On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.

April 1 Nozomi invested $41,000 cash and computer equipment worth $25,000 in the company in exchange for common stock.

April 2 The company rented furnished office space by paying $2,400 cash for the first month’s (April) rent.

April 3 The company purchased $1,200 of office supplies for cash.

April 10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.

April 14 The company paid $900 cash for two weeks' salaries earned by employees.

April 24 The company collected $15,500 cash for commissions earned.

April 28 The company paid $900 cash for two weeks' salaries earned by employees.

April 29 The company paid $250 cash for minor repairs to the company's computer.

April 30 The company paid $1,350 cash for this month's telephone bill.

April 30 The company paid $1,600 cash in dividends.

The company's chart of accounts follows:

Use the following information:

1. Prepaid insurance of $133 has expired this month.
2. At the end of the month, $400 of office supplies are still available.
3. This month’s depreciation on the computer equipment is $400.
4. Employees earned $400 of unpaid and unrecorded salaries as of month-end.
5. The company earned $2,400 of commissions that are not yet billed at month-end.

Required:
1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts.
3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30.
4. Journalize the adjusting entries for the month and prepare the adjusted trial balance.
5a. Prepare the income statement for the month of April 30.
5b. Prepare the statement of retained earnings for the month of April 30.
5c. Prepare the balance sheet at April 30.
6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b.
6b. Post the journal entries to the ledger.
7. Prepare a post-closing trial balance.

1. Net Present Value and Competing Projects

   For discount factors use Exhibit 12B.1 and Exhibit 12B.2.

   Spiro Hospital is investigating the possibility of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equipment. After-tax cash inflows for the two competing projects are as follows:
   

   Year		Puro Equipment		Briggs Equipment
   1		$320,000		$120,000
   2		280,000		120,000
   3		240,000		320,000
   4		160,000		400,000
   5		120,000		440,000

   Both projects require an initial investment of $560,000. In both cases, assume that the equipment has a life of 5 years with no salvage value.

   Required:

   Round present value calculations and your final answers to the nearest dollar.

   1. Assuming a discount rate of 10%, compute the net present value of each piece of equipment.

   Puro equipment:	$
   Briggs equipment:	$

   2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is also $560,000, but this equipment will produce even cash flows over its 5-year life. What must the annual cash flow be for this equipment to be selected over the other two? Assume a 10% discount rate.
   $ per year

Analyzing Manufacturing Cost Accounts

Fire Rock Company manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June:

In addition, the following information is available:

a. Materials and direct labor were applied to six jobs in June:

b. Factory overhead is applied to each job at a rate of 160% of direct labor cost.

c. The June 1 Work in Process balance consisted of two jobs, as follows:

d. Customer jobs completed and units sold in June were as follows:

1. Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest dollar. If an answer is zero, enter in "0". Enter all amounts as positive numbers.

a. Materials requisitions $

b. Work in process beginning balance $

c. Direct materials $

d. Direct labor $

e. Factory overhead applied $

f. Completed jobs $

g. Cost of goods sold $

h. Indirect labor $

2. Determine the June 30 balances for each of the inventory accounts and factory overhead. Use the minus sign to indicate any credit balances.

Your friend Tom Smith has decided to expand Smith Sales Company. He has acquired an expansion loan and purchased $500,000 of plant assets as part of the expansion. Tom values your advice and requests your help in properly depreciating the plant assets. Tom has paid you well for your advice and you readily accept the challenge.

Explain the different methods that can be used to calculate depreciation including: Straight-line, Double declining balance, Units of production & Sum of years digits.

The Sarbanes-Oxley Act is arranged into eleven titles. As far as compliance is concerned, the most important sections within these are often considered to be 302, 401, 404, 409, 802 and 906. in your own words, what are this sections about? please no copy and paste, explain with your own words, and no handwriting please, thanks!

Select one type of retailer from each of the 3 categories (food, general merchandise, and service-NOTE: there are other service examples that you can choose from like urgent doctor or dental care, hair salon etc.).

Store name and location/place:

Type of retailer:

Product assortment:

Pricing strategy:

Promotion strategy:

General evaluation: (from your viewpoint as a consumer of this retailer)

Need answer please!!

Delta Catfish Company has taken a position in its tax return to claim a tax credit of $15 million (direct reduction in taxes payable) and has determined that its sustainability is “more likely than not,” based on its technical merits. Delta has developed the probability table shown below of all possible material outcomes:

Delta’s taxable income is $90 million for the year. Its effective tax rate is 40%. The tax credit would be a direct reduction in current taxes payable.

Required:
1. At what amount would Delta measure the tax benefit in its income statement?
2. Prepare the appropriate journal entry for Delta to record its income taxes for the year.
  

This year, a company has each of the following income statement items:

1. Gross profits on installment sales.
2. Revenues on long-term construction contracts.
3. Estimated costs of product warranty contracts.
4. Premiums on officers’ life insurance policies with the company as beneficiary.

Indicate where deferred income taxes are reported in the financial statements. Specify when deferred income taxes would need to be recognized for each of the items above, and indicate the rationale for such recognition.

The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow:

*Allocated on the basis of sales dollars.

Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out.

Required:

1. What is the financial advantage (disadvantage) per quarter of discontinuing the Racing Bikes?

2. Should the production and sale of racing bikes be discontinued?

3. Prepare a properly formatted segmented income statement that would be more useful to management in assessing the long-run profitability of the various product lines.

Please create a horizontal and vertical analysis

-Did accounts receivable increase? -Did sales increase? Did plant, property, and equipment increase?

-What does this tell you about the company? Did sales increase or decrease? What about cost of sales? If you were going to look further into the company, what would you want to investigate?

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.