# Accouting Study Guide Help Please

SoccerBoss
Category:
Accounting
Price: \$20 USD

Question description

The Remove-U-Tattoo Clinic purchased a surgical laser for \$84,000 on January 1, 2014.  The estimated salvage value is \$4,000.  The laser has a useful life of five years and the clinic expects to use it 10,000 hours.

It was used for 900 hours in 2014; 2,100 hours in 2015; 2,400 hours in 2016.

Instructions

Showing all of your computations, compute the book value and the balance in the Accumulated Depreciation Account for December 31, 2015 under each of the following three methods after the depreciation for 2015 has been recorded:

(1)  Straight-line:

2015 accumulated depreciation ____________________

2015 book value ____________________

(2)  Units-of-activity:

2015 accumulated depreciation ____________________

2015 book value ____________________

(3)  Double-declining balance:

2015 accumulated depreciation ____________________

2015 book value ____________________

Exercise #2  10 points

On January 1, Steff Corporation had 80,000 shares of no-par common stock issued. 5,000 shares are held as treasury stock. The stock has a stated value of \$5 per share. During the year, the following transactions occurred.

Apr.  1  Issued 12,000 additional shares of common stock for \$18 per share.

June  15  Declared a cash dividend of \$1 per share to stockholders of record on June 30.

July  10  Paid the \$1 cash dividend.

Dec.  1  Purchased 7,000 additional shares of common stock for \$17 per share.

Dec.  15  Declared a cash dividend on outstanding shares of \$1.20 per share to        shareholders of record on December 31.

Instructions:  Prepare the entries, if any, on each of the dividend dates.

Essay Question:  30 Points

Dan Ville, the President and CEO of Pick ‘Em Up, Inc., a waste management firm, was recently hospitalized, suffering from exhaustion and a heart ailment. Immediately prior to his hospitalization, Pick‘Em Up had experienced a sharp decline in its stock price, and trading activity became almost nonexistent. The primary reason for this was concern expressed in the media over a new untested pick up management system implemented by the company. Mr. Williamson had been unwilling to submit the procedure to testing before implementation, but he reluctantly agreed to limited tests after the system was operational. No problems have been identified by the tests to date.

The other members of management called a meeting to determine what they should do.JohnKing, Sales Manager, suggested that the company purchase a large number of shares of treasury stock. In that way, investors might notice that activity had picked up, and might decide to buy more shares. This plan would use up most of the company's available cash, so that there will be no money available for a cash dividend. Planet Systems has paid cash dividends every quarter for over ten years.

Required:

1.  Is Mr. Kings’s suggestion ethical? Explain.

2.    Is it ethical to discontinue the cash dividend? Explain.

(Top Tutor) Daniel C.
(997)
School: UT Austin
Studypool has helped 1,244,100 students

1823 tutors are online

### Related Accounting questions

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors