The following selected account balances were taken from BuckeyeCompany's general ledger at Jan. 1st, 2005 and Dec. 31st 2005:Jan.1st,2005Dec. 31st, 2005Accountsreceivable:51,00070,000Inventory:39,00028,000Accountspayable45,00051,000Salariespayable7,0003,000Investments46,00059,000Commonstock110,000130,000Retainedearnings25,00041,000The following selected information was taken from Buckeye Company's2005 statement of cash flows:Cash collected from customers: 385,000Cash paid to purchase inventory: 199,000Cash paid to employees: 85,000Cash paid to purchase investments: 40,000Cash received from sale of investments: 35,000Cash paid for dividends: 30,000Calculate the amount of the gain on sale ofinvestments reported in Buckeye Company's 2005 incomestatement.
Hough, Luck, and Cummings operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnership’sproperty. The partners have prepared the following balance sheet:Cash $ 31,000 Liabilities $ 38,000Hough, loan 19,000 Luck, loan 24,000Noncash assets 184,000 Hough, capital (50%) 123,000Luck, capital (40%) 23,000Cummings, capital (10%) 26,000Total assets $234,000 Total liabilities and capital $234,000The firm sells the noncash assets for $91,000; it will use $32,000 of this amount to pay liquidation expenses. All three of these partners are personally insolvent.(Leave no cells blank - be certain to enter "0" wherever required. Negative amounts and amounts to be deducted should be indicated with a minus sign.)Hough,Loan andCapital Luck,Loan andCapital Cummings,CapitalBeginning balances $ $ $Loss on disposalLiquidation expensesCapital balancesAllocation of Luck's deficitFinal distribution $ $ $
Cashflow Diagram $75000 monthly pymts 10000 for three years
The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months were:MonthGuest-Days ofOccupancyCustodial SuppliesExpenseMarch5,400$10,510April7,900$12,435May9,400$15,110June11,900$17,655July13,400$19,710August10,400$15,760September8,900$14,335Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as threeguest-days.Requirement 1:Using the high-low method, estimate a cost formula for custodial supplies expense where X is the number of guest-days.(Round the variable cost per guest-day to 1 decimal place. Omit the "$" sign in your response.)Y =$+$XRequirement 2:Using the cost formula you derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 12,500guest-days?(Omit the "$" sign in your response.)Variable cost$Fixed costTotal cost$
Can someone please help me with this problem? Please explain how you got the answer.ThanksSCOLL DOWN TO THE BOTTOM. FOR SOME REASON THE POSTING IS SEPERATEDAND CONTINUES AT THE BOTTOM.Delmont Corp, has provided the following data for the month ofAugust.There were no beginning inventories, consequently, thedirect materials, direct labor, andmanufacturing overhead appliedlisted below are all for the current month.WIPfinished goodsCOGStotaldirect materials2990105604096054510direct labor4720171606656088440manufacturing overhead applied329089303478047000Total1100036650142300189950Manufacturing overhead for the month was underapplied by$3000.The company allocates any underapplied or overapplied overheadamoung work in process, finished goods, and cost of goods sold atthe end of the month on the basis ofthe overhead applied duringthe month in those accounts.The journal entry to record the allocation of any underappliedor overapplied overhead for August would include thefollowing.a.debit to cost of goods sold of $142,300b. credit to cost of goods sold of $2200c. credit to cost of goods sold of $142, 300d. debit to cost of goods sold of $2200
The Controller of Santa Fe Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budgetinformation:March April MaySales 70,000 84,000 92,000Manufacturing cost 32,000 39,000 42,500Selling and administrative expenses 12,000 18,000 21,000Capital expenditures 0 0 20,000The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in full in the month following the sale andthe remainder the following month. Depreciation, insurance, and property tax expense represent $3,000 of the estimated monthly manufacturing costs. The annualinsurance premium is paid in July, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in themonth in which they are incurred and the balance in the following month. Current assets as of March 1 include cash of $10,000, marketable securities of $40,000, andaccounts receivable of $75,600 ($60,000 from February sales and $15,600 from January sales).Sales on account for January and February were $52,000 and $60,000,respectively.Current liabilities as of March 1 include a $12,000, 15%, 90-day note payable due May 20 and $4,000 of accounts payable incurred in February for manufacturing costs.All selling and administrative expenses are paid in cash in the period they are incurred. It is expected that $1,800 in dividends will be received in March. Anestimated income tax payment of $16,000 will be made in April. Santa Fe's regular quarterly dividend of $3,000 is expected to be declared in April and paid in May.Management desires to maintain a minimum cash balance of $30,000.Instructions:1. Prepare a monthly cash budget and supporting schedules for March, April, and May. On the basis of the cash budget, what recommendation should be made to thecontroller?
Computation of Tax, Standard Deduction, and Kiddie Tax. Anthony and Latrisha aremarried and have two sons, James, age 25, and Jonas, age 13. Both sons are properlyclaimed as dependents. Anthony and Latrisha’s taxable income is $130,000 in 2010 andthey file a joint return. Both James and Jonas had part-time jobs as well as some unearnedincome. Below is a summary of their total income.James JoanWages $2,800 $ 400Taxable interest 1,800 2,000Compute the taxable income and tax liability for James and Jonas.
For the 12/31/09 entry...where are you getting the 18/20? What period is that?Also, how did you calculate common stock on the 3/31/10 entry?Thanks
he following information ($ in millions) comes from a recent annual report of Amazon.com, Inc.: Net sales $10,894 Total assets 4,472 End of year balance in cash 1,206Total stockholders' equity 404 Gross profit (Sales - Cost of Sales). 2,606 Net increase in cash for the year 13 Operating expenses 2,065 Net operating cash flow 627Other income (expense), net (15) Compute Amazon's cost of goods sold
As copyrights expire and decrease in their usefulness, the cost of this asset is systematically allocated to expense through a process known as:a. lease b.amortizationc. depreciaiton d. depletion
Greetings Inc. has 1,500 stores throughout the United Stateslocated in high-traffic malls.Company's President in 2008 called for a formal analysis of thecompany's options with regard to business opportunities.Location was the first issue considered in the analysis. Rentalcosts are high and the intense competition from other stores in themall selling similar merchandisehas become a disadvantage. Toincrease revenue, President felt the company would need to add anew product line. To keep costs down, the product line should beonethat would not require much additional store space. In order toimprove earnings, should carefully manage the costs of this newproduct line.The company's management found a product: high-quality unframedand framed prints which customers would pick out prints by viewingthem on wide-screen computermonitors in each store. Orders wouldbe processed and shipped from a central location. Store size didnot have to increase. To offer these products,Greetingsestablished a new e-business unit called Wall Décor, a“profit center”; that is, the manager of the newbusiness unit is responsible for decisions affectingboth revenuesand costs.Wall Décor was designed to distribute unframed and framedprint items to each Greetings store on a just-in-time (JIT) basis.The Wall Décor website allows customersto choose fromseveral hundred prints. The print can be purchased in variousforms: unframed, framed with a metal frame and no matting, orframed with a wood frameand matting. When customer purchase anunframed print, it is packaged and shipped the same day from. Whena customer purchases a framed print, the print is framed atWallDécor and shipped within 48 hours.Each Greetings store has a computer linked to WallDécor's Web server so Greetings customers can browse to makea selection. Store employees are trained to helpcustomers use thewebsite and complete the purchase. The advantage is each Greetingsstore, through the Wall Décor website, can offer a widevariety of prints, yetthe individual Greetings stores do not haveto hold any inventory of prints or framing materials. only cost toindividual store is computer and high-speed lineconnection to WallDécor. The advantage to customer is the wide variety ofunframed and framed print items that can be conveniently purchasedand delivered to thehome or business, or to a third party as agift.Wall Décor uses traditional job-order costing system thatwould be less complicated, less overhead costs, if it sold onlyunframed prints. Unframed prints require noadditional processing,and they can be easily shipped in simple protective tubes. Framingand matting requires the company to have multiple matting colorsand framestyles, which requires considerable warehouse space,skilled employees to assemble the products and more expensivepackaging procedures.Manufacturing overhead is allocated to each unframed or framedprint, based on the cost of the print. This overhead allocationapproach is based on the assumptionthat more expensive prints willusually be framed and therefore more overhead costs should beassigned to these items. The predetermined overhead rate is thetotalexpected manufacturing overhead divided by the total expectedcost of prints. This method of allocation appeared reasonable tothe accounting team and distributionfloor manager. Direct laborcosts for unframed prints consist of picking the prints off theshelf and packaging them for shipment. For framed prints, directlaborcosts consist of picking the prints, framing,matting,packaging.2.What are the advantages and disadvantages of using the costof each print as a manufacturing overhead cost driver?
12.In a job order cost system, it would be correct in recording the purchases of raw materials to debit? a.work in process inventory b.work in process andmanufacturing overhead c.raw materials inventory d. finished goods inventory14. posting to control accounts in a costing system are made a.monthly b.daily c.annually d.semiannually15. Debits to work in process inventory are acccompanied by a credit to all but which one of the following accounts? a. Raw materials inventory b.factory laborc.manufacturing overhead d. cost of good sols
Are admission fee sales considered goods revenue or a services revenue?
The targeted capital structure for QM industries is 45% common stock, 10% preferred stock and 45% debt. IF the cost of the common equity for the firm is 18.2%, thecost of preferred stock is 9.7%, the before tax cost of debt is 7.8%, and the firm's tax rate is 35%, QM's weighted average cost of capital is _______%
The proper journal entry to record the receipt of inventory purchased on account in a perpetual inventory system would be:
Start Inc. has 5,000 shares of 6%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2012. What isthe annual dividend on the preferred stock?
An account is said to have a debit balance if:A) its normal balance is debit without regard to the amounts or number of entries on the debitside.B) the amount of the debits exceeds the amount of the credits.C) the last entry of the accounting period was posted on the debit side.D) there are more entries on the debit side than on the credit side.
Library, Inc. has 2,500 shares of 4%, $50 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2011, andDecember 31, 2012. The board of directors declared and paid a $4,000 dividend in 2011. In 2012, $15,000 of dividends are declared and paid. What are the dividendsreceived by the preferred and common shareholders in 2012? Preferred Common $7,500 $7,500 $9,000 $6,000 $6,000 $9,000 $5,000 $10,000
1. Jersey Subs, Inc. wants to find an equation to estimate monthly utility costs. Jersey Subs has been in business for one year and has collected the following costdata for utilities:a. Which of the preceding costs is variable? Fixed? Mixed? Explain.b. Using the high-low method, determine the cost function for each cost.c. Combine the preceding information to get a monthly utility cost function for Jersey.d. Next month, Jersey Subs expects to use 2,200 kilowatt hours of electricity, make 1,500 minutes of telephone calls, and use 32,000 gallons of water. Estimate totalcost of utilities for the month.
Compute the taxable income for 2011 for Mattie on the basis of the following information. Mattie is married but has not seen or heard from the husband since 2009.Salary $70,000 Interest on bonds issued by AT&T Corporation 3,000 Interest on CD issued by Wells Fargo Bank 2,000 Cash dividend received on Chevron common stock2,200 Life insurance proceeds paid on death of Aunt (Mattie was the designated beneficiary of the policy) 100,000 Inheritance received on death of Aunt 200,000 Casey(a cousin) repaid a loan Mattie made to him in 2007 (no interest was provided for) 5,000 Itemized deductions (state income tax, property taxes on residence, Intereston home mortgage , charitable contributions 10,200 Number of dependents (children, ages 17 and 18, mother-in-law, age 60) 3 Age 40