Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Beech Corporation
Balance Sheet
June 30
Assets
Cash	$	84,000
Accounts receivable		144,000
Inventory		63,750
Plant and equipment, net of depreciation		223,000
Total assets	$	514,750
Liabilities and Stockholders’ Equity
Accounts payable	$	84,000
Common stock		349,000
Retained earnings		81,750
Total liabilities and stockholders’ equity	$	514,750

Beech’s managers have made the following additional assumptions and estimates:

1. Estimated sales for July, August, September, and October will be $340,000, $360,000, $350,000, and $370,000, respectively.

2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

3. Each month’s ending inventory must equal 25% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

4. Monthly selling and administrative expenses are always $44,000. Each month $6,000 of this total amount is depreciation expense and the remaining $38,000 relates to expenses that are paid in the month they are incurred.

5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30.

3. Prepare an income statement for the quarter ended September 30.

4. Prepare a balance sheet as of September 30.

Complete this question by entering your answers in the tabs below.

Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

	Schedule of Expected Cash Collections Month July August September Quarter $0 From July sales 0 From August sales 0 From September sales 0 Total cash collections $0 $0 $0 $0

Req 2A

Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

	Merchandise Purchases Budget July August September Quarter Total needs Required purchases

Req 2B

Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30.

	Schedule of Cash Disbursements for Purchases July August September Quarter $0 From July purchases 0 From August purchases 0 From September purchases 0 Total cash disbursements $0 $0 $0 $0

Req 3

Prepare an income statement for the quarter ended September 30.

	Beech Corporation Income Statement For the Quarter Ended September 30 0 0 $0

Req 4

Prepare a balance sheet as of September 30.

	Beech Corporation Balance Sheet September 30 Assets Total assets $0 Liabilities and Stockholders' Equity Total liabilities and stockholders' equity $0

QUESTION 1 BANK RECONCILIATION The information given below was extracted from the accounting records of Mika Stores. REQUIRED 1.1 Complete the Cash Receipts Journal and Cash Payments Journal of Mika Stores for March 2018 after taking the information provided into account. Use only the columns illustrated below. In the details column write down the name of the contra account e.g. Rent income. (11) Cash Receipts Journal Details Bank Total b/f Cash Payments Journal Details Bank Total b/f MODULE FUNDAMENTALS OF FINANCIAL ACCOUNTING TOTAL MARKS 60 MARKS 1.2 Post to the Bank account in the General ledger of Mika Stores. Balance the account. (3) 1.3 Prepare the Bank Reconciliation Statement as at 31 March 2018. Use the following format: (6) Bank Reconciliation Statement as at 31 March 2018 Debit Credit INFORMATION R 1. The bank column of each of the cash journals showed the following totals before the March 2018 bank statement was received: Cash Receipts Journal Cash Payments Journal 300 000 350 000 2. A comparison of the cash journals of Mika Stores for March 2018 and the Bank Reconciliation Statement for February 2018 with the bank statement from Key Bank for March 2018 revealed the following differences: 2.1 Entries that appeared on the bank statement but not in the cash journals: R 2.1.1 A cheque previously received from the lessee for rent was dishonoured because of insufficient funds. 6 800 2.1.2 A debit order in favour of Telkom for the personal telephone account of the proprietor. 3 800 2.1.3 Charges levied by Key Bank: Service fees Cash deposit fee Interest on overdraft 1 500 1 000 100 2.1.4 A deposit by a debtor to settle his account of R6 200 6 000 2.1.5 A deposit by Key Bank for a successful loan application 50 000 2.2 Entries in the cash journals that did not appear in the bank statement: R 2.2.1 A deposit made on 31 March 2018 102 400 2.2.2 The following cheque issued during March 2018: Cheque no. 520 8 700 3. Additional information R 3.1 Cheque no. 490 (dated 23 February 2018) which appeared in the Bank Reconciliation Statement for February 2018 did not appear in the bank statement for March 2018. 16 140 3.2 Cheque no. 460 issued to Rix Soccer Club during January 2018 as a donation must be cancelled as the club no longer exists. 4 800 3.3 A deposit made by Rika Stores was erroneously reflected on the bank statement of Mika Stores. 4 000 3.4 An entry was made in the Cash Payments Journal for a cheque to a creditor MS Suppliers for R10 000. The bank statement reflected the correct amount of the cheque, R11 000. 3.5 The bank account in the ledger of Mika Stores reflected a debit balance on 01 March 2018. 38 800 3.6 The bank statement showed an unfavourable balance on 31 March 2018. ?

A partner of your accountancy firm has requested you to prepare detailed notes on the impact of redundancy pay. During this brief meeting with you, the partner said the following, “When the employment ofan employee ends prematurely (i.e. before reaching the retirement age or by resignation ofthe employee), it is called termination of the employment. Ordinarily this type of termination is initiated by the employer, therefore, breaching the employment contract between themselves and the employee. As a result, employers usually offer the employee some benefits at the time of termination to settle the breach of employment contract.”

The partner required you prepare a note that discusses the taxation of various benefits provided to the employees when their employment contract is terminated. Specifically, the following benefits must be separately discussed among any other benefits that you may come across in your research.

Gardening leave

Payment for training and skill development of employee

Past due salary & bonus

Pay in lieu of unutilised holidays

Payment in lieu of notice (PILON)

Statutory redundancy pay up to £30,000

Statutory redundancy pay above £30,000T

he discussion should also include how to determine whether benefits are being paid as ‘services rendered under employment’ or ‘as compensation for breach of the employment contract’.

References to the relevant sections of the legislation (section 62 & sections 401-416 ITEPA 2003) will enable you to secure higher marks.

REQUIRED:Present your detailed notes in a report format.

Your summary shouldbe detailed enough to be a basis for the partner to explain the matter to his clients. It may contain examples if that will improve the clarity of your report

Nautical Creations is one of the largest producers of miniature ships in a bottle. An especially complex part of one of the ships needs special production equipment that is not useful for other products. The company purchased this equipment early in 2015 for $200,000. It is now early in 2019, and the manager of the Model Ships Division, Jeri Finley, is thinking about purchasing new equipment to make this part. The current equipment will last for four more years with zero disposal value at that time. It can be sold immediately for $40,000. The following are last year's total manufacturing costs, when production was 8,200 ships:

Direct materials	$31,570
Direct labor	31,160
Variable overhead	13,530
Fixed overhead	37,720
Total	$113,980

The cost of the new equipment is $140,000. It has a four year useful life with an estimated disposal value at that time of $50,000. The sales representative selling the new equipment stated, "The new equipment will allow direct labor and variable overhead combined to be reduced by a total of $2.25 per unit." Finley thinks this estimate is accurate, but also knows that a higher quality of direct material will be necessary with the new equipment, costing $0.15 more per unit. Fixed overhead costs will increase by $4,100.

Finley expects production to be 8,650 ships in each of the next four years. Assume a discount rate of 5%.

REQUIRED

1. What is the difference in net present values if Nautical Creations buys the new equipment instead of keeping their current equipment?

Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own division’s return on investment (ROI). Assume the following information relative to the two divisions:

	Case
	1		2		3			4
Alpha Division:
Capacity in units		56,000		318,000		102,000			208,000
Number of units now being sold to outside customers		56,000		318,000		79,000			208,000
Selling price per unit to outside customers	$	96	$	41	$	64		$	46
Variable costs per unit	$	59	$	20	$	40		$	32
Fixed costs per unit (based on capacity)	$	23	$	10	$	21		$	8
Beta Division:
Number of units needed annually		10,000		68,000		18,000			56,000
Purchase price now being paid to an outside supplier	$	87	$	40	$	64	*		—

*Before any purchase discount.

Managers are free to decide if they will participate in any internal transfers. All transfer prices are negotiated.

Required:

1. Refer to case 1 shown above. Alpha Division can avoid $6 per unit in commissions on any sales to Beta Division.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Will the managers probably agree to a transfer?

2. Refer to case 2 shown above. A study indicates that Alpha Division can avoid $5 per unit in shipping costs on any sales to Beta Division.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Would you expect any disagreement between the two divisional managers over what the exact transfer price should be?

d. Assume Alpha Division offers to sell 68,000 units to Beta Division for $39 per unit and that Beta Division refuses this price. What will be the loss in potential profits for the company as a whole?

3. Refer to case 3 shown above. Assume that Beta Division is now receiving an 6% price discount from the outside supplier.

a. What is the lowest acceptable transfer price from the perspective of the Alpha Division?

b. What is the highest acceptable transfer price from the perspective of the Beta Division?

c. What is the range of acceptable transfer prices (if any) between the two divisions? Will the managers probably agree to a transfer?

d. Assume Beta Division offers to purchase 18,000 units from Alpha Division at $55.16 per unit. If Alpha Division accepts this price, would you expect its ROI to increase, decrease, or remain unchanged?

4. Refer to case 4 shown above. Assume that Beta Division wants Alpha Division to provide it with 56,000 units of a different product from the one Alpha Division is producing now. The new product would require $27 per unit in variable costs and would require that Alpha Division cut back production of its present product by 28,000 units annually. What is the lowest acceptable transfer price from Alpha Division’s perspective?

Garrison, Inc. purchased an asset for $63,282 and negotiated a non-cancelable lease with Jasper Corporation on January 1, 20X1. Jasper will lease the asset from Garrison over a 10-year lease period with annual payments beginning January 1, 20X1. The expected economic life of the asset is 12 years. Title does not transfer to the lessee, Jasper, and there is no purchase option or guaranteed residual value. Assume Garrison’s implicit rate in the lease and Jasper’s incremental borrowing rate are both 12%.

Required:

1. Determine the annual lease payments that Garrison will charge Jasper. Round to the nearest $.
2. What kind of lease is this for Garrison and for Jasper? Be sure to tell me what lease criteria are met and why.
3. Prepare an amortization schedule for the first two years of the lease.
4. Prepare the journal entries on January 1, 20X1, December 31, 20X1 and January 1, 20X2 and December 31, 20X2 on:

1. Garrison’s books
2. Jasper’s books

Remember all responses must be thorough... complete and proper sentences are expected!

1. What human relations skills do you think would be helpful to you in a new job (accountant)?

2. What conclusions can you draw about the importance to you and to your employer in continuing to develop your human relations skills?

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses $ 214,000 Purchases of raw materials $ 261,000 Direct labor ? Administrative expenses $ 155,000 Manufacturing overhead applied to work in process $ 374,000 Actual manufacturing overhead cost $ 358,000 Inventory balances at the beginning and end of the year were as follows: Beginning of Year End of Year Raw materials $ 60,000 $ 31,000 Work in process ? $ 33,000 Finished goods $ 34,000 ? The total manufacturing costs for the year were $685,000; the cost of goods available for sale totaled $730,000; the unadjusted cost of goods sold totaled $670,000; and the net operating income was $32,000. The company’s underapplied or overapplied overhead is closed to Cost of Goods Sold. Required: Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 6%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $106 to purchase these supplies. For years, Worley believed that the 6% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown below: Activity Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries) $ 348,000 4,000 deliveries Manual order processing (Number of manual orders) 380,000 5,000 orders Electronic order processing (Number of electronic orders) 252,000 14,000 orders Line item picking (Number of line items picked) 742,500 450,000 line items Other organization-sustaining costs (None) 630,000 Total selling and administrative expenses $ 2,352,500 Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (both hospitals purchased a total quantity of medical supplies that had cost Worley $35,000 to buy from its manufacturers): Activity Activity Measure University Memorial Number of deliveries 19 29 Number of manual orders 0 41 Number of electronic orders 16 0 Number of line items picked 180 230 Required: 1. Compute the total revenue that Worley would receive from University and Memorial. 2. Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.) 3. Compute the total activity costs that would be assigned to University and Memorial. (Round your intermediate calculations and final answers to 2 decimal places.) 4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $35,000 cost of goods sold that Worley incurred serving each hospital.) (Loss amount should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.)

Many accounting and accounting-related professionals are skilled in financial analysis, but most are not skilled in manufacturing. This is especially the case for process manufacturing environments (for example, a bottling plant or chemical factory). To provide professional accounting and financial ¬services, one must understand the industry, product, and processes. We have an ethical responsibility to develop this understanding before offering services to clients in these areas.

Required: Write a one-page action plan, in memorandum format, discussing how you would obtain an understanding of key business processes of a company that hires you to provide financial services. The memorandum should specify an industry, a product, and one selected process and should draw on at least one reference, such as a professional journal or industry magazine.

Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):

		2018		2017
Sales	$	4,500,000	$	3,600,000
Cost of goods sold		2,880,000		2,020,000
Administrative expenses		820,000		695,000
Selling expenses		380,000		332,000
Interest revenue		152,000		142,000
Interest expense		204,000		204,000
Loss on sale of assets of discontinued component		58,000		—

On July 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2018, for $58,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:

	1/1/18-9/30/18						2017
Sales		$	420,000				$	520,000
Cost of goods sold			(300,000	)				(332,000	)
Administrative expenses			(52,000	)				(42,000	)
Selling expenses			(22,000	)				(32,000	)
Operating income before taxes		$	46,000				$	114,000

In addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts:

1. A fire caused $52,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event.
2. Inventory that had cost $42,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $5,000.
3. Income taxes have not yet been recorded.

Required:
Prepare a multiple-step income statement for the Reed Company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 300,000 shares of common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)
  

REED COMPANY Comparative Income Statements For the Years Ended December 31 2018 2017 Sales revenue Cost of goods sold Gross profit (loss) 0 0 Operating expenses: Administrative Selling Loss from fire damage Loss from write-down of obsolete inventory Total operating expenses 0 0 Operating income 0 0 Other income (expense): Interest revenue Interest expense Total other expenses (net) 0 0 Income from continuing operations before income taxes Income tax expense Income from continuing operations 0 0 Discontinued operations: Income (loss) from operations of discontinued component Income tax benefit (expense) Income (loss) on discontinued operations 0 0 Net income $0 $0 Earnings per share: Income from continuing operations Discontinued operations Net income

Accounts Debit Credit Cash 26700 Accounts Receivable 49400 Allowance for Uncollectible accounts 5800 Inventory 21600 Land 62000 Equipment 23000 Accumulated Depreciation 3100 Accounts payable 30,100 Notes payable(6%,due april 1, 2019) 66,000 Common Stock 51,000 Retained Earnings 26,700 Totals 182,700 182,700

January 2. Sold gift cards totaling $11,200. The cards are redeemable for merchandise within one year of the purchase date.
January 6. Purchase additional inventory on account, $163,000.
January 15. Firework sales for the first half of the month total $151,000. All of these sales are on account. The cost of the units sold is $81,800.
January 23. Receive $127,000 from customers on accounts receivable.
January 25. Pay $106,000 to inventory suppliers on accounts payable.
January 28. Write off accounts receivable as uncollectible, $6,400.
January 30. Firework sales for the second half of the month total $159,000. Sales include $13,000 for cash and $146,000 on account. The cost of the units sold is $87,500.
January 31. Pay cash for monthly salaries, $53,600.

1)Record Each Transaction losted above

1. Depreciation on the equipment for the month of January is calculated using the straight-line method. At the time the equipment was purchased, the company estimated a residual value of $5,000 and a two-year service life.
2. The company estimates future uncollectible accounts. The company determines $27,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 4% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
3. Accrued interest expense on notes payable for January.
4. Accrued income taxes at the end of January are $14,600.
5. By the end of January, $4,600 of the gift cards sold on January 2 have been redeemed.
  
2. Record the adjusting entries on January 31 for the above transactions.

3. Prepare an adjusted trial balance as of January 31, 2018.

4. Prepare a multiple-step income statement for the period ended January 31, 2018.
  5. Prepare a classified balance sheet as of January 31, 2018.

6. Record closing entries.

7a-1. Calculate the current ratio at the end of January.

3. Prepare an adjusted trial balance as of January 31, 2018.
a-2. If the average current ratio for the industry is 1.80, is ACME Fireworks more or less liquid than the industry average?

b-1. Calculate the acid-test ratio at the end of January.

b-2. If the average acid-test ratio for the industry is 1.50, is ACME Fireworks more or less likely to have difficulty paying its currently maturing debts (compared to the industry average)?

c-1. Assume the notes payable were due on April 1, 2018, rather than April 1, 2019. Calculate the revised current ratio at the end of January.

c-2. Indicate whether the revised ratio would increase, decrease, or remain unchanged.

I DESPERATELY NEED QUESTIONS 1-6 ANSWERED BEFORE 11:59! PLEASE HELP!!!

Vitex, Inc. manufactures a popular consumer product and it has provided the following data excerpts from its standard cost system:

Inputs	(1) Standard Quantity or Hours		(2) Standard Price or Rate			Standard Cost (1) × (2)
Direct materials	2.10	pounds	$	16.50	per pound	$	34.65
Direct labor	1.00	hours	$	15.40	per hour	$	15.40
Variable manufacturing overhead	1.00	hours	$	9.40	per hour	$	9.40
Total standard cost per unit						$	59.45

	Total		Variances Reported
	Standard Cost*		Price or Rate			Quantity or Efficiency
Direct materials	$	623,700	$	11,542	F	$	33,000	U
Direct labor	$	277,200	$	3,800	U	$	15,400	U
Variable manufacturing overhead	$	169,200	$	4,900	F	$	?†	U

*Applied to Work in Process during the period.

The company's manufacturing overhead cost is applied to production on the basis of direct labor-hours. All of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored.

Required:

1. How many units were produced last period?

2. How many pounds of direct material were purchased and used in production?

3. What was the actual cost per pound of material? (Round your answer to 2 decimal places.)

4. How many actual direct labor-hours were worked during the period?

5. What was the actual rate paid per direct labor-hour? (Round your answer to 2 decimal places.)

6. How much actual variable manufacturing overhead cost was incurred during the period?

The manager of a book store at City College purchases T-shirts from a vendor at a cost of $25 per shirt. The bookstore incurs an ordering cost of $100 per order, and the annual holding cost is 18% of the purchase cost of a T-shirt. The store manager estimates that the demand for T-shirts for the upcoming year will be 1,800 shirts. The store operates 50 weeks per year, five days per week.

The vendor is willing to offer quantity discounts to the bookstore according to the following schedule:

Order Quantity	Discount
0 to 499	0%
500 to 799	2%
700 to 999	3%
1,000 +	4%

a. Determine the optimal order quantity and the total annual inventory cost.

4.

Vertical Analysis of Income Statement

For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $23,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:

Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1
	20Y2		20Y1
Sales	$804,000		$691,000
Cost of goods sold	393,960		380,050
Gross profit	$410,040		$310,950
Selling expenses	$160,800		$131,290
Administrative expenses	88,440		89,830
Total operating expenses	$249,240		$221,120
Income from operations	$160,800		$89,830
Other income	48,240		41,460
Income before income tax	$209,040		$131,290
Income tax expense	80,400		55,280
Net income	$128,640		$76,010

Required:

1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Enter percentages as whole numbers. Enter all amounts as positive numbers.

Tri-Comic Company
Comparative Income Statement
For the Years Ended December 31, 20Y2 and 20Y1
	20Y2 Amount	20Y2 Percent	20Y1 Amount	20Y1 Percent
Sales	$804,000	%	$691,000	%
Cost of goods sold	393,960	%	380,050	%
Gross profit	$410,040	%	$310,950	%
Selling expenses	160,800	%	131,290	%
Administrative expenses	88,440	%	89,830	%
Total operating expenses	$249,240	%	$221,120	%
Income from operations	$160,800	%	$89,830	%
Other income	48,240	%	41,460	%
Income before income tax	$209,040	%	$131,290	%
Income tax expense	80,400	%	55,280	%
Net income	$128,640	%	$76,010	%

2. The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses)   as a percentage of sales. As a result, net income as a percentage of sales  . The sales promotion campaign appears to have been  . While selling expenses as a percent of sales   slightly, the   cost was more than made up for by   sales.