The difference between actual revenues and expenses and the flexible budget is known as​ the:

A. flexible budget variance

B. master budget variance

C. static budget variance

D. volume variance

Identify which responsibility center would best describe the​ following:

The production line of American​ Apparel, where clothing is manufactured.

A. Revenue Center

B. Cost Center

C. Profit Center

D. Investment Center

The subscription sales department of the New York Times.

A. Revenue Center

B. Cost Center

C. Profit Center

D. Investment Center

The corporate division of​ Disney, Inc. responsible for​ revenues, costs, and managing its​ division's assets.

A. Revenue Center

B. Cost Center

C. Profit Center

D. Investment Center

A Target​ store, which is part of the national store​ brand, and reports its own revenues and costs.

A. Revenue Center

B. Cost Center

C. Profit Center

D. Investment Center

McCormick & Company is considering a project that requires an initial investment of $24millionto build a new plant and purchase equipment. The investment will be depreciated as a modified acceleratedcost recovery system(MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3million.The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500,000. Unit sales are expected to be $150,000each year for the next sixyears, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8million(before tax) and the land is expected to be worth $5.4million(after tax).  To supplement the production process, the company will need to purchase $1millionworth of inventory. That inventory will be depleted during the final year of the project. The company has $100millionof debt outstanding with a yieldtomaturity of 8percent, and has $150millionof equity outstanding with a beta of 0.9. The expected market return is 13percent,and the risk-free rate is 5percent.The company's marginal tax rate is 40percent.

6. Create an after-tax cash flow timeline.

7.What are the total expected cash flows at the end of year six?The $4.3millionis an opportunity cost and must be included at date zero as a cash outflow.If the project is accepted, however, the land can be sold in six years for $5.4million.

8.Find the NPV using the after-tax WACC as the discount rate.

9.Find the IRR.

10.Should the project be accepted? Discuss whether NPV or IRR creates the best decision rule.  

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

1. Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank or enter "0". When required, round your answers to the nearest dollar.

2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.

a. Year 1   $

b. Year 2   $

3. Determine the carrying amount of the bonds as of December 31, Year 2.
$

DIFFERENT NUMBERS ARE INVOLVED, NOT THE SAME AS THE SIMILAR PROJECT Q/A TO THIS.

**VERY IMPORTANT**

1. JOURNALIZE and make a T-Chart Account
2. MAKE an Adjusting Entries Statement
3. MAKE an Income Statement (Multi-step income statement)
4. MAKE a Balance Sheet (current asset and non-current assets)
5. MAKE a Retained earnings statement
6. MAKE a Closing Entries statement
7. SHOW ALL FORMULAS FOR EVERYTHING CALCULATED

**VERY IMPORTANT**

Accounting Cycle Project

Transaction Practice Set – SUNG Co.

                                          ACC5100 – Winter 2019 – Prof. Chung                                         

You have been hired as an accountant for SUNG Co., a corporation performing diverse consulting services in Detroit, Michigan. SUNG Co. prepares financial statements on monthly bases.

Project Scope: You are to record the transactions for December, prepare the monthly adjustments, and prepare the financial statements using the Excel workbook provided. Then you will close the fiscal year and prepare the books for next year.

Directions: The assignment encompasses two files: Directions and Transactions (this Word document) and Forms (a separate Excel workbook). Your solution should be worked in Excel and the completed Excel workbook submitted for grading.

You should use Excel formula where appropriate and cell references to carry forward values and numbers between worksheets within the workbook. Simply typing values in Excel will result in a reduced score, even if the correct solution is provided. You should use formula wherever possible.

1. Analyze the narrative to prepare and record the transactions for December to the General Journal.
2. Post the journal entries to ledger accounts using T-accounts (Don’t forget the opening balances from the information given on the post-closing trial balance on Nov. 30th.)
3. Prepare Income Statement and the Retained Earnings Statement for the month ended December 31, 2018 and Balance Sheet as of December 31, 2018 in good forms. Use the multi-step format for the Income Statement.
4. Close the temporary accounts, posting any net income or loss to retained earnings.

Due Date: Apr. 24^th, 2019.

Transactions in December 2018:

* Additional information

1. Ignore tax effect.
2. Salaries expenses incurred but not paid prior to Dec. 31^st totaled $10,500.
3. The company received the bill for utility services (electricity) that the firm used during December in the amount of $6,000. The company will pay the bill in Jan. 2018.
4. $3,000 of supplies remained at the end of December.
5. The company use the “Allowance” method for possible accounts receivable write-offs in the future and estimated that 5% of the outstanding account receivable will not be collected.
6. The equipment purchased on Dec. 1^st depreciates $200 per month.
7. The common stock price of ABC Corporation on December 31st is still $ 20 per share.

Question 2 Motswatswa (Pty) Ltd manufactures a special make of lounge suite covers and has compiled the following data in order to put together their first quarter operating budget for 2020: January February March April Sales (units) 35,000 31,000 38,000 29,000 Additional information: Motswatswa sells each cover for R95. Company policy is to have 30% of next month’s sales (in units) in ending finished goods inventory. This policy was met in December. Company policy is to have 40% of next month’s production needs in ending raw materials inventory. The production needs for April is 95,500. This policy was met in December. It takes three meters of material to produce each cover and the cost is R2.75/meters. Required: A. Prepare a sales budget for the January, February and March and for the first quarter in total. (4) B. Prepare a production budget for January, February and March and for the first quarter in total. (8) C. Prepare a direct material purchases budget for January, February and March and for the first quarter in total. (12)

What’s the difference between default and bankruptcy?

Part 1:
Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts Receivable—Avery & Wiest.

June 1 Sold merchandise to Avery & Wiest for $9,400; terms 2/5, n/15, FOB destination (cost of sales $6,550).
        2 Purchased $4,800 of merchandise from Angolac Suppliers; terms 1/10, n/20, FOB shipping point.
        4 Purchased merchandise inventory from Bastille Sales for $11,200; terms 1/15, n/45, FOB Bastille Sales.
        5 Sold merchandise to Gelgar for $10,800; terms 2/5, n/15, FOB destination (cost of sales $7,600).
        6 Collected the amount owing from Avery & Wiest regarding the June 1 sale.
     12 Paid Angolac Suppliers for the June 2 purchase.
      20 Collected the amount owing from Gelgar regarding the June 5 sale.
      30 Paid Bastille Sales for the June 4 purchase.

Prepare General Journal entries to record the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

example

Journal entry worksheet

• Record the sales; terms 2/5, n/15, FOB destination.

Note: Enter debits before credits.

Calculate net sales

calculate costs of goods

calculate gross profit from sales

What happens if a company sells bonds when the current market rate is: (a) equal to the company’s bond rate? (b) less than the company’s bond rate? (c) more than the company’s bond rate?

Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:

Please answer the question below and clearly explain..........Describe how IT performance reports are important in IT governance.

. On April 15, 2017, Melissa purchased $60,000 of Verbecke Co.'s 12%, 20-year bonds at face amount, with interest being paid on December 31 each year. Verbecke Co. has paid interest due on the bonds regularly. On April 15, 2021, market interest rates had risen to 14% and Melissa is considering selling the bonds.

Calculate the market value of Melissa’s bonds on April 14, 2021.

Please answer the question below and clearly explain..........There are four methods of system conversion: parallel, direct cutover, pilot, and phase‐in. Describe these four methods and how they differ.

1. Why is ROI an important number to know?

2. Looking at an organization, what do you think the most important items on the balanced score card would be and why.

QUESTION:

Expensing of employee stock options (ESOs) is now a requirement in financial reporting both under U.S. GAAP and IFRS. However, management, especially in the United States, successfully resisted expensing for many years before the expensing rules were finally adopted. Even now, accounting for ESOs remain a controversial topic.

Required

a) Discuss the effect of this asymmetric feature of ESOs on managers’ incentive to undertake risky projects. In other words, do these features lead to managers undertaking high-risk projects or low-risk projects?

DETAIL ANSWER. SHORT ANWERS WILL BE REJECTED

Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.15 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5.07 million in automated equipment for test machine assembly. The division’s expected income statement at the beginning of the year was as follows:

A sales representative from LSI Machine Company approached Oscar in October. LSI has for $6.06 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fixed costs by 5 percent. It would be depreciated for accounting purposes over a three-year life. Depreciation would be net of the $531,000 salvage value of the new machine. The new equipment meets Pitt's 12 percent cost of capital criterion. If Oscar purchases the new machine, it must be installed prior to the end of the year. For practical purposes, though, Oscar can ignore depreciation on the new machine because it will not go into operation until the start of the next year.

The old machine, which has no salvage value, must be disposed of to make room for the new machine.

Pitt has a performance evaluation and bonus plan based on residual income. Pitt uses a cost of capital of 12 percent in computing residual income. Income includes any losses on disposal of equipment. Investment is computed based on the end-of-year balance of assets, net book value. Ignore taxes.

Required:

a. What is Forbes Division’s residual income if Oscar does not acquire the new machine? (Negative amount should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your final answers to nearest whole dollar.)

residual income

b. What is Forbes Division’s residual income this year if Oscar acquires the new machine? (Negative amount should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your final answers to nearest whole dollar.)

residual income

c. If Oscar acquires the new machine and operates it according to specifications, what residual income is expected for next year? (Negative amount should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your final answers to nearest whole dollar.)

residual income