What was Brady Brothers cash basis income? Cash basis income: $6,000 (cash received) - $5,000 (cash paid) = Answer: $1,000 Question 3: What was Brady Brothers accrual basis income? Accrual basis income: $12,000 (revenue earned) - $8,000 (expenses incurred) = Answer: $4,000 Question 4: Anderson Company’s balance sheet at the end of the year revealed the following information: Clients owe Anderson Company $35,300 for completed projects. Anderson Company owns office equipment totaling $95,500. Anderson Company owns $5,000 of material used on various client projects.
Case 1 Solution: Problem Identification: How should a company report, if at all, cash and non-cash transactions owed to an entity’s financial subsidiary? Keywords: Cash flows; financ* subsidiaries; operating income. Conclusion: Per ASC 230-10-50-5), Mead should exclude transactions that involve no cash payments or receipts. However, per 230-10-45-17, it should record cash payments to GMCC for repayments of principle (and interest thereon) due to suppliers or their subsidiaries as operating cash (out) flows. Case 2: Narda Corporation agreed to sell all of its capital stock to Effie Corporation for three monthly payments of $200,000.
a) What is their AGI for the year? b) What is the amount of suspended losses, if any, that may be carried over with respect to each activity? 3) In the current tax year, Neil’s personal automobile was totaled in a traffic accident. Neil had purchased the automobile two years earlier for $28,000. The FMV of the automobile just prior to the accident was $18,000.
J. Premium offers outstanding- Current Liability K. Discount notes payable- Current Liability L. Employee payroll deductions unremitted- Current Liability M. Current maturities of long-term debts to be paid from current assets- Current Liability N. Cash dividends declared but unpaid- Current Liability O. Dividends in arrears on preferred stock- Footnote disclosure P. Loans from officers- Current Liability 13-2. Accounts and Notes Payable * The following are selected 2012 transactions of Darby Corporation. Sept. 1 | Purchased inventory from Orion Company on account for $50,000.
$ 783,500 * E. $ 385,543 Use the following information for the next 4 questions: Eric’s Enterprises, Inc. Income Statement For the Year Ended December 31, 2011 Sales $ 900,000 Cost of Goods Sold 400,000 Gross Margin 500,000 Operating Expenses Wage Expense $250,000 Rent Expense 36,000 Depreciation Expense 30,000 Utilities Expense 18,000 Total Operating Expenses 334,000 Operating Income 166,000 Other Revenues & <Expenses> Interest Expense < 16,000> Taxable Income 150,000 Tax Expense 45,000 Net Income $
In 2013 the couple sold their house for $500,000 and bought a new house for $700,000 in cash. When they sold their house they paid 6% to the real estate agent which in total was $30,000 in fees. They file jointly and had joint ownership of the sold property. Research Issue Is the sale of the home in 2013 made by Mr. Junkiewicz and his wife a taxable transaction? Law and Analysis The taxpayer relief act of 1997 exempted from taxation the profits on the sale of a personal residence of up to $500,000 for married couples filing jointly and $250,000 for singles.
Restatement of Financial Results ACC/537 This paper reviews the restatement of financial results of Kodiak Energy, Inc. for the fiscal quarter ended September 30, 2007 and the year ended December 1, 2007. The company was forced to issue a restatement because of financial accounting errors in measurement and in the application of Generally Accepted Accounting Principles in the September 2007 acquisition of the Thunder River assets. On the original financial statement, Kodiak Energy reported issuing seven million common stocks of its company in order to acquire assets owned by Thunder River Energy. In their 10-k and 10-Q statements, Kodiak Energy reported a value of $2 per share at the time of the transaction. However, an investigation by the Securities and Exchange Commission (SEC) revealed
In the 2011 income statement for Foxtrot Co., it would report a loss from discontinued operations of: a. $3 million loss b. $10 million loss c. $10.8 million loss d. $18 million loss 5. Intraperiod income tax presentation is primarily a matter of: a. Valuation. b.
| 1,519,000 | | 1,497,000 | | 602,000 | | Weighted average shares outstanding-basic | 514,000 | | 533,000 | | 590,000 | | Weighted average shares outstanding-diluted | 520,000 | | 537,000 | | 593,000 | | Year end shares outstanding | 508,000 | | 514,000 | | 561,000 | | Net earnings (loss) per share-basic | 2.93 | | 2.78 | | 1.01 | | Net earnings (loss) per share-diluted | 2.9 | | 2.77 | | 1.01 | | Cash dividends per common share | 0.63 | | 0.53 | | 0.44 | | Total number of employees | 375,000 | | 343,000 | | 339,000 | | Number of common stockholders | 30,587 | | 33,996 | | 34,573 |
Cash paid to suppliers of goods during the reporting period. Cost of Goods Sold 185 Increase in inventory 13 Cost of Goods Purchased $198 Cost of Goods Purchased 198 Decrease in Accounts Payable 8 Cash paid to suppliers $206 c. Cash paid to employees during the reporting period. Salary Expense 41 Increase in salaries payable 5 Cash paid to employees $36 d. Cash paid for insurance during the reporting period. Insurance Expense 19 Decrease in insurance expense