Inc. stock. Telico Inc. reported net income of $260,000 in 2009. Samson uses the equity method of accounting for its investment in Telico Inc. I attached the worksheet that I have to use as well. Thanks, any help will be wonderful.
Lopez Company issues $5,000,000 of bonds with a coupon rate of 8%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1,000 bond sold. It is estimated that the value of the bonds without the warrants is $4,935,000 and the value of the warrants is $315,000. The bonds with the warrants sold at 101.
Sorry about that. Maybe this will help…. Preparing a master budget for a retail company with no beginning account balances. Oversea Gifts Corporation begins business today, December 31, 2004. Sharon Ting, the president, is trying to prepare the company’s master budget for the first three months (January, February, and March) of 2005. Since you are her good friend and an accounting student, Ms. Ting asks you to prepare the budget based on the following specifications.
A company sold merchandise for $350 that cost $221. The entry to record the cost of the merchandise sold would be?
8. (Multiple Choice; ) Badgers Inc. issued a 120-day note in the amount of $60,000 on 12/16/07 with an annual rate of 8%. What amount of interest has accrued as of 4/16/08?
7. (Multiple Choice; ) Dutch Grove Use the data presented below for Dutch Grove Corp. for the year ended December 31, 2004 to answer the questions that follow. Sales (100% on credit) $950,000 Net credit sales 929,000 Accounts Receivable (December 31, 2004) 114,000 Allowance for Doubtful Accounts (before adjustment at December 31, 2004; credit balance) 1,000 Estimated amount of uncollectible accounts based on an aging analysis 10,000 Refer to Dutch Grove data. If Dutch Grove uses an aging of accounts receivable approach to estimate its bad debts, what amount will be reported as bad debt expense for 2004? A. $2,280 B. $8,000 C. $9,000 D. $10,000 8. (Multiple Choice; ) Badgers Inc. issued a 120-day note in the amount of $60,000 on 12/16/07 with an annual rate of 8%. What amount of interest has accrued as of 4/16/08? A. $4,800 B. $197.26 C. $1578.08 D. $2,400 E. zero 9. (Multiple Choice; ) Which of the following would require the company to record an accrual on the balance sheet? A. The company owes $20,000 in wages to its employees for the previous two weeks. B. Interest will be paid when a note payable matures in the following accounting period C. All of these cases would require the company to record an accrual on the balance sheet. D. The company knows that they will be fined for pollution as a result of their manufacturing process and can estimate the amount of the obligation. 10. (Multiple Choice; ) Cornucopia Electric Corp. sells $100,000 of bonds to private investors. The bonds have a 8% coupon rate and interest is paid semi-annually. The bonds were sold to yield 9%. What periodic interest payment does Cornucopia make? A. $9,000 B. $4,500 C. $8,000 D. $4,000 11. (Multiple Choice; ) Amortization of bond discount results in a(n) A. decrease of the bonds payable account. B. decrease of owners’ equity. C. increase of owners’ equity. D. decrease in the cash account. 12. (Multiple Choice; ) Cornucopia Electric Corp. sells $100,000 of bonds to private investors. The bonds are due in 5 years, have a 8% coupon rate and interest is paid semi-annually. The bonds were sold to yield 10%. What proceeds does Cornucopia receive from the investors? A. $100,000 B. $107,985 C. $108,110 D. $92,278 E. $92,418 13. (Multiple Choice; ) On June 1, Panda Club borrows $20,000 from First State Bank. The loan is due in one year along with 5% interest. The company is preparing its quarterly report for August 31. Which of the following best describes the necessary accrual for interest expense? A. $62.50 decrease liabilities, decrease cash B. $250 decrease liabilities, decrease cash C. $250 increase expenses, decrease cash D. $250 increase liabilities, increase expenses E. $62.50 increase liabilities, increase expenses 14. Selected recent balance sheet and income statement information for American Eagle Outfitters follows: (in thousands) 2005 Year-end accounts payable $ 139,197 Average accounts payable 124,063 Sales 2,309,371 Cost of goods sold 1,101,679 Accounts payable turnover for 2005 is: A. 9.96 B. 8.88 C. 16.59 D. 18.61 15. (Multiple Choice; ) Debt ratings: A. reflect the relative riskiness of the borrowing company B. result in higher market prices for the bonds when there is a higher quality debt rating C. that are higher quality result in lower effective interest rates for the issuer D. All of these statements are correct E. All of these statements are false. 16. (Multiple Choice; ) Current liabilities: A. are obligations that require payment within the coming year or operating cycle, whichever is longer. B. are generally settled with existing current assets or operating cash flows C. consist of both operating and nonoperating liabilities D. All of these are true 17. (Multiple Choice; ) Kraft Inc. offers Schnuck’s credit terms of 2/5, net 65. If Schnuck’s does not take the early payment discount, it is effectively paying what annual rate of interest? A. 36% B. 18.25% C. 40% D. 12.17% 18. (Multiple Choice; ) Astro Publications declares a small stock dividend of 17% of the outstanding shares of common stock. Currently, Astro has 700,000 shares of $1 par value common stock outstanding. The current market price of the stock is $81.53 per share. Astro will record a dividend of: A. $700,000 B. $57,771,000 C. $9,821,000 D. $9,702,070 19. (Multiple Choice; ) Digital Masterpieces paid a 50% stock dividend. The company has 600,000 $1 par value shares issued and outstanding. The market value of Digital’s stock is $47 the day the dividend is paid. How does this transaction affect the “Common Stock, at par” account? A. Increases by $600,000 B. Increases by $300,000 C. Has no effect D. Increases by $6,750,000 20. (Multiple Choice; ) If a company issues 2,000 shares of common stock at a market price of $20 per share, which of the following is the correct balance sheet effect? A. Increase cash by $40,000 and increase contributed capital by $40,000 B. Increase cash by $40,000 and increase earned capital by $40,000 C. Increase stock revenues by $40,000 D. Stock issuances are not reported on the balance sheet 21. (Multiple Choice; ) In June 2007, Typesetters, Inc announced a 3-for-2 stock split. On the split date, Typesetters had about 28.7 million shares outstanding. After the split the number of shares outstanding was: A. 64.5 million B. 43.05 million C. 32.25 million D. 14.3 million 22. (Multiple Choice; ) Digital Masterpieces paid a 50% stock dividend. The company has 600,000 $1 par value shares issued and outstanding. The market value of Digital’s stock is $47 the day the dividend is paid. How does this transaction affect the “Additional paid-in capital” account? A. Increases by $600,000 B. Increases by $300,000 C. Has no effect D. Increases by $6,750,000 23. (Multiple Choice; ) In 2006, Morgan Bates Corporation paid dividends in arrears of $8,994,000 to its preferred shareholders and paid no dividends to its common shareholders. This practice is called a: A. Liquidation preference B. Treasury preference C. Dividend preference D. Stock ownership prefer
Comprehensive Case: Chapter 4 True North Consultants Ltd. commenced operations on January 1, 2009. In order to keep on top of its accounting, True North plans to record and adjust its accounts monthly. It conducted the following transactions during January: Jan. 2 Issued $30,000 of common shares for cash. 2 Signed a five-year lease for office space. 5 Prepaid six months of liability insurance, $900. 5 Paid the first (January 2009) and last (December 2009) month’s rent, $3,000 per month, for a total payment of $6,000. 6 Purchased office equipment on account, $12,000. 7 Purchased $2,000 of office supplies for cash. 8 Visited client offices and agreed on the terms of a consulting project. True North will invoice the client, Anjou Productions, on the 15th of each month for work performed. 9 Leased a vehicle for a four-year term. Paid the first month’s lease payment of $450 and a security deposit of $3,000. Use the accounts Vehicle Lease Expense and Prepaid Vehicle Lease (long-term), respectively, to record these amounts. 12 Negotiated a $25,000 line of credit at the bank to be used as needed to cover temporary cash overdrafts. 13 Met with a new client, Babson Technologies. Received $5,000 cash as a retainer for future work to be performed. 15 Invoiced Anjou Productions for $4,000 of consulting services provided on account. 16 Paid a telecommunications bill of $475. 19 Received an invoice for routine legal advice, $1,200. The amount is not due until February 15. 21 Completed the first phase of the project for Babson Technologies. Recognized $3,000 of revenue from the cash retainer previously received. Issued the client an invoice marked “Paid.” 22 Received $4,000 cash from Anjou Productions in payment of the invoice issued on the 15th. 26 Received and deposited a $500 fee for speaking at an industry conference. 30 Prepared an adjusting entry to record $250 of office supplies used (see January 7 transaction). 30 Prepared an adjusting entry to record the expiry of one month’s liability insurance (see January 5 transaction). 31 Reviewed the accounts for any further adjustments. Office equipment will not be depreciated until the year end. The monthly adjustment is immaterial to the financial statements. Instructions In Excel worksheet. (a) Record the above transactions. (b) Prepare T accounts and post the general and adjusting journal entries. (c) Prepare a trial balance as at January 31. (d) Prepare the (1) statement of earnings, (2) statement of retained earnings, and (3) balance sheet for the month.
Good Time Adventures currently owns a 10-passenger van that is used to transport clients to and from its outdoor adventure sites. The van was purchased 5 years ago at a cost of $20,000. At that time, its useful life was estimated to be 5 years with a salvage value of $5,000. The van is in need of some major repairs. It needs a new engine and transmission, new tires, and other minor miscellaneous maintenance. The engine and transmission are estimated to cost $4,000 and will extend the useful life of the van by 5 years. The new tires and other repairs are estimated to cost $1,200. The estimated salvage value at the end of the 5 years is $7,000. Good Time Adventures is trying to decide if it should repair the existing van or trade it in for a new van. A local dealer has offered a trade-in value of $6,000 on the old van with a purchase of a new van costing $30,000. If the new van is purchased, Good Time Adventures plans to depreciate it using the units of production method. The units would be based on the number of miles driven. The new van is expected to have a salvage value of $10,000 after its useful life of 100,000 miles. Prepare a 750–1,000 word report for your manager. For full-credit, you must discuss/explain and calculate the following: Show the calculations for depreciation expense for the existing van (how depreciation is currently being expensed). the repaired van (depreciation expense if the existing van is repaired). the new van (explain how depreciation would be calculated if the new van is purchased). Show the journal entries you would record if the existing van is repaired. a new van is purchased. Explain how you record each of the decision options: Repair the existing van. Trade in the van for a new van. Explain how you would account for the repairs on the existing van. Are they expenses, assets, or both? Recommend a course of action regarding the van.
Describe how accounting policies are defined in the literature. Discuss how the authoritative literature addresses comprehensive income. Define three classifications within net income and give an example of each. Define three classifications within other comprehensive income and give an example of each.
Get college assignment help at uniessay writers Explain stock options and their effect on the company. APA 200-250 words.
Purchased merchandise from Johns Company under the following terms: $5,900 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.
Roberto Corporation was organized on January 1, 2009. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2009, Roberto had the following transactions relating to shareholders equity: Issued 10,000 shares of common stock at $7 per share Issued 20,000 shares of common stock at $8 per share Reported net income of $100,000 Paid Dividends of $50,000 Purchased 3,000 shares of treasury stock at $10 (part of the 20,000 shares issued at $8) What is the total shareholders equity at the end of 2009?
Olin Packett is a CGA-CPA and has been employed for over 5 years by a Canadian private corporation and recently promoted to a management position. He works in their Victoria, BC office. For 2018, his gross salary was $150,000. While he does not receive commissions, he was awarded a bonus of $10,000 for 2018 based on the performance of the business. One-half of this was paid in December 2018, with the balance paid in March 2019. The following amounts were withheld from his gross salary in 2018: Federal Income Tax $25,000 Employment Insurance Premiums 858 Canada Pension Plan Contributions 2,594 Registered Pension Plan Contributions 5,000 Charitable contributions (Centraide) 1,000 Other Information: 1. During 2018, Olin was provided with an automobile that the corporation bought at a cost of $82,500, including all taxes. The total operating costs of the car were $0.50/km for the year and they were all paid by the corporation. The car was available to Olin the entire year, except that he didn’t use the car for a 3-month period while he was on disability leave. Olin drove the car a total of 30,000kms during the year, all but 9,700kms were employment related (fully documented). Olin reimbursed his employer $950 for his personal use of the automobile for the year. 2. During 2015, Olin was granted the option to buy 1,000 shares of his employer’s common shares at a price of $31.00 per share. At that time, the shares were worth $33.00 each. On June 1, 2016, Olin exercised his option and acquired 1,000 shares at $31 each. At that time, the shares were worth $40.00 each. Olin sold all the 1,000 shares on May 1, 2018, for proceeds of $50.00 per share. 3. In order to assist Olin in purchasing a new luxury boat, his employer granted him a 3-year, interest-free loan of $100,000. The loan was granted on July 1, 2018. At that time, the interest rate on an open 5-year loan was 5%. The prescribed interest rate for 2018 was 2.5% for the period of July to September and 3% for the period of October to December 2018. 4. Olin has been a member of his employer’s defined benefits Registered Pension Plan (“RPP”) for the last 3 years. For 2018, his employer made a $5,000 matching contribution to the RPP on his behalf. 5. Other disbursements made by Olin during 2018 include the following: Tuition fees for a business management course $1,500 Tuition fees for a sailing course $1,000 Professional dues paid to CPA association $1,600 Premiums paid on life insurance policy $720 Mortgage payments on home $24,000 Olin’s employer reimbursed the tuition fees for both the business management and the sailing courses but none of the other costs paid personally by Olin, given his recent promotion to a manager’s position. Required: Calculate Olin’s net employment income for tax purposes for the year 2018. Explain your answer, including detailed calculations, and provide reasons for omitting items that you have not included in your calculations. Ignore all GST/HST considerations. Assume all applicable elections were made.
Exercise 21-5: Service department expenses allocated to operating departments L.O. P3 The following is a partially completed lower section of a departmental expense allocation spreadsheet for Haston Bookstore. It reports the total amounts of direct and indirect expenses allocated to its five departments. Complete the spreadsheet by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments. Advertising and purchasing department expenses are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows (Negative amounts should be indicated by a minus sign. Round percentages to the nearest tenth of a percent, and round answers to the nearest dollar. Omit the “$” sign in your response. ): Department Sales Purchase Orders Books $ 440,000 400 Magazines 160,000 250 Newspapers 200,000 350 Total $ 800,000 1,000 ——————————————————————————– HASTON BOOKSTORE Departmental Expense Allocation Spreadsheet For Period Ended _______ Allocation of Expenses to Departments Allocation Base Expense Account Balance Advertising Dept. Purchasing Dept. Books Dept. Magazines Dept. Newspapers Dept. Total dept exp $ 653,000 $ 23,000 $ 30,000 $ 426,000 $ 85,000 $ 89,000 Service Dept. Expenses Advertising Dept Sales $ Purchasing Dept Purch. orders $ Total expenses allocated to operating depts $ $ 0 $ 0 $ $ $ ——————————————————————————– ——————————————————————————–
A, B, C, and D are sole proprietors, each individually engaged in the business of free-lance court reporting. All four individuals report their income on the cash method. They decide to form an equal, cash method, general partnership with interests of $30,000 each. A contributes: • $20,000. • A’s personal note for $15,000 with a $10,000 value. B contributes: • Personal automobile. Value $10,000, adjusted basis $15,000, owned ten years. • Stock in Speed Reporting, Inc. held two weeks. Value $10,000, adjusted basis $10,000. • Real property used in B’s business valued at $10,000, adjusted basis $7,000, holding period of five years. C contributes: • Xerox duplicator-collator held several years. Value $30,000, Original Cost $40,000, adjusted basis $10,000. Three years remaining useful life. D contributes: • $25,000 in § 453 installment obligations acquired three months ago from the sale of property held for three years. Value $20,000, adjusted basis $15,000. • Accounts receivable from his sole proprietorship valued at $10,000. Questions 1) What gain or loss is recognized to each partner as a result of these contributions? 2) What is the tax basis of each partner’s interest in the partnership? 3) What is the partnership’s basis in each asset? 4) a. What is each partner’s holding period for his partnership interest? b. What is the partnership’s holding period for its assets?
Use the IMA’s ethical standards to consider Manning’s responsibility when cost savings come at the expense of employees’ jobs.
If finished goods are still on hand in a department at the end of the month, how are they reported on the cost of production summary and on the balance sheet?
HSM 260 Day 4-Week6: Calculate the fixed cost, variable costs and break-even point for the program suggested in Appendix D (XYZ Nonprofit Corporation).
On January 3, 2008, Austin Corp. purchased 25% of the voting common stock of Gainesville Co., paying $2,500,000. Austin decided to use the equity method to account for this investment. At the time of the investment, Gainesville’s total stockholders’ equity was $8,000,000. Austin gathered the following information about Gainesville’s assets and liabilitie
The assignment is to find taxable income, tax liability and earnings and profit for 2010. Im not really sure how taxable income from the given information nor earnings and profit. I just dont know the tax treatments to find them.
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