A company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit.

A company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit. This company's current FIFO inventory consists of 200 units purchased at $16 per unit. Net realizable value has now fallen to $13 per unit. What is the amount of the lower cost of market adjustment the company must make as a result of this decline in value?
a. $1000
b. $1400
c. $400
d. $600
e. $800

A company had the following purchases and sales during its first year of operations:

A company had the following purchases and sales during its first year of operations:

	Purchases	Sales
January:	10 units at $120	6 units
February:	20 units at $125	5 units
May:	15 units at $130	9 units
September:	12 units at $135	8 units
November:	10 units at $140	13 units

On December 31, there were 26 units remaining in ending inventory. Using the periodic FIFO inventory costing method, what is the cost of the ending inventory? (Assume all sales were made on the last day of the month.)

. The Golem effect takes into consideration low expectations of the A. industry.

1. The Golem effect takes into consideration low expectations of the
A. industry.
B. manager.
C. organization.
D. employee.
2. In Learning from Experience: How did Allison Watkins, director of brand partnerships for the Lance Armstrong Foundation, respond when Armstrong personally apologized to the charity for his doping scandal?
A. She became angry and asked him to leave.
B. She cried because her career was ruined.
C. She applauded him for his courage.
D. She was skeptical and wondered if he was being sincere.
3. Lydia may have been guilty of similarity error when she selected Kevin for the job because he had attended the same college as Lydia, lived in her apartment complex, and also enjoyed playing golf.
A. True
B. False
4. In Across Cultures Competency: The red accent color McDonald's uses in its restaurants in the Asian community of Los Angeles is used to symbolize laughter and prosperity.
A. True
B. False
5. Nora was using impression management when she decided to wear her dark grey suit to the interview because she thought the bank manager would notice how professional she looked.
A. True
B. False

The following information is available for Oriole Company

The following information is available for Oriole Company

Accounts receivable		$3,500		Cash		$6,360
Accounts payable		3,700		Supplies		3,720
Interest payable		530		Unearned service revenue		820
Salaries and wages expense		5,400		Service revenue		43,700
Notes payable		31,000		Salaries and wages payable		780
Common stock		55,400		Depreciation expense		600
Inventory		2,970		Equipment (net)		109,200

What is the retained earnings?

A company had the following purchases and sales during its first month of operations:

A company had the following purchases and sales during its first month of operations:

January 1	Purchased 10 units at $4.00 per unit
January 9	Sold 6 units at $12.00 per unit
January 17	Purchased 8 units at $5.50 per unit
January 27	Sold 7 units at $12.00 per unit

Using the perpetual weighted average method, what is the value of cost of goods sold? (Round weighted average costs per unit to 2 decimal places.)

January 1	Purchased 10 units at $4.00 per unit
January 9	Sold 6 units at $12.00 per unit
January 17	Purchased 8 units at $5.50 per unit
January 27	Sold 7 units at $12.00 per unit

Using the perpetual weighted average method, what is the value of cost of goods sold? (Round weighted average costs per unit to 2 decimal places.)

XYZ Construction Inc. is the general contractor for a fast-food restaurant project. The construction cost is

XYZ Construction Inc. is the general contractor for a fast-food restaurant project. The construction cost is $320,000 and the contract price is $384,00. Please develop the cash-flow diagram based on the cash flow information summarized in the table below.
M1 Direct Cost 25,000, Overhead 5,000, Income 0.00,
M2 Direct Cost 55,000, Overhead 5,000, Income 30,000
M3 Direct Cost 80,000, Overhead 5,000, Income 66,000
M4 Direct Cost 60,000, Overhead 5,000, Income 96,000
M5 Direct Cost 30,000, Overhead 5,000, Income 72,000
M6 Direct Cost 40,000, Overhead 5,000, Income 36,000
M7 Direct Cost 0.00, Overhead 0.00, Income 48,000

5).Details for job 5A are: direct material $1000, direct labor $500, labor hours 20, machine hours 15. The

5).Details for job 5A are: direct material $1000, direct labor $500, labor hours 20, machine hours 15. The overhead rate is $5 per labor hour. Total job costs are?
6).Details for job 5A are: direct material $1000, direct labor $500, overhead $100. If the markup percentage is 200% what is the selling price?
7).Estimates: 20000 labor hours; 1200 machine hours; $48,000 fixed overhead: $6 variable overhead per machine hour. The predetermined rate with machine hours as the allocation base is?
8).Details for job 5A are: direct material $1000, direct labor $500, labor hours 20, machine hours 15. The overhead rate is $3 per machine hour. Total Job cost is?
9).Details for job 5A are: direct material $1000, direct labor $500, labor hours 20, machine hours 15. The overhead rate is $3 per machine hour. Markup is 250%. Selling price is?

On January 1, Pepper Co. issued ten-year bonds with a face value of $50,000,000. The stated rate of

On January 1, Pepper Co. issued ten-year bonds with a face value of $50,000,000. The stated rate of interest is 4%, with coupons payable semiannually on June 30 and December 31. The bonds were sold to yield 6%. Determine the issue price of the bonds. (Round your final answer to the nearest thousand dollars.)

The classified balance sheet for a company reported current assets of $1,624,125, total liabilities of

The classified balance sheet for a company reported current assets of $1,624,125, total liabilities of $810,540, common stock of $1,110,000, and retained earnings of $141,260. The current ratio was 2.5. Which of the following statements is not correct?
1. Total Assets are $2,061,800.
2. Total Stockholders’ equity is $1,251,260.
3. Noncurrent liabilities are $141,260.
4The amount of current assets is 2.5 times the amount of current liabilities.

Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a

Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.60 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3:

	Year 2					Year 3
	First	Second	Third	Fourth		First
Budgeted production, in bottles	90,000	120,000	180,000	130,000		100,000

Musk oil has become so popular as a perfume ingredient that it has become necessary to carry large inventories as a precaution against stock-outs. For this reason, the inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter’s production needs. Some 72,000 grams of musk oil will be on hand to start the first quarter of Year 2.
Required:
Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. (Round "Unit cost of raw materials" answers to 2 decimal places.)

	Quarter	Quarter	Quarter	Quarter
	First	Second	Third	Fourth	Year
?
Units of raw material need per unit of finished good
Units of raw material needed to meet production
?
Total units of raw materials needed
?
Unit of raw materials to be purchased
Unit cost of raw materials
Cost of raw material to purchase

how do you file income tax form with this piece of information

how do you file income tax form with this piece of information

John’s morher has passed away and he recieved a parcel of land worth 500,000 and life i surance proceeds of 150,000

Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance of

Quantum Solutions Company, a computer consulting firm, has decided to write off the $33,550 balance of an account owed by a customer, Alliance Inc.
Required:

On March 1, journalize the entry to record the write-off, assuming that (a) the direct write-off method is used and (b) the allowance method is used. Refer to the Chart of Accounts for exact wording of account titles.

Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May

Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:

	April	May	June	Total
Budgeted sales (all on account)	$470,000	$670,000	$230,000	$1,370,000

From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $400,000, and March sales totaled $430,000.
Required:
1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

	Schedule of Expected Cash Collections April May June Total February sales          $0    March sales 0 April sales 0 May sales 0 June sales 0 Total cash collections $0 $0 $0 $0

2. What is the accounts receivable balance on June 30th?

	Total accounts receivable at June 30

Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods

Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods
Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31:

Customer		Amount
Kim Abel		$21,550
Lee Drake		33,925
Jenny Green		27,565
Mike Lamb		19,460
	Total	$102,500

The company prepared the following aging schedule for its accounts receivable on December 31:

Aging Class (Number of Days Past Due)	Receivables Balance on December 31			Estimated Percent of Uncollectible Accounts
0-30 days		$715,000		1%
31-60 days		310,000		2
61-90 days		102,000		15
91-120 days		76,000		30
More than 120 days		97,000		60
Total receivables		$1,300,000

a. Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank.
b. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning credit balance of $95,000 on January 1 and the company uses the analysis of receivables method. For a compound transaction, if an amount box does not require an entry, leave it blank.

Write-off
Adjustment

c. How much higher (lower) would Seaforth International's net income have been under the allowance method than under the direct write-off method?
  $

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6:

1.	Cash balance according to the company’s records at August 31, $18,257.
2.	Cash balance according to the bank statement at August 31, $27,261.
3.	Checks outstanding, $14,624.
4.	Deposit in transit, not recorded by bank, $6,131.
5.	A check for $58 in payment of an account was erroneously recorded in the check register as $580.
6.	Bank debit memo for service charges, $11.

A.	Prepare a bank reconciliation, using the format shown in Exhibit 13 . Refer to the Amount Descriptions list 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.
B.	If the balance sheet were prepared for Creative Design Co. on August 31 what amount should be reported for cash?
C.	Must a bank reconciliation always balance (reconcile)?

Amount Descriptions
Adjusted balance
Bank service charge
Bank error in charging check as $58 instead of $580
Bank error in charging check as $580 instead of $58
Deposit in transit, not recorded by bank
Error in recording check as $58 instead of $580
Error in recording check as $580 instead of $58
Outstanding checks
Total adjustments

B. If the balance sheet were prepared for Creative Design Co. on August 31 what amount should be reported for cash?
C. Must a bank reconciliation always balance (reconcile)?
Yes
No

Spring Designs & Decorators issued a 180-day, 5% note for $82,600, dated April 13 to Jaffe Furniture

Spring Designs & Decorators issued a 180-day, 5% note for $82,600, dated April 13 to Jaffe Furniture Company on account.
Required:

A.	Determine the due date of the note.
B.	Determine the maturity value of the note. Assume a 360-day year when calculating interest.
C.	Journalize the entries to record the following: (1) receipt of the note by Jaffe Furniture and (2) receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.

LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary

REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense

A. Determine the due date of the note.
B. Determine the maturity value of the note. Assume a 360-day year when calculating interest.
C. (1) Journalize the entry to record the receipt of the note by Jaffe Furniture. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

C. (2) Journalize the entry to record the receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3

The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers

The following selected transactions were completed by Fasteners Inc. Co., a supplier of buttons and zippers for clothing:

20Y3
Nov.	21	Received from McKenna Outer Wear Co., on account, a $96,000, 60-day, 7% note dated November 21 in settlement of a past due account.
Dec.	31	Recorded an adjusting entry for accrued interest on the note of November 21.
20Y4
Jan.	20	Received payment of note and interest from McKenna Outer Wear Co.

Journalize the entries to record the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.

CHART OF ACCOUNTS
Fasteners Inc. Co.
General Ledger
ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable-McKenna Outer Wear Co. 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Sales Salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense

Journalize the entries to record the transactions for the year 20Y3. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.
PAGE 1
JOURNAL
ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

Journalize the entries to record the transactions for the year 20Y4. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round answers to the nearest dollar amount.
PAGE 1
JOURNAL
ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

The Pathways Model introduced in Chapter 1 indicates that accounting is designed to provide information

The Pathways Model introduced in Chapter 1 indicates that accounting is designed to provide information that helps users of the accounting information make good decisions. Among the more important uses of accounting information is to evaluate a company’s business prospects, often for the purpose of making an investment decision. Two important aspects of evaluating the financial position of a business is to evaluate the business’ profitability and liquidity. Below we present basic tools for evaluating profitability and liquidity.
MEASURES OF PROFITABILITY
The $39,942 net income figure reported in Overnight’s income statement is more meaningful when examined in the context of management’s ability to control costs or when measured relative to the company’s shareholders’ equity.
Two commonly used measures of profitability that address these issues are the net income percentage and return on equity. Using data from Overnight’s financial statements, these measures are computed as follows.
All companies must incur costs in order to generate revenue. The net income percentage is simply a measure of management’s ability to control these costs. In 2018, Overnight was able to convert 22.8 percent of its revenue into net income; thus, it incurred approximately 78 cents in costs for every dollar of revenue it generated.
Return on equity is a measure of net income relative to average stockholders’ equity throughout the year. In 2018, Overnight’s average stockholders’ equity was $92,971 (i.e., the average of its beginning stockholders’ equity of $80,000, and its ending stockholders’ equity of $105,942). Thus, the company earned income of approximately 43 cents on every dollar of equity capital.
MEASURES OF LIQUIDITY
At the end of 2018, Overnight’s balance sheet reports liabilities of $20,250, most of which will require payment early in 2019. However, the balance sheet reports cash of only $18,592, which may be an indication of potential liquidity problems.
Two common measures of liquidity are a company’s working capital and its current ratio. Using data from Overnight’s financial statements, these measures are computed as follows.
Image
Working capital is a measure of short-term debt-paying ability expressed in dollars. Current assets represent a company’s potential cash inflows in the near future, whereas current liabilities represent cash outlays coming due soon. Overnight’s current assets exceed its current liabilities by $9,792; however, shop supplies and unexpired insurance policies are not truly liquid assets. Likewise, unearned rent revenue does not actually represent a future cash obligation.
The current ratio is simply working capital expressed as a ratio. Thus, Overnight has approximately $1.48 of potential cash inflow for every dollar of current obligations coming due. Again, this figure does not take into account that shop supplies and insurance policies will not actually convert into cash, or that unearned revenue will not actually require a future outlay of cash."

• What methods would you suggest to a company to increase their liquidity and profitability? Consider the factors: net income percent, return on equity for the profitability, and current assets or liabilities for the liquidity.
• Explain the significance of measuring a company’s return on equity.

John Smith (Social Security number 111-11-1111) is 50 years old and is married to Joan Smith (Social

John Smith (Social Security number 111-11-1111) is 50 years old and is married to Joan Smith (Social Security number 123-45-6789). The Smiths live at 512 Ferry Road, Newport Beach, CA 92603. They file a joint return and have two dependent children, Ryan, age 13, and Ashley, age 14. Ryan’s Social Security number is 123-45-6788, and Ashley’s Social Security number is 123-45-6787. In 2018, John and Joan had the following transactions:
1. John received $200,000 in salary from Red Steel Corporation, where he is a construction engineer. Withholding for Federal income tax was $37,750 and the appropriate FICA and Medicare tax withholding was done.
2. John’s mother passed away and he received a parcel of Land worth $500,000 and Life Insurance Proceeds of $150,000.
3. John and Joan received $10,400 interest on Los Angeles school district bonds.
4. John received $5,300 interest from a Merrill Lynch money marketaccount.
5. John received $15,000 of a dividend on Ford Motor Company stock that he has owned for over 2
years.
6. Joan received 50 shares of Applegate Corporation common stock as a stock dividend. The shares
had a fair market value of $2,500 at the time Joan received them, and she did not have the
option of receiving cash.
7. John and Joan received a $5,500 refund on their 2017 California income taxes. They
itemized deductions in 2017.
8. John paid $20,000 alimony to his former wife, Rose Smith (Social Security number 123-45-
6786). The divorce was finalized in2012.
9. John and Joan kept the receipts for their sales taxes paid of $2,100. 10. John and Joan’s itemized deductions for 2018 were as follows:
 Stateincometaxpaidandwithheldfromhissalarytotaled$15,100.  Realestatetaxesontheirprincipalresidencewere$6,800.
 Mortgageinterestontheirprincipalresidencewas$20,500.
 Cashcontributionstothechurchtotaled$15,800.
 MedicalExpensesrelatedtoDoctors,etc.of$5,000(Notetheseexpenseswerepaidout of their Health Savings Account see below).
 Jobrelatedunreimbursedexpensesof$5,700relatedtotravel.
 TaxPreparationFeesof$2,500.
 ContributionstotheMayorofNewportBeach’scampaignwere$3,500.
11. John and Joan set up their own Health Savings Account through Merrill Lynch for the maximum amount allowed. The medical plan at Red Steel Corporation is a high deductible plan.
12. John and Joan wish to contribute the maximum to an Individual Retirement Account for 2018. There is no option to contribute to a retirement at work.
13. John and Joan contributed $10,000 for each child to separate qualified tuition plan for each child.
Compute the Smith’s net federal tax payable (or refund due) 2018. Use the 1040 and applicable other form

Camp Rainbow offers overnight summer camp programs for children ages 10–14 every summer during June

Camp Rainbow offers overnight summer camp programs for children ages 10–14 every summer during June and July. Each camp session is one week and can accommodate up to 200 children. The camp is not coed, so boys attend during the odd-numbered weeks and girls attend during the even-numbered weeks. While at the camp, participants make crafts, participate in various sports, help care for the camp’s resident animals, have cookouts and hayrides, and help assemble toys for local underprivileged children.

The camp provides all food as well as materials for all craft classes and the toys to be assembled. One cabin can accommodate up to 10 children, and one camp counselor is assigned to each cabin. Three camp managers are on-site regardless of the number of campers enrolled.

Domingo Corporation uses the weighted-average method in its process costing system. This month, the

Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	5,500				50%
Conversion costs	$	1,700				20%

A total of 6,800 units were started and 6,100 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	158,700
Conversion costs	$	120,400

The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs.
How many units are in ending work in process inventory in the first processing department at the end of the month?
Garrison 16e Rechecks 2017-08-28
Multiple Choice

• 700
  
• 900
  
• 6,400
  
• 1,100
  

The following information relates to the Flounder Company.

The following information relates to the Flounder Company.

Date		Ending Inventory (End-of-Year Prices)				Price Index
December 31, 2013			$ 68,400			100
December 31, 2014			122,744			134
December 31, 2015			132,904			148
December 31, 2016			150,920			154
December 31, 2017			141,920			160

Use the dollar-value LIFO method to compute the ending inventory for Flounder Company for 2013 through 2017.

			Ending Inventory
2013			$
2014			$
2015			$
2016			$
2017			$

Alison bought her home 8 years ago for $120,000. Three years ago Alison married Mike and he moved into

Alison bought her home 8 years ago for $120,000. Three years ago Alison married Mike and he moved into her house and they have lived there since. If they sell Alison's house in the current year for $340,000, what is their taxable gain on a joint tax return? a. $220,000 b. $0 c. $20,000 d. $155,000

thompson owns 100% of Rollins and at 12/31/2012. its investment in Rollins account stands at 10000000.

thompson owns 100% of Rollins and at 12/31/2012. its investment in Rollins account stands at 10000000. on that date thompson sells 20% of its ownership for2500000 cash prepare the j/e to be recorded by thompson on 12/31/2012?

Beg. Fixed Asset Basis Book (12/31/2016): $12,800,000

Beg. Fixed Asset Basis Book (12/31/2016):                     $12,800,000
Ending Fixed Asset Basis Tax (12/31/2017):                    $8,600,000
Book Depreciation Expense:                                           $1,100,000
Tax Depreciation Expense:                                             $975,000
Municipal Interest Income:                                            $1,100,000
Non-Deductible Meals and Entertainment:                     $675,000
Warranty Reserve (12/31/17):                                       $5,000,000
Net Increase in Warranty Reserve in 2017:                     $3,000,000
Temporary Differences and their anticipated reversal as of 12/31/2017:

• Tax Basis in Depreciable Fixed Assets ratably over 7 years
• Book Basis in Depreciable Fixed Assets ratably over 10 years
• Warranty Reserve will reduce 10% per year over the next 4years (ie; 12/18 balance 10% less than 12/17;12/19 10% less than   12/18 etc.) and then not change after.

Assume the NOL has a carryforward (no carryback) period of 10 years before expiring.
Assume no limitation on the amount of taxable income the NOL can offset each year.
Assume a 35% tax rate in 2017 and 21% for 2018 and beyond
Assume that you and your client have concluded there are no viable tax planning strategies that can be utilized at this time.
Assume that you and your client have concluded that it is prudent to assume taxable income from sources other than reversing temporary differences can be assumed to be $1,200,000 in 2018 and $900,000 in 2019.You have concluded it is not prudent to assume any taxable income other than from reversing temporary differences beyond 2019.
Prepare the following:
Calculate the beginning and ending deferred Tax balances for 2017 (12/31/16 and 12/31/17).
Prepare the appropriate Income tax expense entries for 2017, current and deferred.
Assess the need for a valuation allowance against an NOL that was generated in 2017. Prepare the analysis used to make the determination. If it is determined one is needed, prepare the appropriate journal entry to record it.

The transactions listed below are typical of those involving New Books Inc. and Readers’ Corner. New

The transactions listed below are typical of those involving New Books Inc. and Readers’ Corner. New Books is a wholesale merchandiser and Readers’ Corner is a retail merchandiser. Assume all sales of merchandise from New Books to Readers’ Corner are made with terms n/30, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended August 31.

1. New Books sold merchandise to Readers’ Corner at a selling price of $650,000. The merchandise had cost New Books $455,000.
2. Two days later, Readers’ Corner complained to New Books that some of the merchandise differed from what Readers’ Corner had ordered. New Books agreed to give an allowance of $13,500 to Readers’ Corner. Readers’ Corner also returned some books, which had cost New Books $4,000 and had been sold to Readers’ Corner for $5,500.
3. Just three days later, Readers’ Corner paid New Books, which settled all amounts owed.

2. Prepare the journal entries that Readers’ Corner would record. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Think of a transaction from any time that you can vividly recall and comment upon in the detail necessary to

Think of a transaction from any time that you can vividly recall and comment upon in the detail necessary to complete the assignment. Using this experience as your reference, evaluate and discuss the experience in the following categories.

1. What factors contributed to the FIRST impression(s) you had of the organization? How does that relate to marketing?
2. Did this impression change for better or worse at any time? If so, how did that impact your OVERALL impression? What does that tell us? (Hint: This is where holistic marketing and branding come in!)
3. Was their “value proposition” made clear or communicated in any way? Please elaborate.
4. How well would you say the employees of the organization understood that YOU are their chief priority? In other words, did the organization practice the marketing concept?
5. Did you feel like you were participating in an “Experience” or just buying a product? Why do you say that?
6. Who would you say are this organization’s main direct and indirect competitors?
7. Will the way the transaction was handled by the organization contribute to a lifelong relationship with you? Why or why not?
8. If you were meeting with the president of the company, based on feedback like this, what marketing-related actions would you recommend? How would you “sell” them to the president” Support your recommendations with evidence, in other words.
9. Other comments (Optional):

(select) measures how much it costs in overhead to generate $1 of revenue. This ratio may not be a

(select) measures how much it costs in overhead to generate $1 of revenue. This ratio may not be a meaningful measure of cost control because it provides no information regarding whether a specific expenditure is appropriate. Specifically, if an expenditure won’t produce revenue for several years, it may increase the ratio suggesting that it is not appropriate when actual savings or revenue generated is delayed and the expenditure might be an attractive one.

Your small business client, Phillip's computer Repair Shop , is experiencing financial difficulties and has to lay

Your small business client, Phillip's computer Repair Shop , is experiencing financial difficulties and has to lay off one of its four employees in the accounting area. Phillip has asked you to determine what duties should be assigned to the three remaining employees -Abigail, Bryan, and Chris- to maintain the best separation of duties.
Required: Assign the following 10 duties to each of the ten employees. a) Reconcile bank statement, b) Open mail and list checks, c) Prepare checks for Phillip's signature, d) Prepare payroll checks e) Maintain personnel records f) Prepare deposit and take to bank, g) Maintain petty cash, h) Maintain accounts receivable records, i ) Maintain general ledger j) Reconcile accounts receivable records to the general ledger account.

At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining Company had

At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining Company had the balance sheet shown here (in thousands of dollars). The court, after trying unsuccessfully to reorganize the firm, decided that the only recourse was liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $400,000, while the current assets were sold for another $200,000. Thus, the total proceeds from the liquidation sale were $600,000. The trustee’s costs amounted to $50,000; no single worker was due more than the maximum allowable wages per worker; and there were no unfunded pension plan liabilities.

Provide the journal entry only for the exercise of stock options. Do not provide the other journal entries. On 1/1/20, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 30,000 shares of common stock at $40 per share. The par value is $10 per share. On 2/1/20, options were granted to each of five executives to purchase 30,000 shares. The options expire on 2/1/22. It is assumed that the options were for services performed equally in 2020 and 2021. The Black-Scholes option pricing model determines total compensation expense to be $3,200,000. At 2/1/22, four executives exercised their options.

Provide the journal entry only for the exercise of stock options. Do not provide the other journal entries.
On 1/1/20, the stockholders adopted a stock option plan for top executives whereby each might receive rights to purchase up to 30,000 shares of common stock at $40 per share. The par value is $10 per share. On 2/1/20, options were granted to each of five executives to purchase 30,000 shares. The options expire on 2/1/22. It is assumed that the options were for services performed equally in 2020 and 2021. The Black-Scholes option pricing model determines total compensation expense to be $3,200,000.  At 2/1/22, four executives exercised their options.

Complete the following chart for the selected transactions for

Complete the following chart for the selected transactions for
Martha's MuffinsMartha's Muffins
shown below.

a.	MarthaMartha invests ​$10 comma 00010,000 cash into a business known as Martha's MuffinsMartha's Muffins.
b.	MarthaMartha purchases baking supplies on account for ​$500500.
c.	MarthaMartha receives and pays the​ kitchen's utilities bill amounting to ​$425425.
d.	Sales revenue for the current period amounts to ​$2 comma 0002,000 ​(all revenue transactions involved​ cash).
e.	MarthaMartha purchases a new fridge for ​$3 comma 5003,500 cash.

​(If a box is not used in the transaction leave the box​ empty; do not enter a zero. Use a minus sign or parentheses for decreases. If a transaction only affects one side of the accounting​ equation, enter the positive value on the first​ line.)

	Assets	Liabilities	Owners' Equity
a.	10,000		10,000

Job order manufacturing and process manufacturing are two major costing systems used in

Job order manufacturing and process manufacturing are two major costing systems used in manufacturing. The unique feature for process costing system is the concept of equivalent units. Read chapter 16 and answer below questions:
1) What is meant by equivalent units of production, and why are they important when a process cost accounting system is used?
2) Briefly explain the conditions under which job order cost accounting systems and process cost accounting systems are commonly applied.
3) What's the difference between FIFO and weighted-average methods of process costing to assign costs to the product?

Accounting Ethics Case Chris Nelson, the new assistant controller for Grand Company, is preparing for

Accounting Ethics Case Chris Nelson, the new assistant controller for Grand Company, is preparing for the firm's year-end closing procedures. On December 30, 2019, a memorandum from the controller directed Nelson to make a journal entry debiting Cash and crediting Long-Term Advances to officers for $1,000,000. Not finding the $1,000,000 in the cash deposit prepared for the bank that day, Nelson went to the controller for a further explanation. In response, the controller took from her desk drawer a check for $1,000,000 payable to Grand Company from Jason Grand, chief executive officer of the firm. Attached to the check was a note from Jason Grand saying that if this check were not needed to return it to him next week.
"This check is paying off a $1,000,000 advance the firm made to Jason Grand six years ago," stated the controller. "Mr. Grand has done this every year since the advance; each time we have returned the check to him in January of the following year. We Plan to do so again this time. In fact, when Mr. Grand retires in four years, I expect the board of directors will forgive this advance. However, if the firm really needed the cash, we would deposit the check."
"Then why go through this charade each year?" inquired Nelson. "It dresses up our year-end balance sheet," replied the controller. "Certain financial statement ratios are improved significantly. Further, the notes to the financial statements don't have to reveal a related-party loan. Lots of firms engage in year-end transactions designed to dress up their financial statements".
Required
a. What financial statement ratios are improved by making the journal entry contained in the controller's memorandum?
b. Is the year-end handling of Jason Grand's advance an ethical practice? Discuss.

The accounting department of a large limousine company is analyzing the costs of its services. The cost data

The accounting department of a large limousine company is analyzing the costs of its services. The cost data and level of activity for the past 16 months follow.

Month	Special Analyses		Customer Accounts			Paychecks Processed			Accounting Service Costs
1	0			220			820		$	58,300
2	3			260			1,160			61,600
3	2			220			920			58,100
4	1			300			890			59,200
5	1			190			1,010			60,800
6	2			190			950			58,900
7	3			330			870			61,200
8	0			260			1,220			61,400
9	1			180			1,250			60,500
10	2			260			1,120			58,000
11	3			220			940			59,500
12	1			250			1,300			60,000
13	3			340			1,080			60,200
14	4			250			850			58,400
15	1			290			1,240			61,000
16	3			320			1,270			61,100
Totals	30			4,080			16,890		$	958,200

In addition to the above information, you learn that the accounting department had the following total costs for the past 16 months for each of the following.

Total cost of paychecks processed	$	187,479
Total cost of maintaining customer accounts		126,072
Total cost of performing special analyses		120,600
Total fixed costs (total for 16 months)		524,049
Total costs	$	958,200

Required:
a-1. What is the cost per unit for paychecks processed?
a-2. What is the cost per unit for customer accounts maintained?
a-3. What is the cost per unit for special analyses performed?
b. Assuming the following level of cost-driver volumes for a month, what are the accounting department's estimated costs of doing business using the account analysis approach?
• 1,060 paychecks processed.
• 160 customer accounts maintained.
• 3 special analyses.

On October 1, 2019, Priscilla purchased a business. Of the purchase price, $60,000 is allocated to a patent

On October 1, 2019, Priscilla purchased a business. Of the purchase price, $60,000 is allocated to a patent and $375,000 to goodwill.
If required, round your answer to the nearest dollar.
The 2019 § 197 amortization deduction is $

Matheson Electronics has just developed a new electronic device that it believes will have broad market

Matheson Electronics has just developed a new electronic device that it believes will have broad market appeal. The company has performed marketing and cost studies that revealed the following information:

1. New equipment would have to be acquired to produce the device. The equipment would cost $228,000 and have a six-year useful life. After six years, it would have a salvage value of about $12,000.
2. Sales in units over the next six years are projected to be as follows:

Cortez Company is planning to introduce a new product that will sell for $106 per unit. The following

Cortez Company is planning to introduce a new product that will sell for $106 per unit. The following manufacturing cost estimates have been made on 20,000 units to be produced the first year:

Direct materials	$	800,000
Direct labor		480,000	(= $16 per hour × 30,000 hours)

Manufacturing overhead costs have not yet been estimated for the new product, but monthly data on total production and overhead costs for the past 24 months have been analyzed using simple linear regression. The following results were derived from the simple regression and provide the basis for overhead cost estimates for the new product.

Simple Regression Analysis Results
Dependent variable—Factory overhead costs
Independent variable—Direct labor-hours
Computed values
Intercept	$	130,000
Coefficient on independent variable	$	6.00
Coefficient of correlation		.926
R2		.857

Required:
a. What percentage of the variation in overhead costs is explained by the independent variable?

• 85.70%
  
• 94.30%
  
• 102.80%
  
• 77.10%
  
• None of the above
  

b. What is the total overhead cost for an estimated activity level of 70,000 direct labor-hours?

• $550,000
  
• $560,000
  
• $540,000
  
• $570,000
  
• None of the above
  

c. How much is the variable manufacturing cost per unit, using the variable overhead estimated by the regression (assuming that direct materials and direct labor are variable costs)?

• $73.00
  
• $80.00
  
• $88.00
  
• $66.00
  
• None of the above
  

d. What is the expected contribution margin per unit to be earned during the first year on 20,000 units of the new product? (Assume that all marketing and administrative costs are fixed.)

• $33.00
  
• $36.00
  
• $40.00
  
• $30.00
  
• None of the above
  

e. What is the manufacturing cost equation implied by these results?

• Total cost = $480,000 + ($6.00 × Number of units)
  
• Total cost = $130,000 + ($106.00 × Number of units)
  
• Total cost = $130,000 + ($16.00 × Number of units)
  
• None of the above
  

On May 2, 2019, Karen placed in service a new sports utility vehicle that cost $60,000 and has a gross

On May 2, 2019, Karen placed in service a new sports utility vehicle that cost $60,000 and has a gross vehicle weight of 6,300 lbs. The vehicle is used 100% for business. Karen wants to use both §179 and additional first-year depreciation. Karen's total cost recovery for 2019 is $

Hickory Company manufactures two products—14,000 units of Product Y and 6,000 units of

Hickory Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $748,800 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost		Expected Activity
Machining	Machine-hours	$	206,000	10,000	MHs
Machine setups	Number of setups	$	145,600	260	setups
Product design	Number of products	$	90,000	2	products
General factory	Direct labor-hours	$	307,200	12,000	DLHs

Activity Measure	Product Y	Product Z
Machine-hours	7,600	2,400
Number of setups	50	210
Number of products	1	1
Direct labor-hours	8,600	3,400

1-1. What is the company’s plantwide overhead rate?

1-2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?

	Product Y Product Z Manufacturing overhead allocated

1-3. What is the activity rate for the Machining activity cost pool?

2-1. What is the activity rate for the Machine Setups activity cost pool?

2-2. What is the activity rate for the Product Design activity cost pool?

2-3. What is the activity rate for the General Factory activity cost pool?