• Q : Problem based on cost of funds....
    Accounting Basics :

    In which building would you recommend that Brubaker Inc. locate, assuming a 12% cost of funds?

  • Q : What amount of interest revenue should tom record....
    Accounting Basics :

    What amount of interest revenue should Tom record for the six-month period ended December 31, 2010?

  • Q : Company first year net income problem....
    Accounting Basics :

    How much higher (or lower) would the company's first year net income have been if absorption costing had been used rather than variable costing? Show computations.

  • Q : What accounting action is required on december 31, 2011....
    Accounting Basics :

    Withers Company has available-for-sale debt and equity securities that on December 31, 2010, had a cost of $105,000 and a market value of $102,000. The market value rose to $117,000 by December 31,

  • Q : Why are accountants concerned with the timing....
    Accounting Basics :

    Why are accountants concerned with the timing in the recording of purchases? Was there a violation of ethical standards here? Explain.

  • Q : What was the total direct variance....
    Accounting Basics :

    dragdon company planned to use 500 kg of material costing #3.50 per kg to make 2000 units of its product. In actally making 200 units, the company used 5400kg. That cost #3.50 per kg.

  • Q : Price determined in the example....
    Accounting Basics :

    In a Soviet-style command system, the central planning board announces one week that oranges are $.25 a pound. The next week they announce oranges are $2 a pound. What will happen to the demand for

  • Q : What is the cost of the equipment....
    Accounting Basics :

    Fogelberg Company purchased equipment for $12,000. Sales tax on the purchase was $600. Other costs incurred were freight charges of $240, repairs of $420 for damage during installation, and installa

  • Q : Amount used in the buyers accounting records to record....
    Accounting Basics :

    Equipment with an estimated market value of $55,000 is offered for sale at $75,000. The equipment is acquired for $20,000 in cash and a note payable of $40,000 due in 30 days. The amount used in the

  • Q : Finding the yield to maturity....
    Accounting Basics :

    Ezzell Enterprises' noncallable bonds currently sell for $1,165. They have a 15-year maturity, an annual coupon of $95, and a par value of $1,000. What is their yield to maturity?

  • Q : Calculate realized gross profit for 2005....
    Accounting Basics :

    WELD Company had the following information regarding installment sales. Installment sales: Calculate realized gross profit for 2005

  • Q : What is the consolidated balance for land....
    Accounting Basics :

    Chain sold to Shannon a parcel of land with a book value of $65,000. The selling price was $83,000. There were no other transactions which affected the companies' land accounts during 2010. What is

  • Q : What is the non-controlling interest''s share....
    Accounting Basics :

    Devin reported net income of $137,000 for 2009. Bauerly decided to use the equity method to account for the investment. What is the non-controlling interest's share of Devin's net income for 2009?

  • Q : Repay in four equal installments at the end of four years....
    Accounting Basics :

    Suppose you borrowed $12,000 at a rate of 9.0% and must repay it in four equal installments at the end of each of the next four years. How large would your payments be?

  • Q : What was the non-controlling interest in kent''s net income....
    Accounting Basics :

    At the end of the year, 20% of the goods were still in X-Beams' inventory. Kent's reported net income was $300,000. What was the non-controlling interest in Kent's net income?

  • Q : Stockholders equity at the end of the year....
    Accounting Basics :

    Jimmy's Repair Shop started the year with total assets of $100,000 and total liabilities of $80,000. During the year the business recorded $210,000 in revenues, $110,000 in expenses, and dividends o

  • Q : Sales from current production....
    Accounting Basics :

    A firm utilizing FIFO inventory accounting would, in calculating gross profits, assume that all sales were from beginning inventory or sales were from beginning inventory until is was depleted and t

  • Q : What is the amount of net income earned by abbey co.....
    Accounting Basics :

    Abbey Co. sold merchandise to Gomez Co. on account, $35,000, terms 2/15, net 45. The cost of the merchandise sold is $24,500. Abbey Co. issued a credit memo for $3,600 for merchandise returned that

  • Q : What is ll after tax cost of debt....
    Accounting Basics :

    LL Incorporateds currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal ta

  • Q : Recognizing the loss on impairment....
    Accounting Basics :

    Dillman Corporation owns machinery with a book value of $190,000. It is estimated that the machinery will generate future cash flows of $175,000. The machinery has a fair value of $140,000. Dillman

  • Q : Calculate the firm''s predetermined overhead rate....
    Accounting Basics :

    Five gallons of glue were requisitioned for production. The glue cost $20 per gallon. Glue is treated as an indirect material.

  • Q : Make the journal entries to record income and dividends....
    Accounting Basics :

    BIBEX, Ltd purchased 40% of MINK, Inc in 2004. During 2006, MINK paid $50,000 in dividends and recorded net income of $120,000. Make the journal entries to record income and dividends.

  • Q : Compute depreciation expense under methods....
    Accounting Basics :

    Compute depreciation expense under each of the following methods. Agazzi is on a calendar-year basis ending December 31. Sum-of-the-years'-digits method for 2012.

  • Q : Make the journal entries for dec 31....
    Accounting Basics :

    DOVE classified the securities as available for sale and the market price on Dec 31, 2006 would be 104,400. Make the journal entries for Dec 31, 2006 (recording interest and valuation)

  • Q : Prepare the income tax expense section....
    Accounting Basics :

    Prepare the income tax expense section of the income statement for 2007 beginning with the line Income before income taxes.

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