Ajax Products, Inc., reported an excess of warranty expense over warranty deductions of $72,000 for the year ended December 31, 2020. This temporary difference will reverse in equal amounts of $24,000 in years 2021, 2022, and 2023. The enacted tax rates are as follows: 2020: 40%; 2021: 25%; 2022: 21%; 2023: 20%. The reporting for this temporary difference at December 31, 2020, would be a

Question 4 options:

Jurica Corporation manufactures various trim pieces for vehicle manufacturers. The company has a number of plants, including the Juriquilla Plant, which makes door trim pieces.

Mr. Bates is both the regional manager for the Central America region and the plant manager of the Juriquilla Plant. His budget as the regional manager is charged to the Juriquilla Plant.

Bates has just heard that the company received a bid from an outside vendor to supply the equivalent of the entire annual output of the Juriquilla Plant for $20.5 million. Bates is astonished at the low outside bid because the budget for the Juriquilla Plant’s operating costs for the upcoming year is $24.16 million. If this bid is accepted, the Juriquilla Plant will be shut.

The budget for the Juriquilla Plant’s operating costs for the coming year is presented below.

*Fixed corporate expenses allocated to plants and other operating units based on total budgeted wage and salary costs.

Additional facts regarding the plant’s operations are as follows:

1. Due to Juriquilla’s commitment to use high-quality fabrics in all of its products, the Purchasing Department was instructed to place yearly purchase orders with major suppliers to ensure the receipt of sufficient materials for the coming year. If these orders are canceled as a consequence of the plant closing, termination charges would amount to 20% of the cost of direct materials.

2. Approximately 300 plant employees will lose their jobs if the plant is closed. This includes all of the direct laborers and supervisors as well as the plumbers, electricians, and other skilled workers classified as indirect plant workers. Some would be able to find new jobs while many others would have difficulty. All employees would have difficulty matching Jurquilla’s base pay of $11.50 per hour, which is the highest in the area. A clause in Juriquilla’s current contract with the union may help some employees; the company must provide employment assistance to its former employees for 12 months after a plant closing. The estimated cost to administer this service would be $0.79 million for the year.

3. Some employees would probably choose early retirement because Jurica Corporation has an excellent pension plan. In fact, $0.61 million of the annual pension expense would continue whether the Juriquilla plant is open or not.

4. Bates and his staff would not be affected by the closing of the Juriquilla Plant. They would still be responsible for administering three other area plants.

5. If the Juriquilla Plant were closed, the company would realize about $3.68 million salvage value for the equipment and building. If the plant remains open, there are no plans to make any significant investments in new equipment or buildings. The old equipment is adequate and should last indefinitely.

Required:

1. Before looking at the numbers, discuss the human factors and other non-numerical factors that are at play when considering a make or buy decision of this magnitude?  

2. Jurica Corporation plans to prepare a financial analysis that will be used in deciding whether or not to close the Denver Cover Plant. Management has asked you to identify:

1. The annual budgeted costs that are relevant to the decision regarding closing the plant.
2. The annual budgeted costs that are not relevant to the decision regarding closing the plant.
3. Any nonrecurring costs that would arise due to the closing of the plant.

3. Looking at the data you have prepared in (1) above,

1. Calculate the financial advantage (disadvantage) of closing the plant. You should calculate this for both the first year and the years after the first year.

2. Based on your analysis as a manager should the plant be closed. Discuss your decision.

Your work should be submitted in full and grammatically correct sentences.

Calculations should be organized into tables that are easy to follow. If you have a mistake in your work but I cannot understand your calculations, I cannot give partial credit.

Grading Rubric:

Topic 1 (Note: Briefly in your own words 1 paragraph minimum, use and attach reference.)

Accounting Practices:

Using reading and research, locate a scholarly article that discusses accounting practices or the role of accounting in construction.

1.) Give a brief summary of what you learned and discuss how you will use this knowledge in your future career in construction management, what are the most common methods and programs used.

Discussion Topic 2 (Note: Briefly in your own words 1 paragraph minimum.)

Depreciation:

1. What impact do you think depreciation has on a construction company from a financial standpoint?  

2. Why do you think we need to depreciate some assets but not others?

HolmesWatson (HW) is considering what the effect would be of reporting its liabilities under IFRS rather than U.S. GAAP. The following facts apply:

1. HW is defending against a lawsuit and believes it is virtually certain to lose in court. If it loses the lawsuit, management estimates it will need to pay a range of damages that falls between $5,000,000 and $10,000,000, with each amount in that range equally likely.
2. HW is defending against another lawsuit that is identical to item (a), but the relevant losses will only occur far into the future. The present values of the endpoints of the range are $3,000,000 and $8,000,000, with the timing of cash flow somewhat uncertain. HW considers these effects of the time value of money to be material.
3. HW is defending against another lawsuit for which management believes HW has a slightly better than 50/50 chance of losing in court. If it loses the lawsuit, management estimates HW will need to pay a range of damages that falls between $3,000,000 and $9,000,000, with each amount in that range equally likely.
4. HW has $10,000,000 of short-term debt that it intends to refinance on a long-term basis. Soon after the balance sheet date, but before issuance of the financial statements, HW obtained the financing necessary to refinance the debt.

   
Required:
1. For each item, indicate how treatment of the amount would differ between U.S. GAAP and IFRS.
2. Consider the total effect of items a–d. If HW’s goal is to show the lowest total liabilities, which set of standards, U.S. GAAP or IFRS, best helps it meet that goal?
  

1.

2. Consider the total effect of items a–d. If HW’s goal is to show the lowest total liabilities, which set of standards, U.S. GAAP or IFRS, best helps it meet that goal?

A.U.S. GAAP. B.IFRS. C. BOTH ARE THE SAME

What are the service lines within Big 4, and what do each one of them do?

A manufacturing company has two Divisions: Amateur and Pro. Estimated activity for the next year is:

                                                Amateur              Pro               Company Total

                                                Division           Division           (Amateur + Pro)

Direct Labour hours:               9,000 hrs        1,000 hrs         10,000 hrs

Maching Hours:                      2,700 hrs           600 hrs            3,300 hrs

Units Produced:                          800 units        100 units            900 units

Production Batches:                        1 batch         49 batches         50 batches          

Costs: Labour:            $144,000

Set-ups:           $    7,500

Machining:      $ 33,000

Total costs:      $184,500

Other information:                                         

• The Amateur division makes products on a continual basis throughout the year.
• The Pro division makes products in batches based on demand.
• Both divisions use the same machines and the same employees.
• There are no materials.
• A set-up is required for each production batch.
• Machining costs are allocated based on Machine hours.

Required

1. What is the cost of a unit for each of the Amateur and Pro Divisions, assuming that total costs are captured in a single cost pool allocated on the basis of Direct Labour Costs (ie, no ABC)?

2. What is the cost of a unit for each of the Amateur and Pro Divisions, assuming that the company uses Activity Based Costing?

Using the information given below, prepare an income statement, Statement of Retained Earnings and balance sheet for Hanson Storage from the adjusted trial balance. No additional investments in the company were made during the year.

Really need help with the income statement, retained earnings, and the balance sheet! thank you

On January 1, 2017, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays $100,000 at the time the contract is signed, at which time the goods are transferred and Fulton’s performance obligation is complete. In addition, Gibson agrees to pay Fulton $100,000 on December 31, 2017, and December 31, 2018. If Fulton entered into a financing arrangement with Gibson it would charge an interest rate of 9%.

Required:

1. Determine the transaction price for the contract with Gibson.

Transaction price $ _______

2. Prepare the journal entries to record Fulton’s sales revenue on January 1 and interest revenue on December 31.

"Fraud Mitigation Techniques" Please respond to the following: From the e-Activity, determine the theft red flags that would create the most opportunity for abuse and make recommendations for the types of controls that could detect various types of frauds. Be as specific as possible by providing illustrative examples to support your position. Suggest why collusion between employees and management in the commission of a fraud is difficult to both prevent and detect. Discuss preventative measures or risk mitigation strategies to address this issue.

The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation.

Additional information:

1. The common stock represents 1.2 million shares of no par stock authorized, 580,000 shares issued and outstanding.
2. The loans to employees are due on June 30, 2019.
3. The note receivable is due in installments of $58,000, payable on each September 30. Interest is payable annually.
4. Short-term investments consist of marketable equity securities that the company plans to sell in 2019 and $58,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2019. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.
5. Deferred revenue represents customer payments for extended service contracts. Seventy percent of these contracts expire in 2019, the remainder in 2020.
6. Notes payable consists of two notes, one for $108,000 due on January 15, 2020, and another for $208,000 due on June 30, 2021.

Required:
Prepare a classified balance sheet for Vosburgh at December 31, 2018.

Larry and Hank are employees of one of the leading accounting firms, CPAs. The two have recently obtained their licenses as certified public accountants, CPA, however they are considering starting their own accounting practice.
Using Brown's risk taxonomy, identify and describe at least five risks that Larry and Hank must take into account if they plan to open their own business. For each risk you identify, suggest one or more internal controls that may lessen it.

Question 1 Beaker Company Statements of Financial Position Beginning Balance Ending Balance Assets: Cash $ 256,000 $ 231,240 Accounts receivable 144,000 192,000 Inventory 310,000 240,000 Plant and equipment (net) 492,000 445,000 Investment in Cedar Company 301,000 286,000 Land (undeveloped) 280,000 280,000 Total assets $ 1,783,000 $ 1,674,240 Liabilities and owners' equity: Accounts payable $ 214,000 $ 238,000 Long-term debt 810,000 810,000 Owners' equity 759,000 626,240 Total liabilities and owners' equity $ 1,783,000 $ 1,674,240 Beaker Company Income Statement Sales $ 2,060,000 Less operating expenses 1,854,000 Net operating income 206,000 Less interest and taxes: Interest expense $ 96,900 Tax expense 63,860 160,760 Net income $ 45,240 The company paid dividends of $178,000 last year. The "Investment in Cedar Company" on the statement of financial position represents an investment in the stock of another company. Additionally; The Board of Directors of Beaker Company has set a minimum required return of 15%. Please calculate the following: Average Operating Assets (rounded to the nearest whole dollar, with commas) $ Operating Income (rounded to the nearest whole dollar, with commas) $ Sales (rounded to the nearest whole dollar with commas) $ Margin (rounded to the 2 decimal places) % Turnover (rounded to 2 decimal places) Return On Investment (rounded to 2 decimal places) % Residual Income (rounded to the nearest whole dollar, with commas) $

In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 450 towels were in process and were 60 percent complete. The costs incurred were $160.

During the month, costs of $15,600 were incurred, 3,900 towels were started, and 225 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete.

Required:

a. Prepare a production cost report: the company uses FIFO process costing. (Round "Cost per equivalent unit" to 2 decimal places.)

b. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables.

1. How is the work of an internal auditor different from that of an external auditor (financial statements)?

2. What are the similarities and differences between the ethical codes?

1 False When an asset is purchased at a time other than the beginning of an accounting period, depreciation is recorded for the whole year and then no depreciation in the year of disposal is taken

2-------- Useful life or service life might not be as long as the asset’s total productive life.

3-------- Units-of-production depreciation charges a varying amount to expense for each period of an asset’s useful life depending on its usage.

4-------- Accelerated depreciation method yields less depreciation expenses in the early years of an asset’s life and more depreciation in later years.

5-------- Capital expenditures are additional costs of plant assets that provide benefits extending beyond the current period, thus are added to the book value of the asset.

6------- Payroll deductions, commonly called withholdings, are amounts withheld from an employee’s gross pay by law but not voluntary.

7------ A total of 15.3% is submitted by employers to social security and Medicare for each employee as deduction from their pay check.

8-------- A warranty is a seller’s obligation to replace or correct a product (or service) that fails to perform as expected within a specified period, thus is recorded as a liability.

9------- FUTA requires employers to pay a federal unemployment tax on all salary or wages paid to each employee.

10------- Amounts received in advance from customers for future products or services are recorded as liabilities.