Reference no: EM131266462
ZuZume Corp. had a balance of $ 100,000 in its Retained Earnings on January 1, 2016. How much is:
a. Adjusted RE on January 1, 2016
b. Balance in RE on December 31, 2016
You are given the following information:
1. Sales: $ 1,000,000; COGS $ 700,000; Selling expenses $ 100,000; Administrative expenses $ 80,000; Dividend Revenue $ 5,000; Interest expense $ 15,000
2. Dividends of $ 25,000 were declared this year; $ 20,000 will be paid this year
3. Depreciation expense was understated by $ 15,000 in 2014
4. ZuZume changed inventory methods from weighted average to FIFO in 2016. As a result, COGS was $ 8,000 higher in 2014 and $ 7,000 higher in 2015.
5. In 2014, ZuZume purchased equipment of $ 75,000 and charged it by mistake to operating expense. The asset had a life of 10 years and a salvage value of $ 15,000
6. The tax rate is 20%
|
Transactions as operating activities-investing activities
: The following transactions pertain to the operations of Blair Company for 2014: Acquired $23,400 cash from the issue of common stock. Performed services for $43,000 cash. Classify the cash flows from these transactions as operating activities (OA), i..
|
|
Proposed regulations are binding on the irs and the taxpayer
: Proposed Regulations are binding on the IRS and the taxpayer. For tax purposes, dividends accrue on a daily basis. Decisions of the Small Cases Division of the Tax Court can be appealed. A person's gross estate includes life insurance proceeds paid t..
|
|
Severance taxes are one form of transaction taxes
: When dealing with taxpayers, IRS agents must give the IRS Code and the Regulations equal weight. Severance taxes are one form of transaction taxes. Interpretive Final Regulations are hare to get overturned. Tax avoidance is illegal.
|
|
What is the application of job-order costing
: What is the application of Job-Order costing? What are the steps to development of Job-Order costing system? What are the advantages and disadvantages of Job-Order costing?
|
|
Depreciation expense was understated
: ZuZume Corp. had a balance of $ 100,000 in its Retained Earnings on January 1, 2016. Sales: $ 1,000,000; COGS $ 700,000; Selling expenses $ 100,000; Administrative expenses $ 80,000; Dividend Revenue $ 5,000; Interest expense $ 15,000. Dividends of $..
|
|
Prepare appropriate journal entry by hill to record issuance
: On October 1, 2016, Hill Company issued to Colbert Bank a $600,000, 8-month, noninterest-bearing note. Interest was discounted by the bank at a 12% discount rate. Prepare the appropriate journal entry by Hill to record the issuance of the note. Deter..
|
|
What duty does the employer have towards the employee
: When Szabo became overheated on the job, his foreman had coworkers take him home. Although Szabo was obviously having medical trouble, he indicated to the coworkers that they could leave, and they did. Szabo died soon thereafter from heat prostration..
|
|
Difference between the minimum and maximum exchange ratio
: What type of lease shows up on the balance sheet of a corporation? Would reducing volatility in sales and income (without a commensurate decrease in the cost of capital) be a value or management related reason of a merger. What must be present for th..
|
|
Applying overhead costs in manufacturing environment
: Why is a predetermined overhead rate useful in "applying" overhead costs in a manufacturing environment? Can you think of any "downside" of using a predetermined overhead to apply/allocate overhead costs to jobs/departments?
|