Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.

Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.

At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:

Required:

1. Complete the following:

a. Compute the unit product cost under absorption costing.

b. What is the company’s absorption costing net operating income (loss) for the quarter?

c. Reconcile the variable and absorption costing net operating income (loss) figures.

3. During the second quarter of operations, the company again produced 33,050 units but sold 38,050 units. (Assume no change in total fixed costs.)

a. What is the company’s variable costing net operating income (loss) for the second quarter?

b. What is the company’s absorption costing net operating income (loss) for the second quarter?

c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.

When are sellers from online auction sites required to pay income tax? Please provide and discuss an example.

A city maintains the following funds:

1. General

2.Special Revenue

3.Capital projects

4.Debt service

5.Enterprise

6.Internal service

7. Permanent (trust)

8. Agency

For each of the following transactions, indicate the fund in which each transaction would most likely be recorded:

a.The city collects $3million of taxes on behalf of the country in which it is located

b.It spends $4 million to pave city streets, using the proceeds of a city gasoline tax dedicated for road and highway improvements

c. It receives a contribution of $5 million. Per the stipulation of the donor, the money is to be invested in marketable securities, and the interest from the securities is to be used to maintain a city park.

d.It collects $800,000 in landing fees at the city airport

e.It earns $200,000 on investments set aside to make principal payments on the city's outstanding bonds. The bonds were issued to finance improvements to the city's tunnels and bridges.

f.It pays $4 million to a contractor for work on one of the bridges

g.It pays $80,000 in wages and salaries to police officers

h. It purchases from an outside supplier $40,000 of stationary that it will sell to its various operating departments

Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $26,000; factory rent, $38,000; factory utilities, $24,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 cash in April. Costs of the three jobs worked on in April follow.

1. Materials purchases (on credit).
2. Direct materials used in production.
3. Direct labor paid and assigned to Work in Process Inventory.
4. Indirect labor paid and assigned to Factory Overhead.
5. Overhead costs applied to Work in Process Inventory.
6. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
7. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
8. Cost of goods sold for Job 306.
9. Revenue from the sale of Job 306.
10. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

2. Prepare journal entries for the month of April to record the above transactions.

Accounting profit includes “profits as shown on a company’s financial statements,” and it takes into consideration explicit costs, while economic profit is a broader measure of profit that includes the recognition of both explicit and implicit costs (like the cost of equity capital) (Froeb et al., 2018). A specific value to review to determine a firm's accounting profit is net income, which is referred to as “the bottom line” by accountants. A net income value can be found on a firm’s income statement. (Note that income statements for publicly traded firms within the United States can be found for free through an internet search.) A positive net income value would indicate that the firm is indeed generating accounting profit, while a negative net income value would indicate that the firm is not generating accounting profit. Economic profit is harder to measure since it also includes implicit costs, some of which can be difficult to measure since they are not necessarily easy to quantify. _____________________ 1. Select a U.S. publicly traded company. What level of net income did the firm achieve during the last year or period that you found (the value should be from the last 18 months)? Did the firm earn an accounting profit? Explain. 2. Assume the firm was unable to earn an economic profit? What does this mean for the firm you selected? 3. Explain why it is important for any firm to earn both an accounting profit and economic profit, and why any firm that only earns an accounting profit will likely not stay in business very long.

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?