Markowis Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 18,054 $36,108 August 32,096 48,144 September 36,108 55,165 October 22,066 38,114 November 40,120 74,724 December 38,114 62,186 Collapse question part (a1) Incorrect answer. Your answer is incorrect. Try again. Compute the variable cost per unit using the high-low method. (Round variable cost per mile to 2 decimal places e.g. 1.25.) Variable cost per unit $Entry field with incorrect answer Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 2 of 2 used Point Potential is enabled You have surpassed the number of attempts to earn Maximum Points for this question. For this attempt, and any subsequent attempt(s), you will earn points according to the Point Potential policy set by your instructor. Collapse question part (a2) Compute the fixed cost elements using the high-low method. Fixed costs $

Janenda Inc. issued $5,000,000 of convertible

5-year bonds on July 1, 2017. The bonds provide for 6% interest payable semiamuially on January 1 and July 1. The discount in

connection with the issue was $120,000, which is being amortized monthly on a straight-line basis.

The bonds are convertible after one year into 15 shares of Janenda Inc.’s $1 par value common stock for each $1,000 of bonds.

On October 1, 2018, $600,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly

and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash.

Instructions

Instructions

Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following

dates. (Round to the nearest dollar.)

(a) October 1, 2018. (Assume the book value method is used.)

(b) October 31, 2018.

(c) December 31, 2018, including closing entries for end-of-year.

Greener Grass Fertilizer Company plans to sell 250,000 units of finished product in July and anticipates a growth rate in sales of 5 percent per month. The desired monthly ending inventory in units of finished product is 80 percent of the next month’s estimated sales. There are 200,000 finished units in inventory on June 30. Each unit of finished product requires 5 pounds of raw material at a cost of $1.75 per pound. There are 780,000 pounds of raw material in inventory on June 30.

Required:

1. Compute the company’s total required production in units of finished product for the entire three-month period ending September 30. (Round all intermediate calculations and your final answer to the nearest unit.)

2. Independent of your answer to requirement (1), assume the company plans to produce 680,000 units of finished product in the three-month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 25 percent of the use in that period. Compute the total estimated cost of raw-material purchases for the entire three-month period ending September 30.

Example 6-2 John Jenkins earns $1,290 per week. The deductions from his pay were: FIT $116.00 FICA—OASDI 79.98 FICA—HI 18.71 State income tax 31.00 State disability insurance 9.03 Credit union deduction 40.00 Health insurance premium 47.50 Charitable contribution 5.00 John’s disposable earnings would be: $1,290.00 - $116.00 (FIT) - $79.98 - $18.71 (FICA deductions) - $31.00 (SIT) - $9.03 (disability insurance) = $1,035.28 Example 6-3 Huffman Company has a child support order outstanding on one of its employees (Charles Suffert—$170 per week). Charles Suffert's disposable income is $950 per week. A new garnishment is received for a $5,000 debt to a credit card company. The company would take an additional $237.50 out of Suffert's pay. Lesser of: 25% × $950 = $237.50 or $950 − (30 × $7.25) = $732.50 Kalen O'Brien earned $735 this week. The deductions from her pay were as follows: FIT $74.00 FICA-OASDI 45.57 FICA-HI 10.66 State income tax 36.75 State disability insurance 8.41 Health insurance premium 19.60 Credit union contribution 37.00 United Fund contribution 5.00 O'Brien's employer just received a garnishment order (credit card debt of $3,330) against her pay. Compute the following; round your answers to the nearest cent. a. O'Brien's disposable earnings: $ b. The amount of her pay subject to the garnishment: $

Car and Truck Expense. (Obj. 3)Keith is self-employed. During 2018, he drove his car a total of 9,169 miles for work. He drove a total of 21,468 miles during the year. His car expenses for the year were as follows.

Business parking and tolls 360

Depreciation 1475

Gas 2557

Insurance 940

License tags 50

Repairs and maintenance 52

5434

a. Compute Keith’s car expense deduction using the standard mileage rate.

b. Compute Keith’s car expense deduction using the actual cost method.

1. Identify tools for analyzing financial statements and ratios for computing a company's profitability. (Please don't plagiarize)

A standard unqualified audit opinion states that financial statements “present fairly” a company’s results “in accordance with generally accepted accounting principles.” Does following GAAP necessarily “present fairly” a company’s operating results?

1) State and discuss you answer. Provide examples to support your opinion.
What should a company do if following GAAP does not “present fairly” its operating results?

2) Write a clear and concise response to the above question.

Case Study 2 – Auditing ACCT3000 (Semester 2, 2019)
You are an Audit Senior currently planning the 30 June 20X9 audit of Technology Limited, an Australian-owned company that produces and exports computer chips to China. At a recent planning meeting with Technology Limited’s senior staff, you obtained the following overview of this year’s operations:
Tight checks by Australian custom officials have delayed several shipments of computer chips. These delays have angered Chinese customers who are threatening to deduct 20% from the amounts owing as compensation for lost production time.
One of Technology Limited’s customers, Blue Chip Limited, is claiming that the latest batch of computer chips it received was found to be faulty. Blue Chip Limited is refusing to pay its account, which is allegedly seven months overdue. Technology Limited has claimed to have launched an investigation into the allegations, but as yet not been able to substantiate them. Technology Limited has suffered significant cash flow problems because another major customer, Creative Limited (Creative), is experiencing financial difficulties. As a result, Creative is taking well over 120 days to pay outstanding amounts, despite Creative’s terms of trade being payment within 30 days. Creative makes up 40 per cent of Technology Limited’s sales and the board has been reluctant to take any action that might adversely affect those sales. Consequently, Technology Limited has had to increase its dependency on its line of credit, and this has caused it to temporarily breach the debt to equity ratio required in its loan covenant with Big Bank Limited.
One of Technology Limited’s major suppliers went bankrupt one month ago, causing major product shortages. To overcome the problem, Peter James, the husband of the finance director, Natalie James, provided electronic components used in the production of computer chips to Technology Limited through his private company Norton Limited. Norton Limited demands payment in $US prior to the electronic components being supplied. There is no formal agreement in place with Peter James, however, the goods are being provided at competitive prices. You are concerned about the electronic components that Peter James’ company is supplying, because his products are new to the market and you have heard some of Technology Limited’s staff complaining that they are of poor quality.
Due to increased competitive pressure, Technology Limited has recently moved the manufacture of some of its computer chips to Bangladesh. Technology Limited saves around 25 per cent in costs compared to the equivalent Australian made items. However, the manufacturing process takes longer and on a few occasions late delivery from Bangladesh has resulted in lost sales.
Last month, a protester suffered a broken leg, allegedly because he was hit by a company truck. The protester is now suing Technology Limited for damages, claiming the contractor was in fact an employee of Technology Limited at the time of the accident, and was acting on Technology Limited’s instructions. Technology Limited is fighting the case and appears to have a reasonable chance of winning; however, the adverse publicity being generated is making the company nervous about its sales in the future.
During the period, the Australian dollar has remained steady against the Chinese Yuan, although it fell by about 3% against the US dollar. Debtors are invoiced in $US at the time of shipment, and payment is received in $US one month after the shipment is delivered. It takes around six weeks for the charter vessels to travel from Technology Limited’s shipyard at Bigmantle Bay to China. A recent downturn in the Chinese economy is affecting forward orders, which have fallen by 15%.
Required:
Prepare a memorandum to the audit manager, outlining your risk assessment relating to Technology
Limited. When making your risk assessment:
(a) Identify two (2) balance sheet accounts from the information provided that are subjected
to an increase in audit risk. Briefly explain what factors increase the audit risk associated
with the two (2) account balances identified. In your explanation, please mention the key
assertion(s) at risk of material misstatement and the components of the audit risk model
affected for each account balance identified.
(b) Identify how the audit plan will be affected and recommend specific audit procedures to
address the risks associated with each account balance identified.
(Please Note – Maximum Word Limit: 800 Words excluding references)

Decision on Accepting Additional Business

Brightstone Tire and Rubber Company has capacity to produce 162,000 tires. Brightstone presently produces and sells 124,000 tires for the North American market at a price of $103 per tire. Brightstone is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 19,000 tires for $86.55 per tire. Brightstone's accounting system indicates that the total cost per tire is as follows:

Brightstone pays a selling commission equal to 5% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $6 per tire. In addition, Euro has made the order conditional on receiving European safety certification. Brightstone estimates that this certification would cost $104,500.

a. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. If an amount is zero, enter zero "0". If required, round interim calculations to two decimal places.

Determine whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors.

b. What is the minimum price per unit that would be financially acceptable to Brightstone? Round your answer to two decimal places.
$per unit

Steering Company estimated the following annual hours and costs:

Determine the cost of the following job (number 253) using each of the four overhead allocation rates: (Round answers to 0 decimal places, e.g. 125.)

Prescott Football Manufacturing had the following operating results for 2019: sales = $30,874; cost of goods sold = $21,992; depreciation expense = $3,610; interest expense = $614; dividends paid = $905. At the beginning of the year, net fixed assets were $20,452, current assets were $1,797, and current liabilities were $5,330. At the end of the year, net fixed assets were $23,287, current assets were $4,601, and current liabilities were $3,301. The tax rate for 2019 was 25 percent.

a. What is the net income for 2019?

b. What is the operating cash flow for 2019?

c. What is the cash flow from assets for 2019?

d. Assume no new debt was issued during the year. What is the cash flow to creditors for 2019?

e. Assume no new debt was issued during the year. What is the cash flow to stockholders for 2019?

***negative answers should be indicated by a minus sign.

which steps of the 5 stages of strategy making, strategy executing process is most Important and why

Vast Spirit

Calendars imprints calendars with college names. The company has fixed expenses of

$1,125,000

each month plus variable expenses of

$4.50

per carton of calendars. Of the variable​ expense,

75​%

is cost of goods​ sold, while the remaining

25​%

relates to variable operating expenses. The company sells each carton of calendars for

$19.50.

Read the requirements

LOADING...

.

Requirement 1. Compute the number of cartons of calendars that

Vast Spirit

Calendars must sell each month to breakeven.  

Begin by determining the basic income statement equation.

Using the basic income statement equation you determined above solve for the number of cartons to break even.

Requirement 2. Compute the dollar amount of monthly sales

Vast Spirit

Calendars needs in order to earn

$338,000

in operating income.  

Begin by determining the formula.

​(Round the contribution margin ratio to two decimal​ places.)

Requirement 3. Prepare the​ company's contribution margin income statement for June for sales of

485,000

cartons of calendars.

Requirement 4. What is​ June's margin of safety​ (in dollars)? What is the operating leverage factor at this level of​ sales?

Begin by determining the formula.

What is the operating leverage factor at this level of​ sales? Begin by determining the formula.

​(Round the operating leverage factor to three decimal​ places.)

Requirement 5. By what percentage will operating income change if​ July's sales volume is

13​%

​higher? Prove your answer. ​(Round the percentage to two decimal​ places.)

Prove your answer. ​(Round the percentage to two decimal​ places.)

P company owns 70% of the outstanding stock of S company. On January 1, 2011, S company sold land to P company for $280,000. S had originally purchased the land on March, 20, 2007, for $330,000.

P company plans to construct a building on the land bought from S in which it will house new production machinery. The estimated useful life of the building and the new machinery is 20 years.

To Solve: Prepare all journal entries for P and S (from initial purchase of land from 3rd parties to sale between the related parties). In addition, prepare the w/p entry to eliminate the intercompany sale of land.