• Q : Analyze the tax consequences of the transaction....
    Accounting Basics :

    Assuming these properties are held as an investment for both Harold and Maude, analyze the tax consequences of the transaction to each party. How much gain or loss does each party recognize?

  • Q : Overhead applied during the month....
    Accounting Basics :

    The company allocates any under applied or over applied overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the

  • Q : Report as stockholder equity....
    Accounting Basics :

    Houghton company has the following items: common stock, $900,000; treasury stock, $105,000; deferred taxes, $125,000 and retained earnings, $390,000. What total amount should Houghton Company report

  • Q : Prepare the fund balance section of the balance sheet....
    Accounting Basics :

    Unmatured principal installments and accrued interest which is due shortly after year end are required to be reported as liabilities in the debt service fund at year end? True of false Prepare the f

  • Q : Unfavorable materials quantity variance....
    Accounting Basics :

    Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six pounds of materials at $0.30 per pound. Actual pro

  • Q : Total revenue in a single-step income statement....
    Accounting Basics :

    Sales revenue $180,000, Cost of goods sold $$90,000, Salaries and wages expense $15,000, Depreciation expense $30,000, Dividend revenue $6,000, Utilities expense $12,000, Rent revenue $30,000, Inte

  • Q : Familiar to locate annual report....
    Accounting Basics :

    Audit Report Search - Many companies publish their annual reports on their website, usually in an "Investor Relations" section. Visit several companies with which you are familiar to locate their an

  • Q : What deferrred income tax asset is created....
    Accounting Basics :

    Both companies have been profitable for many years. During the current year, the parent sold for $100,000 merchandise costing $70,000 to the subsidiary, which still held 20% of this merchandise at t

  • Q : Corporation current earnings and profits....
    Accounting Basics :

    What is the amount of Mitchell corporation’s current Earnings and Profits?

  • Q : Reporting and authoritative positions of the issues....
    Accounting Basics :

    Deduce extant problems with interim reporting and authoritative positions of the issues, and make recommendations you believe would help further resolve the problems. Provide specific examples to su

  • Q : Discuss the proper accounting treatment for cost....
    Accounting Basics :

    Additional engineering and consulting costs incurred in 2013 required to advance the design of a product to the manufacturing stage total $60,000. These costs enhance the design of the product consi

  • Q : Suspect possible fraud....
    Accounting Basics :

    Imagine you are one of several accountants on a team of independent auditors hired by a new CFO to evaluate the corporation’s accounting practices and interpretations. Upon your preliminary fi

  • Q : Accounting organization and control procedures....
    Accounting Basics :

    Dell is making changes to its accounting organization and to its control procedures. Evaluate those changes in terms of their probable costs and benefits.

  • Q : Amount of accrued interest payable....
    Accounting Basics :

    On January 31, 2011, B Corp. issued $850,000 face value, 10% bonds for $850,000 cash. The bonds are dated December 31, 2010, and mature on December 31, 2020. Interest will be paid semiannually on Ju

  • Q : Annual interest payments and amortization....
    Accounting Basics :

    On January 1, 2011, an investor paid $306,000 for bonds with a face amount of $360,000. The stated rate of interest is 11% while the current market rate of interest is 13%. Using the effective inter

  • Q : Report bond interest expense....
    Accounting Basics :

    On January 1, 2011, Legion Company sold $210,000 of 6% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $137,739, priced to yield 12%. Legion reco

  • Q : The amount of overhead cost....
    Accounting Basics :

    Assuming Aaron uses direct labor hours as a company-wide allocation base before and after the automation, the amount of overhead cost allocated to:

  • Q : Amount of underapplied or overapplied manufacturing....
    Accounting Basics :

    Determine the amount of underapplied or overapplied manufacturing overhead for the period.

  • Q : Costs in connection with the issuance of bonds....
    Accounting Basics :

    Chinook Corporation incurred the following costs in connection with the issuance of bonds: (1) printing and engraving costs, $15,000; (2) legal fees, $49,000, and (3) commissions paid to underwriter

  • Q : Assets to individual shareholders....
    Accounting Basics :

    ABC Corporation liquidated and distributed the following assets to its individual shareholders:

  • Q : Company sells merchandise on account....
    Accounting Basics :

    Hale Company sells merchandise on account for $1,000 to Long Company with credit terms of 2/10, n/30. Long Company returns $200 of merchandise that was damaged, along with a check to settle the acco

  • Q : Interest at the effective rate....
    Accounting Basics :

    On January 1, 2011, Legion Corporation issued $290,000 of 4% interest, 10 year bonds. Interest paid semi-annually on June & December. The bonds sold for $156,949, priced to yield 12% interest. L

  • Q : Determining the tax treatment of the distribution....
    Accounting Basics :

    SBT partnership distributes $5,000 cash and a parcel of land with a fair market value of $40,000 and a $25,000 basis to the partnership to Sam (30 percent partner). What factors must Sam and SBT con

  • Q : Journal entry to record the accusiation of westmont....
    Accounting Basics :

    Stock issue cost amount to $25,000 and Arturo pays $42,000 for legal fees to complete the transaction. Prepare Arturo's journal entry to record its accusiation of Westmont.

  • Q : What is its margin of safety ratio....
    Accounting Basics :

    If the company meets its target net income number, by what percentage could its sales fall before it is operating at a loss? That is, what is its margin of safety ratio?

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