. Provide a short, real-world workplace scenario that exemplifies at least one type of discrimination you researched. (Disability, pregnancy, race, color, religion, sex, national original….) b. Discuss how the FMLA serves to discourage workplace discrimination.

Selected Dividend Transactions, Stock Split

Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows.

Journalize the transactions.

If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

Jan. 8. Split the common stock 3 for 1 and reduced the par from $84 to $28 per share. After the split, there were 135,000 common shares outstanding.

Apr. 30. Declared semiannual dividends of $1.30 on 9,000 shares of preferred stock and $0.08 on the common stock payable on July 1.

July 1. Paid the cash dividends.

Oct. 31. Declared semiannual dividends of $1.30 on the preferred stock and $0.06 on the common stock (before the stock dividend). In addition, a 3% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $50.

Dec. 15. Paid the cash dividends and issued the certificates for the common stock dividend.

What role does the Accounting Information System play in the production cycle by taking a Company as sample study?

[The following information applies to the questions displayed below.]

Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s income statement and balance sheets follow.

Additional Information on Year 2017 Transactions

1. The loss on the cash sale of equipment was $25,125 (details in b).
2. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash.
3. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term note payable for the balance.
4. Borrowed $6,000 cash by signing a short-term note payable.
5. Paid $60,125 cash to reduce the long-term notes payable.
6. Issued 4,500 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $54,100.

Required:
1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
  

Entries for Stock Dividends

Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life’s balance sheet: Common stock (440,000 shares authorized ; 4,000 shares issued), $100 par, $400,000; Paid-In Capital in excess of par— common stock, $80,000; and Retained earnings, $3,600,000. The board of directors declared a 2% stock dividend when the market price of the stock was $139 a share. Healthy Life reported no income or loss for the current year.

If an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" from the dropdown.

a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value.

a2. Journalize the entry to record the issuance of the stock certificates.

b. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders' equity.

c. Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders' equity.

Phillips Company bought 30 percent ownership in Jones Bag Company on January 1, 20X1, at underlying book value. During the period of January 1, 20X1, through December 31, 20X3, the market value of Phillips' investment in Jones' stock increased by $1,500 each year. In 20X1, 20X2, and 20X3, Jones Bag reported the following:

The balance in Phillips Company’s investment account on December 31, 20X3, was $71,000.

Required:
In each of the following independent cases, determine the amount that Phillips paid for its investment in Jones Bag stock assuming that Phillips accounted for its investment by carrying the investment at fair value, or using the equity method.
  

Iron-Bit is a manufacturer of industrial drill bits. The management is concerned about the adequacy of the firm’s working capital in funding daily operations.

a) The average collection period and average payment period are 35 days and 30 days respectively. The firm turns over its inventory 20 times each year (assume 365 days year), and currently has annual sales of $185 million.

(i) Calculate the firm’s operating cycle (OC) and cash conversion cycle (CCC), correct to 1 decimal place.

(ii) Determine the amount of resources needed to support the firm’s cash conversion cycle.

b) Iron-Bit purchases 2 million units per year of a component used in drill bits production. The cost per order is $55, while the carry cost is $6 per unit per year.

(i) Calculate the economic order quantity.

(ii) Using your answer in (i), calculate the ordering cost, carrying cost and total inventory cost.

c) Suppose Iron-Bit operates a 250 days per year, and maintains a minimum inventory level of 1500 units of safety stock. If the lead time to receive orders of the component is 3 days, calculate the reorder point.

The following items were in transit to or from Power Corp. on December 31, 2009

Goods costing $4000 were sent FOB shipping point from Power Corp. to a customer

Goods costing $2580 were sent FOB destination to Power Corp. from a vendor

Goods costing $2960 were sent FOB destination from Power Corp. to a customer

Goods costing $1957 were sent FOB shipping point to Power Corp. from a vendor.

a) Which of these items should Power Corp. include in its December 31, 2009 inventory?

b) Explain the rationale for either including or excluding the items.

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows:

* $3 per unit variable; $250,000 fixed each year.

The company’s $36 unit product cost is computed as follows:

Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.

Production and cost data for the first two years of operations are:

Required:

1. Using variable costing, what is the unit product cost for both years?

2. What is the variable costing net operating income in Year 1 and in Year 2?

3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

The estate tax in the United States is a progressive tax on the estate of a deceased person before their property (real estate, stocks and bonds, business interests, etc.) is transferred to their heirs. In 1906, President Theodore Roosevelt proposed a federal estate tax, saying, "The man of great wealth owes a particular obligation to the State because he derives special advantages from the mere existence of government." The estate tax was passed in the Emergency Revenue Act of 1916 in preparation for WWI. The first estate tax was imposed on the value of an estate over $50,000 (roughly $850,000 in today’s dollars) at a graduated rate of one to five percent.

The debate surrounding the estate tax has existed in many forms since Teddy Roosevelt's proposal. It has become especially heated in recent years with the rise of an anti-estate tax movement. This movement really began in 1993 when a group of wealthy families, under the lead of the Mars family, began a Washington lobbying campaign against what they would soon term the "death tax" because of its political advantages. While the debate is often framed only as a class-war debate (with the wealthy being seen as the potential benefactors of a ban and the poor the losers), it also encompasses other questions that are unrelated to class and wealth. The effect on the US fiscal budget is one consideration that is particularly heavily debated with some estimating the costs in the hundreds of billions of dollars and other estimating much lower costs. This question is particularly sensitive in the context of another debate on the extent of any fiscal problems in the US which would also effect thinking on the ability of the US to absorb tax revenue losses of any kind. Another question surrounds the extent of economic impacts. One particularly extensively debated topic among scholars and politicians alike is how estate taxes affect wealthy savings rates and corresponding levels of consumption and economic generation.

Is the estate tax unfair to the wealthy? Why or why not?

Could you argue that the assessing the estate tax constitutes “double taxation”?

Do you believe that having or not having the estate tax really matters economically in the big picture?

Do you think that removing the estate tax would reduce what individuals pass on to charity?

Would getting rid of the estate tax be an irresponsible thing to do?

How does the estate tax in the United States compare to that of other countries?

Exercise 11-17 Cost of a natural resource; depletion and depreciation; Chapters 10 and 11 [LO11-2, 11-3]

Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,650,000 in 2018 for the mining site and spent an additional $730,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

To aid extraction, Jackpot purchased some new equipment on July 1, 2018, for $260,000. After the copper is removed from this mine, the equipment will be sold for an estimated residual amount of $34,000. There will be no residual value for the copper mine. The credit-adjusted risk-free rate of interest is 12%.

The company expects to extract 11.3 million pounds of copper from the mine. Actual production was 2.9 million pounds in 2018 and 4.3 million pounds in 2019.

Required:
1. Compute depletion and depreciation on the mine and mining equipment for 2018 and 2019. The units-of-production method is used to calculate depreciation.

Selected data concerning operations of Cascade Manufacturing Company for the past fiscal year follow:

Raw materials used.........................................................................................................................................$400,000

Total manufacturing costs charged to production during the year (includes raw materials, direct labor, and manufacturing overhead

applied at a rate of 60 percent of direct labor costs) .....................................................................................$731,000

Cost of goods available for sale .....................................................................................................................$936,000

Selling and general expenses.........................................................................................................................    40,000

                                                                                                                                               Inventories

                                                                                                                            _______________________________

                                                                                                                Beginning                                         Ending

Raw materials              ......................................................              $70,000                                            $80,000

Work-in-process          ......................................................                      $85,000                                           $30,000

Finished goods           ......................................................                       $90,000                                          $110,000

REQUIRED:

Determine each of the following:

1. Cost of raw materials purchased
2. Direct labor costs charged to production
3. Cost of goods manufactured
4. Cost of goods sold

Chapter 24-Problems

1. PR.24-02.ALGO
2. PR.24-03.ALGO

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   Profit Center Responsibility Reporting for a Service Company

   Thomas Railroad Company organizes its three divisions, the North (N), South (S), and West (W) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31:

   Revenues—N Region	$868,700
   Revenues—S Region	1,063,800
   Revenues—W Region	1,840,300
   Operating Expenses—N Region	550,500
   Operating Expenses—S Region	633,100
   Operating Expenses—W Region	1,112,900
   Corporate Expenses—Dispatching	424,800
   Corporate Expenses—Equipment Management	223,600
   Corporate Expenses—Treasurer’s	132,100
   General Corporate Officers’ Salaries	291,800

   The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer’s Department. The Treasurer’s Department and general corporate officers’ salaries are not controllable by division management. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the inventories of railroad cars. It makes sure the right freight cars are at the right place at the right time. The Treasurer’s Department conducts a variety of services for the company as a whole. The following additional information has been gathered:

   	North		South		West
   Number of scheduled trains	4,400		5,300		8,000
   Number of railroad cars in inventory	1,300		2,100		1,800

   Required:

   1. Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations.

   Thomas Railroad Company
   Divisional Income Statements
   For the Quarter Ended December 31
   	North	South	West
   Revenues	$	$	$
   Operating expenses
   Income from operations before service department charges	$	$	$
   Less service department charges:
   Dispatching	$	$	$
   Equipment Management
   Total service department charges	$	$	$
   Income from operations	$	$	$

   2. What is the profit margin of each division? Round to one decimal place.

   Region	Profit Margin
   North Region	%
   South Region	%
   West Region	%

   Identify the most successful region according to the profit margin.
   

   3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?

   1. The method used to evaluate the performance of the divisions should be reevaluated.
   2. A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets).
   3. A better divisional performance measure would be the residual income (income from operations less a minimal return on divisional assets).
   4. None of these choices would be included.
   5. All of these choices (a, b & c) would be included.

RJM Enterprises is a manufacturer of consumer electronics products. The industry is very competitive, and RJM has seen its profits fall in recent years, including an operating loss of $36,159 last year. RJM was able to turn that around this year by aggressively cutting costs. The summarized financial results for RJM are shown below:

Jim Green, the management accountant at RJM, is analyzing the company’s performance for this year in order to explain to management the specific aspects that drove the company to success. Some of the information Jim obtained follows:

Assume that RJM, for efficiency and to reduce cost, maintains little or no direct materials or work-in-process inventory.

Required:

1. Determine the selling price variance for the current year based on sales dollars. Determine the sales volume variance based on contribution margin.

2. Determine the following variable cost variances:

a. The usage and price variances for direct materials.

b. The efficiency and rate variances for direct labor.

Three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless.
Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts that are affected, whether they increase or decrease, and the amount of the increase or decrease.
YOU MUST FOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOW THE CORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOU WILL NOT RECEIVE CREDIT.

- After each transaction description, there are several "Account" submission boxes and corresponding "Amount" submission boxes. To indicate the accounts that you think are affected, choose them from the drop-down menu. But you MUST select them in the order that they are listed in the menu. FOR EXAMPLE, if you think that Cash and Inventory are affected by a particular transaction, you must record the Cash impact first and the Inventory impact second because that is the order in which they are listed in the drop-down menu. If you record the Inventory impact first and the Cash impact second, even if they are the correct accounts and even if you have the correct dollar amounts, your answer will be considered incorrect.

- When you record the dollar amounts, be sure to use a minus sign to indicate a decrease in the account. You don't need to use a plus sign to indicate an increase.

- There are always more "Account" and "Amount" submission boxes available than are necessary. When you have indicated all the accounts that are affected by the transaction, you MUST select "Leave Blank" from the drop-down menu for EACH of the remaining "Account" submission boxes (you can leave the "Amount" boxes blank).

- For transactions 3, 4, 5, and 8, you are given additional instructions. Read them carefully.

- You get 5 tries for each transaction (8 tries for transaction #8).

- The entries for each transaction are worth 2 points (4 points for transaction #8).

Transaction 1

On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $22,000 in exchange for shares of stock. A few of their friends also purchased stock totaling $11,000 that was deposited in The Wire account.

Transaction 2
The company quickly acquired $35,000 in inventory, 30% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Transaction 3
A one-year store rental lease was signed on March 1 for $13,200 for the year, and rent for the first 3 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.]

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Transaction 4
The owners paid $4,000 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $7,000 for some advertising in local newspapers. [Note: Combine both transactions into one entry].

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Transaction 5
Sales were $70,000. Cost of merchandise sold was 60% of its sales price. 65% of the sales were on open account. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Transaction 6
Wages and salaries in March were $11,500, of which $8,200 was actually paid to employees.

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Transaction 7
Miscellaneous expenses were $1,900, all paid for with cash.

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Transaction 8
On March 1, fixtures and equipment were purchased for $4,500 with a downpayment of $2,000 and a $2,500 note, payable in one year. Interest of 6% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 9 years with no expected salvage value. [Note: Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third.  Also, round all answers to the nearest cent.]

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount:   

Transaction 9
Cash dividends totaling $4,000 were paid to stockholders on March 31.

Account:     Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid-in Capital Retained Earnings Leave Blank           Dollar amount: