Sheridan Inc. reported income from continuing operations before taxes during 2020 of $804,900. Additional transactions occurring in 2020 but not considered in the $804,900 are as follows.

Prepare an income statement for the year 2020 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 108,490 shares. (Assume a tax rate of 30% on all items, unless indicated otherwise.) (Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 5,275.)

Based on each of the following scenarios below, draft an effective finding for the Management Letter. Five Components of an effective finding:

1. Rate the significance of the deficiency/issue, considering any compensating controls/factors:
   1. Financial statement audit ratings: control deficiency, significant deficiency, or material weakness
   2. Operational audit ratings: low, medium, or high risk based on stakeholder/user response.
   3. Compliance audit ratings: in compliance or out of compliance.
2. Explain what the issue/deficiency is
3. Explain why the issue is a problem – answer the “So what/why should I care?” question
4. Make recommendations

5. Explain how your recommendations will benefit them – answer the “How will this help me/why is it worth my time to fix?” question.

Write one paragraph.

scenario:

During an operational audit of a University department, it was discovered that four new vehicles had been purchased in January, but had not yet been insured by the time the audit occurred in April. The vehicles had been driven approximately 3,000 miles during that time.

Problem 10-1 Acquisition costs [LO10-1, 10-2, 10-3, 10-4]

Tristar Production Company began operations on September 1, 2018. Listed below are a number of transactions that occurred during its first four months of operations. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

1. On September 1, the company acquired five acres of land with a building that will be used as a warehouse. Tristar paid $230,000 in cash for the property. According to appraisals, the land had a fair value of $160,000 and the building had a fair value of $90,000.
2. On September 1, Tristar signed a $53,000 noninterest-bearing note to purchase equipment. The $53,000 payment is due on September 1, 2019. Assume that 8% is a reasonable interest rate.
3. On September 15, a truck was donated to the corporation. Similar trucks were selling for $3,800.
4. On September 18, the company paid its lawyer $4,000 for organizing the corporation.
5. On October 10, Tristar purchased maintenance equipment for cash. The purchase price was $28,000 and $1,150 in freight charges also were paid.
6. On December 2, Tristar acquired various items of office equipment. The company was short of cash and could not pay the $6,800 normal cash price. The supplier agreed to accept 200 shares of the company's nopar common stock in exchange for the equipment. The fair value of the stock is not readily determinable.
7. On December 10, the company acquired a tract of land at a cost of $33,000. It paid $4,000 down and signed a 10% note with both principal and interest due in one year. Ten percent is an appropriate rate of interest for this note.

Required:
Prepare journal entries to record each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round final answers to the nearest whole dollars.)
  

Continuing Payroll Problem, 6B, Chapter 6

You have almost completed the Kipley's Company Employee Payroll Register for the pay period ending January 8, 20XX.

Requirements:

Record the deduction for group insurance.

Record the health insurance deduction.

Record the check number assigned to each employee.

Compute and record the net pay for each employee.

Total the input columns on the Employee Payroll register.

On Employer Register, enter total gross earnings.

Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable for the total net pay.

Prepare the journal entry to record the payment of the payroll on January 14 when the paychecks are distributed to all workers.

Employee Benefits

Employee Benefits

The table below lists the employee contributions to Group Insurance and Health Insurance. Also, a check number has been assigned to each employee. Note that some employees are not yet eligible for Group Insurance coverage under the company plan.

Payroll Register

Completing the Payroll Register

The Employee Payroll Register presents all the computations previously performed as it applies to this payroll period.

Complete the following steps (if an field should be blank, leave it blank):

Record the amount to be withheld for group insurance.

Record the amount to be withheld for health insurance.

Each worker is to be paid by check. Assign check numbers provided to the correct employee..

Compute the net pay for each employee.

Total the input columns.

Employer Register

Employer Register

Complete the following:

Record the total gross earnings.

Journal Entry: Recording Payroll

Journal Entry: Recording Payroll

Complete the following:

Prepare the journal entries as of January 12 to record the payroll and the payroll taxes for the week ending January 8. Credit Salaries Payable for the total net pay.

The following information is related to Skysong Company for 2020.

Skysong Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Skysong sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.

Prepare a multi step income statement:

Unlike direct materials, the sum of all the direct labor variances is always equal to the flexible budget variance.

True

False

A negative direct labor efficiency variance is considered favorable.

True

False

For direct labor, if the efficiency and rate variances are both negative, then the flexible budget variance will be unfavorable.

True

False

The total number of hours worked by employees is always directly tied to the total level of production.

True

False

In recent years, public universities have experienced major budget cuts due to reduced funding from their state governments. These budget cuts usually occur at the most inopportune time—during the school year when contractual commitments with faculty and staff had been signed, programs had been planned, and students were enrolled and taking classes.

Required:

1. Should the administration be “fair” to all affected and institute across-the-board cuts whenever the state announces a reduction in funding?
2. If not across-the-board cutbacks in programs, then would you recommend more focused reductions, and if so, what priorities would you establish for bringing spending in line with revenues?
3. Since these usually are not one-time-only cutbacks, how would you manage continuous, long-term reductions in budgets extending over a period of years?
4. Should the decision-making process be top-down (centralized with top administrators) or bottom-up (participative)? Why?
5. How should issues such as protect-your-turf mentality, resistance to change, and consensus building be dealt with?

TASK 1

Chantel Cohen works for ABC retailers and is seeking management’s approval to install an automatic mail-response system. Using the correct proposal format, write to Jamie Oliver, Chantel’s manager requesting a decision to be made with regard to the installation of an automatic mail-response system.

Pay careful attention to the following:

· Audience, register, tone and style

· Choice of words and language structure

· Format

Criteria used for Assessment                                       Marks

Correct format                                                        3

The problem                                                           5

The solution                                                             14

Cost analysis                                                           4

Conclusion                                                              4

Total                                                                          30

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 65 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,500 per month plus $45 per course plus $6 per student. The company’s sales should average $850 per student.

The company planned to run four courses with a total of 65 students; however, it actually ran four courses with a total of only 61 students. The actual operating results for September appear below:

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Two-Stage ABC for Manufacturing
Assume Sherwin-Williams Company, a large paint manufacturer, has determined the following activity cost pools and cost driver levels for the latest period:

The following data are for the production of single batches of two products, Mirlite and Subdue:

Determine the batch and unit costs per gallon of Mirlite and Subdue using ABC. (Round your answers to the nearest cent.)

Laws for Accountants

How will a state and /or federally mandated requirement for late payments not to be considered late impact the bankruptcy laws? What about the many businesses that have been required to close-should there be some consideration given to that fact when many of these business file for bankruptcy? What about those who lose their jobs because their businesses are required to close? What does this do to their lenders and their banks?

List the benefits of budgeting in a business. Also list and describe the components of a Master Budget.

1. What is Financial Statement Analysis (FSA)?
2. How is FSA related to AND different from financial accounting and auditing?
3. What is a typical day in the life of a financial analyst?
4. How do you become a financial analyst? What professional licenses or education do you need or can you get?

Marte Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Production and cost data for the month of May are as follows.

Instructions

(a) Calculate the following.

(1) The equivalent units of production for materials and conversion.

(2) The unit costs of production for materials and conversion costs.

(3) The assignment of costs to units transferred out and in process at the end of the accounting period.

(b) Prepare a production cost report for the month of May for the bicycles.