Accounting question and answers for August 21, 2023
- Q A company is considering a capital investment proposal where twoalternatives involving differing degrees of mechanisation, arebeing considered. Both investments would have a five-year life. InOption 1 new machinery would cost...
- Q On January 1, 20X8, Liv Ltd. (LL), a Canadian company, acquired90% of Marcus Co. (MC), a foreign company for FC 623,200. At theacquisition date, the carrying value of MC’s net...
- Q Cash dividends and stock splits decrease the RetainedEarnings account.true or false?
- Q Read the scenario below, and address the subsequentrequirements.Emma is the plant manager of an electronics company.Plant managers are paid a salary and get an additional bonus equalto 5% of their...
- Q In the table below, there are test scores from a dozen students.The test was worth 200 points. The scores in the table are the # ofpoints out of 200. Letter...
- Q In 250 words please explain FASB Codification 105-10-65-5;Generally Accepted Accounting Principles, Overall, Transition andOpen Effective Date Information.
- Q n calculating unit cost in a process costing system, "conversioncost" is defined as the sum of:Direct and indirect material costs.Direct and indirect labor costs.Direct labor and factory overhead costs.Indirect labor...
- Q Direct Labor Time VarianceMaywood City Police uses variance analysis to monitor policestaffing. The following table identifies three common policeactivities, the standard time to perform each activity, and theiractual frequency to...
- Q In conducting interviews and observing factory operations toimplement an activity-based costing system, you determine thatseveral activities are unnecessary or redundant. For example,warehouse personnel were inspecting purchased components as theywere received...
- Q Before her death, Lucy entered into the following transactions.Discuss the estate and income tax ramifications of each of thesetransactions.A. Lucy borrowed $600,000 from her brother, Irwin, so that Lucycould start...
- Q A new children’s hospital is being built in Springfield, andFriendly Corp. has publicly 8.3 pledged that it will contribute $5million toward the hospital’s construction. In its pledge agreementdated 1/1/X1, Friendly...
- Q In 2017, your client, Clear Corporation, changed from the cashto the accrual method of accounting for its radio station. Thecompany had a positive § 481 adjustment of $2.4 million as...
- Q Of all the times this hard drive could crash, it had to be now,” Marcy cried. “How can I finish the June financial reports withoutall the information? I knew I...
- Q RayLok Incorporated has invented a secret process to improvelight intensity and, as a result, manufactures a variety ofproducts related to this process. Each product is independent ofthe others and is...
- Q Cordova manufactures three types of stained glass window,cleverly named Products A, B, and C. Information about theseproducts follows: Product A Product B Product C Sales price $ 46.00$ 56.00 $...
- Q DoubleCorporation produces baseball bats for kids that it sellsfor$33each. At? capacity, the company can produce50,000bats a year. The costs of producing and selling50,000bats are as? follows:Cost per BatTotal CostsDirect materials$11$550,000Variable...
- Q Determine the proper tax year for gross income inclusion ineach of the following casesA cash basis landlord makes new tenants pay first and lastmonth’s rent at the start of the...
- Q Define coupon and market/effective interest rates asthey determine bond pricing at par, premium, or discountvalues.
- Q [The following information applies to the questions displayedbelow.] Beech Corporation is a merchandising company that ispreparing a master budget for the third quarter of the calendaryear. The company’s balance sheet...
- Q [The following information applies to the questionsdisplayed below.]Beech Corporation is a merchandising company that is preparing amaster budget for the third quarter of the calendar year. Thecompany’s balance sheet as...
- Q Each of the three independent situations below describes afinance lease in which annual lease payments are payable at theend of each year. The lessee is aware of the lessor’simplicit rate...
- Q Alpha and Beta are divisions within the same company. Themanagers of both divisions are evaluated based on their owndivision’s return on investment (ROI). Assume the followinginformation relative to the two...
- Q Below are three independent situations.ABC Ltd is a manufacturer of boats and gives warranties at thetime of sale to purchasers of its boats. Pursuant to the warrantyterms, ABC Ltd undertakes...
- Q The general ledger of Jackrabbit Rentals at January 1, 2018,includes the following accountbalances: Accounts Debits CreditsCash $ 45,500 Accounts Receivable 29,700 Land 114,800 AccountsPayable $ 15,700 Notes Payable 34,000CommonStock 104,000 RetainedEarnings 36,300 Totals $ 190,000 $ 190,000 The following is a summary of the transactions for the year:January 12 Provide services...
- Q The following data are available pertaining to HouseholdAppliance Company's retiree health care plan for 2021:Number of employees covered2Years employed as of January 1, 20212[each]Attribution period25yearsExpected postretirement benefit obligation, Jan. 1$63,000Expected...
- Q MSI is consideringeliminating a product from its ToddleTown Tours collection. Thiscollection is aimed at children one to three years of age andincludes “tours” of a hypothetical town. Two products, The...
- Q Rey Company’s single product sells at a price of $234 per unit.Data for its single product for its first year of operationsfollow.Direct materials$38per unitDirect labor$46per unitOverhead costsVariable overhead$6per unitFixed overhead...
- Q When thinking about profit margins -- does the scale matter? Ifthe damages period was 6 months and the incremental volume was 10%of the actual sales, or the damages period was...
- Q MSI’s educationalproducts are currently sold without any supplemental materials. Thecompany is considering the inclusion of instructional materialssuch as an overhead slide presentation, potential test questions,and classroom bulletin board materials for...
- Q Maria Young is the sole stockholder of Purl of Great PriceCompany (POGP Company), which produces high-end knitted sweatersand sweater vests for sale to retail outlets. The company startedin January of...
- Q Ironwood Companymanufactures a variety of sunglasses. Production information forits most popular line, the Clear Vista (CV),follows: Per UnitSales price$51.50Directmaterials20.00Directlabor10.00Variablemanufacturing overhead6.00Fixedmanufacturing overhead5.00Totalmanufacturing cost$41.00Suppose that Ironwood has been approached about producing a specialorder...
- Q Please visit www.irs.gov and answer the following: 1) Whatpercentage of bankruptcy petitions does the IRS estimate containsome kind of fraud? 2) What are the major goals of the CIdivision’s bankruptcy...
- Q The advent of Corporate Governance & Compliance and businessethics represented a major change in the way that senior leadershipmanages corporate operations. Since the Sarbanes-Oxley Act (SOX) in2002, the Dodd-Frank Wall...
- Q The Sendai Co., Ltd., of Japan has budgeted costs in its variousdepartments as follows for the coming year:Factory Administration$819,840Custodial Services98,337Personnel26,358Maintenance170,555Machining—overhead1,126,484Assembly—overhead618,226Total cost$2,859,800The company allocates service department costs to otherdepartments in the...
- Q Towing Company employs a periodic inventory system and sells its inventoryto customers for $34 per unit. Towing Company had the following inventoryinformation available for the month of May:May 1 ...
- Q Waterloo Co. sells product P-14 at a price of $48 a unit. Theper-unit cost data are direct materials $15, direct labour $10, andoverhead $12 (75% variable). Waterloo Co. has sufficient...
- Q 7 Simple Steps to Corporate Fraud Prevention: A CaseStudyEvidence of internal theft shines a bright light in therear-view mirror. Posted by Chris Hamilton on September 6th,2012The shock when a victim...
- Q Fred currently earns $9,000 per month. Fred has been offered thechance to transfer for three to five years to an overseasaffiliate. His employer is willing to pay Fred $10,000 per...
- Q A partially completed pension spreadsheet showing therelationships among the elements that constitute Carney, Inc.’sdefined benefit pension plan follows. At theend of 2018, Carney revised its pensionformula and incurred a prior...
- Q Company A is operating at full capacity, sold 45,600 unitsduring the current year. Its income statement is as follows:Sales$5,654,400Cost of goods sold3,618,816Gross profit$2,035,584Expenses:Selling expenses$984,000Administrative expenses430,000Total expenses1,414,000Income from operations$ 621,584The division...
- Q 3. A partially completed pension spreadsheet showing therelationships among the elements that constitute Carney, Inc.’sdefined benefit pension plan follows. At theend of 2018, Carney revised its pensionformula and incurred a...
- Q Bilboa Freightlines, S.A., of Panama, has a small truck that ituses for intracity deliveries. The truck is worn out and must beeither overhauled or replaced with a new truck. The...
- Q The summarized statement of financial positions of A Ltd and BLtd as at 31 December 2018 are as follows:A LtdB LtdNon-Current Assets at book value60,00046,000Investment in B Ltd75,000Current assetsInventory32,00013,000Receivables27,00017,000Bank1,0002,000195,00078,000Financed by:Share...
- Q During the first month of operations ended July 31, YoSan Inc.manufactured 8,800 flat panel televisions, of which 8,300 weresold. Operating data for the month are summarized as follows:Sales$1,494,000Manufacturing costs: Direct...
- Q The Carlberg Company has two manufacturing departments, assemblyand painting. The assembly department started 10,300 units duringNovember. The following production activity unit and costinformation refers to the assembly department’s November productionactivities....
- Q Mathews Company manufactures only one product. For the yearended December 31, the contribution margin increased by $41,616from the planned level of $764,784. The president of MathewsCompany has expressed some concern...
- Q Client acceptance is an important part of thepre-engagement planning process for a CPA. For an existing client,this process often involves reviewing the firm's financialperformance on the previous year's engagement, debriefing...
- Q Discuss some tax planning strategies that can maximizethe benefit of itemized deductions. You should list at least onestrategy for each of the following categories:Medical ExpensesCharitable ContributionsInterest on Mortgage Indebtedness
- Q Vaughn Inc. issues 500 shares of $10 par value common stock and100 shares of $100 par value preferred stock for a lump sum of$108,000.(a)Prepare the journal entry for the issuance...
- Q On January 1, 20X8, Liv Ltd. (LL), a Canadian company, acquired90% of Marcus Co. (MC), a foreign company for FC 623,200. At theacquisition date, the carrying value of MC’s net...
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