In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.

2021 2022 2023

Revenue ______ _______ ________

Gross P _______ _______ ________

2-a. In the journal below, complete the necessary journal entries for the year 2021 (credit "Various accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2022 (credit "Various accounts" for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2023 (credit "Various accounts" for construction costs incurred).

3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract.

4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

2021 2022 2023

Revenue ______ _______ ________

Gross P _______ _______ ________

5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.

2021 2022 2023

Revenue ______ _______ ________

Gross P _______ _______ ________

Financial data for Joel de Paris, Inc., for last year follow: Joel de Paris, Inc. Balance Sheet Beginning Balance Ending Balance Assets Cash $ 139,000 $ 127,000 Accounts receivable 343,000 485,000 Inventory 565,000 485,000 Plant and equipment, net 863,000 853,000 Investment in Buisson, S.A. 395,000 434,000 Land (undeveloped) 253,000 252,000 Total assets $ 2,558,000 $ 2,636,000 Liabilities and Stockholders' Equity Accounts payable $ 378,000 $ 338,000 Long-term debt 967,000 967,000 Stockholders' equity 1,213,000 1,331,000 Total liabilities and stockholders' equity $ 2,558,000 $ 2,636,000 Joel de Paris, Inc. Income Statement Sales $ 4,439,000 Operating expenses 3,861,930 Net operating income 577,070 Interest and taxes: Interest expense $ 114,000 Tax expense 196,000 310,000 Net income $ 267,070 The company paid dividends of $149,070 last year. The “Investment in Buisson, S.A.,” on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return of 15%. Required: 1. Compute the company's average operating assets for last year. 2. Compute the company’s margin, turnover, and return on investment (ROI) for last year. (Round "Margin", "Turnover" and "ROI" to 2 decimal places.) 3. What was the company’s residual income last year?

You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below.

The company sells many styles of earrings, but all are sold for the same price—$19 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):

The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.

Suppliers are paid $5.50 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month’s sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible.

Monthly operating expenses for the company are given below:

Insurance is paid on an annual basis, in November of each year.

The company plans to purchase $23,500 in new equipment during May and $55,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $26,250 each quarter, payable in the first month of the following quarter.

The company’s balance sheet as of March 31 is given below:

The company maintains a minimum cash balance of $65,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $65,000 in cash.

Required:

Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules:

1. a. A sales budget, by month and in total.

    b. A schedule of expected cash collections, by month and in total.

    c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.

    d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.

2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $65,000.

3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach.

4. A budgeted balance sheet as of June 30.

Contribution Margin

Harry Company sells 35,000 units at $26 per unit. Variable costs are $17.42 per unit, and fixed costs are $126,100.

Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.

1. Choose a country that has adopted IFRSs (i.e. global accounting standards) for at least 3 or more years, as revealed in the accounting literature, and discuss the following: I. In what year did the country adopt IFRSs? II. Were the IFRSs introduced all together (at once), or gradually into the local accounting standards of your chosen country? Explain the possible reason. III. Discuss the benefits and challenges reported in the literature about the adoption of IFRSs in your chosen country.

2. Below is operating information of Weber Light Aircraft, a company that produces light recreational aircraft.

a. Compute the unit product cost using variable costing method.

b. Prepare an income statement for January, February and March using variable costing method.

c. Compute the unit product cost using absorption costing method.

d. Prepare an income statement for January, February and March using absorption costing method

e. Explain why both variable and absorption costing generate same income in a particular month, whereas in another month they generate different incomes.

You were asked to investigate extreme high, unexplained merchandise shortages at a department store chain. You found the following:

1. The receiving department supervisor owns and operates a boutique carrying many of the same labels as the chain store. The general manager is unaware of the ownership interest.
2. The receiving supervisor signs receiving reports showing that the total quantity shipped by a supplier was received and then diverts 5% to 10 % of each shipment to the boutique.
3. The store is unaware of the short shipments because the receiving report accompanying the merchandise to the sales areas shows that everything was received.
4. Accounts Payable paid vendors for the total quantity shown on the receiving report.
5. Based on the receiving department supervisor’s instructions, quantities on the receiving reports were not counted by sales personnel.

Required:

Classify each of the five situations as a fraudulent act, a fraud symptom, an internal control weakness, or an event unrelated to the investigation. Justify your answers. (CIA Examination, adapted)

The manufacturing overhead costs are applied to products on the basis of machine time. Unfortunately, due to system glitch, several numbers and labels have been omitted from the analysis of fixed overhead below. Supply the missing numbers and labels to help out:

1) Assume 6 minutes of machine time is standard per unit of production. How many units were actually produced in this situation?

Provide an example of how your organization uses managerial accounting. Discuss why this application of managerial accounting contributes the organization's success

Hello, so for a project in management accounting we were assigned a fake kayak selling/renting company that opporates in new england. The project gave us 1,000 to invest in expansion and the locations we chose are newburyport MA, new London County CT, Pawtucket RI, and South Portland ME. We decided to invest the million on propertys in these locations however our professor wants us to calculate the ROI on these investments somehow with only using internet sources so I don;t actually know how to do that.

Please tell me what the potential revenue could be and the ROI based on data about kayak sales found anywhere on the internet. Thank you.

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.