Access the FASB website and identify the three most recent exposure drafts issued by the FASB.
In: Accounting
Assess the FASB website. Examine 2014, 2015 and 2016 ASU's. Identify and list the PCC ASU's.
In: Accounting
MATCHING!
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In: Accounting
Maria's Food Service provides meals that nonprofit organizations
distribute to handicapped and elderly people. Here is her
forecasted income statement for April, when she expects to produce
and sell 2,200 meals:
| Amount | Per Unit | |||||
| Sales revenue | $ | 11,440 | $ | 5.20 | ||
| Costs of meals produced | 9,020 | 4.10 | ||||
| Gross profit | $ | 2,420 | $ | 1.10 | ||
| Administrative costs | 1,100 | 0.50 | ||||
| Operating profit | $ | 1,320 | $ | 0.60 | ||
Fixed costs included in this income statement are $2,420 for meal
production and $440 for administrative costs. Maria has received a
special request from an organization sponsoring a picnic to raise
funds for the Special Olympics. This organization is willing to pay
$3.10 per meal for 300 meals on April 10. Maria has sufficient idle
capacity to fill this special order. These meals will incur all of
the variable costs of meals produced, but variable administrative
costs and total fixed costs will not be affected.
Required:
a. What impact would accepting this special order have on operating profit? (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there is no effect.)
b. From an operating profit perspective for April, should Maria accept the order?
| Yes | |
| No |
In: Accounting
Would an unexpected increase in sales and production result in an under-applied or over-applied overhead? Explain.
Please no hand-written answers.
In: Accounting
Part 2
Accounting policies
At a meeting on 16 June 2019, the directors of Swan Ltd decided to change the company’s accounting policy in regard to research and development expenditure. In previous years, research and development expenditure had been capitalized and amortized over 3 years. In line with this policy, $75 000 was capitalized on 1 January 2018. The new policy is to write off all research and development to expense when incurred. During the year ended 30 June 2019, the company spent a further $62 000 on research and development which was capitalized on 1 January 2019. Research and development expenditure is allowable as a deduction for tax purposes when incurred.
Required
Prepare any note disclosures required by AASB 108/IAS 8 in respect of the change in accounting policy. Show all workings.
In: Accounting
Li Ltd requires you to determine, for the two scenarios below, the ‘cash and cash equivalents’ amount to include in its Statement of Cash Flows.
|
Scenario 1 |
Scenario 2 |
|
|
Cash at bank |
$20 000 |
$33 000 |
|
Short term investment (45 day) |
- |
$70 000 |
|
Foreign bank account (insignificant risk of change in value) |
3 000 |
- |
|
Short term investment (120 day) |
10 000 |
- |
|
Redeemable preference shares (redeemable in three years) |
- |
3 500 |
|
Petty cash |
- |
50 |
|
Bank overdraft |
7 680 |
- |
|
Redeemable preference shares (redeemable in 60 days) |
- |
15 000 |
|
Cash and cash equivalents = |
$ |
$ |
In: Accounting
Vittoria Ltd requires a Statement of Cash Flows to be prepared for the year ended
31 March 2018, the following information has been collected for this purpose.
|
Vittoria Ltd Balance Sheets as at 31 March |
||
|
2017 |
2018 |
|
|
Cash |
$176 000 |
$239 000 |
|
Accounts receivable |
220 000 |
280 000 |
|
Allowance for doubtful debts |
(30 000) |
(40 000) |
|
Inventory |
90 000 |
100 000 |
|
Plant and equipment |
900 000 |
1 074 000 |
|
Accumulated depreciation |
(80 000) |
(100 000) |
|
Total assets |
$1 276 000 |
$1 553 000 |
|
Accounts payable |
80 000 |
70 000 |
|
Interest payable |
1 000 |
2 000 |
|
Income tax payable |
76 000 |
88 000 |
|
Long term loans |
109 000 |
148 000 |
|
Share capital |
400 000 |
500 000 |
|
Asset revaluation surplus |
- |
30 000 |
|
Retained earnings |
610 000 |
715 000 |
|
Total equity and liabilities |
$1 276 000 |
$1 553 000 |
|
Vittoria Ltd SCI for the year ended 31 March 2018: |
|
|
Sales |
$885 000 |
|
Less expenses: |
|
|
COGS |
240 000 |
|
Depreciation expense |
90 000 |
|
Interest expense |
6 000 |
|
Doubtful debts expense |
40 000 |
|
Salaries and wages expense |
200 000 |
|
Income tax expense |
84 000 |
|
Other expenses |
120 000 |
|
Profit after tax |
105 000 |
|
OCI: Revaluation gain |
30 000 |
|
TCI |
$135 000 |
Question 2 continued:
Additional information:
Vittoria Ltd classifies interest expense and dividends paid as cash outflows from financing activities.
Plant and equipment, with a fair value of $100 000, has been acquired by the issue of
$100 000 worth of fully paid Vittoria Ltd shares to the sellers of the plant and equipment.
During the year, equipment that originally cost $100 000 was sold for $30 000 cash.
Plant and equipment was revalued upwards by $30 000.
A long-term loan of $30 000 was specifically organised for the purchase of plant and equipment costing $30 000.
Required:
(i) Prepare the general ledger accounts as required in the answer booklet.
(ii) Prepare a statement of cash flows for Vittoria Ltd, for the year ended 31 March 2018, in accordance with NZ IAS 7 Statement of Cash Flows. Vittoria Ltd uses the indirectmethod for the cash flows from operating activities (CFOA) section.
(iii) Prepare a statement of cash flows for Vittoria Ltd, for the year ended 31 March 2018, in accordance with NZ IAS 7 Statement of Cash Flows. Vittoria Ltd uses the directmethod for the cash flows from operating activities (CFOA) section. Complete the necessary reconciliation, as required by NZ FRS-44, to be included in the notes.
(iv) Explain, by completing the table in the answer booklet, how your answers to (ii) and (iii) above would changeifVittoria Ltd classified interest expense paid as a cash outflow from operating activities.
(v) Vittoria Ltd has provided you with 15 types of cash inflows and cash outflows in the answer booklet and requires you to determine where they should be included in the Statement of Cash Flows in accordance with NZ IAS 7 Statement of Cash Flows. AssumeVittoria Ltd uses the direct method for CFOA. Hint: Remember certain cash flows have a choice of classification; for these particular cash flows highlight the two choices available.
CFOA = cash flows from operating activities, CFIA = cash flows from investing activities and CFFA = cash flows from financing activities.
In: Accounting
The 2018 Annual Reports/Financial Statements forboth Air NZ and Auckland Airportare provided on Canvas/Modules/5.Assignments 1 to 5.Answer the questions in the Answer Booklet for both Air NZ and Auckland Airport. All questions relate to 2018.
Air NZ : https://p-airnz.com/cms/assets/PDFs/Air-NZ-2018-Financial-Results.pdf
AKL airport : https://corporate.aucklandairport.co.nz/-/media/Files/Corporate/Annual-Report-2018/Annual-Report-2018-Financial-Statements.ashx?la=en&hash=3FD590BBFBB78389CD2DEA7EE8402BCAEC4332E9
|
The questions below relate to the SCF and relevant notes. |
Auckland Airport (AA) |
Air New Zealand |
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On what page is the SCF? |
||
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Which method was selected to present CFOA in the SCF? |
||
|
What is the note number relating to Net CFOA? |
||
|
Why is there a reconciliation of ‘Net profit to CFOA’ in the above said note? |
||
|
State the income tax paid $ amount. |
||
|
State the net cash flow from/(applied to) investing activities $ amount. |
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|
State the net cash flow from/(applied to) financing activities $ amount. |
||
|
Where did Air NZ make a mistake in the wording in its SCF? |
Ignore question for AA. |
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|
State the amount of cash applied to purchasing PPE and intangibles. |
||
|
State the dollar amount for the depreciation and amortisation non-cash item adjustment in the ‘PAT to CFOA’ reconciliation |
||
|
State the cash and cash equivalents $ amount at the end of the year. |
||
|
State the total interest paid $ amount. |
||
|
How was ‘interest expense paid’ classified in the SCF? |
||
|
How was ‘interest income received’ classified in the SCF? |
||
|
How was ‘dividends paid’ classified in the SCF? |
||
|
Determine the ‘cash generated from operations’ $ amount. |
In: Accounting
Present in your own words by taking a company as a sample study with regard to Voucher & Non-Voucher in Invoice processing?
In: Accounting
We know that Assets=Liabilities+Equity. If company increases the debt level , how can affect it to the ROE. Debt affects the Equity and the ROE?
In: Accounting
2. Change all of the numbers in the data area of your worksheet so that it looks like this:
|
If your formulas are correct, you should get the correct answers to the following questions.
(a) What is the break-even in dollar sales?
(b) What is the margin of safety percentage?
(c) What is the degree of operating leverage? (Round your answer to 2 decimal places.)
3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%.
4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this:
A
B
C
1
2
3
4
5
6
7
| Chapter 5: Applying Excel | ||
| Data | ||
| Unit sales | 60,000 | units |
| Selling price per unit | $20 | per unit |
| Variable expenses per unit | $14 | per unit |
| Fixed expenses | $270,000 |
(a) What is net operating income? (Negative amount should be indicated by a minus sign.)
(b) By what percentage did the net operating income increase?
5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $13,000 and at that price, Thad estimates 200 units would be sold each year. The variable cost to produce and sell the cycles would be $9,100 per unit. The annual fixed cost would be $390,000.
a. What is the break-even in unit sales?
b. What is the margin of safety in dollars?
c. What is the degree of operating leverage? (Round your answer to 2 decimal places.)
Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $10,500 to compete effectively. In that event, Thad would also reduce fixed expenses to $363,000 by reducing advertising expenses, but he still hopes to sell 200 units per year.
d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.)
In: Accounting
. Provide a short, real-world workplace scenario that exemplifies at least one type of discrimination you researched. (Disability, pregnancy, race, color, religion, sex, national original….) b. Discuss how the FMLA serves to discourage workplace discrimination.
In: Accounting
Selected Dividend Transactions, Stock Split
Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows.
Journalize the transactions.
If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.
Jan. 8. Split the common stock 3 for 1 and reduced the par from $84 to $28 per share. After the split, there were 135,000 common shares outstanding.
| Jan. 8. | |||
Apr. 30. Declared semiannual dividends of $1.30 on 9,000 shares of preferred stock and $0.08 on the common stock payable on July 1.
| Apr. 30. | |||
July 1. Paid the cash dividends.
| July 1. | |||
Oct. 31. Declared semiannual dividends of $1.30 on the preferred stock and $0.06 on the common stock (before the stock dividend). In addition, a 3% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $50.
| Cash Dividends | |||
| Stock dividends | |||
Dec. 15. Paid the cash dividends and issued the certificates for the common stock dividend.
| Payment | |||
| Issuance | |||
In: Accounting
What role does the Accounting Information System play in the production cycle by taking a Company as sample study?
In: Accounting