Get college assignment help at uniessay writers Idler Co. has an investment in Cowl Corp. for which it uses the equity method. Cowl has suffered large losses for several years, and the balance in the investment account has been reduced to zero. How should Idler account for this investment?
Journalize the following transactions: Dec. 31 The accrued product warranty for the year is estimated to be 1.5% of net sales. Sales for the year totaled $8,000,000, and sales returns and allowances were $120,000. 31 The accrued vacation pay for the year is estimated to be $55,000. 31 Paid Reliable Insurance Co. $85,000 as fund trustee for the pension plan. The annual pension cost is $97,000.
On January 1, 2006, Princess Corporation leased equipment to King Company. The lease is for 8 years. The first payment of $675,000 was made on January 1, 2006. The equipment cost Princess Corporation $3,600,000. The present value of the minimum lease payments is $3,960,000. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 10%, how much interest revenue will Princess record in 2007 on this lease?
CALCULATE OPERATING PROFIT OF 21000 INTEREST EXPENSE 30000 PREFERRED DIVIDENDS PAID WERE 24700 AND COMMON STORCK PAID WERE 36000. HOW DO I CALCULATE EARNINGS PER SHARE.
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Journalize in a two column journal the adjusting entries required at December 31, 2008. Omit explanations. 1. Fees accrued but unbilled are $4,500. 2. The supplies account balance on December 31 is $5,250. The supplies on hand are $1,015. 3. Wages accrued but not paid are $3,500. 4. Depreciation of office equipment is $2,200. 5. Rent expired during year, $7,800.
Coffey Company maintains a very large direct materials inventory because of critical demands placed upon it for rush orders from large hospitals. Item A contains hard-to-get material Y. Currently, the standard cost of material Y is $2.00 per gram. During February, 22,000 grams were purchased for $2.10 per gram, while only 20,000 grams were used in production. There was no beginning inventory of material Y. Required: a) Determine the direct materials price variance, assuming that all materials costs are the responsibility of the materials purchasing manager. b) Determine the direct materials price variance, assuming that all materials costs are the responsibility of the production manager. c) Discuss the issues involved in determining the price variance at the point of purchase versus the point of consumption.
At a sales volume of 32,000 units, CD Company’s total fixed costs are $64,000 and total variable costs are $60,000. The relevant range is 30,000 to 55,000 units. If CD Company were to sell 43,000 units, the total expected cost would be: a. $146,000. b. $166,625. c. $144,625. d. $124,000.
E3-2: On numerous occasions, proposals have surfaced to put the federal government on the accrual basis of accounting. This is no small issue. If this basis were used, it would mean that billions in unrecorded liabilities would have to be booked, and the federal deficit would increase substantially. Instructions (a) What is the difference between accrual-basis accounting and cash-basis accounting? (b) Why would politicians prefer the cash basis over the accrual basis? (c) Write a letter to your senator explaining why the federal government should adopt the accrual basis of accounting.
Get college assignment help at uniessay writers During February the Lungren Manufacturing Company’s costing system reported several variances that the production manager was surprised to see. Most of the company’s monthly variances are under $125, even though they may be either favorable or unfavorable. The following information is for the manufacture of garden gates, its only product: i. Direct materials price variance, $800 unfavorable. ii. Direct materials efficiency variance, $1,800 favorable. iii. Direct manufacturing labor price variance, $4,000 favorable. iv. Direct manufacturing labor efficiency variance, $600 unfavorable. Required: a) Provide the manager with some ideas as to what may have caused the price variances. b) What may have caused the efficiency variances?
interpretations of the rules regarding independence allow an auditor to serve as:
On January 1, 2011, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Strong’s stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Strong’s books by $35,000. Any remaining excess was attributable to goodwill which has not been impaired. As of December 31, 2011, before preparing the consolidated worksheet, the financial statements appeared as follows: During 2011, Pride bought inventory for $112,000 and sold it to Strong for $140,000. Only half of this purchase had been paid for by Strong by the end of the year. 60% of these goods were still in the company’s possession on December 31. (see the attatchment) 1.value: 5 points What is the total of consolidated revenues? $560,000. $644,000. $588,000. $840,000. $700,000. References Multiple Choice Difficulty: Medium Learning Objective: 05-02 Prepare the consolidation entry to eliminate the sales and purchases balances that are created by the intraentity transfer of inventory. 2.value: 5 points What is the total of consolidated operating expenses? $47,600. $42,000. $49,000. $35,000. $53,200. References Multiple Choice Difficulty: Medium Learning Objective: 05-01 Understand that intra-entity asset transfers often create accounting effects within the financial records of affiliated companies that must be eliminated or adjusted in preparing consolidated financial statements. 3.value: 5 points What is the total of consolidated cost of goods sold? $184,800. $196,000. $212,800. $203,000. $168,000. References Multiple Choice Difficulty: Medium Learning Objective: 05-02 Prepare the consolidation entry to eliminate the sales and purchases balances that are created by the intraentity transfer of inventory. 4.value: 5 points What is the consolidated total of noncontrolling interest appearing in the balance sheet? $100,800. $97,440. $117,040. $120,400. $93,800. References Multiple Choice Difficulty: Medium Learning Objective: 05-05 Understand the difference between upstream and downstream intra-entity transfers and how each affects the computation of noncontrolling interest balances. 5.value: 5 points What is the consolidated total for equipment (net) at December 31, 2011? $1,066,800. $1,058,400. $1,064,000. $952,000. $1,069,600. References Multiple Choice Difficulty: Medium Learning Objective: 05-01 Understand that intra-entity asset transfers often create accounting effects within the financial records of affiliated companies that must be eliminated or adjusted in preparing consolidated financial statements. 6.value: 5 points What is the consolidated total for inventory at December 31, 2011? $280,000. $336,000. $349,300. $347,200. $364,000.
The balance in accounts receivable at the beginning of 2011 was $600. During 2011, $3200 of credit sales were recorded. If the ending balance in accounts receivable was $500 and $200 in accounts receivable were written off during the year, what was the amount of cash collected from customers?
In comparing the direct method with the indirect method of preparing the statement of cash flows: Only operating activities are presented differently. Only investing activities are presented differently. Only financing activities are presented differently. All activities are presented differently.
1. Which of the following statements best describes the ethical standard of the profession pertaining to advertising and solicitation? a. All forms of advertising and solicitation are prohibited. b. There are no prohibitions regarding the manner in which CPAs may solicit new business. c. A CPA may advertise in any manner that is not false, misleading, or deceptive. d. A CPA may only solicit new clients through mass mailings. 2. Under the ethical standards of the profession, which of the following situations involving nondependent members of an auditor’s family is most likely to impair the auditor’s independence? a. A parent’s immaterial investment in a client. b. A first cousin’s loan from a client. c. A spouse’s employment with a client. d. A sibling’s loan to a director of a client. 3. Under the ethical standards of the profession, which of the following investments in a client is not considered to be a direct financial interest? a. An investment held through a non-client regulated mutual fund. b. An investment held through a non-client investment club. c. An investment held in a blind trust. d. An investment held by the trustee of a trust. 4. Burrow
THE ASSEMBLY DEPARTMENT PRODUCED 2000 UNITS OF PRODUCT DURING JUNE.
Distinguish between controllable and uncontrollable aspects of revenue and costs. Can a manager tototally control all revenue and costs? why or why not? Describe some of the drawbacks of using budgets as a control device
A Company has issued bonds with a face value of $5 million and a coupon rate of 6% interest. The bonds are quoted at 93% ex int and have 10 years left to maturity. what is the cost of debt?
On January 1, 2006, John Doe Enterprises (JDE) bought a 55% interest in Bubba Manufacturing, Inc. (BMI). JDE paid for the transaction with $3.5 million cash and 400,000 shares of JDE common stock (par value $1.00 per share). At the time of the acquisition, BMI’s book value was $16,970,000. On January 1, JDE stock had a market value of $17.25 per share. Any cost over book value is assigned to goodwill, which is not amortized. BMI had the following balances on January 1, 2006. For internal reporting purposes, JDE employed the equity method to account for this investment. BOOK MARKET VALUE VALUE Land 1,700,000 2,550,000 Buildings (seven-year remaining life) 2,700,000 3,400,000 Equipment (five-year remaining life) 3,700,000 3,300,000 The following account balances are for the year ending December 31, 2006 for both companies. PART B John Doe Bubba ELIMINATIONS CONSOLIDATED Enterprises Manufacturing RE DEBITS RE CREDITS NC INTEREST TOTALS Revenues (298,000,000) (103,750,000) Expenses 271,000,000 95,800,000 Equity in income of Bubba Manufacturing (4,361,500) – Non controlling interest in income Net income (31,361,500) (7,950,000) Retained earnings, January 1, 2006 (2,450,000) (100,000) Net income (above) (31,361,500) (7,950,000) Dividends paid 5,000,000 3,000,000 Retained earnings, December 31, 2006 (28,811,500) (5,050,000) Current Assets 30,500,000 20,800,000 Investment in Bubba Manufacturing 13,111,500 Land 1,500,000 1,700,000 Buildings 5,600,000 2,360,000 Equipment (net) 3,100,000 2,960,000 Goodwill Total assets 53,811,500 27,820,000 Accounts payable (3,100,000) (4,900,000) Notes payable (1,000,000) Non controlling interest Common stock (2,900,000) (6,000,000) Additional paid-in capital (19,000,000) (10,870,000) Retained earnings, Dec. 31, 2006 (above) (28,811,500) (5,050,000) Total liabilities and stockholders’ equity (53,811,500) (27,820,000) REQUIRED: A. Prepare a schedule to determine the amortization and allocation amounts. B. Prepare a consolidation worksheet for this business combination. Assume goodwill has been reviewed and there is no goodwill impairment. Show the eliminations on the worksheet above. Insert any additional accounts on the worksheet that are needed. C. As of the acquisition date what value would be assigned to the land, buildings, equipment, goodwill and non-controlling interest under the Economic and Proportionate Consolidation Concepts?
Prepare the appropriate adjusting entries for Brooks as of December 31, 2010, to reflect the application of the “fair value” rule for both classes of securities described above.
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