Explain the importance of completing the reporting procedures and required documentation for bad and doubtful debts

Please explain bounded rationality in a paragraph.

6. What are the key features of debt recovery plans?

4. Outline the key requirements of your organizational policy and procedures relating to reconciling and monitoring financial accounts

Describe what Mandatory and voluntary deductions are?

Give two examples of each

5. Describe measures to collect monies and features of recovery plans

Accounting for foreign currency transactions

MyBeauty Ltd is an Australian company which specialises in manufacturing and distributing health and beauty products to both local and international clients. The company has a reporting period which ends on 30 June and the Australian dollar is the functional and presentation currency.

For the financial year ending 30 June 2019, MyBeauty LTd has entered into two independent transactions denominated in foreign currency as follows.

Transaction A

MyBeauty Ltd sells some goods on credit to Bristol Industries, a British company. The contract, dated 1 January 2019, is denominated in United Kingdom pounds and the contract amounts to £150,000. Bristol Industries settles the contract on 29 January 2019.

The relevant exchange rates are as follows:

Transaction B

On 1 July 2017, MyBeauty Ltd entered into a loan denominated in Euros, borrowing €300,000 from a European Bank. The following summarises the bank loan statements over the period 1 July 2017 to 30 June 2019.

The relevant exchange rates are as follows:

Required:

In accordance with AASB 121, prepare all relevant journal entries of MyBeauty Ltd to account for the above transactions for the financial years ending 30 June 2018 and 2019, where relevant.

On January 1, Year 1, Friedman Company purchased a truck that cost $52,000. The truck had an expected useful life of 200,000 miles over 8 years and an $9,000 salvage value. During Year 2, Friedman drove the truck 27,000 miles. Friedman uses the units-of-production method. What is depreciation expense in Year 2? (Do not round intermediate calculations.): rev: 11_10_2018_QC_CS-147760

Multiple Choice

$5,805

$7,020

$5,375

$6,500

17)Dinkins Company purchased a truck that cost $72,000. The company expected to drive the truck 100,000 miles over its 5-year useful life, and the truck had an estimated salvage value of $11,000. If the truck is driven 32,000 miles in the current accounting period, what would be the amount of depreciation expense for the year? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

• $19,520

• $23,040

• $12,200

• $28,800

  On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $39,000. The cab has an expected salvage value of $4,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 48,000 miles the first year and 51,000 the second year. What is the amount of depreciation expense reported on the Year 2 income statement and the book value of the taxi at the end of Year 2, respectively? (Do not round intermediate calculations.)

• $9,945 and $19,695

• $9,945 and $15,695

• $8,925 and $21,675

• $8,925 and $17,675

On April 1, Year 1, Fossil Energy Company purchased an oil producing well at a cash cost of $8,370,000. It is estimated that the oil well contains 720,000 barrels of oil, of which only 620,000 can be profitably extracted. By December 31, Year 1, 31,000 barrels of oil were produced and sold. What is depletion expense for Year 1 on this well? (Do not round intermediate calculations.):

• $418,500

• $558,000

• $139,500

• $360,375

Glick Company purchased oil rights on July 1, Year 1 for $2,800,000. A total of 200,000 barrels of oil are expected to be extracted over the assets life, and 50,000 barrels are extracted and sold in Year 1. Which of the following correctly summarizes the effect of the Year 1 depletion expense on the elements of the financial statements? (Do not round intermediate calculations.):

• A decrease in stockholders’ equity of $200,000.

• A decrease in assets of $500,000.

• A decrease in assets of $700,000.

• An increase in stockholders’ equity of $740,000.

The balance sheet of Flo's Restaurant showed total assets of $480,000, liabilities of $152,000 and stockholders’ equity of $378,000. An appraiser estimated the fair value of the restaurant assets at $565,000. If Alice Company pays $745,000 cash for the restaurant, what is the amount of goodwill?

• $180,000

• $265,000

• $367,000

• $332,000

On January 1, Year 1, Stiller Company paid $192,000 to obtain a patent. Stiller expected to use the patent for 5 years before it became technologically obsolete. The remaining legal life of the patent was 8 years. Based on this information, what is the amount of amortization expense during Year 3 and the book value of the patent as of December 31, Year 3, respectively?

• $24,000 and $72,000

• $38,400 and $76,800

• $24,000 and $120,000

• $38,400 and $115,200

In January 2018, Dunder Mifflin Inc. bought property in downtown Scranton. The property contains land, a warehouse, and some limited equipment. Property values in the area have been increasing rapidly over the past decade. The price paid for the property needs to be allocated to the items purchased and the controller and financial vice president are having that discussion. Dunder Mifflen’s controller wants to allocate the largest proportion of the cost to the warehouse and equipment while the financial VP, David Wallace, argues that the allocation should recognize the steadily increasing value of the land by allocating the highest value to the land. Assume that the same depreciation methods are used for financial and tax return purposes.

-What are the pros and cons of a proportionally higher allocation of the purchase cost to the land and a proportionally lower allocation to building and equipment?

-Assume the equipment and warehouse have the same useful life. The company plans to sell the equipment after it has been fully depreciated and the land will be sold after the warehouse is fully depreciated. Assuming no change in tax rates over the life of the warehouse, how will this allocation decision affect Retained Earnings in the long-run, after the assets have been sold? Explain in depth.

Review the Discussion FAQs Module.

Respond to the following:

The president of your company wants you to count merchandise inventory from the factory in preparation for a visit from stockholders. The president asks you to make the inventory a bit heavy by counting one row twice to cause the net income to show a higher number. What should you do?

Okay let's talk first about what we are not interested in:

1) Your moral compass or ethics. I'm not being sarcastic but it really doesn't matter in this instance. We don't care about whether you personally think it is right or wrong. The only thing that matters is GAAP-and whether we are accurately reporting if we do this.

2) Reporting to anyone, law enforcement, SEC, upper management. We aren't going to have a conversation about reporting it to anyone and documenting this request. It doesn't matter. These types of issues are almost never a legal issue anyway.  

3) Effects on financial statements in vague terms such as "thrown off", "out of balance", or any other term that does not state specifically how the statement is inaccurate.

Here's what we do care about:

1) What does GAAP principles say about this type of action?

2) How is the income statement affected? Is gross profit understated or overstated or just right? Is net income overstated or understated or just right? Is the balance sheet correct? If not, what account(s) are off specifically. For example, you can't just say assets-you have to say exactly which asset. You can't just say equity, you have to say which equity account. Are they overstated or understated?  

Information related to equipment owned by Brownfield Company follows:

Original cost $900,000

Accumulated depreciation to date $100,000

Expected future cash flows $825,000

Fair value $790,000

Value in use $785,000

Selling costs $30,000

Assuming Brownfield will continue to use the equipment, test the asset for impairment under both IFRS and U.S. GAAP and discuss the results.

Paloma Co. has four employees. FICA Social Security taxes are 6.2% of the first $128,400 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company’s FUTA taxes are 0.6% and SUTA taxes are 5.4%. The company is preparing its payroll calculations for the week ended August 25. Payroll records show the following information for the company’s four employees.

In addition to gross pay, the company must pay one-half of the $86 per employee weekly health insurance; each employee pays the remaining one-half. The company also contributes an extra 8% of each employee’s gross pay (at no cost to employees) to a pension fund.

Required:
Compute the following for the week ended August 25. (Round your intermediate calculations and final answers to 2 decimal places.):

Find...

1. Employee's FICA withholdings for social security

2. employee's FICA withholdings for Medicare

3. employer's FICA taxes for social security

4. employer's FICA taxes for medicare

5. employer's FUTA Taxes

6. employer's SUTA taxes

7. each employee's net (take home) pay

8. employers total payroll related expense for each employee

Musich Corporation has an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below.

Activity Cost Pools

Machining

Setting Up

Other

Total

Equipment depreciation

$

9400

$

48,700

$

23,800

$

81,900

Indirect labor

4500

2900

4100

11,500

Total

$

13,900

$

51,600

$

27,900

$

93,400

Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs appear below:

MHs

Batches

Product Z3

6000

750

Product T1

6200

1350

Total

12,200

2100

Product Z3 Product T1

Sales (total)

$

230,800

$

255,500

Direct materials (total)

$

84,000

$

97,600

Direct labor (total)

$

110,000

$

105,200

Required:

Calculate the following:

Machining Activity Rate

$
Setting up Activity Rate

$

Amount of OH applied to product Z3 (round to the nearest dollar)

$
Amount of OH applied to product T1 (round to the nearest dollar)

$

Product Margin – Z3 (round to the nearest dollar)

$
Product Margin – T1 (round to the nearest dollar)

$

The ____ basis of accounting is not a generally accepted method of determining profit for a businesses that have significant credit transactions.

What is the nominal rate of interest compounded monthly at which payments of $200 made at the end of every three months accumulate to $9200 in eight years?

Show the financial calculator (BA II Plus) steps with values so I can see how to do the question as they need just the financial calculations for the midterm (and timeline if needed).