You are to receive five gold coins from your great uncle as an incentive to study hard. The coins were originally purchased in 1982.Your great uncle will deliver the coins the week after finals (assuming your grades are "acceptable"). The amount your great uncle paid for the coins is a(n)
Auditing: the review of financial statements to assess their fairness and adherence to GAAP. Tax accounting: tax compliance-dealing with the preparation of tax returns and the audit of those returns, and tax planning-giving advice to clients on how to structure their financial affairs in order to reduce their tax liability. Management advisory
The following are costs for a selected period: direct materials used in production, $75,000; direct labor cost of converting materials into product, $150,000; total indirect costs of manufacturing, $45,000. What is the unit cost of manufacturing 30,000 units in this period?
Donner Company is selling a piece of land adjacent to their business. An appraisal reported the market value of the land to be $120,000. The Focus Company initially offered to buy the land for $107,000. The companies settled on a purchase price of $115,000. On the same day, another piece of land on the same block sold for $122,000. Under the cost concept, what is the amount that will be used to record this transaction in the accounting records?
Land was acquired in 2009 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a qualified appraiser placed its value at $48,000, and a recent firm offer for the land was for a cash payment of $46,000. The land should be reported in the financial statements at:
Sandpiper Inc. acquired a 30% interest in Shore Corporation for $27,000 cash on January 1, 2005, when Shore’s stockholders’ equity consisted of $30,000 of capital stock and $20,000 of retained earnings. Shore Corporation reported net income of $18,000 for 2005. The allocation of the $12,000 excess of cost over book value acquired on January 1 is shown below, along with information relating to the useful lives of the items:
13. A parent company uses the equity method to account for its wholly-owned subsidiary, but has applied it incorrectly. In each of the past four full years, the company adjusted the Investment account when it received dividends from the subsidiary but did not adjust the account for any of the subsidiary’s profits. The subsidiary had four years of profits and paid yearly dividends in amounts that were less than reported net incomes. Which one of the following statements is correct if the parent company discovered its mistake at the end of the fourth year, and is now preparing consolidation working papers?
2. A partner's capital balance represents his or her interest in the net assets of the partnership, whereas a partner's interest in income and loss represents how his or her interest in capital will be affected by the subsequent operations of the partnership. Generally, a partner's capital account is used to recognize asset investments and withdrawals which are not considered temporary. The partner's drawing account is generally used to record withdrawals of assets in anticipation of profitable operations of the partnership or any payments of a partner's personal expenses from partnership assets.
9. On January 1, 2008, Blake Company acquired all of Frost Corporation's voting shares for $280,000 cash. On December 31, 2009, Frost owed Blake $5,000 for services provided during the year. When consolidated financial statements are prepared for 2009, which entry is needed to eliminate intercompany receivables and payables in the consolidation workpaper?
Food for the Golden Years is a private, not-for-profit organization that provides free meals for the post-65 age group in the suburbs of a large city. Record the following transactions in the accounts of Food for the Golden Years. The following transactions affected the accounts of Food for the Golden Years.
Spencer College assessed $1,350,000 in student tuition for the fall semester. The college estimates bad debts will be 2% of the gross assessed tuition. Spencer is located in Montana where a scholarship program provides for tuition waivers totaling $120,000. Estimated uncollectible tuition is $13,500.
22) Hemberger Corporation currently produces baseball caps in an automated process. Expected production per month is 20,000 units, direct material costs are $3.00 per unit, and manufacturing overhead costs are $46,000 per month. Manufacturing overhead is entirely fixed costs. What is the flexible budget for 10,000 and 20,000 units, respectively?
Answer: If variances are always written off to cost of goods sold, a company could set its standards to either increase (for financial reporting purposes) or decrease (for tax purposes) operating incomes. The proration method has the effect of approximating the allocation of fixed costs based on actual costs and actual output so it is not susceptible to the manipulation of operating income based on the choice of the denominator level.
58) Wharf Fisheries processes many of its seafood items to the demands of its largest customers, most of which are large retail distributors. To keep the accounting system simple, it has always assigned cost by the weight of the finished product. However, with increased competition, it has had to watch its prices closely and, in recent years, several items have incurred zero profit margins. After several weeks of investigation, your consulting firm has found that, while weight is important in processing of seafood, numerous items have very distinct processing steps and some items are processed through more steps than others.
7) Computer Products produces two keyboards, Regular and Special. Regular keyboards have a unit contribution margin of $128, and Special keyboards have a unit contribution margin of $720. The demand for Regulars exceeds Computer Product's production capacity, which is limited by available machine-hours and direct manufacturing labor-hours. The maximum demand for Special keyboards is 80 per month. Management desires a product mix that will maximize the contribution toward fixed costs and profits.
4-7 Pell Company purchased 90% of the stock of Silk Company on January 1, 2007, for $1,860,000, an amount equal to $60,000 in excess of the book value of equity acquired. All book values were equal to fair values at the time of purchase (i.e., any excess payment relates to subsidiary goodwill). On the date of purchase, Silk Company‟s retained earnings balance was $ 200,000. The remainder of the stockholders ‟ equity consists of no-par common stock. During 2011, Silk Company declared
Timothy Seward, my neighbor in North Carolina, has taught me more about Analytics than I thought there was to know. If I’d been paying for his time, he’d be retired by now. The fabulous Joy Milkowski shared her methodologies with me and helped me rewrite the chapter about creating compelling ads. The friendship we developed during this project has been an added bonus. Don Crowther, one of the cleverest and under-the-radar marketers on this or any other planet, shared more cool ideas with me than I could ever have hoped. And Dan Hollings, the man behind the online success of “The Secret,” reached out to me in an Amazon.com review of the fi rst edition of AdWords For Dummies and has been blowing my mind with his crazy-brilliant online strategies ever since. Bryan Todd and I have argued and philosophized about metrics more than either of us cares to admit. Kelly Muldoon shared her experience with geographic targeting and always has the right amount of sympathy and chocolate for any situation. Michael Katz, the world’s expert on e-newsletters, was so helpful during this project that I almost forgive him for being funnier than I am. Joe Chapuis generously shared his knowledge about the cutting edge of online video, while Ari Galper enlightened me about the marketing potential of live chat and allowed me to reveal his strategies and show his screen shots. Thanks also to my many clients who shared case studies with me — sorry about all the ones I couldn’t use.
To explain my excitement in receiving this edition of Hranica's new book would be some injustice: there are no words. I read it once, then read it again. At 53 pages, it is not a treacherous read. The theme du jour for the text is the senselessness of existence in an often unfeeling, stagnant world convinced that it is the best of all possible worlds. The setting is middle Americana, and through the story's protagonist, the stillness and immobility of our lives are called into question.