"Foreign Currency Transactions and International Financial Reporting Standards (IFRS)"

• Analyze the main reasons why a company might prefer a foreign currency option over a forward contract in hedging a foreign currency firm commitment. In contrast, analyze the main reasons why a company might prefer a forward contract over an option in hedging a foreign currency asset or liability. Determine the option (e.g. a foreign currency option or a forward contract) that you consider to be more effective. Provide a rationale for your response.
• Assume that all the companies in the world use International Financial Reporting Standards (IFRS). Determine at least two (2) obstacles to the worldwide comparability of financial statements and provide one (1) strategy to overcome the obstacles in question. Provide support for your rationale.

Prepare journal entries for the City of Pudding's governmental funds to record the following transactions, first for fund financial statements and then for government-wide financial statements.

1. A new truck for the sanitation department was ordered at a cost of $107,250.
2. The city print shop did $2,700 worth of work for the school system (but has not yet been paid).
3. An $12 million bond was issued to build a new road.
4. Cash of $183,000 is transferred from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund.
5. The truck ordered in (a) is received at an actual cost of $110,850. Payment is not made at this time.
6. Cash of $38,600 is transferred from the general fund to the capital projects fund.
7. A state grant of $60,000 is received that must be spent to promote recycling.
8. The first $9,300 of the state grant received in (g) is appropriately expended.

Schedule of Cash Payments

EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March). The Accrued Expenses Payable balance on January 1 is $33,100. The budgeted expenses for the next three months are as follows:

Other operating expenses include $4,200 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 65% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.

Prepare a schedule of cash payments for operations for January, February, and March.

Given the financial data for four mutually exclusive alternatives in the table below,

Use a Rate of Return Analysis to solve for the following:

• Which alternative should be chosen using an MARR of 9%? Mathematical solution
• Create a choice table from 0 – 25%.
• Create a graphical solution to the problem indicating which alternative should be chosen for interest rates from 0 – 20%. Make sure your graph has all proper labels including the appropriate choices for the Rate of Returns shown in the graph. The graph should be on its own page and not embedded.  

Statement of Cash Flows—Indirect Method

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:

1. Net income, $137,520.
2. Depreciation reported on the income statement, $42,030.
3. Equipment was purchased at a cost of $82,060, and fully depreciated equipment costing $22,560 was discarded, with no salvage realized.
4. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.
5. 7,000 shares of common stock were issued at $20 for cash.
6. Cash dividends declared and paid, $83,800.

Required:

Prepare a statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Can the elements of the Fraud Triangle be observed?

Let's explore this idea by responding to each of the following:

• "An organization with significant fraud risk looks and sounds like"
• "An organization with minimal fraud risk looks and sounds like"

Calculate gross pay for each of the following employees of Launchpad Co. The company offers a regular wage rate of $8.20/hour to all employees. Under an incentive plan in place for all employees, this rate increases for any employee who can meet weekly production goals. The increased rates and corresponding thresholds that must be met are as follows: $9.40/hour for producing at least 2,000 units $10.60/hour for producing at least 2,800 units $11.80/hour for producing at least 3,700 units $13/hour for producing at least 4,700 units All employees are paid an overtime wage rate that is 1.5 times their respective regular wage rates. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:Bronson Chau worked 42 hours and produced 1,870 units. Gross Pay = $

2:Pauline Myers worked 42 hours and produced 3,650 units. Gross Pay = $

3:Angela Smith worked 52 hours and produced 2,160 units. Gross Pay = $

4:Angelo Balducci worked 47 hours and produced 4,790 units. Gross Pay = $

Tia and Colton graduate from college in May 2018 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they’ll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts.

On July 1, 2018, Tia and Colton organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 30,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tia and Colton will act as co-presidents of the company. The following transactions occur from July 1 through December 31.

The following information relates to year-end adjusting entries as of December 31, 2018.

1. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,820.
2. Six months’ worth of insurance has expired.
3. Four months’ worth of rent has expired.
4. Of the $1,900 of office supplies purchased on July 4, $370 remains.
5. Interest expense on the $46,000 loan obtained from the city council on August 1 should be recorded.
6. Of the $2,900 of racing supplies purchased on December 12, $190 remains.
7. Colton calculates that the company owes $13,200 in income taxes.

REQUIREMENTS:

1. Record each of the transactions listed above in the ‘General Journal’ tab (these are shown as items 1-27). From those transactions, populate the ‘General Ledger’ and review the ‘Trial Balance’ tab to see the effect of the transactions on the account balances.
2. Record the adjusting entries in the ‘General Journal’ tab (these are shown as items 28-34). Update your ‘General Ledger’.
3. Review the adjusted ‘Trial Balance’ as of December 31, 2018.
4. Prepare an income statement for the period ended December 31, 2018, in the ‘Income Statement’ tab.
5. Prepare a classified balance sheet as of December 31, 2018, in the ‘Balance Sheet’ tab.
6. Record the closing entries in the ‘General Journal’ tab (these are shown as items 35-37). Update your ‘General Ledger’.

*will someone please explain/show the steps in this process for me? Thank you so much!

Amy company produces and sells a toy for $205 per unit. In the first year of operations, 100,000 units were produced and 75,000 were sold. other information for the year includes:

direct materials $31 per unit

direct manufacturing labor $3 per unit

variable manufacturing overhead costs $4 per unit

sales selling expenses $4 per unit

total fixed manufacturing costs $1,250,000

total fixed administrative expenses $950,000

a. compute the contribution margin per unit

Answer $163

b. then compute the inventoriable cost per unit under absorption costing

Answer $50.50

c. and finally, compute the inventoriable cost per unit under variable costing

Answer $38.00

If you could answer all 4 that would be greatly appreciated, thanks

1.

Hull Company reported the following income statement information for the current year:

The beginning inventory balance is correct. However, the ending inventory figure was overstated by $23,000. Given this information, the correct gross profit would be:

• $137,500.

• $124,500.

• $147,500.

• $170,500.

• $113,500.

2.

On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $98,400; Allowance for Doubtful Accounts, credit balance of $1,081. What amount should be debited to Bad Debts Expense, assuming 5% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?

• $4,920.

• $1,081.

• $6,001.

• $2,947.

• $3,839.

3.

Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on August 31, its Cash account shows a debit balance of $15,662. Franklin's August bank statement shows $16,237 on deposit in the bank. Determine the adjusted cash balance using the following information:

The adjusted cash balance should be:

• $21,487

• $15,587

• $17,087

• $17,162

• $11,837.

4.

Gary Marks is paid on a monthly basis. For the month of January of the current year, he earned a total of $9,088. FICA tax for Social Security is 6.2% on the first $118,500 of earnings each calendar year and the FICA tax for Medicare is 1.45% of all earnings. The FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The amount of Federal Income Tax withheld from his earnings was $1,507.97. What is the amount of the employer's payroll taxes expenses for this employee? (Round your intermediate calculations to two decimal places.)

• $42.00

• $563.46

• $378.00

• $131.78

• $1,115.24

Adjusting Entries from Trial Balances

The accountant for Eva’s Laundry prepared the following unadjusted and adjusted trial balances. Assume that all balances in the unadjusted trial balance and the amounts of the adjustments are correct.

*3,800 of insurance expired during the year.

Identify the errors in the accountant’s adjusting entries, assuming that none of the accounts were affected by more than one adjusting entry. If an amount box does not require an entry, leave it blank.

FF&T Corporation is a confectionery wholesaler that frequently buys and sells securities to meet various investment objectives. The following selected transactions relate to FF&T’s investment activities during the last two months of 2018. At November 1, FF&T held $48 million of 20-year, 10% bonds of Convenience, Inc., purchased May 1, 2018, at face value. Management has the positive intent and ability to hold the bonds until maturity. FF&T’s fiscal year ends on December 31. Nov. 1 Received semiannual interest of $2.4 million from the Convenience, Inc., bonds. Dec. 1 Purchased 12% bonds of Facsimile Enterprises at their $40 million face value, to be held until they mature in 2024. Semiannual interest is payable May 31 and November 30. 31 Purchased U.S. Treasury bills to be held until they mature in two months for $10.9 million. 31 Recorded any necessary adjusting entry(s) relating to the investments. The fair values of the investments at December 31 were: Convenience bonds $ 45.2 million Facsimile Enterprises bonds 40.5 million U.S. Treasury bills 10.9 million Required: Prepare the appropriate journal entry for each transaction or event. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

1. Received semiannual interest of $2.4 million from the Convenience, Inc., bonds.

Note: Enter debits before credits.

2. Purchased 12% bonds of Facsimile Enterprises at their $40 million face value, to be held until they mature in 2024. Semiannual interest is payable May 31 and November 30.

Note: Enter debits before credits.

3. Purchased U.S. Treasury bills that mature in two months for $10.9 million.

Note: Enter debits before credits.

4. Record the interest accrued.

Note: Enter debits before credits.

5. Record the fair value adjustment.

Note: Enter debits before credits.

The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:

• Purchased $300,000 of materials.
• Used $271,600 of direct materials in production.
• Incurred $78,100 of direct labor wages.
• Applied factory overhead at a rate of 46% of direct labor cost.
• Transferred $365,700 of work in process to finished goods.
• Sold goods with a cost of $348,000.
• Revenues earned by selling bikes, $575,800.
• Incurred $117,100 of selling expenses.
• Incurred $56,900 of administrative expenses.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

1. Prepare the income statement for Rushmore Biking for the month ending February 28. Round your answers to the nearest dollar.

   Rushmore Biking Inc.
   Income Statement
   For the Month Ended February 28
   Revenues				$
   Cost of Goods Sold
   Gross Profit				$
   Selling and Administrative Expenses:
   Selling Expenses		$
   Administrative Expenses
   Total Selling and Administrative Expenses
   Operating Income				$

2. Determine the inventory balances on February 28, the end of the first month of operations. Round your answers to the nearest dollar.

   Materials inventory, February 28	$
   Work in process inventory, February 28	$
   Finished goods inventory, February 28	$

Calculate gross pay for each of the following employees. All are paid an overtime wage rate that is 1.5 times their respective regular wage rates. NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:Walter Pinkman assembles merchandise and is paid $0.12 for each unit assembled. During the most recent week, he worked 44 hours and assembled 5,602 units. Gross Pay = $

2:Sidney Darling is a telemarketer, who is paid $0.31 for every telemarketing call he places. During the most recent week, he worked 42 hours and placed 1,669 calls. Gross Pay = $

3:Pete Brees assembles merchandise and is paid $0.05 for each unit assembled. During the most recent week, he worked 51 hours and assembled 13,302 units. Gross Pay = $

4:Roy Carter is a telemarketer who is paid $0.36 for every telemarketing phone call he places. During the most recent week, he worked 50 hours and placed 1,564 calls. Gross Pay = $

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2016: