• Q : Difference between the cost and sales price....
    Accounting Basics :

    Wilson Corp. purchased its own par value stock on January 1, 2007 for $20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $12,000. The $8,000 d

  • Q : Determine the account which should be debited....
    Accounting Basics :

    When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited?

  • Q : Acquisition of the treasury shares....
    Accounting Basics :

    In January 2007, Castro Corporation, a newly formed company, issued 10,000 shares of its $10 par common stock for $15 per share. On July 1, 2007, Castro Corporation reacquired 1,000 shares of its ou

  • Q : What are the income tax consequences to the parties....
    Accounting Basics :

    Amy is the sole shareholder of Garnet Corporation. During the year, Amy leases a building to Garnet for a monthly rental of $40,000. If the fair rental value of the building is $30,000, what are the

  • Q : Marketing manager recommendation problem....
    Accounting Basics :

    The marketing manager has recommended that the selling price be increased by 25%, with an expected decrease of only 11% in unit sales. What would be the company's net operating income if the marketi

  • Q : Deduction for agi or a deduction from agi....
    Accounting Basics :

    Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI. Since he plans to choose the standard deduction option for the year, does the distinction matter?

  • Q : What is davids agi for the current year....
    Accounting Basics :

    Loss on sale of camper (purchased 4 years ago and used for family vacations) What is David's AGI for the current year?

  • Q : Calculate the amount to be debited or credited....
    Accounting Basics :

    Calculate the amount to be debited or credited for equipment during the preparation of the 2008 consolidated financial statements.

  • Q : Equal installments at the end....
    Accounting Basics :

    Suppose you borrowed $20,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years. How much would you still owe at the end of the first year, after you

  • Q : Prepare t-accounts to show the flow of costs....
    Accounting Basics :

    Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.

  • Q : Explain why the two product cost are different....
    Accounting Basics :

    a. Explain why the two product cost are different. b. How would you respond to the president when asked to recommend one allocation base or the other?

  • Q : Breakeven for three products-contribution margin....
    Accounting Basics :

    The Ronowski Company has three product lines of belts- A, B, and C with contribution margins of $3, $2, and $1, respectively. The president foresees sales of 200,000 units in the coming period, cons

  • Q : Equivalent units of production for conversion cost....
    Accounting Basics :

    On June 30, the inventory of work in process consisted of 4600 units which were 85% completed. Inventories are costed by the first in first out method and all materials are added at the beginning o

  • Q : Cost of advertising and warehouse expense....
    Accounting Basics :

    What was the cost of advertising and warehouse expense allocated to each of the business based on the traditional method?

  • Q : First two interest payments to bondholders....
    Accounting Basics :

    Crocket Corp issues $200,00 of its 10percent bonds payable on April 1, 2030. The bonds were issued at face value, Interest is payable semi-annually, on 10/1 and 4/1. give the journal entries to issu

  • Q : Calculate the internal growth rate of the company....
    Accounting Basics :

    Dothan Inc. has a 10% ROE and a 30% dividend payout ratio. Its stock is currently selling at $50 per share and it recently paid a $2 dividend per share. a) Calculate the internal growth rate of the

  • Q : Preferred stockholders and common stockholders....
    Accounting Basics :

    On January 1, 2004, a corporation issued 25,000 shares of 10%, $50 par, cumulative preferred stock and 50,000 shares of $30 par common stock. Cash dividends declared by the board were as follows. De

  • Q : Break-even point expressed in total revenue....
    Accounting Basics :

    Days of Our Lives Hospital has total variable costs of 90% of total revenues and fixed costs of $50 million per year. There are 50,000 patient-days estimated for next year. What is the break-even po

  • Q : Compute loons taxable income for the year....
    Accounting Basics :

    Loon corporation had the following transaction: $400,000 operating income, operating expenses, $25,000 municipal bond interest, $60,000 long term capital gain and $95,000 short term capital loss. a

  • Q : Explain the accounting practices california sutter health....
    Accounting Basics :

    Identify and explain the accounting practices California Sutter Health used in defining and solving its collection problems.

  • Q : What is beverage internationals receivables turnover ratio....
    Accounting Basics :

    Beverage International reports net credit sales for the year of $240,000. The company balance of accounts receivable at the beginning of the year equaled $20,000 and the balance at the end of the ye

  • Q : Par value method of accounting for treasury stock....
    Accounting Basics :

    Assuming Kuchman uses the par value method of accounting for its treasury stock, retained earnings at Dec 31. Year 2 would be reduced by ?

  • Q : Total dividends paid to each class of stock....
    Accounting Basics :

    On July 1, the board of Division declared a $30,000 dividend at the time the common stock was selling for $25 per share and the preferred stock was selling for $30. The total dividends paid to each

  • Q : Journalize the necessary adjusting entry....
    Accounting Basics :

    For each of the following, journalize the necessary adjusting entry:

  • Q : Retained as the auditor of a brokerage firm....
    Accounting Basics :

    In which of the following instances would the independence of the CPA not be considered to be impaired? The CPA has been retained as the auditor of a brokerage firm

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