Frederick and Sons is a small company that makes faucets rings. They have experienced a larger than normal bad debts due to the slowdown in the economy. Koehler Corporation is a multimillion-dollar Corporation that makes faucets and other plumber supplies is also experiencing bad debt losses. What method would each company use when writing off customers’ accounts unable to pay and why? Give an entry for each when actually writing off a customer’s account.
In: Accounting
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal income taxes withheld from their paychecks during the year.
a. What is Marc and Michelle’s gross income?
b. What is Marc and Michelle’s adjusted gross income?
c. What is the total amount of Marc and Michelle’s deductions from AGI?
d. What is Marc and Michelle’s taxable income?
e. What is Marc and Michelle’s taxes payable or refund due for the year?
In: Accounting
1. Take the Starbucks balance sheet (2018) and calculate the % of each account to the total of that section of the balance sheet (cash as a % of total assets, ST investments as a % of total assets......., then A/P as a % total of total liabilities, etc) Do this for all categories under assets, liability and equity. Perform the calculations on 2018 only.
2. What is the accounting equation for Starbucks as of 2017 and 2018?
3. What is the value (market cap) of Starbucks at Sep. 30, 2018?
For ALL of the following DO NOT GIVE ME JUST DEFINITIONS. It must be explained in the context of and using specifically the Starbucks financial results/statements, .
4. What are inventories? (minimum 100 words)
4a. What is the difference between Long-term and short-term investments? (minimum 100 words)
4b.What is the difference between accounts payable and accrued liabilities? (minumum 100 words)
4c. What is deferred revenues? Why is it a liability? (minimum 100 words)
4d. What is the difference between common and preferred stock (this is not on the Starbucks balance sheet thus reference to the book) - minimum 100 words.
4e. What is additional paid-in-capital? (minimum 100 words).
4f. What is retained earnings. (minimum 100 words)
In: Accounting
Ayres Services acquired an asset for $88 million in 2021. The
asset is depreciated for financial reporting purposes over four
years on a straight-line basis (no residual value). For tax
purposes the asset’s cost is depreciated by MACRS. The enacted tax
rate is 25%. Amounts for pretax accounting income, depreciation,
and taxable income in 2021, 2022, 2023, and 2024 are as
follows:
| ($ in millions) | ||||||||||||||||
| 2021 | 2022 | 2023 | 2024 | |||||||||||||
| Pretax accounting income | $ | 335 | $ | 355 | $ | 370 | $ | 405 | ||||||||
| Depreciation on the income statement | 22 | 22 | 22 | 22 | ||||||||||||
| Depreciation on the tax return | (50 | ) | (14 | ) | (16 | ) | (8 | ) | ||||||||
| Taxable income | $ | 307 | $ | 363 | $ | 376 | $ | 419 | ||||||||
Required:
For December 31 of each year, determine (a) the cumulative
temporary book-tax difference for the depreciable asset and (b) the
balance to be reported in the deferred tax liability account.
In: Accounting
Amazon: Describe the fraud risks (Please be industry specific, you can find this out indirectly by reading more about the company)
In: Accounting
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):
| Sales | $ | 25,000 |
| Variable expenses | 17,500 | |
| Contribution margin | 7,500 | |
| Fixed expenses | 4,200 | |
| Net operating income | $ | 3,300 |
1. What is the contribution margin per unit? (Round your answer to 2 decimal places.)
2. What is the contribution margin ratio?
3. What is the variable expense ratio?
4. If sales increase to 1,001 units, what would be the increase in net operating income? (Round your answer to 2 decimal places.)
5. If sales decline to 900 units, what would be the net operating income?
6. If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
7. If the variable cost per unit increases by $1, spending on advertising increases by $1,150, and unit sales increase by 130 units, what would be the net operating income?
8. What is the break-even point in unit sales?
9. What is the break-even point in dollar sales?
10. How many units must be sold to achieve a target profit of $4,500?
11. What is the margin of safety in dollars? What is the margin of safety percentage?
12. What is the degree of operating leverage? (Round your answer to 2 decimal places.)
13. Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.)
14. Assume that the amounts of the company’s total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $4,200 and the total fixed expenses are $17,500. Under this scenario and assuming that total sales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.)
15. Assume that the amounts of the company’s total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $4,200 and the total fixed expenses are $17,500. Given this scenario and assuming that total sales remain the same. Using the degree of calculated operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales? (Round your intermediate calculations and final answer to 2 decimal places.)
In: Accounting
Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5 million in automated equipment for test machine assembly. The division's expected income statement at the beginning of the year was as follows:
Sales revenue $ 16,000,000 Operating costs Variable 2,000,000 Fixed (all cash) 7,500,000 Depreciation New equipment 1,500,000 Other 1,250,000 Division operating profit $ 3,750,000
A sales representative from LSI Machine Company approached Oscar in October. LSI has for $6.5 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fixed costs by 5 percent. It would be depreciated for accounting purposes over a three-year life. Depreciation would be net of the $500,000 salvage value of the new machine. The new equipment meets Pitt's 20 percent cost of capital criterion. If Oscar purchases the new machine, it must be installed prior to the end of the year. For practical purposes, though, Oscar can ignore depreciation on the new machine because it will not go into operation until the start of the next year. The old machine, which has no salvage value, must be disposed of to make room for the new machine. Pitt has a performance evaluation and bonus plan based on ROI. The return includes any losses on disposal of equipment. Investment is computed based on the end-of-year balance of assets, net book value. Ignore taxes. Oscar Clemente is still assessing the problem of whether to acquire LSI’s assembly machine. He learns that the new machine could be acquired next year, but if he waits until then, it will cost 15 percent more. The salvage value would still be $500,000. Other costs or revenue estimates would be apportioned on a month-by-month basis for the time each machine (either the current machine or the machine Oscar is considering) is in use. Fractions of months may be ignored. Ignore taxes.
Required: Calculate ROI for the coming year assuming that the new equipment is bought at the beginning of the year. (Do not round intermediate calculations. Round your final answer to nearest whole percentage.)
In: Accounting
An S corporation is considered a flow-through business entity that has the advantages of both the corporation and proprietorship. Discuss the general rules that govern S corporations. What are some of the operational rules that effect various code provisions on S corporations? Go to www.irs.gov (Links to an external site.)Links to an external site. and provide a synopsis of the similarities and differences between S corporations and one other form of business.
In: Accounting
Describe the fraud risks on Amazon: (Please be industry specific)
In: Accounting
|
Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its unit costs for each product at this level of activity are given below: |
| Alpha | Beta | |||||||
| Direct materials | $ | 30 | $ | 12 | ||||
| Direct labor | 20 | 15 | ||||||
| Variable manufacturing overhead | 7 | 5 | ||||||
| Traceable fixed manufacturing overhead | 16 | 18 | ||||||
| Variable selling expenses | 12 | 8 | ||||||
| Common fixed expenses | 15 | 10 | ||||||
| Total cost per unit | $ | 100 | $ | 68 | ||||
|
The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. |
1.Assume that Cane normally produces and sells 60,000 Betas and 80,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15,000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease?
2.Assume that Cane expects to produce and sell 80,000 Alphas during the current year. A supplier has offered to manufacture and deliver 80,000 Alphas to Cane for a price of $80 per unit. If Cane buys 80,000 units from the supplier instead of making those units, how much will profits increase or decrease?
3.Assume that Cane expects to produce and sell 50,000 Alphas during the current year. A supplier has offered to manufacture and deliver 50,000 Alphas to Cane for a price of $80 per unit. If Cane buys 50,000 units from the supplier instead of making those units, how much will profits increase or decrease?
4.How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta?
5. What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.)
6.Assume that Cane’s customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the company’s raw material available for production is limited to 160,000 pounds. How many units of each product should Cane produce to maximize its profits?
7.Assume that Cane’s customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the company’s raw material available for production is limited to 160,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?
8.Assume that Cane’s customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the company’s raw material available for production is limited to 160,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)
In: Accounting
What do ASIC look at in relation to training for staff members?
Please Do Not Copy And Paste From Another Source.
In: Accounting
The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2:
| Cash | $232,700 |
| Accounts receivable | 957,000 |
| Inventory | 1,668,600 |
| Estimated returns inventory | 21,300 |
| Office supplies | 15,600 |
| Prepaid insurance | 18,000 |
| Office equipment | 827,000 |
| Accumulated depreciation-office equipment | 556,000 |
| Store equipment | 3,594,800 |
| Accumulated depreciation-store equipment | 1,827,100 |
| Accounts payable | 361,900 |
| Customer refunds payable | 43,400 |
| Salaries payable | 41,900 |
| Note payable (final payment due in 6 years) | 296,000 |
| Common stock | 501,600 |
| Retained earnings | 2,786,300 |
| Dividends | 99,900 |
| Sales | 11,403,800 |
| Cost of goods sold | 7,842,100 |
| Sales salaries expense | 923,100 |
| Advertising expense | 540,500 |
| Depreciation expense-store equipment | 134,900 |
| Miscellaneous selling expense | 37,800 |
| Office salaries expense | 664,400 |
| Rent expense | 101,000 |
| Depreciation expense-office equipment | 45,900 |
| Insurance expense | 42,700 |
| Office supplies expense | 31,800 |
| Miscellaneous administrative expense | 7,100 |
| Interest expense | 11,800 |
| Required: | |
| 1. | Prepare a multiple-step income statement. Be sure to complete the statement heading. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
| 2. | Prepare a statement of stockholders’ equity. Additional common stock of $75,000 was issued during the year ended May 31, 20Y2. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
| 3. | Prepare a balance sheet, assuming that the current portion of the note payable is $58,000. Be sure to complete the statement heading. Refer to the problem data and the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. A colon (:) will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign. |
In: Accounting
Provide pricing methods (at least 3) and costing methods(at least 3) that can be used by service industries in the event management activities such as annual dinner of the company or training seminar.
In: Accounting
Finley designs and manufactures displays used in mobile devices. Serious flooding throughout the region affected Finleys' facilities. Inventory was completely ruined, and the company's computer system, including all accounting records, was destroyed.
Before the disaster recovery specialists clean the buildings,
Heather Bailey, the company controller, is anxious to salvage whatever records she can to support an insurance claim for the destroyed inventory. She is standing in what is left of the Accounting Department wtih Tad Myers, the cost accountant. "I didn't know mud could smell so bad,"Tad says. "What should I be looking for?" "Don't worry about beginning inventory numbers," responds Heather. "We'll get them from last year's annual report. We need first-quarter cost data." "I was working on the first-quarter results just before the storm hit," Tad says. "Look, my report's still in my desk drawer. But all I can make out is that for the first quarter, material purchases were $524,000 and that direct labor, manufacturing overhead (other than indirect materials), and total manufacturing costs to account for were $545,000; $218,000; and $1,508,000, respectively. Wait, and cost of goods available for sale was $1,615,000." "Great," says Heather. "I remember that sales for the period were approximately $1.6 million. Given our gross profit of 15%, that's all you should need." Tad is not sure about that, but decides to see what he can do with this information.
the beginning inventory numbers are as follows:
|
Raw materials, $85,000 |
||
|
• |
Work in process, $187,000 |
|
|
• |
Finished goods, $209,000 |
He remembers several schedules he learned in college that may help him get started.
Requirement
Determine the ending inventories of raw materials, work in process, and finished goods. Assume that Raw Materials Inventory contains only direct materials.
Start by determining the ending inventory of raw materials by calculating the direct materials used.
|
Finney Displays |
||||
|
Calculation of Direct Materials Used |
||||
|
For Current Year |
||||
|
Plus: |
||||
|
Less: |
||||
Next, determine the ending inventory of work in process by calculating the cost of goods manufactured.
|
Finney Displays |
||
|
Calculation of Cost of Goods Manufactured |
||
|
For Current Year |
||
|
Plus: |
||
|
Less: |
||
Finally, determine the ending inventory of finished goods by calculating the cost of goods manufactured.
|
Finney Displays |
||||
|
Calculation of Cost of Goods Sold |
||||
|
For Current Year |
||||
|
Plus: |
||||
|
Less: |
||||
In: Accounting
Birch PaperBirch Paper
Co. produces the paper used by wallpaper manufacturers.
BirchBirch's
four-stage process includes mixing, cooking, rolling, and cutting.
On
MarchMarch
1, the Mixing Department had
550550
rolls of paper in process. During
MarchMarch,
the Mixing Department completed the mixing process for those
550
rolls and also started and completed the mixing process for an additional
3,850
rolls of paper. The department started but did not finish the mixing process for an additional
500
rolls, which were
20 %
complete with respect to both direct materials and conversion work at the end of
MarchMarch.
Direct materials and conversion costs are incurred evenly throughout the mixing process.
The Mixing Department compiled the following data for March:
|
Direct |
Direct |
Manufacturing |
Total |
||||
|
Materials |
Labor |
Overhead Allocated |
Costs |
||||
|
Beginning inventory, Mar. 1 |
$360 |
$515 |
$230 |
$1,105 |
|||
|
Costs added during March |
5,490 |
3,265 |
3,640 |
12,395 |
|||
|
Total costs |
$5,850 |
$3,780 |
$3,870 |
$13,500 |
|||
|
1. |
Prepare a production cost report for the Mixing Department for
March The company uses the weighted-average method. |
|
2. |
Journalize all transactions affecting the company's mixing
process during
March Assume labor costs are accrued and not yet paid. |
Prepare a production cost report for the Mixing Department for
MarchMarch.
The company uses the weighted-average method. (Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation used: EUP = equivalent units of production.)
|
Birch Paper, Co. |
|||||
|
Production Cost Report-Mixing Department |
|||||
|
Month Ended March 31 |
|||||
|
Equivalent Units |
|||||
|
Physical |
Direct |
Conversion |
|||
|
UNITS |
Units |
Materials |
Costs |
||
|
Units to account for: |
|||||
|
Total units to account for |
|||||
|
Units accounted for: |
|||||
|
Total units accounted for |
|||||
|
Direct |
Conversion |
Total |
|
|
COSTS |
Materials |
Costs |
Costs |
|
Costs to account for: |
|||
|
Total costs to account for |
|||
|
Cost per equivalent unit |
|
Costs accounted for: |
|||
|
Total costs accounted for |
Requirement 2. Journalize all transactions affecting the company's mixing process during
MarchMarch.
Assume labor costs are accrued and not yet paid.
Begin with a summary journal entry to record the assignment of direct materials, direct labor, and the allocation of manufacturing overhead to the Mixing Department. (Prepare a single compound journal entry. Record debits first, then credits. Exclude explanations from any journal entries.)
|
Date |
Accounts |
Debit |
Credit |
|
|
Mar. |
31 |
|||
Prepare the journal entry to record the cost of the units completed and transferred out of the Mixing Department.
|
Date |
Accounts |
Debit |
Credit |
|
|
Mar. |
31 |
|||
In: Accounting