• Q : Paid-in capital-stock options account....
    Accounting Basics :

    The journal entry to record the compensation expense related to these options for 2013 would include a credit to the Paid-in Capital - Stock Options account for:

  • Q : Issue of debt securities having stock warrants....
    Accounting Basics :

    Proceeds from an issue of debt securities having stock warrants should not be allocated between debt and equity features when

  • Q : Unamortized discount on the bonds-book value method....
    Accounting Basics :

    On July 1, 2013, an interest payment date, $120,000 of Tally Corporation bonds were converted into 3,100 shares of Tally Corporation common stock, each having a par value of $35 and a market value o

  • Q : Earnings per share of common stock basics....
    Accounting Basics :

    West Coast Corporation had 800,000 shares of common stock outstanding on January 1, issued 200,000 shares on October 1, and had income applicable to common stock of $2,865,000 for the year ended Dec

  • Q : Calculation of goodwill in transaction....
    Accounting Basics :

    1. Prepare a presentation showing in good form the calculation of Goodwill in this transaction. 2. Explain the rational for your calculations.

  • Q : Why is our income tax law called a voluntary tax....
    Accounting Basics :

    Why is our Income Tax law called a "Voluntary Tax?" (I sure don't want to pay this tax). a. Taxpayers have an option; pay the tax, or do voluntary community service b. The tax collection is a self-ass

  • Q : Current values of investments-land-buildings-equipment....
    Accounting Basics :

    Determine how current values might be determined for investments, land, buildings, equipment, patents, copyrights, trademarks, and franchises.

  • Q : Tests and the gain realized on the sale....
    Accounting Basics :

    A taxpayer who sells a principal residence that has been used (or is being used) as a rental property will not be allowed to exclude the portion of the gain attributable to depreciation even if the

  • Q : Problem regarding saving of funds....
    Accounting Basics :

    Rhonda Hill (unmarried) is employed as an office manager at the main office of Carter and Associates CPA firm. Rhonda lives in a home she purchased 20 years ago. Rhonda's older cousin Mabel Wright l

  • Q : Find the net cash flows....
    Accounting Basics :

    Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculat

  • Q : Price of the company common stock....
    Accounting Basics :

    The price of the company's common stock has been increasing steadily on the market; it was $21 on January 1, 20X1, advanced to $24 by july 1, and to $27 at the end of the year 20x1. The preferred st

  • Q : For project-compute the net present value....
    Accounting Basics :

    Preston Co. has selected a rate of 16% for purposes of net present value analysis. Preston also estimates that there will be no residual value at the end of each project's useful life, but at the e

  • Q : Major categories of compensation....
    Accounting Basics :

    The major categories of compensation are: a. current compensation and deferred compensation b. current compensation, qualified deferred compensation and no-qualified deferred compensation

  • Q : Reporting large currency translation adjustments....
    Accounting Basics :

    How can companies protect them selves from having to report large currency translation adjustments?

  • Q : Incremental borrowing rate problem....
    Accounting Basics :

    Castejon's incremental borrowing rate is 12% per annum. Castejon needs to prepare quarterly financial statements at June 30.

  • Q : Non-qualified deferred compensation....
    Accounting Basics :

    Non-qualified deferred compensation is: a. includable in the employee's income and deductible by the employer b. excludible from the employee's income and not deductible by the employer

  • Q : Amount of gain or loss in translated income statement....
    Accounting Basics :

    The financial statements for Perez are re-measured by its U.S. parent. What amount of gain or loss would be reported in its translated income statement?

  • Q : Amount in the flexible budget....
    Accounting Basics :

    The center assumes that all revenues and costs are variable and hence tied directly to patient volume.  a. Explain how each amount in the flexible budget was calculated.

  • Q : Calculate and interpret the profit variance....
    Accounting Basics :

    Consider the following 2011 data for Newark General Hospital (in millions of dollars): Static Flexible Actual Budget Budget Results Revenues $4.7 $4.8 $4.5 Costs 4.1 4.1 4.2 Profits 0.6 0.7 0.3 a. Cal

  • Q : Variable cost per admission for the capitated group....
    Accounting Basics :

    Assuming that the utilization reduction also occurs, what overall net income would be produced if the variable cost per admission for the capitated group were lowered to $2,200?

  • Q : Produce a profit on the combined test....
    Accounting Basics :

    The annual allocation of direct fixed and overhead costs total $40,000. What price must be set to cover full costs? What price must be set to produce a profit of $20,000 on the combined test?

  • Q : Variable and direct fixed costs....
    Accounting Basics :

    What is the fee schedule for these services, assuming that the goal is to cover only variable and direct fixed costs?

  • Q : Break-even point in quantity and dollar....
    Accounting Basics :

    Water-Pacific Company sells a single product for $39.50 per unit. If variable expenses are 64.0 % of sales and fixed expenses total $13,500, the break-even point in quantity and dollar($) will be:

  • Q : Calculate next year total income in dollar....
    Accounting Basics :

    Best Client Company has sales of 1,300 units at $60 a unit. Variable expenses are 45% of the selling price and total fixed expenses are $37,180. If Cartel Company expects next year's total sales cou

  • Q : Ending wip inventory of the assembly department....
    Accounting Basics :

    The Assembly Department started the month with 59,000 units in its beginning WIP inventory. An additional 274,000 units were transferred in from the prior department during the month to begin proces

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