Get college assignment help at uniessay writers “E12-12 (Accounting for Goodwill) Fred Graf, owner of Graf Interiors, is negotiating for the purchase of Terrell Galleries. The balance sheet of Terrell is given in an abbreviated form below. TERRELL GALLERIES BALANCE SHEET AS OF DECEMBER 31, 2010 Assets Cash $100,000 Land 70,000 Building (net) 200,000 Equipment (net) 175,000 Copyright (net) 30,000 Total Assets= 575,000 Liabilities and Stockholders’ Equity Accounts payable 50,000 Long-term notes payable 300,000 Total Liabilities 350,000 Common Stock 200,000 Retained Earnings 25,000 225,000 Total Liabilities and Stockholders’ equity 575,000 Graf and Terrell agree that: 1. Land is undervalued by $50,000. 2. Equipment is overvalued by $5,000. Terrell agrees to sell the gallery to Graf for $380,000. Instructions Prepare the entry to record the purchase of Terrell Galleries on Graf’s books
True or false. 1. the going concern assumption assumes the company will continue to operate for at least 2 years. 2 revenues are a subdivision of owner’s capital. 3. the trial balance has no limitations or weaknesses.
Assume that December 31 forecast shows the estimated uncolecti le accounts to be $27,860 for the next year. The Allowance for Doubtful Accounts current shows a debit balance of $1,575 also on December 31. Journalize the adjusting entry to update the Allowance for Doubtful Accounts for the new year using the “Analysis of Receivables Method”.
Hardin, Sutton and Williams has operated a local business as a partnership for several years. All profits and losses have been allocated on a 3:2:1 ratio, respectively. Recently, Williams has undergone personal financial problems and is insolvent. To satisfy Williams’ creditors, the partnership has decided to liquidate. The following balance sheet has been produced
Question 1 (a) Corporation BBB has a credit balance of $1,600 in its Allowance for Doubtful Accounts at February 28, its year-end. Accounts Receivable on February 28 are $160,000; Sales for the year were $1,880,000; and Sales Returns were $20,000 for the year. Prepare the February 28 year-end adjusting entry, assuming that bad debts are expected to be 10% of Accounts Receivable. (b) On March 31, CCC Limited’s Accounts Receivable balance was $400,000, Allowance for Doubtful Accounts was $1,000 (credit), and Sales for the year were $950,000. Prepare the March 31 adjusting entry assuming that the aged trial balance indicates that $11,270 of Accounts Receivable will be uncollectible. Question 2 McKnight Company had a $700 credit balance in Allowance for Doubtful Accounts at December 31, 2009, before the current year’s provision for uncollectible accounts. An ageing of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $120,000 1% 0–30 days past due 12,000 3% 31–60 days past due 10,000 6% 61–90 days past due 5,000 12% Over 90 days past due 8,000 30% Total Accounts Receivable $155,000 REQUIRED: (a) CALCULATE the December 31, 2009 bad debts expense based on the above facts. (b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $500 debit balance before the current year’s provision for uncollectible accounts. CALCULATE the December 31, 2009 bad debt expense. (c) Assume that the company has a policy of providing for bad debts at the rate of 1% of Sales, that Sales for 2009 were $600,000, and that Allowance for Doubtful Accounts had a $550 credit balance before adjustment. CALCULATE the December 31, 2009 bad debt expense.
A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $43,500. The stock has no stated value. How would I do a journal entry to reflect this?
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You are given the following information for transactions by Schwinghamer Co. All transactions are set Record P6-6B in cash. Schwinghamer uses a perpetual inventory system and the FIFO cost formula. Unit Cost/ Units Selling Price perpet LCNR Date Transaction Oct. 1Beginning inventory 5 Purchase 8 Sale 15 Purchase 20 Sale 25 Purchase 60 110 (140) 52 (70) 15 $14 13 20 12 16 Instructions e) Prepare the required journal entries for the month of October for Schwinghamer Co. b) Determine the ending inventory for Schwinghamer. ) On October 31, Schwinghamer determines that the product has a net realizable value of $10 per unit. What amount should the inventory be valued at on the October 31 balance sheet? Prepare any required journal entries
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.
Get college assignment help at uniessay writers Journalize the six entries that adjust the accounts at December 31. One of the accounts was affected by two different adjusting entries. Unadjusted Trial Balance Adjusted Trial Balance Cash 5,000 5,000 Accounts Receivable 32,000 32,600 Supplies 3,600 100 Prepaid Insurance 4,000 1,400 Equipment 11,000 11,000 Accumulated Depreciation 1,700 Wages Payable 2,000 Unearned Fees 8,900 3,500 Ann Cole, Capital 22,000 22,000 Fees Earned 69,000 75,000 Wages Expense 44,300 46,300 Supplies Expense 3,500 Insurance Expense 2,600 Depreciation Expense 1,700 Total 99,900 99,900 104,200 104,200
Carolyn, who earns $400,000, is required to pay John, her ex-husband, $200,000 as part of the property settlement as a result of their divorce. In turn, John transfers stock worth $50,000 to Carolyn. What is the amount of Carolyn’s adjusted gross income for the year?
Garrison corporation transfers unimproved land to Rucker Corporation and receives in exchange improved land with FMV of 600,000 and 250,000 of cash. Rucker’s adjsuted basis in the imporved land is 750,00. Garrison’s adjusted basis in the unimproved land is 400,000 plus the land at the time of sale is a subject to mortgage of 200,000 that Rucker assumes. Rucker’s improved land is subject to a mortgage of 150,000 that Garrison assumes. a. calculate Garrison’s realized and recognized gain or loss on the eschange of the unimproved land and its basis in the newly acquired improved land. b. calculate Rucker’s realized and recognized gain or loss on the eschange of the unimproved land and its basis in the newly acquired unimproved land.
lee chang’s opened chang’s cleaning service Inc.on july 1,2011 the following transactions were completed july 1 shareholders invested $20.000 cash in the business in exchange for ordinary shares july 2 purchased used truck for $9000,paying $4000 cash and the balance on account july 3 purchased cleaning supplies for $2.100 on account july 5 paid $1800 cash on one-year insurance policy effective july 1 july 12 billed customers $4500 for cleaning services july 18 paid $1500 cash on amount owed on truck and $1400 on amount owed on cleaning supplies july 20 paid $2000 cash for employee salaries july 21 collected $3400 cash from customers billed on july 12 july 25 billed customers $9000 for cleaning services july 31 paid gas and oil for month on truck $350 july 31 declared and paid a $1600 cash dividend (a)journalize and post the july transaction,ledger and trial balance
Farr Products Corp. provides an incentive compensation plan under which its president receives a bonus equal to 20% of the corporation’s income in excess of $300,000 before income tax but after the bonus. If income before tax and bonus is $1,200,000 and the effective tax rate is 30%, the amount of the bonus would be a. $126,000. b. $150,000. c. $180,000. d. $240,000.
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On June 30, 2010, the Jacobs Company sold 800,000 of 11% face value bonds for 761,150.96. On December 31, 2010, the Jacobs Company sold 700,000 of this same bond issue for 734,645.28. The bonds were dated January 1, 2010, pay interest semiannually on each December 31 and June 30, and are due December 31, 2017.
7-22 (Understanding the entity and its environment) You have just been assigned as in-charge accountant on HipStar, Inc. a new audit client in the recording industry. HipStar is an emerging growth company that finds new recording artists, records their music, and distributes the music directly to consumers exclusively over the Internet. The company does not produce CDs or tapes and does not distribute the artist’s music through traditional distribution channels. In order to better understand HipStar, you have set out to understand the following: 1. Industry conditions 2. The regulatory environment 3. Other external factors affecting the business 4. The entity’s business operations 5. The entity’s investing activities and financing activities 6. The entity’s financial reporting activities 7. The entity’s objectives, strategies, and related business risks 8. How the entity measures and reviews its financial performance. Required For each of these eight categories (1) describe the knowledge and understanding you want to obtain about HipStar to develop a knowledgeable perspective about the entity and (2) identify how this knowledge might assist in assessing the risk of material misstatement. Use the following format:
Expected payments for direct materials will be listed in the __________ section of a cash budget. A. cash investments B. financing C. cash disbursements D. cash receipts Thank you!!!
Irving Corp. obtained the following information from its accounting records: Sales = $18,000 Beginning Finished Goods Inventory = $10,500 Ending Finished Goods Inventory = $8,500 Cost of Goods Sold = $8,000 Ending Work-in-Process Inventory = $9,500 What does the Cost of Goods Manufactured this period equal?
E12-3 (Classification Issues—Intangible Asset) its general ledger at December 31, 2010. Organization costs 24,000 Trademarks 20,000 Discount on bonds payable 35,000 Deposits with advertising agency for ads to promote goodwill of company 10,000 Excess of cost over fair value of net identifiable assets of acquired subsidiary 75,000 Cost of equipment acquired for research and development projects; the equipment has an alternative future use 90,000 Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years 70,000 Instructions A) On the basis of the information above, compute the total amount to be reported by Langrova for intangible assets on its balance sheet at December 31, 2010. Equipment has alternative future use. B) If an item is not to be included in intangible assets, explain its proper treatment for reporting purposes.
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