Get college assignment help at uniessay writers The long-term liabilities section of Dayton Inc.’s December 31, 2008, balance sheet included the following: a. A capital lease liability with 20 remaining lease payments of$12,300 each, due annually on January 1: Lease liability $93,555 Less current portion 2,945 $90,610 The incremental borrowing rate at the inception of the lease was 11.7% and the lessor’s implicit rate, which was known by Dayton Inc., was 10.5%. b. A deferred income tax liability due to a single temporary difference. The only difference between Dayton Inc.’s taxable income and pretax accounting income is depreciation on a machine acquired on January 1, 2008, for $617,500. The machine’s estimated useful life is five years, with no salvage value. Depreciation is computed using the straight-line method for financial reporting purposes and the MACRS method for tax purposes. Depreciation expense for tax and financial reporting purposes for 2009 through 2012 is as follows: Year MACRS Depreciation Straight-line Depreciation Difference 2009 $197,600 $123,500 $74,100 2010 118,560 123,500 (4,940) 2011 71,136 123,500 (52,364) 2012 71,136 123,500 (52,364) The enacted federal income tax rates are 35% for 2008 and 40% for 2009 through 2012. For the year ended December 31, 2009, Dayton Inc.’s income before income taxes was $1,120,000. c. On July 1, 2009, Dayton Inc. issued $900,000 of 10% bonds. The bonds mature in 20 years and interest is payable each January 1 and July 1. The bonds were issued at a price to yield the investors 12%. Dayton Inc. records interest at the effective interest rate. Required: 1. Determine Dayton Inc.’s income tax expense and net income for the year ended December 31, 2009. 2. Determine Dayton Inc.’s interest expense for the year ended December 31, 2009. 3. Prepare the long-term liabilities section of Dayton Inc.’s December 31, 2009, balance sheet.
“in an equipment replacement decision, the cost of the old equipment is a(n)”
SE 8. Assume that the step in SE 6 is depreciated using the double-declining-balance method. How much would depreciation expense be in each year?
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
What Journal Entry should I record,if any, for the following for CottonWood? 1. On Jan 5, 2010 Cottonwood paid the December telephone bill to AT
Larsen Realty Corporation purchased a tract of unimproved land for $55,000. This land was improved and subdivided into building lots at an additional cost of $30,000. These building lots were all of the same size but owing to differences in location were offered for sale at different prices as follows. Group No. of Lots Price per Lot 1 9 $3,000 2 15 4,000 3 19 2,000 Operating expenses for the year allocated to this project total $18,200. Lots unsold at the year-end were as follows. Group 1 5 lots Group 2 7 lots Group 3 2 lots At the end of the fiscal year Larsen Realty Corporation instructs you to arrive at the net income realized on this operation to date. (When computing costs to determine net income, do not round the percentages for relative sales price.)
1. Why does the equity method record dividends received from an investee as a reduction in the investment account, not as dividend income? 2. Jones Company possesses a 25 percent interest in the outstanding voting shares of Sandridge Company. Under what circumstances might Jones decide that the equity method would not be appropriate to account for this investment? 3. Smith, Inc., has maintained an ownership interest in Watts Corporation for a number of years. This investment has been accounted for using the equity method. What transactions or event create changes in the Investment in Watts Corporation account being recorded by Smith?
“3. Vinnie Morelli Corporation has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 120,000 500 orders Machine Setup Setups 297,000 450 setups Machining Machine hours 1,500,000 125,000 MH Assembly Parts 1,200,000 1,000,000 parts Inspection Inspections 300,000 500 inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is A) $9.60. B) $12.00. C) $15.00. D) $34.17. 5. Donkey Company manufactures two products, Standard and DeLuxe. Donkey’s overhead costs consist of machining, $2,000,000; and assembling, $1,000,000. Information on the two products is: Standard DeLuxe Direct labor hours 10,000 15,000 Machine hours 10,000 30,000 Number of parts 90,000 160,000 Overhead applied to Standard using traditional costing using direct labor hours is A) $860,000. B) $1,200,000. C) $1,800,000. D) $2,140,000. 6. Donkey Company manufactures two products, Standard and DeLuxe. Donkey’s overhead costs consist of machining, $2,000,000; and assembling, $1,000,000. Information on the two products is: Standard DeLuxe Direct labor hours 10,000 15,000 Machine hours 10,000 30,000 Number of parts 90,000 160,000 Overhead applied to Standard using activity-based costing is A) $860,000. B) $1,200,000. C) $1,800,000. D) $2,140,000. 7. OldMaid Inc. computed an overhead rate for machining costs ($1,000,000) of $10 per machine hour. Machining costs are driven by machine hours. If computed based on direct labor hours, the overhead rate for machining costs would be $20 per direct labor hour. The company produces two products, Gert and Mill. Gert requires 60,000 machine hours and 20,000 direct labor hours, while Mill requires 40,000 machine hours and 30,000 direct labor hours. Using activity-based costing, machining costs assigned to each product is 10. An increase in the level of activity will have the following effects on unit costs for variable and fixed costs: 11. Fontain, Inc. collected the following production data for the past month: Units Produced Total Cost 1,600 $22,000 1,300 19,000 1,500 22,500 1,100 16,500 If the high-low method is used, what is the monthly total cost equation? A) Total cost = $4,400 $11/unit B) Total cost = $5,500 $10/unit C) Total cost = $0 $15/unit D) Total cost = $3,300 $12/unit 14. Clark Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio? A) 30%. B) 40%. C) 60%. D) 70%. 15. If a company had a contribution margin of $500,000 and a contribution margin ratio of 40%, total variable costs must have been A) $750,000. B) $300,000. C) $1,250,000. D) $200,000. 18. Variable costs for Foley, Inc. are 25% of sales. Its selling price is $80 per unit. If Foley sells one unit more than break-even units, how much will profit increase? A) $60.00. B) $20.00. C) $26.66. D) $320.00. 19. A company requires $1,020,000 in sales to meet its net income target. Its contribution margin is 30%, and fixed costs are $180,000. What is the target net income? A) $306,000. B) $234,000. C) $420,000. D) $126,000. 26. Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $2,220,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break-even point? A) $1,800,000 B) $2,100,000 C) $3,355,814 D) $3,900,000 29. Which of the following statements is not true? A) Operating leverage refers to the extent to which a company’s net income reacts to a given change in sales. B) Companies that have higher fixed costs relative to variable costs have higher operating leverage. C) When a company’s sales revenue is increasing, high operating leverage is good because it means that profits will increase rapidly. D) When a company’s sales revenue is decreasing, high operating leverage is good because it means that profits will decrease at a slower pace than revenues decrease.
Sanchez co. sold land ot Benita Sanchzes for $100,000 who owns 60% of the outstanding stock of Sanchez. The company;s adjusted basis in the land was $120,000. a. Compute the company’s realized and recognized gain or loss. b. Whats is the Belita’s adjusted basis in the land? c. If Belita sold the land for $90,000 after 2 years, what would be her realized and recognized gain or loss? d. If Belita sold the land for $105,000 after 2 years, what would be her realized and recognized gain or loss? e. if Belita sold the land for $145,000 2 years after she purchased it, compute realized and recognized gain or loss. ” ”
A company has a 22% profit margin and has employee fraud of $220,000. Calculate the additional revenue needed to offset this lost income.
Get college assignment help at uniessay writers During February 2008, its first month of operations, the Rutwing Enterprises issued stock in exchange for cash of $25,000. Rutwing had cash revenues of $4,000 and paid expenses of $7,000. Assuming no other transactions impacted the cash account, what is the balance in Cash at February 28?
A summary of the time tickets for the current month follows: Job# Amount Job# Amount 201 $2,100 220 $3,650 204 1,750 224 2,240 205 3,200 228 1,460 Indirect labor 11,200 236 9,875 Journalize the entry to record the facotry labor costs.
A $300,000 bond was redeemed at 98 when the carrying value of the bond was $295,000. The entry to record the redemption would include a
I have no idea how to complete this assignment. Please help Sequential and Selection Process Control Structure In the following example, the second line of the table specifies that tax due on a salary of $2000.00 is $225.00 plus 16% of excess salary over $1500.00 (that is, 16% of $500.00). Therefore, the total tax is $225.00 $80.00, or $305.00. Salary Range in Dollars Base Tax in Dollars Percentage of Excess 1. 1 0.00-1,499.99 0.00 15 % 2. 2 1,500.00-2,999.99 225.00 16 % 3. 3 3,000.00-4,999.99 465.00 18 % 4. 4 5,000.00-7,999.99 825.00 20 % 5. 5 8,000.00-14,999.99 1425.00 25 %
Thompson TV and Appliance reported the following in its 2009 financial statements: 12. Thompson’s 2009 gross profit ratio is: A. 25%. B. 19%. C. 20%. D. None of these is correct. 13. Thompson’s 2009 inventory turnover ratio is: A. 3.91. B. 4.00. C. 4.88. D. 5.00.
At December 31,2010,Burr coporation owes $500,000 on a note payable due February 15,2011. a.If Burr refinances the obligation by issueing a long term note on February 14 and using the proceeds to pay off the note due February 15,how much of the $500,000 should be reported as a current liability in December 31,2010? b.If Burr pays off the note on February 15, 2011 and then borrows $1,000,000 on a long term basis,on March 1,how much of the $500,000 should be reported as a current liability at December 31,2010,the end of the fiscal year?
6. A department has budgeted monthly manufacturing overhead cost of $270,000 plus $3 per direct labor hour. If a flexible budget report reflects $522,000 for total budgeted manufacturing cost for the month, the actual level of activity achieved during the month was a. 264,000 direct labor hours. b. 84,000 direct labor hours. c. 174,000 direct labor hours. d. Cannot be determined from the information provided.
The purpose of the adjustments column in the worksheet is to
The employees of Mauve Accounting Services are permitted to use the copy machine for personal purposes, provided the privilege is not abused. Ed is the president of a civic organization and uses the copier to make several copies of the organization’s agenda for its meetings. The copies made during the year would have cost $125 at a local office supply. a. Ed must include $125 in his gross income. b. Ed may exclude the cost of the copies as a no-additional cost fringe benefit. c. Ed may exclude the cost of the copies only if the organization is a client of Mauve. d. Ed may exclude the cost of the copies as a de minimis fringe benefit.
On May 1, Dexter, Inc. factored $800,000 of accounts receivable with Quick Finance on a without recourse basis. Under the arrangement, Dexter was to handle disputes concerning service, and quick finance was to make the collections, handle the sales discounts and absorb the credit losses. Quick Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 2% of the total receivables to cover sales discounts. 1. prepare a journal entry required on Dexter’s books on May 1. 2. prepare the journal entry required on quick’s finance books on may 1. 3. assume dexter factors the $800,000 of accounts receivable with quick finance on a with recourse basis instead. the recourse provision has a fair value of $14,000. prepare the journal entry required on dexter’s books on may 1.
Brain Teaser 4: Cash Basis or Accrual Basis? Is Accrual Accounting Superior to Cash Basis? Use FASB to identify what standard-setters have said as to the superiority of accrual accounting relative to a cash basis. Do you agree with the justification offered for accrual accounting? Explain. PLEASE NOTICE THE QUESTION ASKS TO USE FARS BUT THE INSTRUCTOR WANTS FASB USED. Thank you
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