For your main Discussion post, describe at least two typical adjusting entries a service-type business would need to record to bring account balances up-to-date. For your examples, one of the adjusting entries should be an accrual and another a deferral. You may use similar examples as those in your textbook and you may also research other typical adjusting entries for service-type companies. Be sure to address the following questions:

• What are the purposes of each of your example adjusting entries?
• Why are these adjusting entries required?
• What if the company does not record these adjusting entries? Would financial statements be accurate? Why or why not?
• Should the adjusting entries described be posted to the general ledger before preparing an adjusted trial balance? Why or why not?

Overview: Advances in technology have impacted many facets of the auditing process, from assessing risk and internal control to conducting substantive procedures. These changes both create challenges and offer opportunities for auditing professionals. Prompt: For this short paper, you will use the internet to research the impact of a specific technology on auditing. You will provide a description of the technology, an explanation of its current and potential future impact on auditing, and a suggestion of how auditing and auditors can better adapt to the changes brought about by the technology. Use the resources provided in this module for help choosing and researching a topic. Specifically, the following critical elements must be addressed:  Technology Description: Provide a brief description of the technology you chose.  Impact on Auditing: Provide an explanation of the current impact of the technology on auditing and its potential future impact. Support your analysis with research.  Suggestions for Adapting: Provide suggestions for how auditors can better adapt to the changes brought about by the technology. If the technology you chose creates challenges for the profession, make suggestions for how auditors can adapt to meet these challenges. If the technology offers opportunities for the profession, make suggestions on how auditors can better adapt to take advantage of these opportunities. Support your suggestions with research.

4) Cost per equivalent unit of direct materials and conversion

Problem 1: During the month, EKM Enterprise purchased $100,000 in raw material on account, used $150,000 in direct labor hours, and used $100,000 in direct raw materials. EKM Enterprise applies overhead at a rate of 200% of direct labor. No products were finished during the period. Prepare the necessary journal entries including the purchase of raw materials.

Brent Robertson and his banker were reviewing the quarterly income statements for his consulting business, Robertson and Associates, Inc. The banker was impressed with the growth of sales revenue and net income for the second quarter of this year compared with the second quarter of last year. Brent knew it had been a good quarter, but he didn't think it had been spectacular. Suddenly, Brent realized that he failed to close out the revenue and expense accounts for the prior quarter, which ended in March. Because those temporary accounts were not closed out, their balances were included in the second quarter amounts for the current year. Brent then realized that the banker had the financial statements but not the general ledger or any trial bal- ances. Thus, the banker would not be able to see that the accounting cycle from the first quarter was not properly closed and that this failure was creating a misstated income statement for the second quarter of the current year. The banker then commented that the business seemed to be performing so well that he would approve a line of credit for the business. Brent decided to not say anything because he did not want to lose the line of credit. Besides, he thought, it really did not matter that the income statement was misstated because his business would be sure to repay any amounts borrowed.

Should Brent have informed the banker of the mistake made? should he have redone the second quarter's income statement ? was Brent's failure to close the prior quarter's revenue and expense accounts unethical? Does the fact that the business will repay the loan matter?

Laker Company reported the following January purchases and sales data for its only product.

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 285 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 10 are from beginning inventory.

Required:

1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,700, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

You have been asked to assess the organisation’s compliance with statutory requirements. This is outside of your scope of operation. The requirements are that you examine current policies and practice, assess compliance and make recommendations for improvement. With whom might you consult and what information/ assistance might you need? 60–100 words

(Please note: Australian Tax)

partial income statements for Sherwood company summarized for a four year period show the following

2015    2016 2017 2018

net sales    2,200.000    2,600.000    2,700.000 3,200.000

cost of goods sold    1,496.000    1,742.000    1,863.000 2,176.000

gross profit 704.000 858.000 837.000 1,024.000

an audit reveled that in determining these amounts, the ending inventory for 2016 was overstated by $22,000. the inventory balance on December 31, 2017. was accurately stated. the company uses a periodic inventory system

1\ restate the partial income statements to reflect the correct amounts after fixing the inventory error

2\ compute the gross profit percentage for each year (a) before the correction and (b) after the correction

2.a\ does the pattern of gross profit percentage lend confidence to your corrected amount

Precision Construction entered into the following transactions during a recent year.

Required:

1. 1-a. Complete the table below, for the above transactions. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.)

2. 1-b. Prepare the journal entries for each of the above transactions.

3. 2. For the tangible and intangible assets acquired in the preceding transactions, determine the amount of depreciation and amortization that Precision Construction should report for the quarter ended March 31. The equipment is depreciated using the double-declining-balance method with a useful life of five years and $48,000 residual value.

4. 3. Prepare a journal entry to record the depreciation and amortization calculated in requirement 2.

Problem 16-4 Change in tax rate; record taxes for four years [LO16-1, 16-5]

Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2018 through 2021 except for differences in depreciation on an operational asset. The asset cost $130,000 and is depreciated for income tax purposes in the following amounts:

  
The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes.
  
Income amounts before depreciation expense and income taxes for each of the four years were as follows.
   

  
Assume the average and marginal income tax rate for 2018 and 2019 was 30%; however, during 2019 tax legislation was passed to raise the tax rate to 40% beginning in 2020. The 40% rate remained in effect through the years 2020 and 2021. Both the accounting and income tax periods end December 31.
   
Required:
Prepare the journal entries to record income taxes for the years 2018 through 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Target Costing

Laser Cast, Inc., manufactures color laser printers. Model J20 presently sells for $525 and has a total product cost of $420, as follows:

It is estimated that the competitive selling price for color laser printers of this type will drop to $500 next year. Laser Cast has established a target cost to maintain its historical markup percentage on product cost. Engineers have provided the following cost reduction ideas:

1. Purchase a plastic printer cover with snap-on assembly, rather than with screws. This will reduce the amount of direct labor by 9 minutes per unit.
2. Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $11 per unit.
3. Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and 42% of the factory overhead are related to running injection molding machines.

The direct labor rate is $34 per hour.

a. Determine the target cost for Model J20 assuming that the historical markup on product cost and selling price is maintained. Round your final answer to two decimal places.
$

b. Determine the required cost reduction. Enter as a positive number. Round your final answer to two decimal places.
$

c. Evaluate the three engineering improvements together to determine if the required cost reduction (drift) can be achieved. Enter all amounts as positive numbers. Do not round interim calculations but round your final answers to two decimal places.

At the beginning of the year, Swifty Company had total assets of $862,000 and total liabilities of $600,000. Answer the following questions.

(a) If total assets increased $137,000 during the year and total liabilities decreased $70,000, what is the amount of stockholders’ equity at the end of the year?

(b) During the year, total liabilities increased $120,000 and stockholders’ equity decreased $84,000. What is the amount of total assets at the end of the year?
(c) If total assets decreased $77,000 and stockholders’ equity increased $101,000 during the year, what is the amount of total liabilities at the end of the year?

Q#6) Calculate the payback period for the following: a) Project A: Initial Cost $80,000 earns $19,000 per year. Project B: Initial Cost $100,000 earns $25,000 per year and b) What are the downsides of using of using payback period to analyze a project? c) What could you consider as limitations of Net Present Value (NPV) and Internal Rate of Return (IRR) approaches in making capital investment decisions? d) What do you know about Profitability Index (PI), Modified Internal Rate of Return (MIRR) and how is MIRR different from IRR?

CVP Analysis of Multiple Products

Steinberg Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Steinberg expects to sell 100,000 regular models and 20,000 deluxe models. A segmented income statement for the two products is as follows:

Required:

1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit.

2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even. Round the contribution margin ratio to four decimal places. Use the rounded value in the subsequent computation. (Express as a decimal-based amount rather than a whole percentage.) Round the amount of revenue to the nearest dollar.

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May.