1. Christmas Corporation issued a 20% stock dividend on 40,000 outstanding shares of $10 par value common stock. The distribution was made at the time the market value of the stock was $32 a share. How did this transaction affect the company's total stockholders' equity?

A. The total balances in equity accounts increased by $80,000.
B. The sum of the balances in equity accounts increased by $256,000.
C. The sum of the balances in equity accounts decreased by $256,000.
D. Total stockholders' equity was not affected by this transaction.

2. During the year, Timberdale Company sold a truck at a loss of $20,000. On the Statement of Cash Flows,

1. the loss from the sale of truck is added to net income in the cash flow from financing activities.
2. the loss from the sale of truck is deducted from net income in the cash flow from operating activities.
3. the loss from the sale of truck is deducted from net income in the cash flow from investing activities
4. the loss from the sale of truck is added to net income in the cash flow from operating activities.

3. Regarding the Statement of Cash Flows, which one of the following is false?

1. If accounts receivable decreases, cash increases.
2. If accounts payable decreases, cash increases.
3. If inventory decreases, cash increases.
4. If accounts payable decreases, cash decreases.

The following information pertains to the York Company for the year ending December
31, 2019.

$ Hours
Revenue 240,000
Interest Revenue 50,000
Raw materials used 40,000
Indirect Labour 4,000
Indirect Materials 9,000
Utilities [factory] 4,500
Depreciation of factory equipment 10,000
Depreciation of factory buildings 19,000
Depreciation of admin buildings 5,000
Marketing costs 30,000
Wages [Store] 10,000
Utilities [store] 6,000
Supplies [store] 3,500
Direct Labour Hours 2000
Hourly Rate for direct labour 10
Finished Goods Inventory Jan 1 2019 7,000
Finished Goods Inventory Dec 31 2019 15,000
Bond Payable 65,000
Interest Rate 10%
Tax rate 22%

REQUIRED
1. Prepare a budgeted COGS statement
2. Prepare a projected income statement

Eliezrie, Inc., manufactures and sells two products: Product G8 and Product O0. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product G8 800 6.0 4,800 Product O0 400 3.0 1,200 Total direct labor-hours 6,000 The direct labor rate is $23.10 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per Unit Product G8 $123.10 Product O0 $123.50 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product G8 Product O0 Total Labor-related DLHs $ 60,555 4,800 1,200 6,000 Machine setups setups 59,390 900 650 1,550 Order size MHs 370,508 5,300 6,100 11,400 $ 490,453 Which of the following statements concerning the unit product cost of Product G8 is true? (Round your intermediate calculations to 2 decimal places.) Multiple Choice A.The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $171.48. B.The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $171.48. C. The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $291.56. D. The unit product cost of Product G8 under traditional costing is less than its unit product cost under activity-based costing by $291.56.

Exercise 16-7 Partially correct answer. Your answer is partially correct. Try again. Illiad Inc. has decided to raise additional capital by issuing $170,000 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $136,000, and the value of the warrants in the market is $24,000. The bonds sold in the market at issuance for $152,000. (a) What entry should be made at the time of the issuance of the bonds and warrants? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit Entry field with correct answer Entry field with incorrect answer now contains modified data Entry field with correct answer Entry field with correct answer Entry field with incorrect answer now contains modified data Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with correct answer Entry field with incorrect answer now contains modified data (b1) Prepare the entry if the warrants were nondetachable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round intermediate calculations to 5 decimal places, e.g. 1.24687 and final answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Entry field with incorrect answer Click if you would like to Show Work for this question: Open Show Work

A subsidiary sold its parent some land at a profit of $10,000 in 2019. The parent still holds the land.

On a working paper prepared to consolidate the accounts of the parent and its subsidiary in 2021, the eliminating entry connected with this land includes a $10,000 debit to:

Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2016. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2018, he had the following receipts:

Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2018. Logan also was the designated beneficiary of an insurance policy on Daniel's life with a maturity value of $200,000. The lot in St. Louis was purchased on May 2, 2013, for $85,000 and held as an investment. Because the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2018, for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (e.g., camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9,000 he received and has declined or stayed the same in value since Sara and Daniel died.

Logan's expenditures for 2018 include the following:

Logan and his dependents are covered by his employer's health insurance policy for all of 2018. However, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him (see below). Logan normally pledges $2,400 ($200 per month) each year to his church. On December 5, 2018, upon the advice of his pastor, he prepaid his pledge for 2019.

Logan's household, all of whom he supports, includes the following:

Helen receives a modest Social Security benefit. Asher, a son, is a full-time student in dental school and earns $4,500 as a part-time dental assistant. Mia, a daughter, does not work and is engaged to be married.

Federal income tax of $4,500 was withheld from his wages.

Complete Form 1040 below for Logan Taylor.

I need help with 11a where it says "Tax (see inst)," 11, 13-15, and 22.

a. On January ​1, 2018​, NRRC issued no par common stock for $ 425 comma 000. b. Early in January​, NRRC made the following cash​ payments: 1. For store​ fixtures, $ 45 comma 000 2. For merchandise​ inventory, $ 290 comma 000 3. For rent expense on a store​ building, $ 12 comma 000 c. Later in the​ year, NRRC purchased merchandise inventory on account for $ 245 comma 000. Before​ year-end, NRRC paid $ 155 comma 000 of this accounts payable. d. During 2018​, NRRC sold 2 comma 200 units of merchandise inventory for $ 225 each. Before​ year-end, the company collected 80​% of this amount. Cost of goods sold for the year was $ 310 comma 000​, and ending merchandise inventory totaled $ 225 comma 000. e. The store employs three people. The combined annual payroll is $ 86 comma 000​, of which NRRC still owes $ 4 comma 000 at​ year-end. f. At the end of the​ year, NRRC paid income tax of $ 19 comma 000. There are no income taxes payable. g. Late in 2018​, NRRC paid cash dividends of $ 36 comma 000. h. For store​ fixtures, NRRC uses the​ straight-line depreciation​ method, over five​ years, with zero residual value.

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:

*Contains direct materials, direct labor, and variable manufacturing overhead.

Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:

*Based on machine-hours.

During June, the plant produced 5,000 pools and incurred the following costs:

1. Purchased 24,500 pounds of materials at a cost of $2.95 per pound.

2. Used 19,300 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)

3. Worked 4,600 direct labor-hours at a cost of $7.70 per hour.

4. Incurred variable manufacturing overhead cost totaling $5,070 for the month. A total of 1,300 machine-hours was recorded.

It is the company’s policy to close all variances to cost of goods sold on a monthly basis.

Required:

1. Compute the following variances for June:

a. Materials price and quantity variances.

b. Labor rate and efficiency variances.

c. Variable overhead rate and efficiency variances.

2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.

Abigail Henderson has ​$ budgeted for spending money on an upcoming trip to Country A and Country B. Country​ A's currency is trading at ​$ per currency​ A, and Country​ B's currency is trading at ​$ per currency B. She plans to spend more time in Country​ A, so she wants to have times as much of currency A as currency B. Set up and solve a system of equations to model this​ problem, and explain what the answer means in practical terms.

Complete the equation that represents the total cost of purchasing currency. Let x be the number of currency A and y the number of currency B. nothing

The following transactions apply to Jova Company for Year 1, the first year of operation:

Issued $15,500 of common stock for cash.

Recognized $64,500 of service revenue earned on account.

Collected $57,600 from accounts receivable.

Paid operating expenses of $36,000.

Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account.

The following transactions apply to Jova for Year 2:

Recognized $72,000 of service revenue on account.

Collected $65,600 from accounts receivable.

Determined that $890 of the accounts receivable were uncollectible and wrote them off.

Collected $300 of an account that had previously been written off.

Paid $48,400 cash for operating expenses.

Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account.

Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2. d-1.

Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Year 1.

Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,400,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows:

Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 11% rate of return on invested assets.

I NEED THE DIFFERENTIAL ANALYSIS DONE PLEASE!!! IF YOU DO ANY PART OF THIS AT ALL PLEASE DO THE DIFFERENCIAL ANALYSIS!!

6. A. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter “0”. A colon (:) will automatically appear if required.

Question not attempted.

Score: 0/53

THIS!!! THANK YOU.

Evidence is defined as any information used by the auditor to determine whether the
information being audited is stated in accordance with the established criteria.
i. Discuss the meaning of ‘appropriateness and ‘sufficiency’ of audit evidence.
[3 marks]

ii. Briefly explain on the following audit procedures:
a. Documentation.
b. Examination of physical assets.
c. Analytical procedures.
d. Inquiry.
f. Confirmation.

Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold.

Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year as follows:

*Primarily depreciation on storage facilities.

As Barbara handed the statement to Karl Vecci, Pittman’s president, she commented, “I went ahead and used the agents’ 15% commission rate in completing these statements, but we’ve just learned that they refuse to handle our products next year unless we increase the commission rate to 20%.”

“That’s the last straw,” Karl replied angrily. “Those agents have been demanding more and more, and this time they’ve gone too far. How can they possibly defend a 20% commission rate?”

“They claim that after paying for advertising, travel, and the other costs of promotion, there’s nothing left over for profit,” replied Barbara.

“I say it’s just plain robbery,” retorted Karl. “And I also say it’s time we dumped those guys and got our own sales force. Can you get your people to work up some cost figures for us to look at?”

“We’ve already worked them up,” said Barbara. “Several companies we know about pay a 7.5% commission to their own salespeople, along with a small salary. Of course, we would have to handle all promotion costs, too. We figure our fixed expenses would increase by $2,475,000 per year, but that would be more than offset by the $3,300,000 (20% × $16,500,000) that we would avoid on agents’ commissions.”

The breakdown of the $2,475,000 cost follows:

“Super,” replied Karl. “And I noticed that the $2,475,000 equals what we’re paying the agents under the old 15% commission rate.”

“It’s even better than that,” explained Barbara. “We can actually save $75,900 a year because that’s what we’re paying our auditors to check out the agents’ reports. So our overall administrative expenses would be less.”

“Pull all of these numbers together and we’ll show them to the executive committee tomorrow,” said Karl. “With the approval of the committee, we can move on the matter immediately.”

Required:

1. Compute Pittman Company’s break-even point in dollar sales for next year assuming:

a. The agents’ commission rate remains unchanged at 15%.

b. The agents’ commission rate is increased to 20%.

c. The company employs its own sales force.

2. Assume that Pittman Company decides to continue selling through agents and pays the 20% commission rate. Determine the dollar sales that would be required to generate the same net income as contained in the budgeted income statement for next year.

3. Determine the dollar sales at which net income would be equal regardless of whether Pittman Company sells through agents (at a 20% commission rate) or employs its own sales force.

4. Compute the degree of operating leverage that the company would expect to have at the end of next year assuming:

a. The agents’ commission rate remains unchanged at 15%.

b. The agents’ commission rate is increased to 20%.

c. The company employs its own sales force.

Use income before income taxes in your operating leverage computation.