Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.
  

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase. (Round weighted average cost per unit to two decimals.)
  

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered.

a. Using the above information, develop Mercury's sales forecast in dollars and production schedule in units.

b. What is Mercury's budgeted variable manufacturing cost per case?

c. Prepare Mercury's manufacturing cost budget.

d. What is the projected ending value of the Inventory account?

(TCO H) Audit risk consists of inherent risk, control risk, and detection risk. (a) Please completely define each of the above. (b) Indicate whether each of the statements below is true or false and explain your position. (1) The risk that material misstatement will not be prevented or detected on a timely basis by internal controls can be reduced to 0 by having effective controls in place. (2) Detection risk is a function of the efficiency of an auditing procedure. (3) Cash is more susceptible to theft than an inventory of coal because it has greater inherent risk. (4) The inherent risk of the theft of an inventory of cell phones at a mall store is greater than the misappropriation of cash at a COSTCO store.

(TCOs E and F) A Remington School District employee has been charged with theft and forgery for allegedly stealing approximately $72,000 in district funds.

Mary Blaner, 51, was charged in District Court with one count of second-degree felony theft and five counts of third-degree felony forgery. She is the second school district employee to be formally charged with stealing from the district. Both individuals were charged in separate and apparently unrelated cases.
Blaner, who was the district's payroll clerk, allegedly arranged electronic direct deposits of funds for nonexistent employees that then went to her, according to the police. Blaner was a trusted employee who had worked at the district for over 10 years. (Note: She just went through a divorce and has four children to support. She needs money for her children and a new car and had plans to pay the money back later.)
"Over the course of the last 15 months, she was able to allegedly siphon funds out of their (the district's) account into her account, and she allegedly set up fictitious employees." School district officials became suspicious when they had trouble balancing the district's account. After an internal audit, school officials came across payroll listings for workers who did not have any matching Social Security numbers. Another school district employee, Cindy Heap, who formerly worked as an elementary school secretary, earlier was charged with theft and 11 counts of forgery in a different case, according to Gary Searle, deputy county attorney. Heap allegedly took just under $90,000 in district funds, Searle said. Heap, 32, resigned from her job.

(1) What factors allowed these frauds to occur?
(2) What do you think the school district should do in the future to prevent fraud from occurring in the future?
(3) What responsibility do you feel the current school external auditor has to detect this fraud?
(4) How have the three elements of the Fraud Triangle enabled Mary to commit this fraud?

The budget committee of SUppar Company collects the following data for its San Miguel store in preparing budgeted income statements for May and June 2017.

1. sales for may are expected to be 800,000. sales in June and July are expected to be 5% higher than the preceeding month.

2. Cost of good sold is expecte to be 70% of sales

3. Company policy is to maintain ending merchandise inventory at 10% of the following months cost of goods sold.

4. Operating expenses are estimated to be as follows:

interest expense is 2,000 per month. Income taxes are estimated to be 30% of income before income taxes.

a) prepare the merchandise purchases budget for each month in columnar form.

b) prepare budgeted multiple-step income statements for each month in columnar form. Show in the statements the details of cost of good sold.

Homework 5:

Assume you work for the “Life is Good” T Shirt Company. In an effort to keep up with demand, the company has expanded facilities and purchased state of the art equipment to print t-shirts. The new equipment cost $980,000. There were additional expenditures of $25,000 for transportation to the facility and transport insurance. Additionally, a service and warranty policy was signed for the equipment which will cost $1800 a year for the next 5 years. The salvage value for the equipment at the end of its 5 year useful life is $82,000. The company has traditionally used straight line depreciation but they are considering using Double Declining balance methods. For simplicity, assume the purchase was made on Jan 1, 2018.

1) What value should be used to capitalize the new equipment on the balance sheet? Comment in text format on what expenditures you chose to include or exclude in this value and why.

2) Prepare a depreciation schedule for the five years of service life using SL and prepare an alternative schedule using DDB. (Hint: Whatever number you chose to capitalize above in 1) you should be using here as your Historical Cost). You may use excel for this portion.

3) Using the information created in the schedule, prepare a brief summarization to management explaining the two alternatives and the impact the depreciation method choice will have on the Income Statement in year 1 and year 2.

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.

  
For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. (Round your average cost per unit to 2 decimal places.)

Problem 18-12 Various shareholders' equity topics; comprehensive [LO18-1, 18-4, 18-5, 18-6, 18-7, 18-8]

Part A
In late 2017, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of 6,000,000 shares of common stock carrying a $1 par value, and 2,000,000 shares of $5 par value, noncumulative, nonparticipating preferred stock. On January 2, 2018, 4,000,000 shares of the common stock are issued in exchange for cash at an average price of $10 per share. Also on January 2, all 2,000,000 shares of preferred stock are issued at $25 per share.

Required:
1. Prepare journal entries to record these transactions.
2. Prepare the shareholders' equity section of the Nicklaus balance sheet as of March 31, 2018. (Assume net income for the first quarter 2018 was $1,900,000.)

Part B
During 2018, the Nicklaus Corporation participated in three treasury stock transactions:

1. On June 30, 2018, the corporation reacquires 280,000 shares for the treasury at a price of $12 per share.
2. On July 31, 2018, 40,000 treasury shares are reissued at $15 per share.
3. On September 30, 2018, 40,000 treasury shares are reissued at $10 per share.

Required:
1. Prepare journal entries to record these transactions.
2. Prepare the Nicklaus Corporation shareholders' equity section as it would appear in a balance sheet prepared at September 30, 2018. (Assume net income for the second and third quarter was $3,400,000.)

Part C
On October 1, 2018, Nicklaus Corporation receives permission to replace its $1 par value common stock (6,000,000 shares authorized, 4,000,000 shares issued, and 3,800,000 shares outstanding) with a new common stock issue having a $.50 par value. Since the new par value is one-half the amount of the old, this represents a 2-for-1 stock split. That is, the shareholders will receive two shares of the $.50 par stock in exchange for each share of the $1 par stock they own. The $1 par stock will be collected and destroyed by the issuing corporation.

On November 1, 2018, the Nicklaus Corporation declares a $0.21 per share cash dividend on common stock and a $0.38 per share cash dividend on preferred stock. Payment is scheduled for December 1, 2018, to shareholders of record on November 15, 2018.

On December 2, 2018, the Nicklaus Corporation declares a 1% stock dividend payable on December 28, 2018, to shareholders of record on December 14. At the date of declaration, the common stock was selling in the open market at $10 per share. The dividend will result in 76,000 (0.01 × 7,600,000) additional shares being issued to shareholders.

Required:
1. Prepare journal entries to record the declaration and payment of these stock and cash dividends.
2. Prepare the December 31, 2018, shareholders' equity section of the balance sheet for the Nicklaus Corporation. (Assume net income for the fourth quarter was $2,900,000.)
3. Prepare a statement of shareholders' equity for Nicklaus Corporation for 2018.

Problem 20-11 Error correction; change in depreciation method [LO20-6]

The Collins Corporation purchased office equipment at the beginning of 2016 and capitalized a cost of $2,180,000. This cost included the following expenditures:

The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2016 and 2017.

In 2018, after the 2017 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company’s controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment.

Required:
1 & 2. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2018 and any 2018 journal entry(s) related to the change in depreciation methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at Coco Inc. describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per CSU-Global Guide to Writing and APA (Links to an external site.)Links to an external site. and have proper citations, where applicable.

Assume that the following facts pertain to a non-cancelable lease agreement between Coco Inc. and Bubs Corp, a Lessee.

The lessee assumes responsibility for all executory costs, which are expected to amount to $4,000 per year. The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line depreciation method for all equipment.

1. Using the spreadsheet Lease Amort Schedule, prepare an amortization schedule that would be suitable for the lessee for the lease term.
2. Using the spreadsheet Journal Entries, prepare the journal entries for the lessee for 2018 and 2019 to record the lease agreement and all expenses related to the lease. Assume the Lessee’s annual accounting period ends on December 31 and that reversing entries are used when appropriate.
3. Prepare journal entries for the lessor of the transaction.

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!!

At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book - tax difference of $75 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $180 million and the tax rate is 40%.

Required: 1.) Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized.

1.a) Record the valuation allowance

2.) Prepare the journal entry(s) to record Payne's income taxes for 2018, assuming it is more likely than not that 1/4 of the deferred tax asset will ultimately be realized.