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

The board of directors of Amber International Limited (‘Amber’), a listed company, has decided to raise HK$2,500 million for the acquisition of a piece of land located in Shenzhen, China, for property development. The board of directors is considering raising the requisite funds through the issue of either (i) 3% cumulative convertible preference shares (2018–23) or (ii) 3% guaranteed convertible registered bonds (2018–23).
Required
As Amber’s financial controller, advise the board on:
i the merits and demerits of issuing the preference shares and the registered bonds to be issued by Amber;
ii additional features/rights, which could be added to make the preference shares and the bonds more attractive to investors; and
iii which proposal Amber should adopt for raising the new capital.
Give reasons to support your answer

Jaguar Ltd purchased a machine on 1 July 2016 at a cost of $640,000. The machine is expected to have a useful life of 5 years (straight line basis) and no residual value. For taxation purposes, the ATO allows the company to depreciate the asset over 4 years. The profit before tax for the company for the year ending 30 June 2017 is $600,000. To calculate this profit the company has deducted $60,000 entertainment expense, and $80,000 salary expense that has not yet been paid. Also the company has included $70,000 interest as income that the company has not yet received. The tax rate is 30%. Required: (i) Calculate the company’s taxable profit and hence its tax payable for 2017. (ii) Determine the deferred tax liability and/or deferred tax asset that will result. Prepare the necessary journal entries at 30 June 2017.

1. Discuss the purposes of (1) substantive tests of transactions, (2) tests of controls, and (3) tests of details of balances. Give an example of each.

2. Discuss the four business functions that result in sales transactions in a typical sales and collection cycle and, for each function, state the key documents and records involved.

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made. The pizzeria’s cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.60 Kitchen staff $ 6,170 Utilities $ 740 $ 0.60 Delivery person $ 3.40 Delivery vehicle $ 760 $ 1.60 Equipment depreciation $ 504 Rent $ 2,130 Miscellaneous $ 860 $ 0.20 In November, the pizzeria budgeted for 1,950 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 2,050 Deliveries 170 Revenue $ 41,680 Pizza ingredients $ 9,550 Kitchen staff $ 6,110 Utilities $ 950 Delivery person $ 578 Delivery vehicle $ 1,012 Equipment depreciation $ 504 Rent $ 2,130 Miscellaneous $ 868 Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

The following data pertains to Efficient Market Investment software packages in the inventory of the Investment Software division of Efficient Market Investment Outlets:  

Answer each of the questions:

1. 1(a). Determine the cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under the FIFO method.

2. 1(b). Determine the cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under the LIFO method.

3. 1(c). Determine the unit cost, cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under the average cost method.

4. 2. Assume that the replacement cost of each unit on December 31 is $107.25. Using the lower of cost or market rule, find the inventory amount under each of the methods given in 1.

Analyze:
What is the difference between the cost and market value of the inventory using the LIFO method?

Complete this question by entering your answers in the tabs below.

• Req 1A
• Req 1B
• Req 1C
• Req 2
• Analyze

Determine the cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under the FIFO method.

Question 19

The following information on selected cash transactions for 2011 has been provided by Mancuso Company:

Proceeds from sale of land                                                       $160,000

Proceeds from long-term borrowings                                          400,000

Purchases of plant assets                                                        144,000

Purchases of inventories                                                           680,000

Proceeds from sale of Mancuso common stock                          240,000

What is the cash provided (used) by investing activities for the year ended December 31, 2011, as a result of the above information?

Information about Vinzant Company’s inventory of one item follows.

Questions:

1. Compute the cost of the ending inventory under the average cost method.
2. Compute the cost of the ending inventory under the FIFO method.
3. Compute the cost of the ending inventory under the LIFO method.

Answer each of the 3 questions by entering your answers in the tabs below.

Compute the cost of the ending inventory under the average cost method. (Round your "average cost per unit" answer to 2 decimal places.)

The Code of Ethics for Professional Accountants contains a specific requirement that must be met by the incoming auditor when there is a change in appointment. State the requirement and the paragraph number in APES 110 for the requirement.

Summative Case Study: SRS Educational Supply Company

Part 1 – Job Order Costing / Process Costing
SRS Educational Supply Company provides educational materials and supplies to educational institutions. The company provides educational supply needs that includes workbooks, classroom visual aids, instructor support materials, art supplies, lab supplies, and administrative office supplies. Since SRS Educational Supply Company consistently produces the same service to its customers, the company uses job order costing. The company’s processing units are assigned costs. For example, the company will determine all of the costs associated with the sales/marketing in a certain period and divide the costs by the number of customers that the company currently has. The cost per customer then becomes a part of the inputs and its used to determine the cost of sales/marketing and the cost of each customer. Service industries often do not match directly the normal costing systems, but the same concepts can still be used to determine the costs per customer.

The SRS Educational Press is wholly owned by the Company. It performs the bulk of its work for the print materials that are sold to the customers. The press also publishes and maintains a stock of books for general sale. The press uses normal costing to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead, allocated on the basis of direct manufacturing labor costs).

The following data (in thousands) pertain to 2017:

 Direct materials and supplies purchased on credit: $800  Direct materials used: $710  Indirect materials issued to various production departments: $100  Direct manufacturing labor: $1,300  Indirect manufacturing labor incurred by various production departments: $900  Depreciation on building and manufacturing equipment: $400  Miscellaneous manufacturing overhead incurred by various production departments: $550 o (Ordinarily, this would be detailed as repairs, photocopying, utilities, etc.)  Manufacturing overhead allocated at 160% of direct manufacturing labor costs: ?  Cost of goods manufactured: $4,120  Revenues: $8,000  Cost of goods sold (before adjustment for under- or overallocated manufacturing overhead): $4,020  Inventories, December 31, 2016 (not 2017):
o Materials control: $100 o Work-in-process control: $60 o Finished goods control: $500

Submission Requirements for Final Project I:

As the accountant, the company has asked you to perform the following tasks:

1. Prepare an overview diagram of the job-costing system at the SRS Educational Press. 2. Prepare journal entries to summarize the 2017 transactions. As your final entry, dispose of the year-end under- or overallocated manufacturing overhead as a write-off to cost of goods sold. Number your entries. Explanations for each entry may be omitted. 3. Show posted T-accounts for all inventories, Cost of Goods Sold, Manufacturing Overhead Control, and Manufacturing Overhead Allocated. 4. How did the SRS Educational Press perform in 2017? Should the company continue to have in-house press production?

You will submit your answers/explanations for Final Project I in a memo-style format to the company’s leadership team. Use Microsoft Word and Excel.

Create a simple Hair Salon business plan using these topics:

Overview

*Ownership and structure

*Company and History

Team

*Management team

* Advisors

Operations

*Location & Facilities

*Technology

*Equipment & Tools

Milestones & Metrics

*Milestones Table

* Key Metrics

Gant Company purchased 20 percent of the outstanding shares of Temp Company for $71,000 on January 1, 20X6. The following results are reported for Temp Company:
  

  
Required:
Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant’s investment in Temp at the end of each year assuming that Gant uses the following options in accounting for its investment in Temp:

A.Carries the investment at fair value.

B.Uses the equity method.

Do both methods for all three years