Furry Friends Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows:

All sales are on account. 53 percent of sales are expected to be collected in the month of the sale, 35% in the month following the sale, and the remainder in the second month following the sale.

Prepare a schedule indicating cash collections from sales for May, June, and July.

Florida State University produces hats and sells them in the Book Store. On March 31, 2019, the Book Store has 1,000 hats in inventory. The hats are sold for $8.00. The Book Store’s policy is to maintain enough hats in inventory equal to 10% of next month’s sales. The Book Store anticipates the following sales activity for the second quarter of the year:

In addition, July’s sales are expected to be 9,000 units.

Required:

(use excel)

Please research what happened to the PCAOB in term of leaking of private data. What ethical values are involved? Opine on both the PCAOB controls and the hiring organizations. Please talk about how a trained CPA could get caught up in such a scandal.

Foxboro Company experienced an accounting event that affected it balance sheet and income statement in the following way:

Assets: -/+

Liabilities: NA

Equity: NA

Revenue: NA

Expenses: NA

Net Income: NA

Which of the following accounting events could have caused these effects on Foxboro's statements:

a. Purchase raw materials inventory on account

b. Transfer cost from work in process to finished good inventory

c. Recognize revenue from merchandise sold for cash

d. None of the above

On May 5, 2018, Sarah purchased a new office building for $2.5 million to use for rental purposes. After review of the appraisal, $100,000 is allocated to the value of the land. On November 3, 2018, she began to lease office space in the building. On March 4, 2023, Sarah sold the building. What is Sarah's depreciation deduction for 2018 and 2023?

Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his division’s return on investment (ROI), which has been above 24% each of the last three years. Casey is considering a capital budgeting project that would require a $5,850,000 investment in equipment with a useful life of five years and no salvage value. Pigeon Company’s discount rate is 20%. The project would provide net operating income each year for five years as follows: Sales $ 5,200,000 Variable expenses 2,320,000 Contribution margin 2,880,000 Fixed expenses: Advertising, salaries, and other fixed out-of-pocket costs $ 880,000 Depreciation 1,170,000 Total fixed expenses 2,050,000 Net operating income $ 830,000 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: 1. What is the project’s net present value? 2. What is the project’s internal rate of return to the nearest whole percent? 3. What is the project’s simple rate of return? 4-a. Would the company want Casey to pursue this investment opportunity? 4-b. Would Casey be inclined to pursue this investment opportunity?

Ross Company has been in business for several years, during which time it has been profitable. For each of those years, Ross reported (and paid taxes on) taxable income in the same amount as pretax financial income based on the following revenues and expenses:

Ross was subject to the following income tax rates during this period: 2012, 20%; 2013, 25%; 2014, 30%; and 2015, 25%. During 2016, Ross experienced a severe decrease in the demand for its products. The company tried to offset this decrease with an expensive marketing campaign, but was unsuccessful. Consequently, at the end of 2016, Ross determined that its revenues were $60,000 and its expenses were $193,000 during 2016 for both income taxes and financial reporting.

Ross decided to carry back its 2016 operating loss because it was not confident it could earn taxable income in the future carryforward period. The income tax rate was 30% in 2016, and no change in the tax rate had been enacted for future years.

In 2017, Ross developed and introduced a new product that proved to be in high demand. On June 1, 2017, Ross received a refund check from the government based on the tax information it filed at the end of 2016. For 2017, Ross reported revenues of $181,000 and expenses of $155,000 for both income taxes and financial reporting. The applicable income tax rate was 30%.

Required:

Prepare Ross’s income tax journal entries on December 31, 2016. Additional Instruction

PAGE 1

GENERAL JOURNAL

Prepare the journal entry to record the receipt of the refund check on June 1, 2017.

PAGE 1

GENERAL JOURNAL

Prepare the income tax journal entry on December 31, 2017.

PAGE 1

GENERAL JOURNAL

Prepare Ross’s 2016 income statement. Include a note for any operating loss carryforward. Additional Instructions

Net loss: The company has a operating loss carryforward that can be used within years to offset future taxable income and reduce income taxes.

Prepare Ross’s 2017 income statement. Additional Instructions

what are closing attempts made at opportune times during the sales prezentation to encourage the customers to reveal readiness or objection to buying.

Fred currently earns $9,000 per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His employer is willing to pay Fred $10,000 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $105,900.

1. How much U.S. gross income will Fred report if he accepts the assignment abroad on January 1 of next year and works overseas for the entire year?

Income Reported:

2. If Fred’s employer also provides him free housing abroad (cost of $20,000), how much of the $20,000 is excludable from Fred’s income?

Amount to be excluded:

2b. Suppose that Fred's employer has offered Fred a six-month overseas assignment beginning on January 1 of next year. How much U.S. gross income will Fred report next year if he accepts the six-month assignment abroad and returns home on July 1 of next year?

Income Reported:

c-1. Suppose that Fred’s employer offers Fred a permanent overseas assignment beginning on March 1 of next year. How much U.S. gross income will Fred report next year if he accepts the permanent assignment abroad? Assume that Fred will be abroad for 305 days out of 365 days next year.

Income Reported:

c-2. If Fred’s employer also provides him free housing abroad (cost of $16,000 next year), how much of the $16,000 is excludable from Fred’s income? Assume that Fred will be abroad for 305 days out of 365 days next year.

Amount to be Excluded:

X Company must decide whether to continue using its current equipment or replace it with new, more efficient equipment. The following information is available for the current and new equipment:

Current equipment

Current sales value $5,000

Final sales value 5,000

Operating costs 60,500

New equipment

Purchase cost $45,000

Final sales value 5,000

Operating costs 52,000

Maintenance work will be necessary on the new equipment in Year 4, costing $2,500. The current equipment will last for five more years; the life of the new equipment is also five years. Assuming a discount rate of 7%, what is the net present value of replacing the current equipment

Exercise 10-14 Sunland Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capacity to meet customers’ demand for its product. Sunland issues a(n) $880,000, 5-year, zero-interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 11%. The company will pay off the note in five $176,000 installments due at the end of each year over the life of the note.

1.Prepare the journal entry at the date of purchase.

2.Prepare the journal entry at the end of the first year to record the payment and interest, assuming that the company employs the effective-interest method.

3.Prepare the journal entry at the end of the second year to record the payment and interest.

4.Assuming that the equipment had a 10-year life and no salvage value, prepare the journal entry necessary to record depreciation in the first year. (Straight-line depreciation is employed.)

The trial balance and additional information were extracted from the accounting records of Princess Traders on 28 February 2019, the end of the financial year

PRE-ADJUSTMENT TRIAL BALANCE ON 28 FEBRUARY 2019

Statement of Financial Position accounts section

Adjustments and additional information

1 The following items were on hand at the financial year end according to physical count:

     Trade inventory $ 37 055

     Stationery $ 260

2. Rent has been received for the period 01 March 2018 to 31 March 2019.

3. Provide for outstanding interest on fixed deposit. The investment in fixed deposit was made on 01 December 2015 and it matures on 30 November 2019.

4. An amount of $ 5 250 is owing for interest on loan.

5. Write off the account of debtor , B. Lee who owed $400.

6. Adjust the allowance for credit losses to 5% of accounts receivable.

7. Rates and taxes account includes a payment of $12 000 made to the municipality for the period 01 July 2018 to 30 June 2019.

8. Repairs to the building , $5 000 was erroneously debited to Land and Building account.

9. The proprietor used $250 form the cash float to purchase personal items for herself. No entry was made for this transaction.

10. Provide for depreciation as follows:

10.1 On equipment at 10% p.a using the fixed instalment method. Note: Equipment cost price $20 000, was purchased on 01 September 2018. The purchase has been recorded. on vehicles at 20% p.a on the diminishing balance.

10.2 On vehicles at 20% p.a on the diminishing balance.

Required

Use the trial balance and additional information to prepare:

Question 1

The Statement of profit and loss account for the year ended 28 February 2019

Question 2

Extract of statement of financial position on 28 February 2019

Great Adventures Problem AP9-1 (GL) Tony’s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, “I’ve always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place.” On November 1, 2022, Great Adventures purchased the land by issuing a $780,000, 6%, 10-year installment note to the seller. Payments of $8,660 are required at the end of each month over the life of the 10-year loan. Each monthly payment of $8,660 includes both interest expense and principal payments (i.e., reduction of the loan amount). Late that night Tony exclaimed, “We now have land for our new camp; this has to be the best news ever!” Suzie said, “There’s something else I need to tell you. I’m expecting!” They decided right then, if it was a boy, they would name him Venture.

1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.
2. Prepare an income statement for the period ended December 31, 2022, in the 'Income Statement' tab.
3. Prepare a classified balance sheet as of December 31, 2022 in the 'Balance Sheet' tab.
4. Record the closing entries in the 'General Journal' tab.

1.) Record the issuance of the long-term note payable for the purchase of land on November 1, 2022.

Journal entry worksheet

2.) Record the first monthly payment on the long-term note payable, made on November 30, 2022.

3.) Record the second monthly payment on the long-term note payable, made on December 31, 2022.

4.) The 12 monthly payments in 2023 (following year) will reduce the note's balance by an additional $59,301. Record the reclassification of this amount from long-term notes payable to current notes payable.

5.) Prepare the closing entry for revenue accounts.

6.) Prepare the closing entry for expense and loss accounts.