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Sims Company owns 80% of the common stock of Allied Company. In 2006, Allied reported $200,00 net income and paid cash dividends of $80,000. In 2007, Allied reported a $40,000 net loss and paid $10,000 of dividends.

What are the above journal entries for the above on Sims books assuming use of the equity method of accounting for the investment in the subsidiary?

Why distinguish between paid in capital and earned capital; which is more important

Write a paper regarding owners equity and include in the paper:

1. Why is it important to keep paid in capital separate from earned capital?
2. As an investor, is paid in capital or earned capital more important? Why?
3. As an investor, are basic or diluted earnings per share more important? Why?

How can a corporation adjust their capital structure to improve their EPS (Earnings per share)? Find an example of a corporation that recently reproted their EPS. Any indication that their corporate structure affected the reported EPS?

Rupert Manufacturing Co. sold $20,000 of merchandise to Mr. J. Hart on May 14, 2007, on account. The company attempted collection efforts starting in October of the same year. Hart filed for bankruptcy on November 18, and the company wrote off his account receivable at that time. On December 29, 2007, Rupert Manufacturing received a check for $6,000 in settlement of the debt of Mr. Hart, who stated that he could pay no more.

Prepare all of the journal entries for Rupert Manufacturing in regard to the account of Mr. J. Hart during 2007.

In the current economic environment, there has been a lot of discussion related to the excessiveness of executive pay. Agree or disagree as to whether you believe it is excessive and explain your position. What other alternatives may be there be to executive pay?

An auditor reviewed 25 oral surgery insurance claims from a particular surgical office, determining that the mean out of pocket patient billing above the reimbursed amount was $275.66 with a standard deviation of $78.11.

(a) At the 5 percent level of significance, does this sample prove a violation of the guideline that the average patient should pay no more than $250 out of pocket? State your hypotheses and decision rule.
(b) Is this a close decision?