Critically examine factors that influence contemporary accounting practices or standard setting in transition countries.
1.5k words
In: Accounting
a) Describe how you arrive at each of the following to determine the tax which will be owed at someone’s death for estate tax purposes: (1) gross estate; (2) adjusted gross estate; (3) taxable estate; (4) tentative tax base; and (5) tentative tax. Give an explanation of what you do at each stage.
In: Accounting
What is the difference between working capital management and current asset management and where does financial analysis fit it?
In: Accounting
Determine the amount of sales (units) that would be necessary under
Break-Even Sales Under Present and Proposed Conditions
Darby Company, operating at full capacity, sold 106,650 units at a price of $66 per unit during the current year. Its income statement for the current year is as follows:
| Sales | $7,038,900 | ||
| Cost of goods sold | 3,476,000 | ||
| Gross profit | $3,562,900 | ||
| Expenses: | |||
| Selling expenses | $1,738,000 | ||
| Administrative expenses | 1,738,000 | ||
| Total expenses | 3,476,000 | ||
| Income from operations | $86,900 |
The division of costs between fixed and variable is as follows:
| Variable | Fixed | |||
| Cost of goods sold | 70% | 30% | ||
| Selling expenses | 75% | 25% | ||
| Administrative expenses | 50% | 50% | ||
Management is considering a plant expansion program that will permit an increase of $594,000 in yearly sales. The expansion will increase fixed costs by $59,400, but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total variable costs and the total fixed costs for the current year. Enter the final answers rounded to the nearest dollar.
| Total variable costs | $ |
| Total fixed costs | $ |
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded to two decimal places.
| Unit variable cost | $ |
| Unit contribution margin | $ |
3.
Compute the break-even sales (units) for the current year. Enter
the final answers rounded to the nearest whole number.
units
4.
Compute the break-even sales (units) under the proposed program for
the following year. Enter the final answers rounded to the nearest
whole number.
units
5.
Determine the amount of sales (units) that would be necessary under
the proposed program to realize the $86,900 of income from
operations that was earned in the current year. Enter the final
answers rounded to the nearest whole number.
units
6.
Determine the maximum income from operations possible with the
expanded plant. Enter the final answer rounded to the nearest
dollar.
$
7. If
the proposal is accepted and sales remain at the current level,
what will the income or loss from operations be for the following
year? Enter the final answer rounded to the nearest dollar.
$
8. Based on the data given, would you recommend accepting the proposal?
In: Accounting
Bledsoe Corporation has provided the following data for the month of November:
| Beginning | Ending | ||||||||
| Raw materials | $ | 25,900 | $ | 21,900 | |||||
| Work in process | $ | 17,900 | $ | 10,900 | |||||
| Finished Goods | $ | 48,900 | $ | 56,900 | |||||
Additional information:
| Raw materials purchases | $ | 72,900 | |||||
| Direct labor cost | $ | 92,900 | |||||
| Manufacturing overhead cost incurred | $ | 42,990 | |||||
| Indirect materials included in manufacturing overhead cost incurred | $ | 4,090 | |||||
| Manufacturing overhead cost applied to Work in Process | $ | 41,900 | |||||
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
In: Accounting
The following information for sana co . for year ended 31/12/2017 in euro
|
Sales |
405000 |
|
|
Beginning inventory |
100000 |
|
|
Purchases |
350000 |
|
|
Fright on Purchases |
16000 |
|
|
Purchases return |
35000 |
|
|
Salaries |
44000 |
50% selling |
|
Fright out |
3000 |
|
|
Sales discount |
2000 |
|
|
Advertising expenses |
2200 |
50% selling |
|
Traveling expenses |
8000 |
50% selling |
|
Tele |
600 |
|
|
Rent expenses |
4300 |
1300$ selling |
|
Supplies expenses |
5300 |
Selling |
|
Interest expenses |
1700 |
|
|
Depreciation expenses |
6700 |
|
|
Bad debit expenses |
1000 |
|
|
Insurance expenses |
360 |
|
|
Interest receivables |
800 |
|
|
Interest revenues |
800 |
|
|
Prepaid rant |
500 |
|
|
Selling commissions |
6000 |
|
|
Salaries payable |
(5000) |
|
|
Ending inventory |
280000 |
Required : prepare multiple step income statement and closing entries under tax rate 20%
In: Accounting
Project Household Budget
Document should be a Completed Excel spreadsheet.
Instructions: Utilizing an excel spreadsheet create a household budget showing 2 columns: 1) Monthly Budget and an 2)Annualized Budget.
To help you with this endeavor, there are numerous personal financial planning or budgeting tools available on the internet, many of them are free. You may either create a fictitious profile or use your own personal information. If you choose to use your personal data on one of the website budget tools, be sure to read the sites’ privacy policies.
Grading: Based on appropriate formatting utilized within excel, ease of flow of information, utilization of formulas when appropriate, does budget category/line items make sense, and were all items that tend to impact a budget for an average household accounted for.
In: Accounting
Required information
[The following information applies to the questions
displayed below.]
Warnerwoods Company uses a perpetual inventory system. It entered
into the following purchases and sales transactions for
March.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||
| Mar. | 1 | Beginning inventory | 100 | units | @ $50.00 per unit | |||||||
| Mar. | 5 | Purchase | 400 | units | @ $55.00 per unit | |||||||
| Mar. | 9 | Sales | 420 | units | @ $85.00 per unit | |||||||
| Mar. | 18 | Purchase | 120 | units | @ $60.00 per unit | |||||||
| Mar. | 25 | Purchase | 200 | units | @ $62.00 per unit | |||||||
| Mar. | 29 | Sales | 160 | units | @ $95.00 per unit | |||||||
| Totals | 820 | units | 580 | units | ||||||||
3. Compute the cost assigned to ending
inventory using (a) FIFO, (b) LIFO, (c)
weighted average, and (d) specific identification. For
specific identification, the March 9 sale consisted of 80 units
from beginning inventory and 340 units from the March 5 purchase;
the March 29 sale consisted of 40 units from the March 18 purchase
and 120 units from the March 25 purchase.
In: Accounting
Journalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of account titles. (Note: the company uses a clearinghouse to take care of all bank as well as non-bank credit cards used by its customers.)
| Mar. | 1 | Sold merchandise for cash, $31,600. The cost of the merchandise sold was $12,640. |
| 10 | Sold merchandise on account, $259,000. The cost of the merchandise sold was $103,600. | |
| 12 | Sold merchandise to customers who used MasterCard and VISA, $153,000. The cost of the merchandise sold was $61,200. | |
| 17 | Sold merchandise to customers who used American Express, $73,800. The cost of the merchandise sold was $29,520. | |
| 31 | Paid $8,000, to National Clearing House Credit Co. for service fees for processing MasterCard, VISA, and American Express sales. |
In: Accounting
The following information relates to The Kruger Company for its 2015 and 2014 fiscal years, and Total Grocers Market, Inc. for its 2014 and 2013 fiscal years.
| THE KRUGER COMPANY | |||||||
| Selected Financial Information (amounts in millions, except per share amounts) |
|||||||
| January 31, 2015 |
February 1, 2014 |
||||||
| Total current assets | $ | 10,730 | $ | 9,112 | |||
| Merchandise inventory | 9,848 | 8,207 | |||||
| Property and equipment, net of depreciation | 46,336 | 17,435 | |||||
| Total assets | 39,999 | 30,223 | |||||
| Total current liabilities | 16,934 | 11,049 | |||||
| Total long-term liabilities | 16,511 | 13,605 | |||||
| Total liabilities | 33,445 | 24,654 | |||||
| Total shareholders’ equity | 6,554 | 5,569 | |||||
| Revenue | 130,627 | 101,548 | |||||
| Cost of goods sold | 100,241 | 80,661 | |||||
| Gross profit | 30,386 | 20,887 | |||||
| Operating income | 3,778 | 2,814 | |||||
| Earnings from continuing operations before income tax expense | 4,758 | 2,359 | |||||
| Income tax expense | 1,085 | 776 | |||||
| Net earnings | 2,102 | 1,584 | |||||
| Basic earnings per share | $ | 2.10 | $ | 1.58 | |||
| TOTAL GROCERS MARKET, INC. | |||||||
| Selected Financial Information (amounts in millions except per share data) |
|||||||
| September 28, 2014 |
September 29, 2013 |
||||||
| Total current assets | $ | 2,218 | $ | 2,046 | |||
| Merchandise inventory | 527 | 428 | |||||
| Property and equipment, net of depreciation | 3,823 | 2,511 | |||||
| Total assets | 6,044 | 5,732 | |||||
| Total current liabilities | 1,502 | 1,125 | |||||
| Total long-term liabilities | 807 | 593 | |||||
| Total liabilities | 2,309 | 1,718 | |||||
| Total stockholders’ equity | 3,735 | 4,014 | |||||
| Revenues | 16,765 | 13,371 | |||||
| Cost of goods sold | 10,937 | 8,581 | |||||
| Gross profit | 5,828 | 4,790 | |||||
| Operating income | 1,117 | 915 | |||||
| Earnings from continuing operations before income taxes | 1,222 | 926 | |||||
| Income tax expense | 438 | 356 | |||||
| Net earnings | 692 | 572 | |||||
| Basic earnings per share | $ | 1.62 | $ | 1.37 | |||
Required
Compute the following ratios for the Kruger company 2015 fiscal year and for the Total Grocers Market, Inc., 2014 fiscal year: (Do not round intermediate calculations. Round "Current ratio" to 2 decimal places and "Average days" to nearest whole number. Round all other answers to 1 decimal place.)
| KRUGER | TOTAL GROCERIES | ||
| 1 | Current Ratio | ||
| 2 | Average days to sell inventory (Use average invertory.) | ___ days | ___ days |
| 3 | Debt to assests ratio | ____ % | ___ % |
| 4 | Return on investments (Use average assests and use "earnings from continuing operations" rather than "net earnings.") | ____ % | ___ % |
| 5 | Gross margin percentage | ____ % | ___ % |
| 6 | Asset turnover (Use average assests) | ____times | ___ times |
| 7 | Return on sales (Use "earnings from continuing operations" rather than "net earnings") | ____ % | ___ % |
| 8 | Plant assests to long-term debt ratio |
In: Accounting
ournalize entries for the following related transactions of Manville Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles.
| Mar. | 1 | Purchased $48,400 of merchandise from Wright Co. on account, terms 2/10, n/30. |
| 9 | Paid the amount owed on the invoice within the discount period. | |
| 11 | Discovered that $7,800 of the merchandise purchased on Mar. 1 was defective and returned items, receiving credit. | |
| 18 | Purchased $6,000 of merchandise from Wright Co. on account, terms n/30. | |
| 20 | Received a refund from Wright Co. for return on Mar. 11 less the purchase on Mar. 18. |
In: Accounting
You are operating your accounting firm. Your first client had the following transactions in April 20x7: Borrowed $10,000 from the bank. Purchased $2,250 of computer equipment for cash. Paid $750 cash for this month’s rent. Purchased $1,500 of office supplies on credit. It is expected that these supplies will last for 3 months. Billed $500 to customers for services rendered during April. Paid cash for the $1,500 balance owed to the vendor from Transaction 4. Collected $450 cash of the amount billed to the customer in Transaction 5 Sold one-half of the equipment purchased in Transaction 2 for $1,125 in cash, with no gain or loss recognized on the sale. 9. Paid $1,000 of the principal from the loan in transaction 1, along with $50 in interest. Required: Use the four steps in the accounting cycle to analyze business transactions, a) Identifying transactions from source documents, b) Analyzing transactions using the accounting equation, c) Recording the journal entry and d) Posting the entry to the ledger to complete the following: Prepare journal entries for each of the above transactions. Post the journal entries to T–accounts and total the accounts. From the T–accounts, prepare an unadjusted trial balance. List expenses in alphabetical order. Use the following chart of accounts names and template: Cash, Capital Stock, Equipment, Accounts Payable, Rent, Supplies, Accounts Receivable, Revenue.
In: Accounting
|
Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $30 million. At the end of 2012, accounts receivable were presented in the company's statement of financial position as follows: |
| Accounts receivable from clients | $ | 3,100,000 | ||
| Less: Allowance for Impairment | 80,000 | |||
|
During 2013, $195,000 of specific accounts receivable were written off as uncollectible. Of these accounts written off, receivables totaling $16,000 were subsequently collected. At the end of 2013, an aging of accounts receivable indicated a need for a $259,000 allowance to cover possible failure to collect the accounts currently outstanding. |
|
| Wilcox Mills makes adjusting entries for uncollectible accounts only at year-end. | |
| 1. | One entry to summarize all accounts written off against the Allowance for Impairment during 2013. | |
| 2. | Entries to record the $16,000 in accounts receivable that were subsequently collected. | |
| 3. | The adjusting entry required at December 31, 2013, to increase the Allowance for Impairment to $259,000. |
| a. | Prepare the above general journal entries: (Omit the "$" sign in your response.) | |
| Date | General Journal | Debit | Credit |
| 2013 | |||
| Var.* | (Click to select)CashNotes receivableAllowance for ImpairmentInterest receivableUncollectible accounts expenseOffice equipmentAccounts receivableAccounts payable | ||
| (Click to select)Interest receivableUncollectible accounts expenseOffice equipmentNotes receivableAccounts receivableCashAccounts payableAllowance for Impairment | |||
| Var.* | (Click to select)Notes receivableAccounts receivableCashAllowance for ImpairmentInterest revenueOffice equipmentAccounts payableUncollectible accounts expense | ||
| (Click to select)CashInterest revenueUncollectible accounts expenseAllowance for ImpairmentOffice equipmentBank service chargeAccounts receivableNotes receivable | |||
| Var.* | (Click to select)Allowance for ImpairmentInterest revenueAccounts receivableInterest receivableUncollectible accounts expenseOffice equipmentCashNotes receivable | ||
| (Click to select)Notes receivableCashOffice equipmentAccounts receivableInterest receivableUncollectible accounts expenseInterest revenueAllowance for Impairment | |||
| Dec 31 | (Click to select)Accounts receivableUncollectible accounts expenseAllowance for ImpairmentNotes receivableBank service chargeInterest receivableAccounts payableCash | ||
| (Click to select)Allowance for ImpairmentInterest receivableCashAccounts payableAccounts receivableNotes receivableUncollectible accounts expenseInterest revenue | |||
In: Accounting
On June 30, 2017, Sharper Corporation’s common stock is priced
at $26.00 per share before any stock dividend or split, and the
stockholders’ equity section of its balance sheet appears as
follows.
|
Common stock—$6 par value, 70,000 shares authorized, 28,000 shares issued and outstanding |
$ | 168,000 | ||
| Paid-in capital in excess of par value, common stock | 100,000 | |||
| Retained earnings | 268,000 | |||
| Total stockholders’ equity | $ | 536,000 | ||
1. Assume that the company declares and
immediately distributes a 100% stock dividend. This event is
recorded by capitalizing retained earnings equal to the stock’s par
value. Answer these questions about stockholders’ equity as it
exists after issuing the new shares.
Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock’s par value. Answer these questions about stockholders’ equity as it exists after issuing the new shares. Complete the below table to calculate the retained earnings balance, total stockholders’ equity and number of outstanding shares.
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| Assume that the company declares and immediately distributes a 100% stock dividend. This event is recorded by capitalizing retained earnings equal to the stock’s par value. Answer these questions about stockholders’ equity as it exists after issuing the new shares. Complete the below table to calculate the retained earnings balance, total stockholders’ equity and number of outstanding shares. |
|
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Assume that the company implements a 2-for-1 stock split instead of the stock dividend in required 1. Answer these questions about stockholders’ equity as it exists after issuing the new shares. Complete the below table to calculate the retained earnings balance, total stockholders’ equity and number of outstanding shares.
|
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In: Accounting
Albert started her business on July 1, 2020. The following transactions occurred during the month of July.
Identify the effects of the following transactions on the accounting equation:
|
July |
Transactions |
|
1 |
Albert started her agriculture business with $150,000 cash. |
|
3 |
Paid $1,000 in the month for rent of office space. |
|
4 |
Purchased $1,500 chemicals on credit terms from BioKaput Company. |
|
5 |
Paid $700 for publicity in the Wakanda Business newspaper. |
|
8 |
Interviewed candidates who applied for a marketing executive position with a monthly salary of $1,800. |
|
10 |
Customers paid $3,500 cash for goods purchased. |
|
11 |
The office space was redecorated with the payment of $4,000 cash. |
|
14 |
Chemicals worth $25,000 were sold on account. |
|
16 |
Paid $1,800 in cash for insurance services. |
|
18 |
Employees’ salaries of $8,000 were paid for by cash. |
|
21 |
Paid the supplies purchased on account on 4th July. |
|
24 |
Received a cash payment of $20,000 for chemicals sold on account on 14th July. |
|
27 |
The sum of $600,000 was borrowed from a local bank on a long-term basis. |
|
28 |
Purchased office equipment for $30,000 on the account. |
|
30 |
Utilities of $1,500 were settled. |
In: Accounting