In 2012, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000 (A+)

In 2012, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2012.

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2. On May 11, Smythe Co. accepts delivery of $30,000 of merchandise it purchases for resale from Hope Corporation (A+)

On May 11, Smythe Co. accepts delivery of $30,000 of merchandise it purchases for resale from Hope Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Hope $20,000. When the goods are delivered, Smythe pays $335 to Express Shipping for delivery charges on the merchandise. On May 12, Smythe returns $1,200 of goods to Hope, who receives them one day later and restores them to inventory. The returned goods had cost Hope $800. On May 20, Smythe mails a check to Hope Corporation for the amount owed. Hope receives it the following day. (Both Smythe and Hope use a perpetual inventory system.)

1. Prepare journal entries that Smythe Co. records for these transactions.

2. Prepare journal entries that Hope Corporation records for these transactions

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On May 11, Smythe Co. accepts delivery of $30,000 of merchandise it purchases for resale from Hope Corporation (A+)

On May 11, Smythe Co. accepts delivery of $30,000 of merchandise it purchases for resale from Hope Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Hope $20,000. When the goods are delivered, Smythe pays $335 to Express Shipping for delivery charges on the merchandise. On May 12, Smythe returns $1,200 of goods to Hope, who receives them one day later and restores them to inventory. The returned goods had cost Hope $800. On May 20, Smythe mails a check to Hope Corporation for the amount owed. Hope receives it the following day.

Required:

1 Prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used by both the buyer and the seller.

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L’Oreal reports the following income statement accounts for the year ended December 31, 2009 (A+)

L’Oreal reports the following income statement accounts for the year ended December 31, 2009

Net profit €1,794.9 Income tax expense €676.1

Finance costs 76.0 Profit before tax expense 2,471.0

Net sales 17,472.6 Research and development expense 609.2

Gross profit 12,311.0 Selling, general and administrative expense 3,735.5

Other expense 30.6 Advertising and promotion expense 5,388.7

Cost of sales 5,161.6

Required:

1 Following the usual IFRS practices, prepare the income statement for the year ended December 31, 2009.

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2. Taos Company purchased merchandise for resale from Tuscon Company (A+)

Taos Company purchased merchandise for resale from Tuscon Company with an invoice price of $22,000 and credit terms of 3/10, n/60. The merchandise had cost Tuscon $15,000. Taos paid within the discount period.

Required:

1 Prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used by both the buyer and the seller.

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2. Purchased merchandise from Blue Company under the following terms (A+)

Purchased merchandise from Blue Company under the following terms: $3,600 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB shipping point.

3 Paid $200 for shipping charges on the April 2 purchase.

4 Returned to Blue Company unacceptable merchandise that had an invoice price of $600.

17 Sent a check to Blue Company for the April 2 purchase, net of the discount and the returned merchandise.

18 Purchased merchandise from Fox Corp. under the following terms: $7,500 price, invoice dated April 18, credit terms of 2/10, n/30, and FOB destination.

21 After negotiations, received from Fox a $2,100 allowance on the April 18 purchase.

28 Sent check to Fox paying for the April 18 purchase, net of the discount and allowance.

Required:

1 Prepare journal entries to record each of the above merchandising transactions assuming that the periodic inventory system is used.

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Taos Company purchased merchandise for resale from Tuscon Company (A+)

Taos Company purchased merchandise for resale from Tuscon Company with an invoice price of $22,000 and credit terms of 3/10, n/60. The merchandise had cost Tuscon $15,000. Taos paid within the discount period. Assume that both buyer and seller use a perpetual inventory system.

Required:

1)

a) Prepare entries that the buyer should record for the purchase.

b) Prepare entries that the buyer should record for the cash payment.

2

a) Prepare entries that the seller should record for the sale.

b) Prepare entries that the seller should record for the cash collection.

3. Assume that the buyer borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of 11% and paid it back on the last day of the credit period. Compute how much the buyer saved by following this strategy.

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ACCT2020 Presented below is information for Yu Co. for the month of January 2012 (A+)

(ACCT2020) Presented below is information for Yu Co. for the month of January 2012.

Cost of goods sold $219,550 Rent expense $32,449

Freight-out 7,871 Sales discounts 9,228

Insurance expense 13,017 Sales returns and allowances 18,858

Salary expense 64,030 Sales 377,990

Requirement:

(a) Complete the income statement below. Assume a 25% tax rate.

(b)Calculate the profit margin ratio and the gross profit rate.

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ACCT2020 Maxfield Corporation reported net sales (A+)

(ACCT2020) Maxfield Corporation reported net sales of $250,000, cost of goods sold of $150,000, operating expenses of $50,000, net income of $37,500, beginning total assets of $500,000, and ending total assets of $600,000. Calculate each of the following values

1) Profit margin ratio

2) Gross profit rate

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ACCT2020 Holmes Company sold goods with a total selling price of $800,000 during the year (A+)

(ACCT2020)Holmes Company sold goods with a total selling price of $800,000 during the year. It purchased goods for $380,000 and had beginning inventory of $70,000. A count of its ending inventory determined that goods on hand was $50,000. What was its cost of goods sold?

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