Discuss whether it is important to differentiate between Revenue earned from an Exchange and Non-exchange transaction. Provide reasons for your answer.
In: Accounting
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
Current
YearPrevious
Year
Accounts payable$622,000 $168,000
Current maturities of serial bonds payable380,000 380,000
Serial bonds payable, 10%1,560,000 1,940,000
Common stock, $1 par value70,000 90,000
Paid-in capital in excess of par810,000 810,000
Retained earnings2,780,000 2,210,000
The income before income tax expense was $814,800 and $713,000 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
Current year
Previous year
b. Determine the times interest earned ratio for both years. Round to one decimal place.
Current year
Previous year
c. The ratio of liabilities to stockholders' equity has and the number of times bond interest charges were earned has from the previous year. These results are the combined result of a income before income taxes and interest expense in the current year compared to the previous year.
In: Accounting
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
| Current Year | Previous Year | |||
| Accounts payable | $744,000 | $198,000 | ||
| Current maturities of serial bonds payable | 460,000 | 460,000 | ||
| Serial bonds payable, 10% | 1,890,000 | 2,350,000 | ||
| Common stock, $1 par value | 90,000 | 110,000 | ||
| Paid-in capital in excess of par | 970,000 | 980,000 | ||
| Retained earnings | 3,360,000 | 2,670,000 | ||
The income before income tax was $564,000 and $493,500 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
| Current year | |
| Previous year |
b. Determine the times interest earned ratio for both years. Round to one decimal place.
| Current year | |
| Previous year |
c. The ratio of liabilities to stockholders' equity has and the times interest earned ratio has from the previous year. These results are the combined result of a income before income taxes and interest expense in the current year compared to the previous year.
In: Accounting
This year, Linda Moore earned a $112,000 salary and $2,200 interest income from a jumbo Certificate of Deposit. She recognized a $15,300 capital loss on the sale of undeveloped land. Compute Linda’s AGI and any capital loss carryforward into future years in each of the following cases. She also recognized a $10,500 capital gain from the sale of corporate stock. She also received a $16,000 capital gain distribution from a mutual fund. She had no other capital transactions this year but has a $17,000 capital loss carryforward from a previous year.
In: Accounting
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
| Current Year | Previous Year | |||
| Accounts payable | $260,000 | $224,000 | ||
| Current maturities of serial bonds payable | 340,000 | 340,000 | ||
| Serial bonds payable, 10% | 1,680,000 | 2,020,000 | ||
| Common stock, $1 par value | 70,000 | 100,000 | ||
| Paid-in capital in excess of par | 840,000 | 840,000 | ||
| Retained earnings | 2,890,000 | 2,290,000 | ||
The income before income tax was $666,600 and $583,300 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
| Current year | |
| Previous year |
b. Determine the times interest earned ratio for both years. Round to one decimal place.
| Current year | |
| Previous year |
c. The ratio of liabilities to stockholders' equity has and the times interest earned ratio has from the previous year. These results are the combined result of a income before income taxes and interest expense in the current year compared to the previous year.
In: Accounting
- Xavier, age 20, is a full-time college student with earned income from wages of $6,000 and interest income of $1,250. Xavier's parents provide more than half of Xavier's support. Xavier's 2018 taxable income is
A) $0.
B) $550.
C) $900.
D) $6,900.
- Akiko, a single taxpayer, had the following income and deductions during 2018:
Salary $60,000
Interest on bank account 500
Tax-exempt interest 250
Deduction for AGI 5,500
Itemized deductions 14,000
Taxes withheld 5,500
Calculate Chris's tax liability due or refund.
$1,010.50 tax liability.
$1,010.50 refund.
$549.50 tax liability.
$549.50 refund.
In: Accounting
Jed earned wages of $65,000, received $840 in interest from a savings account, and contributed $2,300 to a tax-deferred retirement plan. He was entitled to a personal exemption of $3,500 and had deductions totaling $5,680.
What is his gross income?
What is his adjusted gross income?
What is his taxable income?
In: Accounting
he Earned Income Tax Credit
a)is a welfare program that discourages people from entering the labor force
b)subsidizes wages for low income workers
c)only applies to families under the poverty level
d)is phased out by 40 cents for every dollar earned above $18,740
In: Economics
Ratio of Liabilities to Stockholders' Equity and Times Interest Earned
The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years:
| Current Year | Previous Year | |||
| Accounts payable | $552,000 | $162,000 | ||
| Current maturities of serial bonds payable | 370,000 | 370,000 | ||
| Serial bonds payable, 10% | 1,520,000 | 1,890,000 | ||
| Common stock, $1 par value | 80,000 | 100,000 | ||
| Paid-in capital in excess of par | 900,000 | 900,000 | ||
| Retained earnings | 3,090,000 | 2,460,000 | ||
The income before income tax was $529,200 and $463,100 for the current and previous years, respectively.
a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.
| Current year | |
| Previous year |
b. Determine the times interest earned ratio for both years. Round to one decimal place.
| Current year | |
| Previous year |
c. The ratio of liabilities to stockholders' equity has and the times interest earned ratio has from the previous year. These results are the combined result of a income before income taxes and interest expense in the current year compared to the previous year.
In: Accounting
Robert earned $20,000 of profit from a sole proprietorship in 2018. If he also has $118400 of salary income, how much self-employment tax will he owe?
A. 1820
B. 1776
C. 536
D. $580
In: Accounting