The partnership of Matteson, Richton, and O’Toole has existed for a number of years. At the…

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The partnership of Matteson, Richton, and O’Toole has existed for a number of years. At the present time the partners have the following capital balances and profit and loss sharing percentages:

O’Toole elects to withdraw from the partnership, leaving Matteson and Richton to operate the business. Following the original partnership agreement, when a partner withdraws, the partnership and all of its individual assets are to be reassessed to current fair values by an independent appraiser. The withdrawing partner will receive cash or other assets equal to that partner’s current capital balance after including an appropriate share of any adjustment indicated by the appraisal. Gains and losses indicated by the appraisal are allocated using the regular profit and loss percentages. An independent appraiser is hired and estimates that the partnership as a whole is worth $600,000. Regarding the individual assets, the appraiser finds that a building with a book value of $180,000 has a fair value of $220,000. The book values for all other identifiable assets and liabilities are the same as their appraised fair values. Accordingly, the partnership agrees to pay O’Toole $120,000 upon withdrawal. Matteson and Richton, however, do not wish to record any goodwill in connection with the change in ownership. Prepare the journal entry to record O’Toole’s withdrawal from the partnership.

 

COLLECTION OF ACCOUNT WRITTEN OFF—DIRECT WRITE-OFF METHOD Como’s Music Store uses the direct… 1 answer below »

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COLLECTION OF ACCOUNT WRITTEN OFF—DIRECT WRITE-OFF METHOD Como’s Music Store uses the direct write-off method in accounting for uncollectible accounts. Record the following transactions in general journal form:
20-1
May 8
Wrote off $1,745 owed by Vickie Lawrence, who has no assets.
July 15
Wrote off $1,300 owed by Dan Utter, who has made no payments in more than a year.
Sept. 2
Reinstated the account of Vickie Lawrence, which had been written off on May 8, and received $1,745 cash in full settlement.
20-2
May 5
Reinstated the account of Dan Utter, which had been written off in the previous year, and received $1,300 cash in full settlement.

The authors give whom the credit for being the first forensic accountant? a. James McCleland b….

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The authors give whom the credit for being the first forensic accountant?

a. James McCleland

b. Doug Carmichael

c. Maurice E. Peloubet

d. Parnell Black e. Robert Lindquist

 

Financial statements as of December 31, 2008, for Johnson & Johnson are as follows. The company…

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Financial statements as of December 31, 2008, for Johnson & Johnson are as follows. The company used the FIFO inventory cost flow assumption to prepare these statements (dollars in millions).
Financial statements as of December 31 2008 for Johnson

Accounting textbooks under the former GAAP hierarchy were considered level 4 authoritative. Where do

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Accounting textbooks under the former GAAP hierarchy were considered level 4 authoritative. Where do accounting textbooks stand in the Codification?View Solution:
Accounting textbooks under the former GAAP hierarchy were considered level

J. D. Simpson started The Simpson Co., a new business that began operations on May 1. The Simpson… 1 answer below »

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J. D. Simpson started The Simpson Co., a new business that began operations on May 1. The Simpson Co. completed the following transactions during its first month of operations. May 1 J. D. Simpson invested $60,000 cash in the company. 1 The company rented a furnished office and paid $3,200 cash for May’s rent. 3 The company purchased $1,680 of office equipment on credit. 5 The company paid $800 cash for this month’s cleaning services. 8 The company provided consulting services for a client and immediately collected $4,600 cash. 12 The company provided $3,000 of consulting services for a client on credit. 15 The company paid $850 cash for an assistant’s salary for the first half of this month. 20 The company received $3,000 cash payment for the services provided on May 12. 22 The company provided $2,800 of consulting services on credit. 25 The company received $2,800 cash payment for the services provided on May 22. 26 The company paid $1,680 cash for the office equipment purchased on May 3. 27 The company purchased $60 of advertising in this month’s (May) local paper on credit; cash payment is due June 1. 28 The company paid $850 cash for an assistant’s salary for the second half of this month. 30 The company paid $200 cash for this month’s telephone bill. 30 The company paid $480 cash for this month’s utilities. 31 J. D. Simpson withdrew $1,200 cash from the company for personal use.

Required

1. Arrange the following asset, liability, and equity titles in a table like Exhibit 1.9: Cash; Accounts Receivable; Office Equipment; Accounts Payable; J. D. Simpson, Capital; J. D. Simpson, Withdrawals; Revenues; and Expenses.

2. Show effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance. 3. Prepare an income statement for May, a statement of owner’s equity for May, a May 31 balance sheet, and a statement of cash flows for May

 

Transfer pricing, goal congruence. The Croydon division of CC Industries supplies the Hauser… 1 answer below »

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Transfer pricing, goal congruence. The Croydon division of CC Industries supplies the Hauser division with 100,000 units per month of an infrared LED that Hauser uses in a remote control device it sells. The transfer price of the LED is $8, which is the market price. However, Croydon does not operate at or near capacity. The variable cost to Croydon of the LED is $4.80, while Hauser incurs variable costs (excluding the transfer price) of $12 for each remote control. Hauser’s selling price is $32. Hauser’s manager is considering a promotional campaign. The market research department of Hauser has developed the following estimates of additional monthly volume associated with additional monthly promotional expenses.

1. What level of additional promotional expenses would the Hauser division manager choose?

2. As the manager of the Croydon division, what level of additional promotional expenses would you like to see the Hauser division manager select?

3. As the president of CC Industries, what level of spending would you like the Hauser division manager to select?

4. What is the maximum transfer price that would induce the Hauser division to spend the optimal additional promotional expense from the standpoint of the firm as a whole?

 

Case 1: The company chronically runs at capacity, and the old Model A3000 machine is the… 1 answer below »

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Case 1: The company chronically runs at capacity, and the old Model A3000 machine is the company’s constraint. Management is considering purchasing a new Model B3800 machine to use in addition to the Model A3000 machine. The old Model A3000 machine would con- tinue to be used to capacity as before, with the new Model B3800 being used to expand pro- duction. The increase in volume would be large enough to require increases in fixed selling expenses and in general administrative overhead, but not in the general fixed manufacturing overhead.

 

 

 

 

 

Go to the AICPA’s Antifraud Resource Center and search for forensic accounting topics. Read some…

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Go to the AICPA’s Antifraud Resource Center and search for forensic accounting topics. Read some of the material listed. Search for material dealing with litigation support. What type of forensic program do they have?

 

In January 2011, InTech Co. pays $1,350,000 for a tract of land with two buildings. It plans to… 1 answer below »

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In January 2011, InTech Co. pays $1,350,000 for a tract of land with two buildings. It plans to demolish Building A and build a new shop in its place. Building B will be a company office; it is appraised at $472,770, with a useful life of 15 years and a $90,000 salvage value. A lighted parking lot near Building B has improvements (Land Improvements B) valued at $125,145 that are expected to last another six years with no salvage value. Without the buildings and improvements, the tract of land is valued at $792,585. The company also incurs the following additional costs.

Cost to demolish Building A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 117,000

Cost of additional land grading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,500

Cost to construct new building (Building C), having a useful life of 20 years

and a $295,500 salvage value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,356,000

Cost of new land improvements (Land Improvements C) near Building C,

having a 10-year useful life and no salvage value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,250

Required

1. Prepare a table with the following column headings: Land, Building B, Building C, Land Improvements B, and Land Improvements C. Allocate the costs incurred by InTech to the appropriate columns and total each column (round percents to the nearest 1%).

2. Prepare a single journal entry to record all incurred costs assuming they are paid in cash on January 1, 2011.

3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2011 when these assets were in use.