accounting questions and answers

Wurtz Inc. has sponsored a noncontributory, defined benefit pension…

Question: Wurtz Inc. has sponsored a noncontributory, defined benefit pension plan for its employees since 20X0. Prior to 20×8, cumulative net pension expense recognized equalled cumulative contributions to the plan. Other relevant information about the pension plan on January 1, 20X8, is as follows. The company has 200 employees. All these employees are expected receive …

Wurtz Inc. has sponsored a noncontributory, defined benefit pension… Read More »

The trial balance before adjustment for Martinez Company shows the following balances…

Question: The trial balance before adjustment for Martinez Company shows the following balances. Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.) Answer: Working Notes; For case (3.) Amount of allowance to be ($84700 x 7 / 100) = $5929 + $2700 debit balance …

The trial balance before adjustment for Martinez Company shows the following balances… Read More »

For the current year, the Beech Corporation has net income…

Question: For the current year, the Beech Corporation has net income on its books of $60,000, including the following items: Net capital losses $15,000 Federal income tax expense $25,000 Federal tax depreciation exceeds the depreciation deducted on the books by $5,000. What is the corporation’s taxable income?a. $95,000b. $103,000c. $66,000d. $90,000e. None of these choices …

For the current year, the Beech Corporation has net income… Read More »

Break-Even in Sales Revenue, Variable-Costing Ratio…

Question: Break-Even in Sales Revenue, Variable-Costing Ratio, Contribution Margin Ratio, Margin of Safety Hammond Company runs a driving range and golf shop. The budgeted income statement for the coming year is as follows. Required: What is Hammond’s variable cost ratio? Enter your answer as a decimal value rounded to two decimal places. What is the …

Break-Even in Sales Revenue, Variable-Costing Ratio… Read More »

Marriott Corporation split into two companies…

Question: Marriott Corporation split into two companies: Host Marriott Corporation and Marriott International. Host Marriott retained ownership of the corporation’s vast hotel and other properties, while Marriott International, rather than owning hotels, managed them. The purpose of this split was to free Marriott International from the “baggage” associated with Host Marriott, thus allowing it to …

Marriott Corporation split into two companies… Read More »