Super Speed Motor Co. assembles motors of sport cars. It jobs costing system has two direct cost categories (direct materials and direct labors) and one indirect cost pool (manufacturing overhead allocated at a budgeted rate per machine hour.)   The budgeted manufacturing overhead was $800,000 and the budgeted machine hours 200,000. The following data (in thousands) pertain to January 2020:

1. Direct materials and supplies purchased on account …………………………………    22

2. Direct materials used …………………………………………………………………    19

3. Indirect materials issued to various production departments …………………… …        2

4. Direct manufacturing labor paid…….……………………………………………….      20

5. Indirect manufacturing labor incurred by various departments ……………………..        8

6. Manufacturing overhead was incurred as follows:

           Depreciation ………………………………………………………………………..     2

            Expired insurance ………………………………………………………………….      1

            Miscellaneous manufacturing overhead ……………………………………….…..     4

7. Completed jobs and transferred to the warehouse…………………………………..       54

8. Credit sales …………………………………………………………………………        63

1. Cost of goods sold ………………………………………………………………….       50

10. Used machine hours during January………….……………………………………      4 hours

Required:

1. Prepare general journal entries to summarize January transactions.
2. As your final entry, dispose of the month end over or under allocated manufacturing overhead as a direct write off to Cost of Goods Sold.

Kingbird Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2017. Jim Alcide, controller for Kingbird, has gathered the following data concerning inventory.

At May 31, 2017, the balance in Kingbird’s Raw Materials Inventory account was $485,520, and Allowance to Reduce Inventory to Market had a credit balance of $27,470. Alcide summarized the relevant inventory cost and market data at May 31, 2017, in the schedule below.

Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Kingbird’s May 31, 2017, financial statements for inventory at lower-of-cost-or-market as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Assume Garcia uses LIFO inventory costing.

(a1) Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2017.

(a2) For the fiscal year ended May 31, 2017, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market.

Occurrence- transactions, and event that have been recorded have occurred and pertain to the entity

Completeness- all transactions and events that should have been recorded have been recorded

If assets, liabilities, or equity are not complete balances may be understated or overstated

With regard to the answer, what might be the reasons why when performing balances managements, one can find that:

Assets > Liabilities+Stockholders equity ? In your answer provide specific examples and ways to mitigate the errors.

Issue Price

The following terms relate to independent bond issues:

1. 430 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
2. 430 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
3. 810 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
4. 2,110 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments

Use the appropriate present value table:

PV of $1 and PV of Annuity of $1

Required:

Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.

Compare and contrast the narrative style of Notes from the Underground and Pointed Roofs Richardson and Dostoyevsky.

Journal Entries for a Capital Lease-Lessee

On January 1, the lessee company signed an operating lease contract. The lease contract calls for $3,000 payments at the end of each year for 10 years. The rate implicit in the lease is 10%.

Assume that the lease is to be accounted for as a capital lease. Also assume that the leased asset is to be amortized over the 12-year asset life rather than the 10-year lease term.

1. Make the journal entries necessary on the books of the lessee company at the end of the first year, including the recording of the first lease payment. Round your answers to the nearest whole dollar. For compound transactions, if an amount box does not require an entry, leave it blank.

* Note: I got 1286 and it was wrong.

Assume that the FASB is considering revising an important accounting standard.

Required:

1. what constraint applies to the FASB's consideration of whether to require companies to provide new imformation?

2. In what concepts statement is that constraint discussed?

3. What are some of the possible costs that could result from a revision of an accounting standard?

what does the FASB do in order to assess possible benefits and costs of a proposed revision of an accounting standard?

1. Identify for each of the three major methods of calculating depreciation (Straight-Line, Double Declining Balance, Units of Production), a company that would likely use that method. Why would that company choose that specific method?

2. Pick two companies within the same industry. One example would be Apple and Samsung. Find the financial statements for those companies and calculate their return on assets. Which company is performing better? What do you think is causing them to perform better?

Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a useful life of three years or 18,000 operating hours, and a residual value of $9,000. The equipment was used for 7,500 hours during Year 1, 5,500 hours in Year 2, 4,000 hours in Year 3, and 1,000 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method. Note: FOR DECLINING BALANCE ONLY, round the answer for each year to the nearest whole dollar.

a. Straight-line method Year Amount

Year 1 $

Year 2 $

Year 3 $

Year 4 $

b. Units-of-activity method Year Amount

Year 1 $

Year 2 $

Year 3 $

Year 4 $

c. Double-declining-balance Method Year Amount

Year 1 $

Year 2 $

Year 3 $

Year 4 $

Jesse’s former residence was rented almost immediately with occupancy commencing April 1, 2018, under the following terms: one-year lease, $2,400 per month due the first day of the month, first and last months’ rent in advance, $2,000 damage deposit, lawn care included but not utilities. The tenant complied with all terms except that the December rent payment was not made until January 1, 2019, because the tenant took an extended holiday trip that started on Thanksgiving Day (November 22) through Christmas Day (December 25). Expenses in connection with the property were as follows: property taxes, $2,600; repairs, $320; lawn maintenance, $540; insurance, $1,800; and street paving assessment, $2,100. The property is located at 12120 Lake Road, Harvey, MI 49855.

How would this be presented on a tax return? What expenses would be included/excluded and what income would be recognized? United States Tax Laws

list 3 possible ways that auditor independence could be further enhanced and improved beyond what is currently in place in practice or through auditing standards.

i)Able to explain in detail and clearly the companies’ dividend payout trend based on the ratios computed above, Clear and detailed explanation on the factors that influence the companies’ dividend policy decision during the five-year period,Able to relate the explanation with relevant dividend theories and concepts.

(300 word only)

Lahser Corp. produces component parts for durable medical equipment manufacturers. The controller is building a master budget for the first quarter of the upcoming calendar year. Selected information from the accounting records is presented next:

a. Accounts Receivable as of January 1 are $56,800. Selling price per unit is projected to remain stable at $13 per unit throughout the budget period. Sales for the first six months of the upcoming year are budgeted to be as follows: January $99,100 February $118,100 March $114,700 April $108,400 May $103,300 June $121,200

b. Sales are 20% cash and 80% credit. All credit sales are collected in the month following the sale.

c. Lahser Corp. has a policy that states that each month’s ending inventory of finished goods should be 10% of the following month’s sales (in units).

d. Three pounds of direct material is needed per unit at $2.20 per pound. Ending inventory of direct materials should be 20% of next month’s production needs.

e. Monthly manufacturing overhead costs are $5,530 for factory rent, $2,900 for other fixed manufacturing costs, and $1.10 per unit produced for variable manufacturing overhead. All costs are paid in the month in which they are incurred.

Questions:

1. What are the budgeted total cash collections for the 1st quarter? (1 point)

2. What are the budgeted total cash collections for the 2nd quarter? (1 point)

3. What is the budgeted production for the first quarter in terms of number of units? (HINT: Convert total sales to unit sales for each month) (1 point)

4. What is the budgeted direct materials cost for the first quarter? (1 point)

5. What is the budgeted manufacturing overhead for the first quarter? (1 point)

The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized.

Other information from the company’s records includes the following:

• Bought equipment for cash, $107,000.
• Paid $19,500 on long-term note payable.
• Issued new shares of common stock for $20,000 cash.
• Cash dividends of $33,600 were declared and paid to stockholders.
• Accounts Payable arose from inventory purchases on credit.
• Income tax expense ($25,910) and interest expense ($5,850) were paid in full at the end of both years and are included in Other Expenses.

Advanced Enterprises reports yearminusend information from 2018 as follows: Sales (160,250 units) $968,000 Cost of goods sold 641,000 Gross margin 327,000 Operating expenses 263,000 Operating income $64,000 Advanced is developing the 2019 budget. In 2019 the company would like to increase selling prices by 14.5%, and as a result expects a decrease in sales volume of 9%. All other operating expenses are expected to remain constant. Assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. Should Advanced increase the selling price in 2019? A. Yes, because operating income increases for 2019. B. Yes, because sales revenue increases for 2019. C. No, because gross margin decreases for 2019. D. No, because sales volume decreases for 2019.