Your friend Tom Smith has decided to expand Smith Sales Company. He has acquired an expansion loan and purchased $500,000 of plant assets as part of the expansion. Tom values your advice and requests your help in properly depreciating the plant assets. Tom has paid you well for your advice and you readily accept the challenge.

Explain the different methods that can be used to calculate depreciation including: Straight-line, Double declining balance, Units of production & Sum of years digits.

The Sarbanes-Oxley Act is arranged into eleven titles. As far as compliance is concerned, the most important sections within these are often considered to be 302, 401, 404, 409, 802 and 906. in your own words, what are this sections about? please no copy and paste, explain with your own words, and no handwriting please, thanks!

Select one type of retailer from each of the 3 categories (food, general merchandise, and service-NOTE: there are other service examples that you can choose from like urgent doctor or dental care, hair salon etc.).

Store name and location/place:

Type of retailer:

Product assortment:

Pricing strategy:

Promotion strategy:

General evaluation: (from your viewpoint as a consumer of this retailer)

Need answer please!!

Delta Catfish Company has taken a position in its tax return to claim a tax credit of $15 million (direct reduction in taxes payable) and has determined that its sustainability is “more likely than not,” based on its technical merits. Delta has developed the probability table shown below of all possible material outcomes:

Delta’s taxable income is $90 million for the year. Its effective tax rate is 40%. The tax credit would be a direct reduction in current taxes payable.

Required:
1. At what amount would Delta measure the tax benefit in its income statement?
2. Prepare the appropriate journal entry for Delta to record its income taxes for the year.
  

This year, a company has each of the following income statement items:

1. Gross profits on installment sales.
2. Revenues on long-term construction contracts.
3. Estimated costs of product warranty contracts.
4. Premiums on officers’ life insurance policies with the company as beneficiary.

Indicate where deferred income taxes are reported in the financial statements. Specify when deferred income taxes would need to be recognized for each of the items above, and indicate the rationale for such recognition.

The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow:

*Allocated on the basis of sales dollars.

Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out.

Required:

1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?

2. Should the production and sale of racing bikes be discontinued?

3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines.

Please create a horizontal and vertical analysis

-Did accounts receivable increase? -Did sales increase? Did plant, property, and equipment increase?

-What does this tell you about the company? Did sales increase or decrease? What about cost of sales? If you were going to look further into the company, what would you want to investigate?

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2017–2020 are as follows:

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.

(Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017–2020.)

Journal entry worksheet:

Record 2018 income taxes.

Record 2019 income taxes.

Record 2020 income taxes.

Match each of the following terms with its correct definition:

job-order costing system

Process-costing system

overapplied overhead

plantwide overhead rate

predetermined overhead rate

job-order cost sheet

overhead variance

applied overhead

actual cost system

Time Ticket

materials requisition form

underapplied overhead

normal cost sytem

direct materials

manufacturing overhead

A. The amount by which applied overhead exceeds actual overhead

B. The job order number, or name, head this form.

C. Materials that can be easily and cost-effectively traced to a specific job

D. An overhead rate computed using estimated data

E. The amount by which actual overhead exceeds applied overhead

F. The difference between actual overhead and applied overhead

G. Indirect materials, indirect labor, and other costs related to manufacturing that cannot be easily to traced to a specific job

H. This form asks for the type, quantity, and unit price of direct materials.

I. Overhead assigned to production using predetermined rates

J. A costing system that accumulates production costs by process or by department for a given period of time

K. A single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory

L. A costing system in which costs are collected and assigned to units of production for each individual job

M. This form is filled out by each employee every day.

N. An approach that assigns actual costs of direct materials, direct labor, and overhead to products

O. An approach that assigns the actual costs of direct materials and direct labor to products but uses a predetermined rate to assign overhead costs

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2017–2020 are as follows:

service revenue collections pre tax accounting income

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.

(Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017–2020.) Required: 1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup’s 2019 income taxes and Alsup’s 2020 income taxes.

Why is there a need for three Financial Accounting Ratings Agencies? Are these agencies measuring the same

attributes? If not, what are the critical differences between these agencies? please elaborate

What is accounts receivable? What is notes receivable and how are they different than accounts receivable? How do creditors decide to extend credit to their customers? What processes do credit managers use to evaluate new customers? Now explain the allowance for doubtful accounts and provide examples.

Pucket Corp. is in the process of preparing its financial statements for the year ended December 31, Year4. Before closing the books, it prepared the above Condensed Trial Balance Sheet.

Other financial data for the year ended December 31, Year 4:

- Sales returns and allowances equaled $215,000, and sales discounts taken were $95,000.

- Estimated federal income tax payments were $200,000 and accrued federal income taxes equaled $100,000. The total charged to income tax expense does not properly reflect current or deferred income ta expense or interperiod income tax allocation for income statement purposes. The enacted tax rate on all types of taxable income for the current and future years is 30%. The alternative minimum tax is less than the regular income tax.

- Interest expense includes 6% interest on 20 year bonds issued at their face amount of $1,500,000.

- A $90,000 excess of carrying amount over tax basis in depreciable assets arose from receipt of a contribution of equipment by a local government on December 31, Year 4. it is expected to be depreciated over 5 years beginning in Year 5. There were no temporary differences prior to Year 5.

- Officer's Life insurance expense (not tax deductible) is $70,000.

- The earthquake damage is considered unusual and infrequent, but the disposition of plant assets is considered infrequent but not unusual. Moreover, the disposition of plant assets was not a disposal of a component of an entity.

- The shares of common stock ($5 par) traded on a national exchange:

- Puckett declared a $1.25 common stock dividend on December 28, Year 4.

Using this information enter the correct amounts for Pucket Corporation's income statement for the year ended December 31, Year 4.

(if you could show all calculations as well that would be awesome!)

The budget director of Birds of a Feather Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for January:

1. Estimated sales for January:

   Birdhouse	6,000 units at $55 per unit
   Bird feeder	4,500 units at $75 per unit

2. Estimated inventories at January 1:

   Direct materials:
   Wood	220 ft.
   Plastic	250 lb.
   Finished products:
   Birdhouse	300 units at $23 per unit
   Bird feeder	240 units at $34 per unit

3. Desired inventories at January 31:

   Direct materials:
   Wood	180 ft.
   Plastic	210 lb.
   Finished products:
   Birdhouse	340 units at $23 per unit
   Bird feeder	200 units at $34 per unit

4. Direct materials used in production:

   In manufacture of BirdHouse:
   Wood	0.80 ft. per unit of product
   Plastic	0.50 lb. per unit of product
   In manufacture of Bird Feeder:
   Wood	1.20 ft. per unit of product
   Plastic	0.75 lb. per unit of product

5. Anticipated cost of purchases and beginning and ending inventory of direct materials:

   Wood	$8.00 per ft.
   Plastic	$1.20 per lb.

6. Direct labor requirements:

   Birdhouse:
   Fabrication Department	0.20 hr. at $15 per hr.
   Assembly Department	0.30 hr. at $12 per hr.
   Bird Feeder:
   Fabrication Department	0.40 hr. at $15 per hr.
   Assembly Department	0.35 hr. at $12 per hr.

7. Estimated factory overhead costs for January:

   Indirect factory wages	$80,000
   Depreciation of plant and equipment	25,000
   Power and light	8,000
   Insurance and property tax	2,000

8. Estimated operating expenses for January:

   Sales salaries expense	$90,000
   Advertising expense	20,000
   Office salaries expense	18,000
   Depreciation expense—office equipment	800
   Telephone expense—selling	500
   Telephone expense—administrative	200
   Travel expense—selling	5,000
   Office supplies expense	250
   Miscellaneous administrative expense	450

9. Estimated other income and expense for January:

   Interest revenue	$300
   Interest expense	224

10. Estimated tax rate: 30%

Required:

1. Prepare a sales budget for January.

2. Prepare a production budget for January.

3. Prepare a direct materials purchases budget for January.

4. Prepare a direct labor cost budget for January.

5. Prepare a factory overhead cost budget for January.

6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $29,000, and work in process at the end of January is estimated to be $35,400.

7. Prepare a selling and administrative expenses budget for January.

8. Prepare a budgeted income statement for January.

QualCo manufactures a single product in two departments: Cutting and Assembly. During May, the Cutting department completed a number of units of a product and transferred them to Assembly. Of these transferred units, 37,700 were in process in the Cutting department at the beginning of May and 153,800 were started and completed in May. May’s Cutting department beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of May, 51,500 additional units were in process in the Cutting department and were 70% complete with respect to materials and 20% complete with respect to conversion. The Cutting department had $462,668 of direct materials and $400,029 of conversion cost charged to it during May. Its beginning inventory included $74,275 of direct materials cost and $28,693 of conversion cost.

1. Compute the number of units transferred to Assembly.

2-4. Using the FIFO method, assign May’s costs to the units transferred out and assign costs to its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)