• Q : Prepare the journal entries using the straight-line method....
    Accounting Basics :

    (a) Prepare the journal entries to record the sale of the bonds, any adjusting entries, and the payment of the interest through December 31, 2003, using the effective interest method. (b) Prepare t

  • Q : Making a segmented income statement....
    Accounting Basics :

    Required: ??Prepare a segmented income statement in the contribution format for last month.

  • Q : Amount of purchases should this company budget....
    Accounting Basics :

    A company's gross profit rate is 30% of sales. Expected January sales are $78,000 and desired January 31st inventory is $7,500. Assuming the December 31st inventory is $6,200 what amount of purchase

  • Q : Using straight-line method find depreciation expense....
    Accounting Basics :

    Kansas Enterprises purchased equipment for $77,000 on January 1, 2012. The equipment is expected to have a five-year life, with a residual value of $6,900 at the end of five years. Using the straig

  • Q : Paid-in capital from common stock....
    Accounting Basics :

    The market value of the common stock at the date of the conversion was $30 per share. What total amount should be credited to additional paid-in capital from common stock as a result of the conversi

  • Q : Problem based on ending cash balance....
    Accounting Basics :

    30% in the month of the sale and 70% in the following month. Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following month. The beginning cash balance on Sep

  • Q : What type of gain or loss will susan have on the sale....
    Accounting Basics :

    Susan Songbird sold a word processor used in her business for $550. She had purchased the word processor three years ago for $950 and has taken $300 in depreciation. How much and what type of gain o

  • Q : What is the current portion of inventive total income tax....
    Accounting Basics :

    Assume that Inventive's tax rate for 2011 is 40 percent. What is the current portion of Inventive's total income tax expense for 2011?

  • Q : What accounting is appropriate for a noncontrolling interest....
    Accounting Basics :

    Total ownership is not a requirement for consolidation. A parent need only gain control of another company to create a business combination. If less than 100% of a subsidiary's voting stock is obtai

  • Q : Determine the estimated income on the construction contract....
    Accounting Basics :

    The income to be recognized each year is based on the proportion of cost incured to the total estimated costs for completing the contract. The financial statement presentations relating to this cont

  • Q : How deferred tax amounts be classified....
    Accounting Basics :

    (1.) Prepare the appropriate journal entry to record Gallo Light's 2011 income taxes. Show calculations. (2.) What is Gallo Light's 2011 net income? (3) How should the deferred tax amounts be classifi

  • Q : Balance sheet consolidation....
    Accounting Basics :

    On January 1, 20X3, Guild Corporation reported total assets of $470,000, liabilities of $270,000, and stockholders equity of $200,000. At that date, Bristol Corporation reported total assets of $190

  • Q : Amortization with three annual payments....
    Accounting Basics :

    Lender offers you a $25,000, 10%, three-year loan that is to be fully amortized with three annual payments. The first payment will be due one year from the loan date. How much will you have to pay e

  • Q : Prepare journal entry to record income tax provision....
    Accounting Basics :

    At December 31, 2010, Lance reported a deferred tax asset of $460,000 related to this difference in reporting bad debts, its only temporary difference. The enacted tax rate is 32% each year. Prepar

  • Q : Prepare the appropriate journal entry to record income taxes....
    Accounting Basics :

    A company reports pretax accounting income of $11.5 million, but because of a single temporary difference, taxable income is only $8.9 million. No temporary differences existed at the beginning of

  • Q : Problem on activity variance for vehicle operating cost....
    Accounting Basics :

    The actual vehicle operating cost for the month was $8,730. The activity variance for vehicle operating cost in November would be closest to:

  • Q : What gain recognize on the transfer....
    Accounting Basics :

    Kevin owns 100% of the stock of Cardinal Corporation. In the current year Kevin transfers an installment obligation, tax basis of $30,000, and fair market value of $200,000 for additional stock in C

  • Q : Describe how change impacts the company....
    Accounting Basics :

    Prepare an interpretative write up of your financial analysis, explaining trends and items of concern for the directors of FedEx. For each ratio, you should define the ratio, inform the directors ab

  • Q : Record the patent at what amount....
    Accounting Basics :

    Mini Corp. acquires a patent from Maxi Co. in exchange for 2,500 shares of Mini Corp.'s $5 par value common stock and $90,000 cash. When the patent was initially issued to Maxi Co., Mini Corp.'s sto

  • Q : Amount of discount-premium amortization....
    Accounting Basics :

    The bonds were sold to yield an effective interest rate of 10%.Calculate the total dollar amount of discount or premium amortization during the first year (5/1/2010 through 4/30/2011) these bonds w

  • Q : Calculate the pension expense....
    Accounting Basics :

    Compute the pension expense recognized in 2011. Assume the prior service cost is amortized over the average remaining service life of the employees.

  • Q : Prepare adjusting journal entry to record accrued salaries....
    Accounting Basics :

    A company has 20 employees who each earn $500 per week for a 5-day week that begins on Monday. December 31 of Year 1 is a Monday, and all 20 employees worked that day. a) Prepare the required adjust

  • Q : Calculate issue price and bond discount....
    Accounting Basics :

    Using the present value tables the appendix at the end of the book or your calculators), calculate the proceeds (issue price) of Drennen's bonds on January 1, 2009, assuming that the bonds were sold

  • Q : Cost-volume profit analysis basics....
    Accounting Basics :

    Cost-volume profit (CVP) analysis is a key factor in many decisions, including choice of product lines, pricing of products, marketing strategy, and use of productive facilities. A calculation used

  • Q : Compute annual depreciation for the first-second year....
    Accounting Basics :

    Conlin Company acquires a delivery truck at a cost of $42,000. The truck is expected to have a salvage value of $6,000 at the end of its 4-year useful life. the straight-line method. Compute annual

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