Finance & Accounting

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Long-Term and Intangible Assets Problem Study

DuPage Restaurant purchases an ice machine at a cost of $18,000 on January 1, 2004. Themachine is expected to have a salvage value of $2,000 at the end of its four-year useful life.During its useful life, the machine is expected to be used 160,000 hours. Actual annualhourly use was: 2004, 40,000; 2005, 60,000; 2006, 35,000; and 2007, 25,000.
InstructionsPrepare depreciation schedules for the following methods: (a) the straight-line, (b) units-ofactivity,(c) declining-balance using double the straight-line rate, and (d) sum-of-years’-digits.

Long-Term and Intangible Assets Problem Study 2

On January 1, 2002, Skyline Hotel Co. purchased a passenger van for transporting guests toand from airports and nearby shopping areas at an acquisition cost of $28,000. The vehiclehas been depreciated by the straight-line method using a four-year service life and a $4,000salvage value. The company’s fiscal year ends on December 31.

Purchasing From The Chef's Perspective

Do all these PF and PD calculations seem a little confusing? Don’t feel alone. They would be
a mystery to the average chef. Although executive chefs spend more and more of their time
performing cost control and human resources functions, most chefs would rather cook and
develop new menu items than spend a lot of time crunching numbers. Therefore, they want to
use as simple a formula as possible to determine the quantity of food to purchase.
Chefs rely on the formula of AP (As Purchased) = EP (Edible Portion) / Edible Yield

Sole Proprietorships, Partnerships, and Corporations Problem Study

The Rolman Hotel Corporation is authorized to issue 1,000,000 shares of $5 par value commonstock. In its first year, 2004, the company has the following stock transactions.Jan. 10   Issued 400,000 shares of stock at $8 per share.July    1   Issued 100,000 shares of stock for land. The land had an asking price of                $900,000. The stock is currently selling on a national exchange at $8.25 per share.Sept. 1    Purchased 10,000 shares of common stock for the treasury at $9 per share.Dec.

The Tale Of The Purchasing Scales

One day I was visiting a supplier in his office. We were talking, but I was distracted by the large
blackboard behind his desk where two distinct lists of customer names were written. Finally, I
just had to ask him what the lists were for. The distributor shuffled around a bit, looked embarrassed
and made me promise not to tell anyone.
Then he said, in effect, “The list on the left includes the customers who have scales. The list
on the right is of the customers who don’t have scales. Now don’t get me wrong, I never short

Howard Schultz-sharing Coffee With The World

While Howard Schultz was not the founder of Starbucks, his vision for the company and his creativity put Starbucks on the map. He saw the potential the company had well beyond the vision of its founders, Jerry Baldwin, Zev Siegel, and Gordon Bowker. Schultz took the six-store Seattle coffee company and grew it into a $23.7 billion S&P 500 and NASDAQ-100 conglomerate.                                  

Gazing Into The Future Of Foodservice Equipment

Just look around. The winds of change that are buffeting you here and making you rethink the
way you do business are just as strong on the other side of the world. The foodservice industry
is changing worldwide, facing such issues as high energy costs, rising real estate prices,
concerns about waste disposal, and others.
Our choices are increasing, which means we have more decisions to make. No longer are
there three manufacturers of the oven you need, there are 15. You have more shippers to choose