Joseph Bitter and two brothers, Joseph Smith and Steve Smith, became good friends. As a result of their friendship, they decided to go into the tavern business together. The parties bought an existing tavern and took title in the name of their corporation; Gomer’s Inc. Soon the brothers began feuding with bitter and because of their combined two-thirds interest, assumed virtual control of the business. In response bitter claimed that he and the brothers (the promoters) not the corporation held title to the real state. He claimed that Gomer’s Inc., could not own the building because the corporation was not yet in existence when the contract was made. Do the promoters, rather than the corporation, own the building?…
Choice "a" is incorrect. Each shareholder's share of taxable income (non-separately stated) is reported in the shareholder's gross income.…
I have a question about my credits. This is my last term at Valencia and I am going to transfer to UCF this fall. Last time, I met with my business advisor and she said I need credits for College Algebra and she recommended me to take a CLEP exam. So I am going to take a CLEP exam on February. However, I will have 61 credits after I finished spring term classes and will be 64 credits if I passed the CLEP exam. In this case, do I still have to submit a appeal form?…
Two business sectors that I would chose to work for would be assurance and audit for the government and the second option would…
Dear Ms. Stephens. Per your request, I am providing you with information regarding explanations about the subsidiary that has been set up as a corporation. This explanation includes the methodology used to determine deferred taxes, procedures for reporting accounting changes and error corrections, and the rationale for establishing the subsidiary as a corporation. I am providing you with information about the professional responsibilities of a CPA. I am also providing an explanation of the difference between a review and an audit.…
ChaNoel A. Torres Acevedo Intermediate Accounting I Homework: Exercise 3-1: Apr. | 2 | Cash | 30,000 | | | | Equipment | 14,000 | | | | Christine Ewing, Capital | | 44,000 | | | | | | | 2 | No entry—not a transaction. | | | | | | | | | 3 | Supplies | 700 | | | | Accounts Payable | | 700 | | | | | | | 7 | Rent Expense | 600 | | | | Cash | | 600 | | | | | | | 11 | Accounts Receivable | 1,100 | | | | Service Revenue | | 1,100 | | | | | | | 12 | Cash | 3,200 | | | | Unearned Service Revenue | | 3,200 | | | | | | | 17 | Cash | 2,300 | | | | Service Revenue | | 2,300 | | | | | | | 21 | Insurance Expense | 110 | | | | Cash | | 110 | | | | | | | 30 | Salaries Expense | 1,160 | | | | Cash | | 1,160 | | | 30 | Supplies Expense | 120 | | | | Supplies | | 120 | | | | | | | 30 | Equipment | 5,100 | | | | Christine Ewing, Capital | | 5,100 | Problem 3-1: Journal Entries…
Financial records tell you how much income your business is generating and how it’s being spent on things like overheads and products etc. You can then create a profit and loss balance sheet, this is important so that your financial advisor can then tell you what is going good or what is going bad and from that he can direct you on what to do. If a business doesn’t keep it right with the bill then they cou8ld end up in trouble with the HM Revenue and customs (HMRC). If the business doesn’t record the cash transactions correctly then it cannot report its financial bills. The sales records will be updated regularly; this should give you a good idea on how the business is doing through sales, receiving payment, paying expenses and so on. The money going out seems to be going out faster than the money coming in then the owner or bookmaker should keep a close eye on the bank balance to ensure that they have sufficient funds for future transactions.…
Economies of scales have created consolidation of ventures between companies. As a result of mergers, shared-based payments and special purpose entities (SPEs) have become prevalent in business. In addition to strengthening competition of the combined companies, several goals are met such as tax reductions, growth and diversification, a larger financial base, and increase profits. Generally Accepted Accounting Principles (GAAP) does not require separate financial statements of the companies merged. SFAS No.…
To present this report, we have investigated several sources that offer enlightenment on the future of both fields as well as other important data needed to make an informed decision. Sources include: (Booker, 2013), (Dotterer, 2013), (Havens, 2009), (Law, 2010), (Robert Half International, 2014), (Taylor, 2011). We chose six important characteristics of both career paths and cross examined them against one another as a bases. These characteristics were chosen because they are the most important features when choosing an occupation and will ultimately determine if time, money, effort and personal preferences are worth the sacrifice.…
To become a certified public accountant, I must pass all four parts of the Uniform CPA Examination. Each of the four parts of the examination is graded on a scale of 0 to 99, using a rigorous scoring structure with a minimum passing score of 75. I plan to concentrate on each section of the exam one section at a time and schedule my next portion of the exam whether or not I have passed that section. If I do not pass a section on my first try, I will immediately take it again until I pass every section of the CPA…
The significance of the FASB can be realized by examining the history of formalized accounting theory development. The first organization to officially begin research on accounting standards and theory was the American Accounting Association (AAA) in 1935. This group was formerly the American Association of the University Instructors in Accounting (AAUIA), formed in 1916 to develop accounting curriculum. In 1936, the American Institute of Certified Public Accountants (AICPA) was formed by merging the American Society of Certified Public Accountants and the American Institute of Accountants (AIA). The AICPA formed the Committee on Accounting Procedure (CAP) in 1936 to establish generally accepted practices. The official pronouncements of the CAP were Accounting Research Bulletins (ARBs). In…
Health care organizations financial statements are the key tools to show the economic stability of an organization and guide leadership in making informed decisions. The Generally Accepted Accounting Principles (GAAP) is basic assumptions, and principles of accounting to determine the financial position of an organization. These principles offer consistency across health care organizations, and businesses maintaining track of the organizations fiscal returns, detailed balance, and outstanding debt. Generally Accepted Accounting Principles help guide health care organizations through the economic framework of accounting (Finkler & Ward, 2006). Over the next several pages I plan to discuss the accounting principles that apply to most financial statements in health care.…
1. If a CPA recklessly departs from the standards of due care when conducting an audit, she or he will be liable to unknown third parties based on…
Studying the ethic case the dilemma is whether Dan Potter, who was assigned to an audit assignment should go by the audit and guidelines or whether he should disregard the ethical standards and continue to follow the instructions of his immediate boss. Dan Potter is working as a staff accountant at Baker Greenleaf. Dan final had an opportunity on first major audit assignment. This assignment required him to work under the supervision of his senior, Oliver Freeman, on an audit for a client's subsidiary. The Big Eight Firms shares the work. At the start of the work, Gene, his assistant, told Dan that Oliver was a strict authoritarian and a very inflexible man. During the course of the audit, Dan came across a material misstatement that legally required him to issue an "except for" opinion but his supervisor insisted on issuing a clean audit opinion, upon which Dan had several heated arguments with his supervisor. These events led Dan to question whether he should do as instructed by his supervisor or follow the codes on ethics and professional integrity.…
Cash flow is one of the most important aspects of running any business whether large or small. It is one of the single most important reasons why many businesses fail, this does not matter whether how good a business is. Managing a cash flow therefore is vitally important in the smooth running survival and success of a business.…