Perth Company estimated sales of 11,000 units at $50 each, unit cost of goods…
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Perth Company estimated sales of 11,000 units at $50 each, unit cost of goods sold of $22, marketing expense of $65,000 and a 5% commission on each unit sold. Administrative expense is budgeted at $50,000. Q1: What is total selling expense?A. $65,000B. $44,000C. $92,500D. None of the above is correct Q 2: What is Perth’s budgeted operating income?A. $281,000B. $187,500C. $198,000D. None of the above is correct
Assume you have been working for a small accounting firm, and you have been tasked with training a new intern.
Assume you have been working for a small accounting firm, and you have been tasked with training a new intern. As you are trying to identify the intern’s level of knowledge and understanding about debit and credit balances, the intern says, “I believe that debit balances are favorable and credit balances are unfavorable; if total debits equal total credits in a trial balance, then it is free of errors.” Is the intern correct? Based on this lesson, reflect on how you would respond to the intern.
The comparative balance sheets for Carla Corporation show the following information. Additional data related to 2017 are as follows.1.Equipment that
The comparative balance sheets for Carla Corporation show the following information. Additional data related to 2017 are as follows.1.Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500.2.$10,000 of the long-term note payable was paid by issuing common stock.3.Cash dividends paid were $5,000.4.On January 1, 2017, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,300 (net of $2,000 taxes).5.Investments (available-for-sale) were sold at $1,700 above their cost. The company has made similar sales and investments in the past.6.Cash was paid for the acquisition of equipment.7.A long-term note for $16,000 was issued for the acquisition of equipment.8.Interest of $2,000 and income taxes of $6,500 were paid in cash.
7.68 Audit Objectives and Procedures for Accounts Receivable . In the audit of accounts receivable, auditors develop specific audit assertions
7.68 Audit Objectives and Procedures for Accounts Receivable . In the audit of accounts receivable, auditors develop specific audit assertions related to the receivables. They then design specific substantive procedures to obtain evidence about each of these assertions. Here is a selection of accounts receivable assertions:Accounts receivable represent all amounts owed to the client company at the balance sheet date.The client company has a legal right to all accounts receivable at the balance sheet date.Accounts receivable are stated at net realizable value.Accounts receivable are properly described and presented in the financial statements.Required:For each of these assertions, select the following audit procedure (numbered 1-7) that is best suited for the audit plan. Select only one procedure for each audit objective. A procedure may be selected once, not at all, or more than once.Analyze the relationship of accounts receivable and sales and compare with relationships for preceding periods.Perform sales cutoff tests to obtain assurance that sales transactions and corresponding entries for inventories and cost of goods sold are recorded in the same and proper period.Review the aged trial balance for significant past due accounts.Obtain an understanding of the business purpose of transactions that resulted in accounts receivable balances.Review loan agreements for indications of whether accounts receivable have been factored or pledged.Review the accounts receivable trial balance for amounts due from officers and employees.Analyze unusual relationships between monthly accounts receivable and monthly accounts payable balances.
On January 2017, Babb Trailers, Inc issued $6,500,000 of par value bonds for $6,200,000. The bonds pay interest semiannually on
Accounting Assignment Writing ServiceOn January 2017, Babb Trailers, Inc issued $6,500,000 of par value bonds for $6,200,000. The bonds pay interest semiannually on January 1 and July 1. The contract rate of interest is 3% while the market rate of interest for similar bonds is 5%. The bond premium of discount is being amortized at a rate of $10,000 every six months. The carrying value on January 2, 2019 is
#1. LIFO liquidation (i.e., when a LIFO firm liquidates its old inventory) usually results in lower cost of goods sold
#1. LIFO liquidation (i.e., when a LIFO firm liquidates its old inventory) usually results in lower cost of goods sold and higher income. true or false #2. Land is always classified as Property, Plant, and Equipment on a company’s balance sheet regardless of its purpose. true or false #3. Which inventory costing method most closely approximates current (i.e., most recent) cost for Ending Inventory and Cost of Goods Sold respectively (in the same order): LIFO TO FIFO or FIFO to LIFO#4. Red Carpet Company sells product 2005WSC for $30 per unit. The cost of one unit of 2005WSC is $27, and the replacement cost is $26. The estimated cost to dispose of a unit is $6, and the normal profit is 40% of sales price. At what amount per unit should product 2005WSC be reported, applying lower-of-cost-or-net-realizable-value (LCNRV)?#5. The Pink Shop shows the following data related to an item of inventory: Inventory, January 1 200 units @ $5.00 Purchase, January 9 600 units @ $5.40 Purchase, January 19 140 units @ $6.00 Inventory, January 31 180 unitsCalculate ending inventory under FIFO and LIFO respectively under the periodic system and enter here (please enter whole numbers without dollar sign, thousand separator, or decimal points):#6. DV LIFO: Conway Company uses FIFO in its internal inventory accounts. At year end, it converts the FIFO results to DV LIFO. The company adopted LIFO on December 31, 2011 with a base inventory of $107,000. The following table summarizes data available through December 31, 2014. Inventory at year end cost Cost Index2012 ending inventory $116,600 1.062013 ending inventory $128,800 1.122014 ending inventory $129,950 1.15 a. What amount would Conway report as the value of inventory under DV LIFO on its 2012 balance sheet? b. What is the effect of the conversion to DV LIFO on 2012 COGS? Indicate below if COGS increases, decreases, or does not change as a result of the conversion from FIFO to DV LIFO and then indicate the dollar amount (if any).c. What amount would Conway report as the value of inventory under DV LIFO on its 2013 balance sheet? d. What amount would Conway report as the value of inventory under DV LIFO on its 2014 balance sheet?
Double-Declining-Balance Depreciation A building acquired at the beginning of the year at a cost of $80,000 has an estimated residual
Double-Declining-Balance Depreciation A building acquired at the beginning of the year at a cost of $80,000 has an estimated residual value of $4,000 and an estimated useful life of four years. Determine the following.(a)The double-declining-balance ratefill in the blank 1%(b)The double-declining-balance depreciation for the first year$fill in the blank 2
Lauren Smith is an attorney who, in 2012, was licensed to practice law in the state of New York,
Lauren Smith is an attorney who, in 2012, was licensed to practice law in the state of New York, after graduating from law school and passing the New York State bar examination. Lauren has practiced law in New York as a sole practitioner, doing business as Lauren Smith, LLC, Attorney and Counselor at Law. Given the success of her law practice, Lauren decided to open an office in Florida to better serve her snowbird clients and to grow her business. In order to practice law in Florida, Lauren had to take the Florida bar exam and qualify for admission to the bar in the State of Florida. In 2019, she paid $3,000 for a Florida bar review course and $1,500 in additional expenses to gain admission to the Florida State Bar in December 2019. Lauren requests that you research the tax law regarding the deductibility of the above expenses on Schedule C of her 2019 Form 1040 federal income tax return. Using the format for communicating research findings discussed in your Tax Research Content materials, submit a brief memorandum addressed to Lauren, in which you report your findings. Identify any relevant primary statutory, regulatory, and judicial authorities and discuss how these authorities affect your conclusion concerning the deductibility of Lauren’s expenses as a business expense. Reference:https://www.law.cornell.edu/uscode/text/26https://www.ecfr.gov/cgi-bin/text-idx?SID=f04dd1b2e07ecb95fff636f3c7d360fc
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