Piscataway Plastics Company manufactures a highly specialized plastic that is used extensively in the automobile industry. The following data have been compiled for the month of June. Conversion activity occurs uniformly throughout the production process.

Required:

Prepare schedules to accomplish each of the following process-costing steps for the month of June. Use the weighted-average method of process costing.

1. Analysis of physical flow of units.

2. Calculation of equivalent units.

3. Computation of unit costs.

4. Analysis of total costs.

The changes in each balance sheet account for Carver Corporation during the year just completed are as follows:

Carver Corporation's income statement for the year just ended shows the following:

The company did not dispose of any property, plant, and equipment, buy any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. Carver Corporation uses the direct method to construct its statement of cash flows.

Required:

a. Determine the sales adjusted to the cash basis.

b. Determine the cost of goods sold adjusted to the cash basis.

c. Determine the selling and administrative expenses adjusted to a cash basis.

d. Determine the net cash provided by (used in) operating activities. (Negative amounts should be indicated by a minus sign.)

e. Determine the net cash provided by (used in) investing activities. (Negative amounts should be indicated by a minus sign.)

f. Determine the net cash provided by (used in) financing activities. (Negative amounts should be indicated by a minus sign.)

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Timmy Incorporated leases a piece of equipment to Apple Corporation on January 1, 2017.

1. Lease term in years. 4

2. Fair Value of equipment 25,100

3. Book Value of equipment 20,100

4. Lease agreement requires equal annual lease payments, beginning on January 1, 2017 $4,952

Assume accounting periods ends December 31.

5. Estimated economic life of the equipment in years 6

Unguaranteed Residual Value at end of lease term $8100

Expected Residual Value at end of lease term. $8100

6. Lessor and Lessee use straight-line depreciation for all assets.

7. Apple incremental rate of interest. 8%

Timmy implicit rate of interest ( Known to Apple) 5%

8. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature.

Calculate depreciation expense for the lessor.

Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2017). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,450 1,840 2,330 2,710 Tax 3,130 2,650 2,300 2,800 Consulting 1,640 1,640 1,640 1,640 Average hourly billing rates are auditing $84, tax $94, and consulting $105. Prepare the service revenue (sales) budget for 2017 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.

Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows:

*Common costs allocated on the basis of machine-hours.

†Common costs allocated on the basis of sales dollars.

Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company’s total general factory overhead or total Purchasing Department expenses.

Required:

What is the financial advantage (disadvantage) of discontinuing the bilge pump product line?

Branded Shoe Company manufactures only one type of shoe and has two divisions, the Stitching Division and the Polishing Division. The Stitching Division manufactures shoes for the Polishing Division, which completes the shoe and sells it to retailers. The Stitching Division "sells"shoes to the Polishing Division. The market price for the Polishing Division to purchase a pair of shoes is $42. (Ignore changes in inventory.)   Stitching's costs per pair of soles are: Direct materials $10 Direct labor $ 8 Variable overhead $ 6 Division fixed costs $ 4 Polishing's costs per completed pair of shoes are: Direct materials $14 Direct labor $ 6 Variable overhead $ 4 Division fixed costs $16 7. Calculate and compare the difference in overall corporate net income of Branded Shoe Company between Scenario A and Scenario B if the Polishing Division sells 100,000 pairs of shoes for $120 per pair to customers. Scenario A: Negotiated transfer price of $30 per pair of soles Scenario B: Market-based transfer price A) $1,000,000 more net income under Scenario A B) $1,000,000 of net income using Scenario B C) $200,000 of net income using Scenario A. D) The net income would be the same under both scenarios. 8. Assume the transfer price for a pair of shoes is 180% of total costs of the Stitching Division and 40,000 of soles are produced and transferred to the Polishing Division. The Stitching Division's operating income is ________. A) $896,000 B) $720,000 C) $800,000 D) $880,000 9. If the Polishing Division sells 100,000 pairs of shoes at a price of $120 a pair to customers, what is the operating income of both divisions together? (Assume that the Stitching Division has no other customers) A) $8,800,000 B) $6,800,000 C) $6,000,000 D) $5,200,000

Ken entered into a contract to purchase two retail store premises in June 2003. The cost of each was $300,000, with stamp duty of $20,000 each. Settlement was during August 2003.He used these retail premises (which had been previously unoccupied) to commence a business that sold furniture to the public.During the time that Ken owned the store, they each had an annual aggregated turnover of approximately $3 million.During November 2019, Ken, who was 53 at the time, wanted to have more spare time and not carry on a business anymore.He had found that although his turnover was high, after costs his profitswerevery modest.As a result, he entered into the following contract with Jane:•The first of the two furniture premises was to be sold to Jane for $1,200,000,and the goodwill attached to it soldto Janefor $400,000.•The second store was to be rented to Jane for a two year lease (with an option to renew for another two year period). Rent was set at $2,000 a month, with an upfront lease premium of $25,000 payable. •Jane was to pay Ken $200,000 to not compete with her for the following 3 years.At the time of the November 2019 contract, Ken owned the following assets:•Full ownership of a main residence in Hawthorn, worth $3 million.•42% ownership of a company called PI Pty Ltd, which invests in rural properties. The total market value of PI Pty Ltd was $300,000. •80% share on an investment property (Ken's cousin owns the other 20%). The total value of the property was $500,000.It had a $300,000 mortgage over it.•Superannuation worth $1.5 million.•Shares in BHP worth $200,000.•An apartment in Kew (see below)On 1 December2015 Ken had bought an apartment in Kew to live in. This cost him $400,000. After living in it for 2 years, on 1 December 2017,Ken bought and moved into his Hawthorn house (mentioned above),which he from that point on claimed as his main residence. At the time, his apartment in Kew was worth $500,000, which he immediately rented out. The Kew apartment was sold for $510,000 in December 2019. 5Advise Ken as to the CGT consequences regarding the 2019-20 tax year. In doing so please discuss Ken's ability to utilise the CGT Small Business Concessions. Please also include a discussion of the Net Capital Gain made by Ken for the 2019-20 tax year.

Suppose you want to find the auditing standard issued by the PCAOB that discusses audit

evidence Which auditing standard is this? Give the official name What are the 7 types of evidence discussed in this standard?

Question 2 Bank Reconciliation

The Duluth Manufacturing Company has a business chequing account at the Bank of Ontario. The bank provides a bank statement and cancelled cheques once a month. The cut-off date is the last day of the month. The bank statement for the month of May is summarized as follows:

Balance, May 1, 2016                                          $32,120

       Deposits                                               82,140

       Cheques processed                                       (78,433)

       Service charges                                       (80)

       NSF cheque from customer                                              (2,187)

       Note payment collected by bank (includes $120 interest)          1,120

Balance May 31, 2016                                                $34,680

The company’s general ledger cash account has a balance of $35,276 at the end of May. A review of the company records and the bank statement reveals the following:

1. Cash receipts not yet deposited total $2,965.

2. A deposit of $1,020 was made on May 31 that will not be credited to the company’s account until June.

3. All cheques written in April have been processed by the bank. Cheques written in May that have not been    processed by the bank total $5,536.

4. A cheque written for $1,790 was incorrectly recorded by the company as a $790 disbursement. The original Accounts Payable was $1,790.

Required:

a. Prepare the bank reconciliation for the month of May.

b. Prepare the journal entries required to adjust the general ledger cash account to actual.

Legend Service Center just purchased an automobile hoist for $37,200. The hoist has an 8-year life and an estimated salvage value of $3,400. Installation costs and freight charges were $2,600 and $800, respectively. Legend uses straight-line depreciation. The new hoist will be used to replace mufflers and tires an automobiles. Legend estimates that the new hoist will enable his mechanics to replace 5 extra mufflers per week. Each muffler sells for $72 installed. The cost of a muffler is $37, and the labor cost to install a muffler is $15.

(a) Compute the cash payback period for the new hoist. Cash payback period = _______ YEARS

(b) Compute the annual rate of return for the new hoist. (Round answer to 2 decimal places, e.g. 10.529.)

Annual rate of return = ________

1. What are alaska air groups earnings per share amounts disclosed on the income statement for the most recent year? What dilutive securities are discussed in the footnotes? Please identify and describe other examples of dilutive securities. How do these impact earnings per share?

Ellis issues 7.0%, five-year bonds dated January 1, 2017, with a $580,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $604,738. The annual market rate is 6% on the issue date.

Required:

1. Complete the below table to calculate the total bond interest expense over the bonds' life.
2. Prepare a straight-line amortization table for the bonds’ life.
3. Prepare the journal entries to record the first two interest payments.

Complete the below table to calculate the total bond interest expense over the bonds' life.

Prepare a straight-line amortization table for the bonds’ life.

Prepare the journal entries to record the first two interest payments.

• Record the first interest payment on June 30, 2017.

• Record the second interest payment on December 31, 2017.

1:        Users of financial statements

Identify at least three types of users of financial statements. Describe their primary use of the financial statements and how the misstatement of those statements might injure the user.

2:        Overview of the Financial Statement Audit

What is a financial statement audit, and what is the overall objective of the audit? What must the auditor do to accomplish this objective?

Walbin Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in a particular department consisted of 19,000 units, 100% complete with respect to materials cost and 30% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $25,600. A total of 55,000 units were transferred out of the department during the month. The costs per equivalent unit were computed to be $1.80 for materials and $3.50 for conversion costs. The total cost of the units completed and transferred out of the department was:
Multiple Choice
•   $291,500
•   $314,500
•   $233,750
•   $280,300

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Vallin Manufacturing Corporation’s beginning work in process inventory consisted of 9,700 units, 100% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost in the beginning inventory was $53,000. During the month, 57,000 units were transferred out. The equivalent unit cost was computed to be $4.20 for materials and $4.70 for conversion costs under the weighted-average method. Given this information, the total cost of the units completed and transferred out was:
Multiple Choice
•   $426,000
•   $355,600
•   $507,300
•   $354,000
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Mundes Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,600 units that were 60% complete with respect to materials and 40% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,400. During the period, 9,600 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $5.60 for material and $6.60 for conversion costs. The cost of units transferred out during the month was:
Multiple Choice
•   $63,360
•   $66,400
•   $117,120
•   $84,000

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In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $32,000 and ending work in process inventory of $37,000. During the month, the cost of units transferred out from the department was $167,000. In the department's cost reconciliation report for July, the total cost to be accounted for under the weighted-average method would be:
Multiple Choice
•   $69,000
•   $138,000
•   $151,000
•   $204,000