Homework Help for Accounting

6. A bond with a face value of $100,000 was issued for $93,500on January 1, 2011. The stated rate of interest was 8 percent andthe market rate of interest was 10 percent when the bond was sold.Interest is paid annually. How much interest will be paid onDecember 31, 2011?

a. $10,000 c. $7,480

b. $8,000 d. $9,350

88. When using thepercentage-of-completion method ofaccounting for long-termcontracts, the percentage of completionused to recognize grossprofit in the first year usually isdetermined by measuring:
A. Costs incurred in the first year, divided by estimatedremainingcosts to complete the project.
B. Costsincurred in first year,divided by estimated total costs of thecompleted project.
C. Costs incurred in first year, divided by estimatedgrossprofit.
D. None of these is correct.

Aftertaking the quiz, the systemsaid that NONE of these is correct. Ireally don't understand whyNone of these is correct ?

Which of the following is not true regarding reasonable causefor penalty abatement?

Reasonable cuase is an inability to meet tax filing a paymentresonsibilities fue to circumstances beyond the taxpayer'scontrol.

Reasonable reliance on erroneous written advice from the IRS isconsidered reasonable cause.

Reasonable cause is a defense to the estimated tax penalty.

Death, serious illness, or unavoldable absence of the taxpayermay constitute reasonable cause.

An individual contributes property with a basis of $15000, and fair market value of $20000 to a corporation in return for 80% of the corporation's stock. The individual's stock basis after the transfer is: A. 15,000 B. 20,000 C. 35,000 D. 0

St. Genevieve Petroleum Company is an independent oilproducer

in Baton Parish, Louisiana. In Februrary, company

geologists discovered a pool of oil that tripled thecompany's

proven reserves. Prior to disclosing the new oil to

the public, St. Genevieve quietly bought most of its stockas

treasury stock. After the discovery was announced, the

company's stock price increased from $6 to $27.

Requirements:

1. What is the ethical issue in this situation? Whataccounting

principle is involved?

2. Who are the stakeholders?

3. Analyze the facts from the following standpoints: a)Economic

b) Legal and c) Ethical

4. What decision would you have made?

In recent times, many NZ companies have been exposed tointense competition with rapid and unpredictable changes in thebusiness environment. These companies have relied on managementaccounting to make informed business decisions and maximisefinancial performance.

What management accounting tools and techniques may support theoperational and strategic management functions of a company? Inyour answer, explain clearly how these tools and techniques can beapplied to help manage costs and improve financial performance ofthe company?

This is a TAX QUESTION - FEDERAL TAX RESEARCH 10THEDITION. AUTHOR: ROBY SAWYERS. VBID: 9781305850323

23.

Donovan Corp., a calendar-year-end company, operates aprofitable division in Jurisdiction A. In January 2014,Jurisdiction A enacted a tax law that changed the tax ratestructure from 30 percent to 35 percent. Donovan wants to knowwhether it needs to adjust its 12/31/2013 tax provision to reflectthe rate change. Also, if not in 2013, when does it need torecognize the effect of that change?

Company A has an Asset turnover ratio of .531, return on assetratio of .127, and return on equity of .165. What does that tell meabout company A?

Company B has an Asset turnover ratio of 1.553, return on assetratio of .012, and return on equity of .07. What does that tell meabout company B?

Compare Company A to Company B.

The industry average has an Asset turnover ratio of .81, returnon asset ratio of .113, and return on equity of .2903. How doesCompany A compare to the industry average?

What can Company A do to improve its returns both on assets andon equity?

Is Company A deficient in its ability to generate profits fromits assets and from its equity investment?

Caroline and Mia are alumni of Fulton-Dash University and Miapromises to give $2,000 to the university for scholarships in 6months. Caroline tells Fulton-Dash University that she will givethe university $100,000 if the novel she is in the process ofwriting makes it on to the Amazon Best Seller List.

Evaluate the two donations to determine if:

a) the donation is conditional or unconditional

b) a promise to give exists

c) what type of restriction, if any, was placed on thedonation.

Let's say that we are analyzing internal controls for apurchasing-to-payables cycle (the cycle that occurs when thepurchasing department places an order, the order is received, theinvoice is sent to accounts payable, and accounts payableultimately issues the check). Class, what sort of controls mightyou expect to see in this cycle?

Lessee Santi contracts for three leases of three machines forsix months: lease A, lease B and Lease C. Each lease isnon-cancelable and each machine reverts to the lessor at the end ofthe lease term. The first rental payment for each machine is paidat the inception of the lease, with the balance to be paid in equalamounts at the start of each of five quarters thereafter. Thelessors agreed to pay the executory costs and included this amountin the lease rentals. For each of the machine the present value ofthe minimum lease payment is equal to 55% of the fair value of themachine. The following information is peculiar to each lease:

1. Lease A: it is agreed that at the time of the sixth payment,for an added bargain purchase option payment Lessee Santi can buythe property. The lease term is equal to 70% of the estimatedeconomic life of the asset.

2. Lease B: does not give the lessee the option to buy themachine. The lease term is equal to 90% of the estimated economiclife of the asset.

3. Lease C: does not give the lessee the option to buy themachine. The lease term is equal to 70% of the estimated economiclife of the asset.

Required:

1. How should Santi classify each of the three leases above, andwhy? Discuss the rationale for your answer.

2. What amount, if any, should Santi record as a liability atthe inception of the lease for each of the three leases above?

3. Assuming that the minimum lease payments are made on astraight-line basis, how should Santi record minimum lease paymentfor each of the three leases above?

The Wong family incorporated Alberta Wholesale Limited (AWL) on January 1, 20X1 when the company issued common shares to several family members for cash. After obtaining mortgage financing, the company constructed a warehouse and began a food wholesale business.
The company has a small accounting staff that recorded transactions throughout the year. The company’s CEO knows that cash is correct because she has reviewed the bank reconciliation. However, she was unable to hire a professionally trained CFO and is concerned that the draft financial statements prepared by her staff (Exhibit I), which are prepared using IFRS, may have errors including the final calculation of income tax expense based on a 30% income tax rate.
The CEO has hired you to correct any accounting errors made by her staff by:
1. Providing a memo listing any adjusting entries that the company needs to make along with comments explaining why the company recorded items incorrectly and how and why the company should have recorded the transaction along with supporting calculations relating to adjustments. You should have at least one adjusting journal entry (you may need several entries for some issues) for each of the following issues. If an issue deals with more than one transaction, try to have an adjusting entry for each transaction within the issue.

Issue 1
On January 1, 20X1, the company received an operating line of credit from the bank for $6,000,000. The interest rate on this line was at 5% throughout 20X1. On that same day, AWL bought land costing $2,000,000 and on that day, construction on a warehouse commenced. The company paid the building contractor $4,000,000 on each of the following three dates for a total amount spent of $12,000,000: February 1, March 1 and April 1, 20X1. The contractor completed construction of the building by April 30, 20X1. AWL also received a $10,000,000 mortgage at 4% was received from the bank on February 28, 20X1 to pay for the warehouse. The mortgage required monthly payments of $101,246 on the last day of each month commencing March 31, 20X1. Interest on the line of credit is due on the first day of each month commencing February 1, 20X1. AWL paid no portion of the principal of the line of credit during 20X1 and there are no fixed terms of repayment on the line of credit although the bank can demand repayment at any time by giving 90 days notice and requires the company to maintain a current ratio greater than 3:1. Furthermore, the debt to equity ratio cannot exceed 1.5 so the company does not want to record any more liabilities if possible.

Issue 2
The company received a government grant of $1,000,000 cash on April 30 to make the warehouse more energy efficient. When received, we recorded it in grant revenue.

Dake Corporation's relevant range of activity is 2,000 units to 5,000 units. When it produces and sells 3,500 units, its average costs per unit are as follows:

If 2,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

**please show indirect cost/formula**

i need a good example of an Objective-OrientedStandard and Please explain how it is not quite a principle- basedstandard nor a rule-based Standard.

also if you have an example of U.S. GAAP and IFRS thatwould be excellent.