Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2017–2020 are as follows:

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.

(Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017–2020.)

Journal entry worksheet:

Record 2018 income taxes.

Record 2019 income taxes.

Record 2020 income taxes.

Match each of the following terms with its correct definition:

job-order costing system

Process-costing system

overapplied overhead

plantwide overhead rate

predetermined overhead rate

job-order cost sheet

overhead variance

applied overhead

actual cost system

Time Ticket

materials requisition form

underapplied overhead

normal cost sytem

direct materials

manufacturing overhead

A. The amount by which applied overhead exceeds actual overhead

B. The job order number, or name, head this form.

C. Materials that can be easily and cost-effectively traced to a specific job

D. An overhead rate computed using estimated data

E. The amount by which actual overhead exceeds applied overhead

F. The difference between actual overhead and applied overhead

G. Indirect materials, indirect labor, and other costs related to manufacturing that cannot be easily to traced to a specific job

H. This form asks for the type, quantity, and unit price of direct materials.

I. Overhead assigned to production using predetermined rates

J. A costing system that accumulates production costs by process or by department for a given period of time

K. A single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory

L. A costing system in which costs are collected and assigned to units of production for each individual job

M. This form is filled out by each employee every day.

N. An approach that assigns actual costs of direct materials, direct labor, and overhead to products

O. An approach that assigns the actual costs of direct materials and direct labor to products but uses a predetermined rate to assign overhead costs

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2017–2020 are as follows:

service revenue collections pre tax accounting income

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.

(Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017–2020.) Required: 1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup’s 2019 income taxes and Alsup’s 2020 income taxes.

Why is there a need for three Financial Accounting Ratings Agencies? Are these agencies measuring the same

attributes? If not, what are the critical differences between these agencies? please elaborate

What is accounts receivable? What is notes receivable and how are they different than accounts receivable? How do creditors decide to extend credit to their customers? What processes do credit managers use to evaluate new customers? Now explain the allowance for doubtful accounts and provide examples.

Pucket Corp. is in the process of preparing its financial statements for the year ended December 31, Year4. Before closing the books, it prepared the above Condensed Trial Balance Sheet.

Other financial data for the year ended December 31, Year 4:

- Sales returns and allowances equaled $215,000, and sales discounts taken were $95,000.

- Estimated federal income tax payments were $200,000 and accrued federal income taxes equaled $100,000. The total charged to income tax expense does not properly reflect current or deferred income ta expense or interperiod income tax allocation for income statement purposes. The enacted tax rate on all types of taxable income for the current and future years is 30%. The alternative minimum tax is less than the regular income tax.

- Interest expense includes 6% interest on 20 year bonds issued at their face amount of $1,500,000.

- A $90,000 excess of carrying amount over tax basis in depreciable assets arose from receipt of a contribution of equipment by a local government on December 31, Year 4. it is expected to be depreciated over 5 years beginning in Year 5. There were no temporary differences prior to Year 5.

- Officer's Life insurance expense (not tax deductible) is $70,000.

- The earthquake damage is considered unusual and infrequent, but the disposition of plant assets is considered infrequent but not unusual. Moreover, the disposition of plant assets was not a disposal of a component of an entity.

- The shares of common stock ($5 par) traded on a national exchange:

- Puckett declared a $1.25 common stock dividend on December 28, Year 4.

Using this information enter the correct amounts for Pucket Corporation's income statement for the year ended December 31, Year 4.

(if you could show all calculations as well that would be awesome!)

The budget director of Birds of a Feather Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for January:

1. Estimated sales for January:

   Birdhouse	6,000 units at $55 per unit
   Bird feeder	4,500 units at $75 per unit

2. Estimated inventories at January 1:

   Direct materials:
   Wood	220 ft.
   Plastic	250 lb.
   Finished products:
   Birdhouse	300 units at $23 per unit
   Bird feeder	240 units at $34 per unit

3. Desired inventories at January 31:

   Direct materials:
   Wood	180 ft.
   Plastic	210 lb.
   Finished products:
   Birdhouse	340 units at $23 per unit
   Bird feeder	200 units at $34 per unit

4. Direct materials used in production:

   In manufacture of BirdHouse:
   Wood	0.80 ft. per unit of product
   Plastic	0.50 lb. per unit of product
   In manufacture of Bird Feeder:
   Wood	1.20 ft. per unit of product
   Plastic	0.75 lb. per unit of product

5. Anticipated cost of purchases and beginning and ending inventory of direct materials:

   Wood	$8.00 per ft.
   Plastic	$1.20 per lb.

6. Direct labor requirements:

   Birdhouse:
   Fabrication Department	0.20 hr. at $15 per hr.
   Assembly Department	0.30 hr. at $12 per hr.
   Bird Feeder:
   Fabrication Department	0.40 hr. at $15 per hr.
   Assembly Department	0.35 hr. at $12 per hr.

7. Estimated factory overhead costs for January:

   Indirect factory wages	$80,000
   Depreciation of plant and equipment	25,000
   Power and light	8,000
   Insurance and property tax	2,000

8. Estimated operating expenses for January:

   Sales salaries expense	$90,000
   Advertising expense	20,000
   Office salaries expense	18,000
   Depreciation expense—office equipment	800
   Telephone expense—selling	500
   Telephone expense—administrative	200
   Travel expense—selling	5,000
   Office supplies expense	250
   Miscellaneous administrative expense	450

9. Estimated other income and expense for January:

   Interest revenue	$300
   Interest expense	224

10. Estimated tax rate: 30%

Required:

1. Prepare a sales budget for January.

2. Prepare a production budget for January.

3. Prepare a direct materials purchases budget for January.

4. Prepare a direct labor cost budget for January.

5. Prepare a factory overhead cost budget for January.

6. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be $29,000, and work in process at the end of January is estimated to be $35,400.

7. Prepare a selling and administrative expenses budget for January.

8. Prepare a budgeted income statement for January.

QualCo manufactures a single product in two departments: Cutting and Assembly. During May, the Cutting department completed a number of units of a product and transferred them to Assembly. Of these transferred units, 37,700 were in process in the Cutting department at the beginning of May and 153,800 were started and completed in May. May’s Cutting department beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of May, 51,500 additional units were in process in the Cutting department and were 70% complete with respect to materials and 20% complete with respect to conversion. The Cutting department had $462,668 of direct materials and $400,029 of conversion cost charged to it during May. Its beginning inventory included $74,275 of direct materials cost and $28,693 of conversion cost.

1. Compute the number of units transferred to Assembly.

2-4. Using the FIFO method, assign May’s costs to the units transferred out and assign costs to its ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.40 per car washed.

The actual operating results for August appear below.

Required:

Prepare a flexible budget performance report that shows the company’s revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

E8-26

ComplexChemComplexChem​,

​Inc., produces chemicals for large biotech companies. It has the following data for manufacturing overhead costs during August

20172017​:

Requirement

Fill in the blanks. Use F for favorable and U for​ unfavorable:

​(If no variance exists leave the dollar value blank. Label the variance as favorable​ (F), unfavorable​ (U) or never a variance​ (N).)

Question 2 - 1,500 words

The Senior Partner of the firm you work for has appointed you to a new role. It is now your responsibility to review upcoming accounting standards and provide a report to the partners on the proposed standard and the opinions of other industry players on the changes.

Firstly, you are required to find a current exposure draft or proposal for a new accounting standard which has been opened for public comments. (These can be found on the websites of most standard-setting organisations, such as the IASB, AASB and FASB. Hint: These websites can be quite difficult to navigate, so as a first step try typing “IASB exposure draft and comment letters”/”FASB exposure draft and comment letters” into Google or other search engine of your choice). Read a sample of the comments from a range of respondents. Select four respondents, ideally from different types of organisations for example, from accounting bodies, industry, companies or corporate bodies. If you are having a problem finding suitable comments letters then contact your subject coordinator.

In your own words, supporting your evaluation with appropriate citations, appropriately referenced in APA 6 style, you are required to include the following information in the report.

• An outline of the major issues covered in the exposure draft (what is the exposure draft introducing or changing?).
• An assessment as to whether (or not) the behaviour of the regulator in introducing the exposure draft can be explained by public interest theory.
• An outline of the views presented in the comments letters which highlights the areas of agreement and disagreement with the exposure draft.
• An application of each of the theories of regulation (public interest, private interest and capture) to the comments letters and a justification as to which theory(ies) best explains the comments.

Please note: you need to attach the comment letters you selected for your report (there is no need to attach the exposure draft

Part 1:

1. Prepare the journal entries for each set of transaction data below.
2. Post the transactions in the ledger.
3. Extract the unadjusted trial balance as of January 31 of this current year.

Part 2:

For this section, prepare the following adjusted journal entries.

1. Record depreciation of $1,000 for equipment.
2. Accrue unpaid wages of $715.
3. Accrue unpaid utilities of $420.

Part 3:

1. Prepare an Adjusted Trial Balance as of January 31 of this year.

Transaction data

Jonathan Swiss owns the Sports Watch Repairs Store. He provides the transactions relating to the month of January this year.

January 2          Invested $10,000 cash as well as providing watch repair equipment with a valuation of $4,800 (Hint: Treat watch repair equipment as part of capital.)

January 4             Paid first month's rent of $900 cash

January 6             Received $2,500 cash for watch repairs

January 8             Purchased supplies on account from Sears for $500

January 9             Repaired a vintage watch on account for $1,500

January 9             Paid $575 cash for wages

January 12           Purchased watch repair equipment for $1,200 cash

January 13           Received $5,500 cash from watch repairs

January 16           Purchased equipment on account from Sears for $1,000

January 18           Paid $520 cash for advertising expense

January 20           Withdrew $750 cash for personal expenses

January 22           Received $950 cash on account for work done on January 9

January 23           Paid $475 cash for wages

January 26           Received $7,000 cash from watch repairs

January 27           Paid $850 cash on account for the January 16 transactions

January 30           Received $480 cash from repairs previously done on an antique watch

Thank you.

Dublin Chips is a manufacturer of prototype chips based in​ Buffalo, New York.

Next​ year, in 2018​, Dublin Chips expects to deliver 615 prototype chips at an average price of $95,000. Dublin ​Chips' marketing vice president forecasts growth of 65 prototype chips per year through 2024.

That​ is, demand will be 615 in 2018​, 680 in 2019​, 745 in 2020​, and so on. The plant cannot produce more than 585 prototype chips annually. To meet future​ demand, Dublin Chips must either modernize the plant or replace it. The old equipment is fully depreciated and can be sold for $4,200,000 if the plant is replaced. If the plant is​ modernized, the costs to modernize it are to be capitalized and depreciated over the useful life of the updated plant. The old equipment is retained as part of the modernize alternative.

The following data on the two options are​ available:

Dublin Chips uses​ straight-line depreciation, assuming zero terminal disposal value. For​ simplicity, we assume no change in prices or costs in future years. The investment will be made at the beginning of 2018​, and all transactions thereafter occur on the last day of the year. Dublin ​Chips' required rate of return is 14​%. There is no difference between the modernize and replace alternatives in terms of required working capital. Dublin Chips pays a 35​% tax rate on all income. Proceeds from sales of equipment above book value are taxed at the same 35​% rate.

​Let's begin with the modernize alternative. Start by computing the present value of the​after-tax cash flows from​ operations, then calculate the present value of the​ after-tax cash savings from depreciation and the terminal disposal​ value, and​ finally, determine the total net present value​ (NPV) of the investment for the modernize alternative.

What is the difference between grease payment and bribery? Is grease payment legal per FCPA and per the law of all other countries?

Maher Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $ 157 Units in beginning inventory 0 Units produced 3,710 Units sold 3,490 Units in ending inventory 220 Variable costs per unit: Direct materials $ 47 Direct labor $ 50 Variable manufacturing overhead $ 9 Variable selling and administrative expense $ 11 Fixed costs: Fixed manufacturing overhead $ 118,720 Fixed selling and administrative $ 10,470 Required: a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing? c. Prepare a contribution format income statement for the month using variable costing. d. Prepare an income statement for the month using absorption costing. e. Reconcile the variable costing and absorption costing net operating incomes for the month.