Describe (150 to 180 words) how the assigning of numbers in the Chart of Accounts can assist in identifying accounts particularly with regard to organisations with many locations.

Sydney Steelworks is engaged in a costing dispute with Public Works Canada. The company has a cost-plus contract to supply specialty steel that has no evident market price. The contract calls for Sydney to be reimbursed for its manufacturing costs plus 35%. An independent shipper hauls the steel from the Sydney plant to the various construction sites.

The variable cost of manufacturing the steel is $200 per ton, which is not in dispute. The issue concerns the allocation of fixed manufacturing costs to this product. The current annual fixed manufacturing cost at Sydney is $300,000,000. The plant is operating at 40% of practical capacity, which is measured in tons. Sydney computes the fixed manufacturing overhead rate by dividing the fixed manufacturing cost by the planned level of operations. This has resulted in charging this contract a rate of $120 per ton for fixed manufacturing costs.

Cost analysts at Public Works have objected, citing industry evidence that, on average, steel companies are using 70% of their practical capacity.

Required:

1. Compute the contract price per ton using Sydney’s approach.
2. Compute the contract price per ton if Sydney uses average industry capacity to compute the fixed manufacturing overhead rate.
3. If you were hired to arbitrate this dispute, how would you resolve it?
4. If you were a Public Works Canada auditor, what would you recommend based on this experience?

Pina Colada Corp. purchased equipment on January 1, 2021 for $148,500. It is estimated that the equipment will have a $8,250 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 165,000 units over its 5-year life.

Answer the following independent questions.

Compute the amount of depreciation expense for the year ended December 31, 2021 using the straight-line method of depreciation.

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If 16,000 units of product are produced in 2021 and 24,000 units are produced in 2022, what is the book value of the equipment at December 31, 2022? The company uses the units-of-activity depreciation method.

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If the company uses the double-declining-balance method of depreciation, what is the balance of the Accumulated Depreciation—Equipment account at December 31, 2023?

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There was only one current agency conflict that I found and that was the improperly handling of customers’ accounts by the San Francisco bank Wells Fargo. In this case, the employees of this bank opened accounts and transferred funds that were not wanted by the customers. In doing so the employees were rewarded with compensation due to selling products and opening accounts (Competitive Enterprise Institute). Possible solutions to resolving problems within the agency are to audit any work done by management, investors and analysts need to monitor anyone that is performing poorly, get rid of upper management that is not performing properly, and vote for a new board of directors if shareholders are not satisfied with results. If managers focus on the shareholders interest rather than their own then most of these problems can be solved.

On July 1, Year 1, Danzer Industries Inc. issued $68,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $54,404,080. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Required:

For all journal entries: If an amount box does not require an entry, leave it blank.

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.

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2. Journalize the entries to record the following:

a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.)

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b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.)

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3. Determine the total interest expense for Year 1.
$

During the year ended December 31, 2019, Parent Company (the parent) sold merchandise to Subsidiary Corporation (a 90%-owned subsidiary) for a price of $32,340, at a markup of 32% of cost. Subsidiary sold merchandise acquired from Parent to outsider customers for $38,500 during 2019. Included in Subsidiary’s January 1, 2019, inventories were goods acquired from Parent at a billed price of $3,036 and included in Subsidiary’s December 31, 2019, inventories were goods acquired from Parent at a billed price of $2,310.

(i)         Prepare the working paper eliminating entries (in journal entry format) related to the intercompany sale of merchandise for the year ended December 31, 2019.

(ii)        Show how the working paper eliminating entry in part (i) adjusts cost of goods sold and ending inventory to the correct consolidated balances.

(iii)       How (increase or decrease and the amount) is Parent’s 2019 equity in income of Subsidiary affected by the intercompany sale of merchandise?

Equipment was acquired at the beginning of the year at a cost of $35,000. The equipment was depreciated using the A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.double-declining-balance method based on an estimated useful life of ten years and an estimated The estimated value of a fixed asset at the end of its useful life.residual value of $680.

a. What was the The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.depreciation for the first year?
$

b. Assuming the equipment was sold at the end of year 2 for $8,090, determine the gain or loss on the sale of the equipment.
$ Loss

• Gain
• Loss

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Book value is the asset cost minus accumulated depreciation. In the first year, the balance in the accumulated depreciation account is zero.

Compare the book value to the sale price. If the book value is more than the sale price, the equipment was sold for a loss. If the book value is less than the sale price, the equipment was sold for a gain.

Learning Objective 3.

c. Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

On June 30, 2018, Georgia-Atlantic, Inc., leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $403,067 over a five-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Georgia-Atlantic’s incremental borrowing rate is 8%, the same rate IC used to calculate lease payment amounts. IC purchased the equipment from Builders, Inc.. at a cost of $3.4 million. (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.)

Required: 1. What pretax amounts related to the lease would IC report in its balance sheet at December 31, 2018?

2. What pretax amounts related to the lease would IC report in its income statement for the year ended December 31, 2018?

1.

These items are taken from the financial statements of Grouper Corporation for 2022.

(a1)

Prepare an income statement for the year ended December 31, 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

2.

You are provided with the following information for Ayayai Enterprises, effective as of its April 30, 2022, year-end.

(a1)

Prepare an income statement for Ayayai Enterprises for the year ended April 30, 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

question: Why is retained earnings on December 31, 2018, equal to $80,000 in all three cases despite the reporting of different amounts of net income each year?

Is it A,B, or C?

A: Net income over sufficiently long time periods equals cash inflows minus cash outflows. Walmart acquired the land in 2016 for $100,000 and sold it for $180,000 in 2018. Thus, the total effect on net income through the realization of the increase in the va

B: Net income over sufficiently long time periods equals cash inflows plus cash outflows. Walmart acquired the land in 2016 for $100,000 and sold it for $180,000 in 2018. Thus, the total effect on net income through the realization of the increase in the val

C: Net income over sufficiently long time periods equals cash inflows minus cash outflows. Walmart acquired the land in 2016 for $100,000 and sold it for $180,000 in 2018. Thus, the total effect on net income through the realization of the increase in the va

The December 31, 2019, balance sheet for Franklin Corporation is presented here. These are the only accounts on Franklin’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:

Required

1. Compute the balance in trade accounts payable as of December 31, 2019.
2. Compute the balance in retained earnings as of December 31, 2019.
3. Compute the balance in the inventory account as of December 31, 2019. (Assume that the level of inventory did not change from last year.)

(For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Income Statement

Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietro predicts that 53,700 units will be produced, with the following total costs:

Next year, Pietro expects to purchase $127,500 of direct materials. Projected beginning and ending inventories for direct materials and work in process are as follows:

Next year, Pietro expects to produce 53,700 units and sell 53,000 units at a price of $17.00 each. Beginning inventory of finished goods is $42,500, and ending inventory of finished goods is expected to be $34,000. Total selling expense is projected at $29,500, and total administrative expense is projected at $112,500.

Required:

1. Prepare an income statement in good form. Round the percent to four decimal places before converting to a percentage. For example, .88349 would be rounded to .8835 and entered as 88.35.

2. What if the cost of goods sold percentage for the past few years was 50.17 percent? Management's reaction might be:

1. The debits to Work in Process—Roasting Department for St. Arbucks Coffee Company for July 2016, together with information concerning production, are as follows:

   Work in process, July 1, 600 pounds, 40% completed				$1,944*
   	*Direct materials (600 X $2.8)	$1,680
   	Conversion (600 X 40% X $1.1)	$264
   		$1,944
   Coffee beans added during July, 19,000 pounds				52,250
   Conversion costs during July				22,512
   Work in process, July 31, 1,000 pounds, 40% completed				?
   Goods finished during July, 18,600 pounds				?

   All direct materials are placed in process at the beginning of production.

   a. Prepare a cost of production report, presenting the following computations:

   1. Direct materials and conversion equivalent units of production for July.
   2. Direct materials and conversion costs per equivalent unit for July.
   3. Cost of goods finished during July.
   4. Cost of work in process at July 31, 2016.

   If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

   St. Arbucks Coffee Company
   Cost of Production Report-Roasting Department
   For the Month Ended July 31, 2016
   Unit Information
   Units charged to production:
   Inventory in process, July 1
   Received from materials storeroom
   Total units accounted for by the Roasting Department
   Units to be assigned costs:
   		Equivalent Units
   	Whole Units	Direct Materials (1)	Conversion (1)
   Inventory in process, July 1
   Started and completed in July
   Transferred to finished goods in July
   Inventory in process, July 31
   Total units to be assigned costs
   Cost Information
   Costs per equivalent unit:
   		Direct Materials	Conversion
   Total costs for July in Roasting Department		$	$
   Total equivalent units
   Cost per equivalent unit (2)		$	$
   Costs assigned to production:
   	Direct Materials	Conversion	Total
   Inventory in process, July 1			$
   Costs incurred in July
   Total costs accounted for by the Roasting Department			$
   Cost allocated to completed and partially completed units:
   Inventory in process, July 1 balance			$
   To complete inventory in process, July 1	$	$
   Cost of completed July 1 work in process			$
   Started and completed in July
   Transferred to finished goods in July (3)			$
   Inventory in process, July 31 (4)
   Total costs assigned by the Roasting Department			$

   b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (June). If required, round your answers to the nearest cent.

   	Increase or Decrease	Amount
   Change in direct materials cost per equivalent unit		$
   Change in conversion cost per equivalent unit		$

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1. The debits to Work in Process—Roasting Department for St. Arbucks Coffee Company for July 2016, together with information concerning production, are as follows:

   Work in process, July 1, 600 pounds, 40% completed				$1,944*
   	*Direct materials (600 X $2.8)	$1,680
   	Conversion (600 X 40% X $1.1)	$264
   		$1,944
   Coffee beans added during July, 19,000 pounds				52,250
   Conversion costs during July				22,512
   Work in process, July 31, 1,000 pounds, 40% completed				?
   Goods finished during July, 18,600 pounds				?

   All direct materials are placed in process at the beginning of production.

   a. Prepare a cost of production report, presenting the following computations:

   1. Direct materials and conversion equivalent units of production for July.
   2. Direct materials and conversion costs per equivalent unit for July.
   3. Cost of goods finished during July.
   4. Cost of work in process at July 31, 2016.

   If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

   St. Arbucks Coffee Company
   Cost of Production Report-Roasting Department
   For the Month Ended July 31, 2016
   Unit Information
   Units charged to production:
   Inventory in process, July 1
   Received from materials storeroom
   Total units accounted for by the Roasting Department
   Units to be assigned costs:
   		Equivalent Units
   	Whole Units	Direct Materials (1)	Conversion (1)
   Inventory in process, July 1
   Started and completed in July
   Transferred to finished goods in July
   Inventory in process, July 31
   Total units to be assigned costs
   Cost Information
   Costs per equivalent unit:
   		Direct Materials	Conversion
   Total costs for July in Roasting Department		$	$
   Total equivalent units
   Cost per equivalent unit (2)		$	$
   Costs assigned to production:
   	Direct Materials	Conversion	Total
   Inventory in process, July 1			$
   Costs incurred in July
   Total costs accounted for by the Roasting Department			$
   Cost allocated to completed and partially completed units:
   Inventory in process, July 1 balance			$
   To complete inventory in process, July 1	$	$
   Cost of completed July 1 work in process			$
   Started and completed in July
   Transferred to finished goods in July (3)			$
   Inventory in process, July 31 (4)
   Total costs assigned by the Roasting Department			$

   b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (June). If required, round your answers to the nearest cent.

   	Increase or Decrease	Amount
   Change in direct materials cost per equivalent unit		$
   Change in conversion cost per equivalent unit		$

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