Sept. 1 | Purchased inventory from Orion Company on account for $50,000. Darby records purchases gross and uses a periodic inventory system. | Oct. 1 | Issued a $50,000, 12-month, 8% note to Orion in payment of account. | Oct. 1 | Borrowed $75,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $81,000 note. | * Instructions (a) Prepare journal entries for the selected transactions above.
Answer: $235,000 6. Corporation P owns 85 percent of Corporation S1; Corporation S1 owns 60 percent of Corporation S2; Corporation S2 owns 90 percent of S3; Corporation S3 owns 60 percent of Corporation S4 and 15 percent of Corporation S2; Corporation S4 owns 100 percent of Corporation S5. Identify the consolidated group of corporations. Answer: P, S1, S2, S3, S4, S5 7. Corporation P files a consolidated return with Corporation S. In preparing a consolidated return, their accountant finds the following: Separate taxable income (loss) P= $500,000 S= ($200,000) Capital gain (loss)
| | | | | Score: | 0/10 | | 2. Chapter 10 - The Cost of Capital Question MC #65 Bosio Inc.'s perpetual preferred stock sells for $75.00 per share, and it pays an $8.50 annual dividend. If the company were to sell a new preferred issue, it would incur a flotation cost of 4.00% of the price paid by investors. What is the company's cost of preferred stock for use in calculating the WACC?
MULTIPLE CHOICE QUESTIONS 1. The statement of cash flows should help investors and creditors assess each of the following except the a. entity's ability to generate future income. b. entity's ability to pay dividends. c. reasons for the difference between net income and net cash provided by operating activities. d. cash investing and financing transactions during the period.
Data sourced ... Historical financial statement Historical financial statement BDO Seidman BDO Seidman 2). Documentation with its customer regarding its orders 3). Its credit and bad debt write-off policy 3. Non-financial factors the auditor should consider: 1).
* What should RBC do about customers who are unprofitable? * Specifically, what can RBC do about negative profitability customers that use retail branches and ABM machines for their bill payments? * What high level tactical marketing activities, such as grow, maintain, retain etc., are appropriate to balance CLTV and current profitability for the various customer segments? The following 2 x 2 may be useful to think through your tactical recommendations: ------------------------------------------------- Your team should be prepared to present your recommendations to the executive board. Each group will be given
What is the basis of your recommendation (teleological or deontological)? (30 points) References Yuthas, K. and Dillard, J. (1999). Teaching ethical decision making: Adding a structuration dimension, Teaching Business Ethics 3(4), 339-361. Part 1: Ethical Dilemma The primary issue is whether Keri should expose the production manager’s practice of shipping faulty drives.
a.|auditing existing data| b.|collecting and recording data| c.|providing information to users| d.|analyzing and managing data| ANS: A PTS: 1 DIF: Moderate OBJ: 1-1 NAT: AACSB Reflective 3. In an accounting information system, the inputs are usually a.|financial statements.| b.|analyzing data.| c.|performance reports.| d.|economic events.| ANS: D PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Reflective 4. _______________ is devoted to providing information for external users. a.|Management accounting| b.|Financial accounting| c.|Internal accounting| d.|Cost accounting| ANS: B PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Communication 5. Financial accounting information is used for a.|investment decisions.| b.|regulatory measures.| c.|stewardship evaluation.| d.|all of these.| ANS: D PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Communication 6.
As a business owner I would use accrual method only because it recognizes Receivables and payable. When using the cash basis a company can appear that it is earning profit when in fact it is loosing funds. Cash basis does not acknowledge money that is owed which make is very difficult to keep accurate records. The IRS generally requires companies to use the cash accrual basis of accounting on their tax return. The Internal revenue service does allow the cash method of accounting if certain criteria are met because tax laws change frequently it is essential to contact a CPA if a business owner decides to use cash basis of accounting.
Overpayment on acquisition. It is finding by IFRS that the 1, 2, 5 and 6 in the above list are not conceptually part of goodwill, but rather to measurement errors. The two components are regard as part of goodwill are 3 and 4, defined by Johnson and Petrone(p.296) as ‘gonging concern goodwill’ and ‘combination goodwill’. Which two are contribute to the ‘core goodwill’ that IASB referred to determine the way account to goodwill. A journal titled ‘acquisition premium and cost sharing analysis’ on ’International Tax Review’ is finding that Goodwill accounting is specific on analysis of the purchase consideration allocation, allocate acquisition consideration to assets and liabilities acquired.