QUESTION 5 Explain how either accounting or financial planning can be considered a ‘profession’.

Apart from direct quotes, all answers should be in your own words.

[This topic relates to 'attributes of profession' in business ethics]

[requires comprehensive response]

Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $372,000 of manufacturing overhead for an estimated allocation base of 1,200 direct labor-hours. The following transactions took place during the year:

Raw materials purchased on account, $240,000.

Raw materials used in production (all direct materials), $225,000.

Utility bills incurred on account, $67,000 (95% related to factory operations, and the remainder related to selling and administrative activities).

Accrued salary and wage costs: Direct labor (1,275 hours) $ 270,000

Indirect labor $ 98,000 Selling and administrative salaries $ 150,000

Maintenance costs incurred on account in the factory, $62,000

Advertising costs incurred on account, $144,000.

Depreciation was recorded for the year, $80,000 (85% related to factory equipment, and the remainder related to selling and administrative equipment).

Rental cost incurred on account, $105,000 (90% related to factory facilities, and the remainder related to selling and administrative facilities).

Manufacturing overhead cost was applied to jobs, $ ? .

Cost of goods manufactured for the year, $850,000.

Sales for the year (all on account) totaled $1,600,000. These goods cost $880,000 according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were:

Raw Materials $ 38,000

Work in Process $ 29,000

Finished Goods $ 68,000

Required:

1. Prepare journal entries to record the preceding transactions.

2. Post your entries to T-accounts. (Don’t forget to enter the beginning inventory balances above.)

3. Prepare a schedule of cost of goods manufactured.

4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. 4B. Prepare a schedule of cost of goods sold.

5. Prepare an income statement for the year.

1.) If a donor endows a professorial chair at a school, he or she gives a gift and indicates that the earnings from the gift must be used by a specific professor. Would the initial gift be recorded in a fund with donor restrictions or a fund without donor restrictions? Would the earnings be recorded in a fund with donor restrictions or a fund without donor restrictions?

2.) A board sets aside resources to earn investment income to support general operations. Would the resources set aside be recorded in a fund with donor restrictions or a fund without donor restrictions? Would the earnings be recorded in a fund with donor restrictions or a fund without donor restrictions?

3.)The Abby Arboretum (AA) is a not-for-profit organization that has several programs, including gardening, grade-school education, environmental efforts, and a reforestation program. It draws many volunteers for its efforts. Indicate which, if any, of the following activities should be recorded as donated services.

An architect drew up blueprints for a new greenhouse free of charge. AA would have hired an architect otherwise.

The architect makes phone calls to past clients and investors to raise contributions on behalf of AA for a capital campaign to finance the greenhouse.

After the greenhouse is built, the architect spends several days planting vegetables and flowers.

4.) Indicate whether each of the following actions would result in a change in net assets without donor restrictions or net assets with donor restrictions this year:

A donor gives the organization a cash contribution to be used for expanding the organization’s food pantry program.

The organization earns an unrealized gain on its permanent endowment. A donor pledges money to the organization but has not paid it yet.

The donor does not indicate how the money is to be used.

The organization sells goods from its online bookstore.

A donor gives the organization cash and specifies that the money is to be used in 4 years.

A donor gives 1,000 shares of Apple stock and stipulates the proceeds of the stock are not to be spent but held in perpetuity.

On October 30, 2018, Rashid Company Factored receivables with a carrying amount of $300000 to Mohammed company. Mohammed company assesses a finance charge of 4% of the receivable and retains 6% of the receivables. Relative to this transaction you are to determine the amount of loss on the sale to be reported in the income statement of Rashid Company for February A. Assume that Rashid factors the receivable on a without recourse basis. The journal entry is B. Assume that Rashid factors the receivables on a with recourse basis. The recourse obligations have a fair value of 2500. The journal entry for Rashid

Equipment is purchased on July 1, 2011 for $250,000. The estimated salvage value and useful life are $25,000 and 5 years, respectively. What is the depreciation expense for 2012 under: (1) straight-line method, (2) sum-of-years-digits method, and (3) double-declining balance method

The answer is  S-L: 45,000 DDB: 80,000SYD:67,500

Can you please explain step by step solution.

Taylor, age 16, is claimed as a dependent by her parents. For 2019, she has the following income: $5,600 wages from a summer job, $1,495 interest from a money market account, and $2,100 interest from City of Boston bonds.

If required, round your answers to the nearest dollar. If an amount is zero, enter "0".

a. Taylor's standard deduction for 2019 is $.

Taylor's taxable income for 2019 is $

b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax.
$

Compute Taylor's tax liability.
$.

Assigned (3 PAGES) to write by my own word about Activity-based accounting (ABC): its concept, how to implement it, its advantages and disadvantages.( no Plagiarism).

John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2018, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part-time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 refund of their state income taxes. The Fergusons always itemize their deductions and their itemized deductions were well over the standard deduction amount last year. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA). Use Exhibit 8-9, Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference.

The Fergusons reported making the following payments during the year:

• State income taxes of $4,400. Federal tax withholding of $21,000.
• Alimony payments to John’s former wife of $10,000 (divorced in 2014).
• Child support payments for John’s child with his former wife of $4,100.
• $12,200 of real property taxes.
• Sandy was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer.
• $3,600 to Kid Care day care center for Samantha’s care while John and Sandy worked.
• $14,000 interest on their home mortgage ($400,000 acquisition debt).
• $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car.
• $15,000 cash charitable contributions to qualified charities.
• Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000.

a. What is the Fergusons' 2018 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable? (Round your intermediate computations to the nearest whole dollar amount.)

Tax Refund ________________?

A Corp. owns 80% of B Corp. The Consolidated Financial Statements of A Corp. for 2018 and 2019 are shown below:

A Corp.

Consolidated Balance Sheet, December 31, 2019

A Corp.

Consolidated Income Statement, For the year ended December 31, 2019

Other Information:

A purchased its interest in B on January 1, 2015 for $360,000 when the company's net assets were valued at $300,000. The acquisition differential was allocated equally between goodwill and equipment, which was estimated to have a remaining useful life of ten years from the acquisition date.

B reported a net income of $75,000 and paid dividends of $5,000 during 2019.

A issued $300,000 in bonds during the year. A reported an equity method net Income of $300,000 and paid $70,000 in dividends to its shareholders.

Required:

Prepare a Consolidated Statement of Cash Flows for A Corp. for 2019.

The Ramirez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto​ part, based on a denominator level of 4,200 output units per​ year, included 5 ​machine-hours of variable manufacturing overhead at $9 per hour and 5 ​machine-hours of fixed manufacturing overhead at $17 per hour. Actual output produced was 4,600 units. Variable manufacturing overhead incurred was $260,000. Fixed manufacturing overhead incurred was $375,000. Actual ​machine-hours were 27,500.

Requirements

Requirement 1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead​ variances, using the​ 4-variance analysis. Begin by calculating the following amounts for the variable overhead.

Now complete the table below for the fixed manufacturing overhead.

Now complete the​ 4-variance analysis using the amounts you calculated above. ​(If no variance​ exists, leave the dollar value blank. Label the variance as favorable​ (F), unfavorable​ (U) or never a variance​ (N).)

Requirement 2. Prepare journal entries using the​ 4-variance analysis. Record the actual variable

manufacturing overhead incurred. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

As the controller of a medium-sized financial services company, you take pride in the accounting and internal control systems you have developed for the company. You and your staff have kept up with changes in the accounting industry and been diligent in updating the systems to meet new accounting standards. Your outside auditor, which has been reviewing the company’s books for 15 years, routinely complimented you on your thorough procedures. The passage of the Sarbanes-Oxley Act, with its emphasis on testing internal control systems, initiated several changes. You have studied the law and made adjustments to ensure you comply with the regulations, even though it has created additional work. Your auditors, however, have chosen to interpret SOX very aggressively—too much so, in your opinion. The auditors have recommended that you make costly improvements to your systems and also enlarged the scope of the audit process, raising their fees. When you question the partner in charge, he explains that the complexity of the law means that it is open to interpretation and it is better to err on the side of caution than risk noncompliance. You are not pleased with this answer, as you believe that your company is in compliance with SOX, and consider changing auditors. Using a web search tool, locate articles about this topic and then write responses to the following questions. Be sure to support your arguments and cite your sources.

Ethical Dilemma: Should you change auditors because your current one is too stringent in applying the Sarbanes-Oxley Act? What other steps could you take to resolve this situation?

nb s john

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost. Last year, the company sold 56,000 of these balls, with the following results: Sales (56,000 balls) $ 1,400,000 Variable expenses 840,000 Contribution margin 560,000 Fixed expenses 373,000 Net operating income $ 187,000 Required: 1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year’s sales level. 2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls? 3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $187,000, as last year? 4. Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per ball must it charge next year to cover the increased labor costs? 5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company’s new CM ratio and new break-even point in balls? 6. Refer to the data in (5) above. a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $187,000, as last year? b. Assume the new plant is built and that next year the company manufactures and sells 56,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage.

3.   On 1 July 2019 Campbell Ltd provided 1 million options to its chief executive officer. The options were valued at $1.20 each and allowed the chief executive officer to acquire shares in Campbell Ltd for $8.40 each. The chief executive officer is not permitted to exercise the options before 30 June 2021 but may then exercise them at any time between 1 July 2021 and 30 June 2022. The market price of the Campbell Ltd shares on 1 July 2019 was $9.75.

On 31 December 2021 the share price reaches $10.78 and the chief executive officer decides to exercise her options and acquire shares in Campbell Ltd.

Required: Account for the issue and exercise of options in Campbell Ltd.

A company issues $896,000 of 5-year, 5% bonds on January 1, 2021. The bonds pay interest annually.

1) Calculate the issue price of the bonds using a market rate of 4%

2) Record the bond issue

3) Prepare an effective interest amortization table for the bonds

4) Prepare the journal entries to record the first three interest payments. Ignore any year-end accruals of interest

5) Assuming the company has an October 31 year end, prepare the adjusting entry for interest on October 31, 2021.

Explain the audit steps for detecting the following issues. For each of your answers provide two possible steps you could utilize to identify the item. For each, discuss what the risk may exist, and why an investor would want assurance that an auditor has covered those risks.

(e)                    Unrecorded purchase of investment securities

(f)                    Unrecorded stock compensation expense

(g)                   Unrecorded covenant violations

(h)                   Unrecorded contingent liability