At the end of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same. For your s...
You have conducted some market research for style and size of products you want to use to launch your business. The market research has indicated the following sales price ranges will be optimal for your area depending on style of products you choose to sell: ● Collars o With pricing at $20 ...
Ryan Company paid salaries for the month of June 2020, amounting to $120,000. Of this amount, $30,000 was received by employees who had already been paid the $128,400 maximum amount of annual earnings taxable in one year under FICA laws. Of the $120,000, $14,000 was paid to employees who had already...
During its first month of operation, Peter's Pool Corporation, which specializes in pool repairs, completed the following transactions. July 1 Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock. July 1 Paid the premiu...
On January 1, 2019, the partnership of Black, White, and Green was formed when the partners contributed $20,000, $60,000, and $50,000 into the business, respectively. The three partners agreed to allocate each year's partnership profit (or loss) according to a specified plan written as follows: ...
A clerk in the accounting department recently entered trial balance data for the parent company and its subsidiaries in the company's consolidation program. After a few minutes of additional work needed to eliminate the intercompany investment account balances, the clerk expressed his/her satisfacti...
5) Background: You have developed a unique robotic device that will autonomously deliver groceries to people's house. Facts: • You are limiting your delivery service to 3 miles from store location. • The cost to produce the delivery robot is $9,300 per robot with a 3 year lifecycle • Marke...
On July 1, 2016, Killearn Company acquired 88,000 of the outstanding shares of Shaun Company for $13 per share. This acquisition gave Killearn a 25 percent ownership of Shaun and allowed Killearn to significantly influence the investee's decisions. As of July 1, 2016, the investee had assets with a...
Southwestern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018. Hi-Tech manufactured the equipment at a cost of $90,000. Other information: Lease term 3 years Annual payments $40,000 on January 1 each year Life of asset 3 years Fair value of asset $111,332 Implici...
High-Low Method 1. The Cheyenne Hotel in Big Sky, Montana, has accumulated records of the total electrical costs of the hotel and the number of occupancy-days over the last year. An occupancy-day represents a room rented for one day. The hotel's business is highly seasonal, with peaks occurring d...
Cost-volume-profit analysis, or CVP, is something companies use to figure out how changes in costs and volume affect their operating expenses and net income. In other words, CVP is a methodical analysis of the dynamic inter-relationship between selling prices, sales and production volume, cost...
What are some internal controls we like to see in the receivables area?
Mornson and Greene have decided to form a partnership. They have agreed that Mornson is to invest $291,000 and Greene is to invest $97,000. Morrison is to devote one-half time to the business, and Greene is to devote full time. The following plans for the division of income are considered: a. Equa...
Brunswick Corporation sells bowling bags and has developed the following information: Sales revenue $2,500,000 Variable cost of goods sold 65% of sales Fixed cost of goods sold $152,000 Var...
Discuss how the abnormal accrual models in the literature are used to help detect earnings management. These models are widely used in accounting research; provide an example with citation (and link if available), and discuss the major finding and use of the model. In your answer explain the conce...
Annual Report Project Company Selections and P/B Ratios What company have you chosen for the Annual Report Project? What in particular interests you about this given company? Locate your public company's Form 10-K. You will find the most recent report in the "Investor" or "Investor Relations" ...
Continuous Problem - City of Monroe The Balance Sheets of the General Fund and the Street and Highway Fund of the City of Monroe as of December 31, 2016, follow. These (beginning) balances have been entered in the proper general ledger accounts, as of 1/1/2017. CITY OF MONROE General Fun...
Assume your company is involved in a major lawsuit and the probable damages are estimated to be $2,000,000. A. Describe the effects damage estimates would have on the financial statements of a corporation and a partnership. B. How do disclosure requirements differ from a corporation to a partners...
VI. Statement of Changes in Financial Position A. From the perspective of an investor, determine whether or not you would invest in your chosen company based on the company's statement of changes in financial position (SCFP). Support your opinion. The return on assets is very low, under 3% in e...
I recently read in a financial magazine an article that indicated that the airline industry has poor financial flexibility. What is meant by financial flexibility? Why financial flexibility is important for the airline industry? How can the airline industry as a whole to improve their financial...
Dialyze USA is considering opening a new branch dialysis and infusion center in a suburban free-standing strip center. Dialyze USA is a for-profit corporation, thus subject to income taxes. Equipment and fixtures for the center will cost $2,000,000 and be depreciated to $0 over a 5-year period o...
Nordic Company issued bonds with the following provisions Maturity value: $60,000,000. Interest: 7.9 percent per annum payable semi-annually each June 30 and December 31. Terms: Bonds dated January 1, 2017, due five years from that date. The company's fiscal year ends on December 31. The bonds w...
What is meant by "presentation of financial statement information in common-size amounts rather than dollar amounts?" Why is this type of presentation sometimes more meaningful than use of actual dollar amounts?
Explain and discuss the major money laundering schemes. What are the phases of money laundering? Provide examples of how money laundering can be prevented. Find an article related to this topic and use it to support your answer.
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The Subject: The importance of determination letters is that they provide the employer and employee with certainty against any position changes that may be initiated by the IRS. If a determination letter has been received, the employer or employee will not face any penalties as the determination...
The Solution provides a discussion of healthcare accounting.
Tthe IRS eliminated the majority of determination letters. Please answer these questions: Questions 1: Did the IRS provide any rationale for the change in practice? Questions 2: How will employer get the clarity that need regarding its retirement plans? ...
Discuss the necessity, role, limitations, and benefits of Determination Letters. Why is the Determination Letter of value and what does it represent to the receiver? Discuss your thoughts and provide examples where appropriate to illustrate your ideas.
https://www.cchdaily.co.uk/ifrs-rules-distort-debt-reporting (Regarding this article) Does IFRS distort debt reporting? Does it give a false report of a business's financial standing? Explain.