Posts Tagged: Journal entries

When is a Raise Too Small?

Posted by & filed under Accounting Principles, All Articles, Cost Accounting, Financial Accounting, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting.

Deeb Salem, a former Goldman Sachs trader, says that after making the company in excess of $7 billion in 2010, his $8.25 million raise was not enough compensation. Questions: 1. What percentage drop was Salem’s 2010 raise as compared to his 2009 raise? What percentage drop was Salem’s 2011 raise as compared to his 2010… Read more »

Tax is not so sweet!

Posted by & filed under Accounting Principles, All Articles, Cost Accounting, Financial Accounting, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to the New York Times, a new study indicates how taxes might be used to curb consumption of sugary drinks and suggests that applying a tax based on the amount of calories contained in a serving rather than its size would be more effective. Questions: 1. What are the relationships that the study mentioned… Read more »

Time to Cash In?

Posted by & filed under Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Intermediate Accounting, International Accounting.

During his eight years as steward of the world’s largest economy, Mr. Bernanke’s salary was about $200,000 a year. Now he makes that in just a few hours speaking to bankers, hedge fund billionaires and leaders of industry. Questions: 1. How much is Mr. Bernanke likely to make this year in speaking fees? 2. What… Read more »

Questions about Sales Tax

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Statement Analysis, Intermediate Accounting, Managerial Accounting.

Is a Twix bar food or candy? In 24 states, a Hershey’s bar is candy but a Twix isn’t. That’s because Twix contains flour, and in those states — which all share a sales tax code — candy is defined as being flour free. And since groceries aren’t taxed, you’ll pay taxes for the Hershey’s,… Read more »

Making An Embarrassing Case Disappear?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting, Video Updates.

According to Michael Devine, a freelance programmer who is one of the four plaintiffs named in the suit against tech giants Apple, Google, Intel and Adobe, the companies are getting off far too lightly. With cash hoards of over $230 billion collectively, the settlement amount of this class action suit was about one-tenth of the… Read more »

Brave New World: The Interpretation of Liking a Product on Facebook

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting, Video Updates.

In an April 16 New York Times article, Stephanie Strom reported that ” General Mills, the maker of cereals like Cheerios and Chex as well as brands like Bisquick and Betty Crocker, has quietly added language to its website to alert consumers that they give up their right to sue the company if they download… Read more »

Billions in American Aid Money Stolen or Wasted?

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

Beginning as a small, international humanitarian not-for-profit organization in 1998, the International Relief and Development (IRD) organization has received more grants and cooperative agreements from USAID in recent years than any other nonprofit relief and development organization in the nation — $1.9 billion. Unfortunately, companies such as IRD manage hundreds of millions of dollars’ worth… Read more »

Antitrust Hiring Suit Settlement by Technology Companies

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, Auditing, Cost Accounting, Financial Accounting, Financial Statement Analysis, Fraud Accounting, Intermediate Accounting, Managerial Accounting.

Approximately 64,000 engineers won a victory over their technology companies, but did not win much money. At issue, a class action suit claimed, was an agreement by the four technology giants – Google, Intel, Adobe and Apple – not to poach each others’ employees. The engineers argued that this private old boy’s network agreement caused… Read more »

The Fine Print of Reverse Mortgages

Posted by & filed under Accounting Principles, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Intermediate Accounting, Managerial Accounting.

Children of elderly borrowers are now learning how their parents’ reverse mortgages are threatening their own inheritances. Questions: 1. Under federal rules for reverse mortgages, what options are survivors suppose to be offered when their parents die? 2. All reverse mortgages require the borrower to pay into a federal insurance fund each month. What is… Read more »

The Largest Jury Award in the History of the EOE

Posted by & filed under Accounting Principles, Advanced Accounting, All Articles, Auditing, Cost Accounting, Financial Accounting, Financial Reporting and Analysis, Financial Statement Analysis, Fraud Accounting, IFRS, Intermediate Accounting, International Accounting, Managerial Accounting.

This article presents a “Dickensian” story about Atalissa, Iowa and the largest jury award in the history of the Equal Employment Opportunity Commission. Questions: 1. What was the amount of the awarded damages? Why was the amount reduced? 2. If or when Henry’s Turkey Service pays the judgment for damages and back pay, how would… Read more »