The following balance sheet items, listed in alphabetical order, are available from the records of Ruth Corporation at December 31, 2017: Accounts payable $16,590 Income taxes payable $5,900 Accounts receivable 21,240 Interest payable 1,415 Accumulated depreciation - automobiles 20,870 Inventory 43,765 Accumulated depreciation - buildings 43,730 Land 269,000 Automobiles 104,350 Long-term investments 82,235 Bonds payable, due December 31, 2021 148,000 Notes payable, due June 30, 2018 9,000 Buildings 218,650 Office supplies 2,325 Capital stock, $10 par value 150,000 Paid-in capital in excess of par value 55,000 Cash 12,240 Patents 43,000 Prepaid rent 1,615 Retained earnings 343,440 Salaries and wages payable 4,475 Required: 1. Prepare in good form a classified balance sheet as of December 31, 2017. Ruth Corporation Balance Sheet December 31, 2017 Assets Current assets: $ Total current assets $ Property, plant, and equipment: $ $ $ Total property, plant, and equipment Intangible assets: Total assets $ Liabilities Current liabilities: $ Total current liabilities $ Long-term debt: Total liabilities $ Stockholders' Equity Contributed capital: $ Total contributed capital $ Total stockholders' equity Total liabilities and stockholders' equity $ 2. Compute Ruth's current ratio. Round your answer to two decimal places. to 1 3. On the basis of your answer to (2), does Ruth appear to be liquid?

Identify major threats in the revenue cycle, and evaluate the adequacy of various control procedures for dealing with those threats.

Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2017. As of that date, Abernethy has the following trial balance:

During 2017, Abernethy reported net income of $97,000 while declaring and paying dividends of $12,000. During 2018, Abernethy reported net income of $141,250 while declaring and paying dividends of $48,000.

Assume that Chapman Company acquired Abernethy’s common stock for $919,830 in cash. Assume that the equipment and long-term liabilities had fair values of $471,000 and $131,120, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment.

Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1-Prepare entry S to eliminate stockholders' equity accounts of subsidiary

2-Prepare entry A to recognize allocations determined above in connection with acquisition-date fair values.

3-Prepare entry I to eliminate intra-entity dividend declarations recorded by parent as income

4-Prepare entry E to recognize 2017 amortization expense.

5-Prepare entry *C to convert parent company figures to equity method by recognizing subsidiary's increase in book value for prior year [$97,000 net income less $12,000 dividend declaration] and excess amortizations for that period [$12,420].

Profit-Linked Productivity Measurement

In 20x2, Choctaw Company implements a new process affecting labor and materials.

Choctaw Company provides the following information so that total productivity can be valued:

Required:

1. Calculate the cost of inputs in 20x2, assuming no productivity change from 20x1 to 20x2. If required, round your answers to the nearest dollar.

2. Calculate the actual cost of inputs for 20x2. If required, round your answers to the nearest dollar.

What is the net value of the productivity changes? If required, round your answers to the nearest dollar.
$

How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate.

3. What if a manager wants to know how much of the total profit change from 20x1 to 20x2 is attributable to price recovery? Calculate the total profit change.
$

Calculate the price-recovery component.
$

During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to change to the average method for both financial reporting and tax purposes.

Income components before income tax for 2018, 2017, and 2016 were as follows ($ in millions):

Dividends of $34 million were paid each year. Batali’s fiscal year ends December 31.

Required:
1. Prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (Ignore income taxes.)
2. Prepare the 2018–2017 comparative income statements.
3. & 4. Determine the balance in retained earnings at January 2017 as Batali reported using FIFO method and determine the adjustment of balance in retained earnings as on January 2017 using average method instead of FIFO method.

Part A

Mr Li, Mr Tong, Miss Chow and Mr Yu are directors and shareholders of Quick Profit Limited (‘the Company’), a Hong Kong private limited company. The Company has an issued and paid-up share capital of HK$30,000,000. Each of them holds 4,000,000 shares in the Company.

The Company has adopted the Model Articles as its articles of association, which were subsequently modified to include the following clauses:

1 every director must subscribe at least 3,000,000 shares in the Company within two months after appointment; and

2 the quorum of directors’ and shareholders’ meetings is three.

As the company secretary of the Company, advise Mr Li, the chairman of the board, on the course of actions to be taken by the Company (giving reasons for your answers) in the following circumstances:

a Mr Tong informed the Company that he intended to sell 1,100,000 shares to Mrs Wong who will then hold those shares in trust for her husband, Mr Wong.
b Miss Chow informed the Company that she would sell all her shares in the Company to her friend, Mr Lo and resign as director of the Company with effect from 1 April 2018.

c The Company received a photocopy of the power of attorney from Mr Chan, who is the attorney for Mr Lam, who holds 500,000 shares in the Company.

d Ms Tang, who holds 10,000 shares in the Company, informed the Company that she had married and requested the Company to amend her name on the register of members from Tang Mei Mei to Au Tang Mei Mei.

e The Company received a letter from MCC Limited, which holds 200,000 shares in the Company, informing the Company that MCC Limited has commenced liquidation on 1 March 2018 and Mr Black has been appointed as liquidator of MCC Limited.

f Mrs Yu informed the Company that her husband, Mr Yu, had passed away on 30 March 2018.

Part B

a A pre-emption clause governing transfer of shares may be found in the articles of association of some private companies. Explain what a pre-emption clause is and whether it is beneficial to the shareholders of a private company. Give reasons to support your answer.

b If Quick Profit Limited is a listed company, a share registrar will deal with the matters stated in Part A. Explain the duties of/services provided by a share registrar to a listed company.

• Discuss the two main distinctions between assets on the balance sheet.
• Discuss reporting requirements for contingencies.
• Explain two examples of contingent liabilities

On January 1, 2017, Spring Fashions Inc. enters into a contract with a southeast retail company to provide 500 dresses for $62,500 ($125 per dress) over the next 10 months. On October 1, 2017, after 450 of the dresses had been delivered (50 dresses per month), the contract is modified.

Required:

Prepare journal entries to record a monthly cash sale on January 31 under the original contract and a monthly cash sale on November 30 under the modified contract.

Exercise 15-8 Selected Financial Ratios [LO15-2, LO15-3, LO15-4] The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable, net 200,000 Merchandise inventory 330,000 Prepaid expenses 8,000 Total current assets 561,000 Property and equipment, net 870,000 Total assets $ 1,431,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 300,000 Bonds payable, 11% 350,000 Total liabilities 650,000 Stockholders’ equity: Common stock, $10 par value $ 120,000 Retained earnings 661,000 Total stockholders’ equity 781,000 Total liabilities and stockholders’ equity $ 1,431,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $ 3,510,000 Cost of goods sold 1,395,000 Gross margin 2,115,000 Selling and administrative expenses 580,000 Net operating income 1,535,000 Interest expense 38,500 Net income before taxes 1,496,500 Income taxes (30%) 448,950 Net income $ 1,047,550 Account balances at the beginning of the year were: accounts receivable, $190,000; and inventory, $290,000. All sales were on account. Required: Compute the following financial data and ratios: 1. Working capital. 2. Current ratio. (Round your answer to 1 decimal place.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 4. Debt-to-equity ratio. (Round your answer to 2 decimal places.) 5. Times interest earned ratio. (Round your answer to 2 decimal places.) 6. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 7. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 8. Operating cycle. (Round your intermediate calculations and final answer to 1 decimal place.)

How would you reword these two questions into statements?

4. Does the company have a published code of ethics/conduct (with provisions related to conflicts of interest, related-party trans-actions, illegal acts, and fraud) made available to all personnel and does management require employees to confirm that they accept and agree to follow it? Does the frequency of exceptions undermine the code's effectiveness? Does the code comply will all applicable rules and regulations?

5. Does the company have an ethics/whistleblower hotline with adequate procedures to handle anonymous complaints (received from inside and outside the company), and to accept confidential submission of concerns about questionable ac-counting, internal accounting control, or auditing matters? Are tips and whistleblower complaints investigated and resolved in a timely manner?

our grandfather left you an inheritance of $105,000 to be paid in 30 years. At an interest rate of 11 percent, how much should you be willing to accept now in exchange for the future inheritance?

Susan, a single taxpayer, owns and operates a bakery (as a sole proprietorship). The business is not a "specified services" business. In 2020, the business pays $60,000 of W–2 wages, has $150,000 of qualified property, and generates $200,000 of qualified business income. Susan also has a part-time job earning wages of $11,100 and receives $3,300 of interest income. Her standard deduction is $12,400.

1.What is Susan's tentative QBI based on the W–2 Wages/Capital Investment Limit?

2. Determine Susan's allowable QBI deduction.

Remember to show your work if an answer requires a mathematical solution

18. On January 1, Bixby Machine signed a $210,000, 6%, 30-year mortgage that requires semiannual payments of $7,585 on June 30 and December 31 of each year. What is the correct journal entry for recording the second semiannual payment (round interest calculation to the nearest dollar)?
19. On January 1, $500,000 of 8%, 10-year bonds were sold for $530,000. The bonds require semiannual interest payments on June 30 and December 31. What is the correct entry for recording the June 30 interest payment on the bonds?
20. Motor Works, Inc. has declared a $20,000 cash dividend to shareholders. The company has 5,000 shares of $15-par, 10% preferred stock and 10,000 shares of $20-par common stock. The preferred stock is non-cumulative. How much will the preferred and common stockholders receive on the date of payment?
21. Allied Industries, Inc. has 250,000 shares of $7-par common stock outstanding. They have declared a 7% stock dividend. The current market price of the common stock is $11/share. What is the amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration?

Bell, CPA, was engaged to audit the financial statements of Kent Company, a continuing audit client. Bell is about to audit Kent’s payroll transactions. Kent uses an in-house payroll department to compute payroll data and prepare and distribute payroll checks.

During the planning process, Bell determined that the inherent risk of overstatement of payroll expense is high. In addition, Bell obtained an understanding of the internal control structure and assessed control risk at the maximum level for payroll-related assertions.

Required:

Describe the audit procedures Bell should consider performing in the audit of Kent’s payroll transactions to address the risk of overstatement. Do not discuss Kent’s internal control structure. (AICPA adapted)

Please, type the answer in clear order

Instructions

In good form (include headings), prepare an income statement, a retained earnings statement, and a classified balance sheet as of December 31, 2020. Then compute the current ratio and the debt-to-total-assets ratios identifying which is a measure of liquidity and which is a measure of solvency.

            Accounts payable                                                                             $ 10,000

            Accounts receivable                                                                             11,000

            Accumulated depreciation—equipment                                              38,000

            Advertising expense                                                                             21,000

            Cash                                                                                                        4,000

            Common stock                                                                                     90,000

            Copyright                                                                                               4,000

            Depreciation expense                                                                           12,000

            Dividends                                                                                             15,000

            Equipment                                                                                          210,000

            Ford Motor Co. stock (long-term investment)                                       6,000

            Insurance expense                                                                                  3,000

            Notes payable (due 2028)                                                                    70,000

            Prepaid insurance                                                                                   6,000

            Rent expense                                                                                        17,000

            Retained earnings (beginning)                                                             12,000

            Salaries and wages expense                                                                 34,000

            Salaries and wages payable                                                                    3,000

            Service revenue                                                                                  130,000

            Supplies                                                                                                  4,000

            Supplies expense                                                                                    6,000