The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Units to be produced	9,000	12,000	11,000	10,000

In addition, 15,750 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $5,600.

Each unit requires 7 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 8,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $15.50 per hour.

Required:

1-a. Prepare the company’s direct materials budget for the upcoming fiscal year. (Round "Unit cost of raw materials" answers to 2 decimal places.) Please also insert the year column after Quarter 4

Required production in units of finished goods	Quarter 1	Quarter 2	Quarter 3	Quarter4
Units of Raw Materials Needed to meet production
Units of Raw Materials needed per unit finished goods
Add desired Units of ending raw material
Total Units of raw material needed
?
Units of raw material to be purchased
Unit cost of raw material
Cost of raw material to be purchased

*The chart ends after cost of raw materials to be purchased*

1-b. Prepare a schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year.

Beg. Balance Account Payable	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Year
1st Quarter Purchases
2nd Quarter Purchases
3rd Quarter Purchases
4th Quarter Purchases
Total cash disbursement

2. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Round "Direct labor-hours per unit" and "Direct labor cost per hour" answers to 2 decimal places.) Please also add the year column next to it. Thank you!

Required Production in units	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Direct Labor Hours per unit
Total Direct Labor cost per hour
Direct Labor Cost per hour
Total Direct Labor Cost

what is the difference between audit risk and engagement risk? Accounting Audit. a couple of paragraphs

explain the occurrence and completeness assertions? and how does failure to meet each of those two assertions affect the financial statements? these are two of the eight management assertions. Accounting auditing

list the three objectives of internal control and the five components of internal control and a very brief description of the five components.

What are the management assertion and its definitions?

Early in 2014, Jones Industries was formed with authorization to issue 125,000 shares of $20 par value common stock and 15,000 shares of $100 par value cumulative preferred stock.  During 2014, all the preferred stock was issued at par, and 90,000 shares of common stock were sold for $35 per share.  The preferred stock is entitled to a dividend equal to 5 percent of its par value before any dividends are paid on the common stock.

During its first five years of business (2014 through 2018), the company earned income totaling $3,850,000 and paid dividends of 55 cents per share each year on the common stock outstanding.  

On January 2, 2016, the company purchased 2,000 shares of its own common stock in the open market for $80,000.  On January 2, 2018, it reissued 1,200 shares of this treasury stock for $60,000. The remaining 800 shares were still held in treasury at December 31, 2018.

1. Distinguish between paid-in capital and retained earnings of a corporation.  Why is such a distinction useful?
   1. What are the major transactions and other financial activities that impact the amount of paid-in capital of a corporation?
   2. Identify for each major type of transaction or activity whether it increasesor decreasesthe amount of paid-in-capital.

DELSING CANNING COMPANY IS CONSIDERING AN EXPANSION OF ITS FACILITIES. ITS CURRENT INCOME STATEMENT IS AS FOLLOWS:

SALES............................................................................ 7,100,100
VARIABLE COSTS (50% OF SALES).............................3,550,000
FIXED COSTS.................................................................2,010,000
EBIT.................................................................................1,540,000
INTEREST (10% COST)....................................................620,000
EBT.....................................................................................920,000
TAX (30%)..........................................................................276,000
EAT.....................................................................................644,000
SHARES COMMON STOCK..............................................410,000
EPS...........................................................................................1.57

The company is currently financed with 50% debt and 50% equity (common stock, par value of $10). In order to expand the facilities, Mr. Delsing estimates a need for $4.1 million in additional financing. His investment banker has laid out three plans for him to consider:
1) Sell $4.1 million of debt at 11%
2) Sell $4.1 million of common stock at $20 per share
3) Sell $2.05 million of debt at 10% and $2.05 million of common stock at $25 per share.

Variable costs are expected to stay at 50% of sales, while fixed expenses will increase to $2,510,000 per year. Delsing is not sure how much this expansion will add to sales, but he estimates sales will rise by $2.05 million per year for the next 5 years.

Delsing is interested in a thorough analysis of his expansion plans and methods of financing. He would like you to analyze the following:

a. The break-even point for operating expenses before and after expansion (in sales dollars). ENTER YOUR ANSWERS IN DOLLARS NOT IN MILLIONS, I.E. $1,234,567.

	BREAK-EVEN POINT
BEFORE EXPANSION
AFTER EXPANSION

b. The degree of operating leverage before and after expansion. Assume sales of $7.1 million before expansion, and $8.1 million after expansion. Use the formula
DOL = (S - TVC) / (S - TVC - FC). ROUND YOUR ANSWERS TO 2 DECIMAL PLACES.

	DEGREE OF OPERATING LEVERAGE
BEFORE EXPANSION
AFTER EXPANSION

c. The degree of financial leverage before expansion. ROUND YOUR ANSWERS TO 2 DECIMAL PLACES.

d. The degree of financial leverage for all three methods after expansion. Assume sales of $8.1 million for this question. ROUND YOUR ANSWERS TO 2 DECIMAL PLACES.

	DEGREE OF FINANCIAL LEVERAGE
100 % DEBT
100% EQUITY
50% DEBT & 50% EQUITY

e. Compute EPS under all three methods of financing the expansion at $8.1 million in sales (first year) and $11.0 million in sales (last year). ROUND ANSWERS TO 2 DECIMAL PLACES.

	EPS
	FIRST YEAR	LAST YEAR
100% DEBT
100% EQUITY
50% DEBT & 50% EQUITY

FIFO and LIFO Costs Under Perpetual Inventory System

The following units of an item were available for sale during the year:

Beginning inventory	38 units at $45
Sale	28 units at $70
First purchase	29 units at $48
Sale	10 units at $70
Second purchase	28 units at $50
Sale	43 units at $72

The firm uses the perpetual inventory system, and there are 14 units of the item on hand at the end of the year.

a. What is the total cost of the ending inventory according to FIFO?
$

b. What is the total cost of the ending inventory according to LIFO?
$

Trecek Corporation incurs research and development costs of $650,000 in 2017, 30 percent of which relate to development activities subsequent to IAS 38 criteria having been met that indicate an intangible asset has been created. The newly developed product is brought to market in January 2018 and is expected to generate sales revenue for 10 years.

Assume that a U.S.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.

Required:

1. Prepare journal entries for research and development costs for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.

2. Prepare the entry(ies) that Trecek would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS.

Jordan Technologies, Inc. has three divisions. Jordan has a desired rate of return of 12.0 percent. The operating assets and income for each division are as follows:

     

Divisions	Operating Assets				Operating Income
Printer	$	630,000			$	104,580
Copier		900,000				99,900
Fax		450,000				63,000
Total	$	1,980,000			$	267,480

Jordan headquarters has $129,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROIs:

	Expected ROIs for
Divisions	Additional Investments
Printer	13.5	%
Copier	12.5	%
Fax	11.5	%

1. . Calculate the residual income:

1. (1) At the corporate (headquarters) level before the additional investment.

2. (2) At the division level before the additional investment.

3. (3) At the investment level.

4. (4) At the division level after the additional investment.

San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of October 2018:

	Cost			Retail
Beginning inventory	$	47,000		$	62,000
Net purchases		10,480			32,800
Net markups					2,400
Net markdowns					1,400
Net sales					44,000

Required:
Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October.

Carr Company has the following ledger accounts and adjusted balances as of December 31, 2019. All accounts have normal balances. Carr’s income tax rate is 20%. Carr has 300,000 shares of Common Stock authorized, 100,000 shares of Common Stock issued, and 95,000 shares of Common Stock outstanding.

         Accounts Payable…………………………….   58,500

         Accounts Receivable………………………… 405,000

         Accumulated Depreciation-Building………… 112,500

         Accumulated Depreciation-Equipment………. 90,000

         Administrative Expenses…………………….    90,000

         Allowance for Doubtful Accounts……………   45,000

         Bonds Payable……………………………….. 400,000

         Building……………………………………..1,125,000

         Cash………………………………………….   58,500

         Common Stock……………………………… 600,000

         Cost of Goods Sold…………………………. 855,000

         Discount on Bonds Payable…………………    10,000

         Dividends……………………………………   30,000

         Equipment…………………………………… 435,000

         Income from Operations of Division X……..    90,000

         (Division X is a component of Carr Company)

         Interest Revenue……………………………..   60,000

         Inventory……………………………………...630,000

         Land (held for future use)...…………………. 450,000

         Land (used for building)…………………….. 247,500

         Loss from Sale of Division X...........................180,000

         (Division X is a component of Carr Company)

         Loss on Sale of Investments.……………….. .. 22,500

         Mortgage Payable …………..………………. 562,500*

         Paid-In Capital in Excess of Par……………...396,000

         Prepaid Rent…………………………………. 22,500**

         Retained Earnings, January 1, 2019………… 562,500

         Sales Discounts………………………………. 45,000

         Sales Returns and Allowances……………….. 75,000

         Sales Revenue……………………………...2,302,500

         Selling Expenses……………………………. 292,500

         Trademark…………………………………… 67,500

         Treasury Stock………………………………. 60,000

*$40,000 of the principal comes due in 2019.

**Two years rent on offsite document storage paid in advance.

Instructions:

Use this information to prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet.

The following are transactions of Samantha Payapag Advertising Company for the month of July 2013

Prepare Journal Entries, Ledger, T- Accounts, Trial Balance, Income Statement, and Balance Sheet

July 3 Samantha Payapag invested 500,000 in the business.

July 5 Bought for cash, advertising supplies costing 80,000. Paid rental of the office, 7,300

July 9 Bought delivery truck from MJ Idos Trading, 350,000 on credit

July 12 Received 43,000 cash as advertising income

July 13 Bought furniture & fixtures, 32,000 in cash

July 17 Took 3,200 cash for personal purposes

July 18 Billed Bernalyn Galvez for the advertising service rendered to promote her product to the market, 10,000

July 23 Paid salaries of the employees, 15,000. Billed Zaldy Co. for the advertising service rendered, 4,000

July 24 Collected 1/2 of the amount Bernalyn Galvez owed to the company

July 26 Purchased another truck amounting to 120,000 from Edwina Motor, Inc. on credit

July 27 Paid MJ Idos Trading 230,000 as partial settlement of the account

July 30 Paid utility expense for the month

Cash Budget

The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:

	September		October		November
Sales	$91,000		$117,000		$145,000
Manufacturing costs	38,000		50,000		52,000
Selling and administrative expenses	32,000		35,000		55,000
Capital expenditures	_		_		35,000

The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $9,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month.

Current assets as of September 1 include cash of $35,000, marketable securities of $49,000, and accounts receivable of $101,900 ($80,000 from July sales and $21,900 from August sales). Sales on account for July and August were $73,000 and $80,000, respectively. Current liabilities as of September 1 include $9,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $14,000 will be made in October. Bridgeport’s regular quarterly dividend of $9,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $34,000.

Required:

1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculations.

Bridgeport Housewares Inc.
Cash Budget
For the Three Months Ending November 30
	September	October	November
Estimated cash receipts from:
	$	$	$
Total cash receipts	$	$	$
Less estimated cash payments for:
	$	$	$
Other purposes:
Total cash payments	$	$	$
	$	$	$
Cash balance at end of month	$	$	$
Excess or (deficiency)	$	$	$

2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?

The budget indicates that the minimum cash balance   be maintained in November. This situation can be corrected by   and/or by the   of the marketable securities, if they are held for such purposes. At the end of September and October, the cash balance will   the minimum desired balance.

Charles deposited $12,000 in the bank. He withdrew $5000 from his account after one year. If he receives a total amount of $9340 after 3 years, find the rate of simple interest.

The stockholders’ equity section of Stellar Inc. at the beginning of the current year appears below. Common stock, $10 par value, authorized 1,043,000 shares, 321,000 shares issued and outstanding $3,210,000 Paid-in capital in excess of par—common stock 562,000 Retained earnings 624,000 During the current year, the following transactions occurred.

1. The company issued to the stockholders 109,000 rights. Ten rights are needed to buy one share of stock at $30. The rights were void after 30 days. The market price of the stock at this time was $32 per share.

2. The company sold to the public a $204,000, 10% bond issue at 104. The company also issued with each $100 bond one detachable stock purchase warrant, which provided for the purchase of common stock at $28 per share. Shortly after issuance, similar bonds without warrants were selling at 96 and the warrants at $8.

3. All but 5,450 of the rights issued in (1) were exercised in 30 days.

4. At the end of the year, 80% of the warrants in (2) had been exercised, and the remaining were outstanding and in good standing.

5. During the current year, the company granted stock options for 10,800 shares of common stock to company executives. The company, using a fair value option-pricing model, determines that each option is worth $10. The option price is $28. The options were to expire at year-end and were considered compensation for the current year.

6. All but 1,080 shares related to the stock-option plan were exercised by year-end. The expiration resulted because one of the executives failed to fulfill an obligation related to the employment contract.

Prepare general journal entries for the current year to record the transactions listed above.

Why might some organizations push employees to behave in a dishonest or corrupt manner? Are there personal benefits to corruption that organizational culture can counteract?