Reference no: EM131208051
Effect of Doubtful Accounts on Net Income
During its first year of operations, Master Plumbing Supply Co. had sales of $270,000, wrote off $4,300 of accounts as uncollectible using the direct write-off method, and reported net income of $29,700. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/4% of sales would be uncollectible. $
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Shares of restricted stock to its executives
: On January 1, 2014 (the date of grant), Lutz Corporation issues 2,780 shares of restricted stock to its executives. The fair value of these shares is $78,300, and their par value is $11,400. The stock is forfeited if the executives do not complete 3 ..
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Calculate net income-total assets-total liabilities
: Jet Company's summarized financial statement information for the beginning of the year is as follows: Marketable Securities $50,000 All Other Assets $150,000 Total Liabilities $80,000 Total Stockholders' Equity $120,000 During the year, Jet had Reven..
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Use the minus sign to indicate a debit balance
: During its first year of operations, Filippi's Plumbing Supply Co. had sales of $460,000, wrote off $7,000 of accounts as uncollectible using the direct write-off method, and reported net income of $50,600. Determine what the balance of the allowance..
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Analysis of receivables method
: At the end of the current year, Accounts Receivable has a balance of $705,000; Allowance for Doubtful Accounts has a debit balance of $6,500; and sales for the year total $3,170,000. Using the aging method, the balance of Allowance for Doubtful Accou..
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Effect of doubtful accounts on net income
: During its first year of operations, Master Plumbing Supply Co. had sales of $270,000, wrote off $4,300 of accounts as uncollectible using the direct write-off method, and reported net income of $29,700. Determine what the net income would have been ..
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Concept of overhead in terms of flexible budgeting
: Discuss the concept of overhead in terms of flexible budgeting, overhead cost variances and how each relates to a manager's ability to control various aspects of their operation. Include your discussion each of the possible overhead variances and why..
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Differences in measurement focus and basis of accounting
: Accounting and financial reporting for state and local governments use, in different places, either the economic resources measurement focus and the accrual basis of accounting or the current financial resources measurement focus and the modified acc..
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Assume that the prevailing interest rate
: On April 12, 2006, Microsoft stock traded for $27.11 and claimed to pay an annual dividend of $0.36. Assume that the first dividend will be paid in 1 year, and that it then grows by 5% each year for the next 5 years. Further, assume that the prevaili..
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The bonds pay semiannual interest
: On January 1, 2013, Learned, Inc., issued $2.6 million face amount of 10-year, 7% stated rate bonds when market interest rates were 1%. The bonds pay semiannual interest each June 30 and December 31. Calculate the proceeds (issue price) of Learned, I..
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