Equipment acquired on January 8 at a cost of $212,000 has an estimated useful life of 15 years, has an estimated residual value of $14,000, and is depreciated by the straight-line method.

a. What was the book value of the equipment at December 31 the end of the fifth year?

Assume that the equipment was sold on April 1 of the sixth year for $105,800.

1. Journalize the entry to record depreciation for the three months until the sale date. If an amount box does not require an entry, leave it blank.

Depreciation expense-equipment

Accumulated depreciation-equipment

2. Journalize the entry to record the sale of the equipment. If an amount box does not require an entry, leave it blank.

Cash

Accumulated Depreciation-equipment

Loss on Sale of Equipment

Equipment

Identify at least three risks that auditors need to consider for companies that process Web-based sales transactions, including credit card payments. For each risk identified, develop a mitigation risk strategy. Provide specific examples.

Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets and income statement follow.

Additional Information on Year 2017 Transactions

1. Purchased equipment for $61,400 cash.
2. Issued 13,500 shares of common stock for $5 cash per share.
3. Declared and paid $104,000 in cash dividends.

Required:
Prepare a complete statement of cash flows; report its cash flows from operating activities according to the direct method. (Amounts to be deducted should be indicated with a minus sign.)

Explain why a supervisor needs to understand their company's financial statements. What information can be gathered from each financial statement?

What audit procedures would you use for the measurement and completeness of depreciation expense objective?

1. ABC company issued $800,000 11, 10 year bond on December 31, 2017 when the market rate for this type of bond is 12%. Interest is payable annually on December 31.ABC uses the straight-line method to amortize bond premium or discount.

a. How much will you receive? prepare the entry to issue the bond.

b. Record the entry to show the interest expense and the bond premium or discount amortization on December 31, 2019?

c. what entry is made at the end of the 10 years to redeem (pay) the bonds at maturity after the last interest payment and amortization has been done?

2. You borrow $2000 and gave a note discounted for 5% for 5 months. The note was discounted up front. Prepare the journal entry to issue the note.

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows:

1. Raw materials used in production: Molding Department, $29,000; and Firing Department, $5,600.
2. Direct labor costs incurred: Molding Department, $17,600; and Firing Department, $5,600.
3. Manufacturing overhead was applied: Molding Department, $25,700; and Firing Department, $35,700.
4. Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company’s process costing system, the cost of the unfired, molded bricks was $70,000.
5. Finished bricks were transferred from the Firing Department to the finished goods warehouse. According to the company’s process costing system, the cost of the finished bricks was $108,000.
6. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $104,000.

Sales Budget

XYZ Company 2018 sales forecast is as follows:

Quarter 1: 7,000 Product Ace units. Quarter 2: 9,000 Product Ace units. Quarter 3: 10,000 Product Ace units. Quarter 4: 12,000 Product Ace units

Each unit sells for $60

Production Budget

The January 1, 2018 beginning inventory of Product Ace is 4,000 units. Management desires an ending inventory each quarter equal to 30% of the next Quarter's sales. Sales in the first and second quarter of 2019 are expected to be 10% higher than sales in the same quarter in 2018.

Direct Materials Budget

Each unit requires 3 pounds of raw materials costing $1 per pound. On December 31, 2017 the ending raw materials inventory was 1,000 pounds. Management wants to have raw materials inventory at the end of each quarter equal to 15% of the next quarter's production requirements.

Direct Labor Budget

Each unit requires 2.5 hours of direct labor. Wage rates are expected to be $10 per hour for the year.

Manufacturing overhead budget

Relevant data consists of the following:

Variable overhead costs per direct labor hour: indirect materials: $0.90; indirect labor: $1.40; and maintenance: $0.60.

Fixed overhead costs per quarter: supervisory salaries: $30,000; depreciation: $10,000 and property taxes on factory: $15,000.

Round the predetermined overhead rate to two decimal places.

Selling and administrative expense budget

Variable costs per dollar of sales: sales commission 4%; delivery expense 1%; advertising 55; fixed costs per quarter: sales salaries $11,000; depreciation $3,000; insurance $1,500

Prepare each budget listed above by quarter and then prepare a budgeted income statement for the year 2018. Round the cost per unit to two decimal places. Round cost of goods sold to the nearest dollar assume interest expense to be $210,000. Assume the income tax rate to be 25%.

what are the advantages and disadvantages for providing a 401 k match from the employer's perspective?

Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains 12 quarts of synthetic oil. To achieve this level of production, Slick purchased and used 16,500 gallons of direct materials at a cost of $20,359. It also incurred average direct labor costs of $14 per hour for the 4,031 hours worked in May by its production personnel. Manufacturing overhead for the month totaled $9,019, of which $2,200 was considered fixed. Slick's standard cost information for each case of synthetic motor oil is as follows.

Required:

a. Compute the materials price and quantity variances.

b. Compute the labor rate and efficiency variances.

c. Compute the manufacturing overhead spending and volume variances.

d. Prepare the journal entries to:

1. Charge materials (at standard) to Work in Process.

2. Charge direct labor (at standard) to Work in Process.

3. Charge manufacturing overhead (at standard) to Work in Process.

4. Transfer the cost of the 5,000 cases of synthetic motor oil produced in May to Finished Goods.

5. Close any over- or underapplied overhead to cost of goods sold.

On January 1, 2017, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,392,300 in cash. The price paid was proportionate to Sellinger’s total fair value, although at the acquisition date, Sellinger had a total book value of $1,700,000. All assets acquired and liabilities assumed had fair values equal to book values except for a patent (six-year remaining life) that was undervalued on Sellinger’s accounting records by $279,000. On January 1, 2018, Palka acquired an additional 25 percent common stock equity interest in Sellinger Company for $536,250 in cash. On its internal records, Palka uses the equity method to account for its shares of Sellinger.

During the two years following the acquisition, Sellinger reported the following net income and dividends:

1. Show Palka’s journal entry to record its January 1, 2018, acquisition of an additional 25 percent ownership of Sellinger Company shares.

2. Prepare a schedule showing Palka’s December 31, 2018, equity method balance for its Investment in Sellinger account.

Show Palka’s journal entry to record its January 1, 2018, acquisition of an additional 25 percent ownership of Sellinger Company shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare a schedule showing Palka’s December 31, 2018, equity method balance for its Investment in Sellinger account. (Amounts to be deducted should be indicated with a minus sign.)

Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).

Assume that Wiset Co. uses the perpetual inventory system.

     
Required:

1-a. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the purchases journal.
1-b. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the cash disbursements journal.
1-c. Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the general journal.
2 & 3. Enter the March 31 balances of Cash ($98,000), Inventory ($138,000), Long-Term Notes Payable ($136,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Inc.
4-a. Prepare a trial balance.
4-b. Prepare a schedule of accounts payable.

Enterprise Risk Management (ERM) is an activity undertaken by many organizations. Jiffy Sportswear, Inc., is a fast growing privately owned company that will soon issue its shares to the public and be subject to SEC jurisdiction. Its CEO wants to implement a corporate wide ERM program and asks you, the CAE, to counsel him on the following:

1. Explain the purpose of ERM and how it may add value to the organization.
2. What is the role of internal auditing with respect to ERM? Moreover, what should internal auditing refrain from doing with respect to ERM?
3. Explain the concept of risk-based auditing and how it relates to ERM.