Asset Building #1    Building #2 Equipment

This assignment has no beginning student file. You are to create Rosey’s fixed

asset depreciation worksheets from a blank worksheet using the straight-line depreciation method and based on the information in the preceding table. No summary sheet is required. Individual assets must show depreciation over their entire useful life. Follow the text examples for formatting. Label each worksheet Building #1 SL, Building #2 SL, and Equipment SL. In the same workbook, create Rosey’s fixed asset depreciation worksheets using the double declining balance method and based on the same table. No summary sheet is required. Individual assets must show depreciation over their entire useful life. Follow the text examples for formatting. Label each worksheet Building #1 DDB, Building #2 DDB, and Equipment DDB. In the same workbook, create Rosey’s fixed asset depreciation worksheets using the sum-of-the-year’s-digits method and based on the same table. No summary sheet is required. Individual assets must show depreciation over theirentire useful life. Follow the text examples for formatting. Label each worksheet Building #1 SYD, Building #2 SYD, and Equipment SYD. In the same workbook, you should now create a chart of each asset’s depre- ciation that compares the straight-line, double declining balance, and sum-of- the-year’s-digits methods of calculating depreciation. Label each worksheet Building #1 Chart, Building #2 Chart, and Equipment Chart. Choose any line chart and chart layout that you like.

Show Your Work (Formulas in excel)

Koufax Materials Corporation produces plastic products for home appliances and electronics. The financial department has produced the following information for the year ended December 31.

Required:

a. Prepare a cost of goods manufactured and sold statement.

b. Prepare an income statement.

repare a cost of goods manufactured and sold statement.

Prepare an income statement. (Loss amounts should be indicated with a minus sign.)

Required:

a. Prepare a cost of goods manufactured and sold statement.

b. Prepare an income statement.

1. fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $356,000; the partnership assumes responsibility for a $128,000 note secured by a mortgage on the property. Monroe invests $103,000 in cash and equipment that has a market value of $78,000. For the partnership, the amounts recorded for total assets and for total capital account are:

2. Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $354,000; the partnership assumes responsibility for a $127,000 note secured by a mortgage on the property. Monroe invests $102,000 in cash and equipment that has a market value of $77,000. For the partnership, the amounts recorded for Fontaine's Capital account and for Monroe's Capital account are:

subject: company accounting

Discuss the advantages for stakeholders where companies provide segment information in their financial reports under AASB 8 Operating Segments. What are the criticisms of the standard?  

Hyde Park Elementary has plans to build a new playground in 2017. They received a $120,000 government grant to be used for building the playground. They are hoping to break ground in May 2017 and complete the project by the start of school in September. Before they can start the project, however, they must dismantle the existing playground that has become unsafe based on current safety standards. They are also planning to complete soil testing once the existing playground is dismantled as a number of residential properties in the community have tested positive for soil contamination. Due to recent news articles, parents are very concerned about the potential for soil contamination and are demanding a full test to ensure their kids are not playing on a contaminated playground.

Sonya Muhammed, the school principal, has compiled the following estimates related to the new playground:

The costs for installation, resurfacing, landscaping, and soil removal are the costs quoted by professional contractors. Sonya was approached by the president of the student council, Josh Schwinn, who has volunteered the council’s time for installing and landscaping the new playground. This will save the school approximately $25,000 in costs and Sonya has decided to accept this offer as two of the council members who will be helping are journeymen carpenters.

The school has two options in terms of dealing with the contaminated soil. The first option is to not partake in the soil testing and to simply resurface the play area with a poured-rubber matting that can cover the entire play surface. This will cost, as Sonya indicated in her estimates above, approximately $55,000 – a large chunk of the playground budget. The other option is to perform the soil testing. A municipal worker has estimated that there is a 40% chance that the soil is contaminated. If this is the case, the school will either need to resurface the area for $55,000 or it can have the contaminated soil removed and replaced for a hefty cost of $73,000 plus the cost of gravel. However, there is a 60% chance that the soil will not be contaminated. Sonya is wondering what they should do and has asked for your help.

REQUIRED

Prepare an analysis of the potential project costs for the following scenarios. Note: There is no need for gravel in the resurfacing scenario.

1. Resurface ground without doing soil testing .
   
2. Complete the soil testing. In this case there are two outcomes:

1. remove/replace the soil if contaminated.
2. resurface if contaminated.
   

Use the probabilities provided by the municipal worker to determine a weighted cost for each of these outcomes.

3. What option would you recommend for the school? Why? Are there other non-financial considerations that you need to include in your decision?

1. Write short notes on five issues that may be addressed by a company’s social responsibility report.

Johnson paid $325,000 to acquire 100% of Willis Corporation in a statutory merger. In addition, Johnson also agreed to pay the shareholders of Willis $0.40 in cash for every dollar in income from continuing operations of the combined entity over $75,000 in the first three years following acquisition. Johnson projects that there is a 20% (45%, 35%) probability that the income from continuing operations in the first three years following acquisition is $65,000 ($90,000, $115,000 respectively). Johnson uses a discount rate of 7%.

Information for Willis Corporation immediately before the merger was as follows:

Previously unreported items identified as belonging to Willis:

1. Show your determination of the contingent consideration.
2. Show your determination the goodwill to be reported in this acquisition.

The following selected transactions are from Garcia Company.

• Requirement
• General Journal
• General Ledger
• Trial Balance
• Schedule of Receivables
• Calculation of Interest

Examine the duties of the management of a company and any company's auditors with regard to any company's financial statement.

State the basic purpose of financial Reporting standards and explain the fundamental concepts of accounting recognized by SSAP 2.

Explain the concept of value-for-money, describing the problems which may arise in applying the VFM model and suggest how the problems might be overcome.

The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions):

Information Provided by Pension Plan Actuary:

1. Projected benefit obligation as of December 31, 2017 = $1,800.
2. Prior service cost from plan amendment on January 2, 2018 = $400 (straight-line amortization for 10-year average remaining service period).
3. Service cost for 2018 = $520.
4. Service cost for 2019 = $570.
5. Discount rate used by actuary on projected benefit obligation for 2018 and 2019 = 10%.
6. Payments to retirees in 2018 = $380.
7. Payments to retirees in 2019 = $450.
8. No changes in actuarial assumptions or estimates.
9. Net gain—AOCI on January 1, 2018 = $230.
10. Net gains and losses are amortized for 10 years in 2018 and 2019.

Information Provided by Pension Fund Trustee:

1. Plan asset balance at fair value on January 1, 2018 = $1,600.
2. 2018 contributions = $540.
3. 2019 contributions = $590.
4. Expected long-term rate of return on plan assets = 12%.
5. 2018 actual return on plan assets = $180.
6. 2019 actual return on plan assets = $210.

Required:
1. Calculate pension expense for 2018 and 2019.
2. Prepare the journal entries for 2018 and 2019 to record pension expense.
3. Prepare the journal entries for 2018 and 2019 to record any gains and losses and new prior service cost.
4. Prepare the journal entries for 2018 and 2019 to record the cash contribution to plan assets and benefit payments to retirees.

Giggles Comedy Emporium provides entertainment for birthday parties. Over the last year, Giggles has entertained at over 150 birthday parties. Giggles’ business is booming! The company has parties booked solid for the next six months. Customers generally must book 6-8 months in advance to secure a spot. Mark Spear, the owner of Giggles Comedy Emporium, however, is worried. His business is busy, his customers are extremely happy, his employees are happy, but he is barely breaking even. He cannot understand, with his business being so successful, why he is barely able to pay himself a wage. Mark has asked you to help him figure out what he is doing wrong.

The services provided at each party vary. Some customers only want a clown to perform and they handle the other party details themselves. Other customers want a full package – food, cake, entertainment, cleanup, party favours, decorations, and costumes for the kids. Mark has identified the following services that can be provided at a party.

• Clown: most, if not all, parties include a clown who performs for one hour at the party. Mark pays the clown $40 for each party.
• Food (excluding cake): when customers order food for their party through Giggles, Mark outsources this service to Carl’s Catering. Carl charges an average of $12 per child for food.
• Cake: Mark orders birthday cakes through his sister, Sarah, who has a small bakery and makes custom cakes for Giggles. Her smallest cake is 8” (which will serve up to 10 kids) and costs $40. She also makes a 10” cake for $60 (which serves 20 kids).
• Cleanup: Giggles also provides cleanup service. Cleaning staff are paid $15 per hour. Cleanup averages 2 hours per 20 kids.
• Party favours: Party favours can also be ordered through Giggles. These cost $5 per bag to assemble.
• Decorations: Giggles will also fully decorate a party. Decorating staff are paid $15 per hour and take one hour to decorate a party for 20 kids. Decorations cost an average of $50 for party of 20 kids.
• Costumes: Giggles also provides costumes for parties so the kids can dress up in a theme. On average, costumes cost $40 each and can be worn 25 times before needed to be replaced. Costumes are cleaned after every party at a cost of $5 each.  

Mark has set up a fee schedule for each service as follows:

During the two weeks, Mark catered 6 parties. Some details of the parties are shown below:

REQUIRED:

Calculate the customer-level operating income for each customer by preparing a customer profitability analysis. Rank the customers according to profitability.

Question 1

Clean-It-Up manufactures industrial dryers and washers. The following information is available for February:

REQUIRED:

1. Determine the sales-mix and sales-quantity variances.
2. Determine the market-share and market-size variances.
3. Discuss the potential causes of variance.

Contribution Margin Income Statement. Last month Kumar Production Company sold its product for $60 per unit. Fixed production costs were $40,000, and variable production costs amounted to $15 per unit. Fixed selling and administrative costs totaled $26,000, and variable selling and administrative costs amounted to $5 per unit. Kumar Production produced and sold 7,000 units last month.

Required:

1. Prepare a traditional income statement for Kumar Production Company.
2. Prepare a contribution margin income statement for Kumar Production Company.
3. Why do companies use the contribution margin income statement format?