Greenwood Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Activity cost pool Activity measure Estimated overhead cost Expected activity

machining Machine Hours $228,000 12,000MHs

machine setup Number of set ups $40,000 100 setups

production design Number of products $74,000 2 products

general factory Direct labor hours $288,000 12,000DLHs

Activity measure Product Y Product Z

Machining 7,000 5,000

Number of setups 40 60

Number of products 1 1

Direct labor hours 7,000 5,000

Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?

total overhead cost Y%- Z%-

Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?

Machining costs Y%- Z%-

Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?

Machine setups Y%- Z%-

Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

Product Design Y%- Z%-

Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?

general factory cost Y%- Z%-

Intermediate, Inc. enters into a lease agreement with Irving, LLC to lease an automobile with a fair value of $75,000 under a 5-year lease on December 20, 2018. The lease commences on January 1, 2019, and Incentive will return the automobile to Bumble on December 31, 2023. The automobile has an estimated useful life of 7 years. Incentive made a lease payment of $10,000 on December 20, 2018. In addition, the lease agreement stipulates annual payments of $10,000, due on January 1 of 2019, 2020, 2021, 2022, and 2023. The implicit rate of the lease is 7% and is known by Intermediate, and Intermediate incurs initial direct costs of $2,000. Required: 1. Determine the type of lease to Intermediate and Irving. 2. Complete any amortization schedule needed. 3. Prepare journal entries needed for the five-year lease for both lessor and lessee.

What information is contained in a bond indenture? What purpose does it serve?

Read the Case: Lehman Brothers: Subprime Accounting? and respond to questions 4 and 7. 4. Assume that Lehman's accounting for the Repo 105 transactions met the requirements of GAAP. However, also assume that the entire purpose of the transaction was to intentionally manage the amount of debt shown on the balance sheet. Do you agree with Lehman Brothers and EY that the financial statements are presented fairly in this situation? 7. EY did not modify the 2007 audit opinion of Lehman Brothers for going-concern uncertainty, yet the entity filed for bankruptcy less than a year later. In your opinion, is this indicative of audit failure? Why or why not?

The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 65 on December 31, 20Y2.

Required:

Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year.

Maryville Cleaners has the opportunity to invest in one of two dry cleaning machines. Machine A has a four-year expected life and a cost of $30,000. It will cost an additional $6,500 to have the machine delivered and installed, and the expected residual value at the end of four years is $4,000. Machine B has a four-year expected life and a cost of $55,000. It will cost an additional $7,000 to have machine delivered and installed, and the expected residual value at the end of four years is $6,000. The company has a required rate of return of 14 percent. Additional cash flows related to the machines are as follows:

Machine A

Machine B

Required

1. Compute the payback period for each of the two machines.
2. Compute the net present value for each of the two machines.
3. Determine the internal rate of return for each of the two machines.
4. Which machine purchase do you recommend that the company pursue based on the results of your calculations?

Required:

Transaction takes place when one party exchanges or promise to exchange good or service with another party for money. Identify the difference between revenue expenditure and capital expenditure and provide the examples

1. Going concern is a basic underlying assumption in accounting. Explain why the going concern basis is important in understanding financial statement; Support your answer with evidences

Four drive theory is conceptually different from the Maslow’s needs hierarchy (as well as ERG theory) in
several ways. Describe these differences. At the same time, needs are based on drives, so the four drives
should parallel the seven needs that Maslow identified (five in the hierarchy and two additional needs).
Map Maslow’s needs onto the four drives in four-drive theory.

1. There are different basis approaches to valuing inventory that are allowed by GAAP, explain the principal’s methods of valuation required by IAS2 inventories, provide some evidence which could be applied in annual reports

1. Management makes many judgements and estimates in preparing accounts, some of which will have a significant effect on the reported results and financial position. Give examples of estimates and assumptions could be reported in consolidated financial statements.

The receivables allowance reduces the reported trade receivables balance to reflect uncertainties over collectability. Explain the concept of allowances for irrecoverable receivable and describes the allowances for receivables information which could be given in annual report.

3-IAS 16 Property, Plant and Equipment sets out the requirements for the recognition of the assets, the determination of their carrying amounts, and the depreciation charges and impairment losses in relation to them. Discuss the importance of two models under IAS 16 PPE and Identify the depreciation methods