1.) Does the use of Non-GAAP reports impair the ability to compare prior periods and competitors reports?
2.) Does the Non-GAAP numbers provide a reasonable source of reliable information?
3,) Should corporations be REQUIRED to report ALL numbers in accordance with GAAP...even during the quarterly, non-audited venue?
4.) Is there a need to translate complex GAAP based information into more useful financial data?
In: Accounting
The waterfall project management model is often used for non-IT projects, while the Agile project management model is often used for IT projects.
Respond to the following in a minimum of 175 words:
In: Computer Science
On January 1, 2018, Pet Friendly Stores adopted the retail
inventory method. Inventory transactions at both cost and retail,
and cost indexes for 2018 and 2019 are as follows:
| 2018 | 2019 | ||||||||||||
| Cost | Retail | Cost | Retail | ||||||||||
| Beginning inventory | $ | 162,500 | $ | 250,000 | |||||||||
| Purchases | 800,000 | 1,084,000 | $ | 680,000 | $ | 1,063,000 | |||||||
| Purchase returns | 7,000 | 12,150 | 2,000 | 4,300 | |||||||||
| Freight-in | 12,500 | 2,000 | |||||||||||
| Net markups | 6,900 | 11,800 | |||||||||||
| Net markdowns | 4,750 | 8,000 | |||||||||||
| Net sales to customers | 950,000 | 722,000 | |||||||||||
| Sales to employees (net of 25% discount) | 22,500 | 22,500 | |||||||||||
| Normal spoilage | 4,200 | 6,900 | |||||||||||
| Price Index: | |||||||||||||
| January 1, 2018 | 1.00 | ||||||||||||
| December 31, 2018 | 1.25 | ||||||||||||
| December 31, 2019 | 1.25 | ||||||||||||
Required:
1. Estimate the 2018 and 2019 ending inventory and
cost of goods sold using the dollar-value LIFO retail method.
In: Accounting
Case Development began operations in December 2018. When
property is sold on an installment basis, Case recognizes
installment income for financial reporting purposes in the year of
the sale. For tax purposes, installment income is reported by the
installment method. 2018 installment income was $880,000 and will
be collected over the next three years. Scheduled collections and
enacted tax rates for 2019–2021 are as follows:
| 2019 | $ | 200,000 | 30 | % |
| 2020 | 470,000 | 40 | ||
| 2021 | 210,000 | 40 | ||
Pretax accounting income for 2018 was $1,194,000, which includes
interest revenue of $44,000 from municipal bonds. The enacted tax
rate for 2018 is 30%.
Required:
1. Assuming no differences between accounting
income and taxable income other than those described above, prepare
the appropriate journal entry to record Case’s 2018 income
taxes.
2. What is Case’s 2018 net income?
In: Accounting
In 2018, Ginzel Corporation agreed to provide a client with 20 detailed marketing analyses of its client’s key products for a total fee of $110,000. The fee was computed as $5,000 per report x 20 reports = $100,000, plus $10,000 to extract the necessary data from the client’s system and convert it into the format Ginzel needs to do the analysis. It cost Ginzel $4,000 to complete the data extraction and conversion. As of December 31, 2018, Ginzel has completed the conversion of the data and has completed and delivered 7 of the 20 marketing reports to the client.
Required: How much revenue should Ginzel recognize in 2018?
How should Ginzel account for the $4,000 in costs it incurred to extract and convert the client’s data?
|
In: Accounting
On December 31, 2017, Jackson Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2018, Jackson purchased 24,000 shares of common stock on the open market as treasury stock paying $45 per share. Jackson sold 6,000 of the treasury shares on September 30, 2018, for $47 per share. Net income for 2018 was $180,905. Also outstanding at December 31, 2017, were fully vested incentive stock options giving key personnel the option to buy 50,000 common shares at $40. These stock options were exercised on November 1, 2018. The market price of the common shares averaged $50 during 2018.Required:
Compute Jackson's basic and diluted earnings per share (rounded to 2 decimal places) for 2018.
In: Accounting
Case Development began operations in December 2018. When
property is sold on an installment basis, Case recognizes
installment income for financial reporting purposes in the year of
the sale. For tax purposes, installment income is reported by the
installment method. 2018 installment income was $600,000 and will
be collected over the next three years. Scheduled collections and
enacted tax rates for 2019–2021 are as follows:
| 2019 | $ | 130,000 | 20 | % |
| 2020 | 330,000 | 30 | ||
| 2021 | 140,000 | 30 | ||
Pretax accounting income for 2018 was $780,000, which includes
interest revenue of $30,000 from municipal bonds. The enacted tax
rate for 2018 is 20%.
Required:
1. Assuming no differences between accounting
income and taxable income other than those described above, prepare
the appropriate journal entry to record Case’s 2018 income
taxes.
2. What is Case’s 2018 net income?
In: Accounting
Exercise 17-25 Postretirement benefits; determine APBO, service cost, interest cost; prepare journal entry [LO17-10, 17-11]
The following data are available pertaining to Household
Appliance Company's retiree health care plan for 2018:
| Number of employees covered | 2 | ||
| Years employed as of January 1, 2018 | 2 | [each] | |
| Attribution period | 25 | years | |
| Expected postretirement benefit obligation, Jan. 1 | $ | 63,000 | |
| Expected postretirement benefit obligation, Dec. 31 | $ | 66,000 | |
| Interest rate | 5 | % | |
| Funding | none | ||
Required:
1. What is the accumulated postretirement benefit obligation at the
beginning of 2018?
2. What is interest cost to be included in 2018 postretirement
benefit expense?
3. What is service cost to be included in 2018 postretirement
benefit expense?
4. Prepare the journal entry to record the postretirement benefit
expense for 2018.
In: Accounting
Whispering Company offers an MP3 download (seven-single medley) as a premium for every 5 candy bar wrappers presented by customers together with $3.10. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.85. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2017 and 2018 are as follows. (cash purchases)
2017 2018
MP3 codes purchased. 320,000 422,400
Candy bars sold. 2,664,700. 2,554,300
Wrappers redeemed. 1,536,000. 1,920,000
2017 wrappers expected to be redeemed in 2018 371,200
2018 wrappers expected to be redeemed in 2019 448,000
Indicate the amount for each account, and classifications of the items related to the premium plan that would appear on the balance sheet and the income statement at the end of 2017 and 2018.
Inventory of premiums: 2017? 2018?
In: Accounting
Fredo, Inc., purchased 10% of Sonny Enterprises for $1,000,000 on January 1, 2018. Sonny recognized a total of $340,000 net income during 2018, paid $24,000 of dividends to Fredo during 2018, and at December 31, 2018, the market value of the Sonny investment increased to $1,034,000. Required: Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo (1) lacks significant influence or (2) has significant influence over the operating and financial policies of the investee.
Required 1
Record the entry for investment in Sonny Enterprises.
Record the entry for cash dividend received.
Record the net unrealized holding gain or loss for an available-for-sale investment.
Required 2:
Record the entry for investment in Sonny Enterprises.
Record the revenue from Sonny Enterprise during 2018.
Record the receipt of dividend during 2018.
In: Accounting