Discuss the purpose of a budget and cost variance analysis. Why is it important for companies to create a budget then determine if they met budgeted costs? For example, is it always a negative variance if a company exceeds budgets? Give me an example of why a cost falling below expectations (actual cost below budgeted cost) may still be a problem even if it appears to increase profit.

Bledsoe has developed plans to expand into the wholesale flower market and is in the process of negotiating a bank loan to finance the expansion. The bank is requesting 2017 financial statements prepared on the accrual basis of accounting from Bledsoe. During the course of a review engagement of Bledsoe, your firm, obtained the following information:

1.Amounts due from customers totaled $142,000 at 12/31/2017. During the year the company wrote off $7,400 of receivables that were deemed to be uncollectible. An analysis of the receivables revealed that an estimated 3% of the balance will probably not be collected in 2018. There were no uncollectable receivables estimated at 12/31/2016. 2.Unpaid invoices for flower purchases totaled $20,500 at December 31, 2017.

3. The inventory totaled $76,800 based on a physical count of the goods at December 31, 2017. The inventory was priced at cost, which approximates market value.

4. On May 1, 2017, Bledsoe paid $8,700 to renew its comprehensive insurance coverage for one year. The premium on the previous one-year policy, which expired on April 30, 2017, was $7,800. No adjustment was made in the prior year, Bledsoe had never heard of a prepaid.

5. On January 2, 2017, Bledsoe entered into a 25 year operating lease for the vacant lot adjacent to Bledsoe's North retail store for use as a parking lot. As agreed in the lease, Bledsoe paved and fenced in the lot at a cost of $50,000. The improvements were completed on July 2, 2017, and have an estimated useful life of 10 years. Depreciation on furniture and fixtures was $15,000 for 2017.

6. Bledsoe is being sued for $100,000. The coverage under the comprehensive insurance policy is limited to $50,000. Bledsoe's attorney believes that an unfavorable outcome is probable and that a reasonable settlement is $65,000.

7. All employees are paid weekly on Friday. The average payroll is $3,000 (6 day work week) per week. Employees were last paid on Friday, December 29th, 2017 for the week ended December 22nd.

8. Bledsoe's has made estimated tax payments of $15,000 per quarter for the first three quarters of 2017. Bledsoe's estimated tax rate is 35%.

9.Bledsoe's took out a 2 year note payable on April 1, 2017. The note bears interest at 4%. Principal and interest are due at maturity.

10.The company had two locations and due to poor performance, they decided to discontinue operations related to the south location. The revenue for this location (which is included in the above trial balance) amounted to $83,000 and the expenses, $91,000 (purchases $50,000, salaries $26,000 and rent $15,000). The company disposed of all assets of the south location for a loss of $10,000 ($31,000 original cost with accumulated depreciation of $17,000).

11. The investments account is comprised of two investments. One $100,000 bond was purchased at face value and Bledsoe’s intends to hold until it matures. The interest on these bonds are 3% and is paid annually on January 31. Bledsoe purchased these bonds on September 1st of the current year. The fair value of these bonds are $96,000. The other investment are shares of Google stock, which were purchased on 10/20/16 for $797/share. Assume the closing price of Google on 12/31/16, was $814/share.

Prepare the adjusting Journal entries

Question 1                      BANK RECONCILIATION

The information given below was extracted from the accounting records of Mika Stores.

Required

1.1 Complete the Cash Receipts Journal and Cash payments Journal of Mika Stores for March 2018 after taking the information provided into account. Use only the columns illustrated below. In the details column write down the name of the contra account e.g Rent income. (11)

Cash Receipts Journal

Cash Payments Journal

1.2 Post to the Bank account in the General ledger of Mika stores. Balance the account. (3)

Mika Stores

1.3 Prepare the Bank Reconciliation Statement as at 31 March 2018. Use the following format:

INFORMATION

DC and Marvel would like to evaluate one of the product lines that they sell to defense department. Every month the Stark and Company produce an identical number of units, although the sales in units differ from month to month.

Required:

1)     Compute the total Contribution Margin.

2)     Compute the Operating Income under Variable Costing.

3)     Prepare a reconciliation from your Variable Costing Operating Income to compute Operating Income under absorption costing.

During 2019, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30) $58,200 Baking equipment (June 30) 17,460 Assume that William decides to use the election to expense on the baking equipment (and has adequate taxable income to cover the deduction) but not on the automobile (which has a 5-year recovery period), and he also uses the MACRS accelerated method to calculate depreciation but elects out of bonus depreciation. Assume he has adequate taxable income. Click here to access the depreciation table and click here to access the annual automobile depreciation limitations. Calculate William's maximum depreciation deduction for 2019, assuming he uses the automobile 100 percent in his business. $

Month: Radiology Tests:   Total Costs:

January 2,800    $133,500

February 2,600 $135,060

March 3,100 $175,000

April 3,500 $170,600

May 3,400 $176,900

June 3,700 $186,600

July 3,840 $174,450

August 4,100 $195,510

September 3,450 $15,300

1. Compute the cost formula for radiology services using the method of least square

2. Using the formula computed in requirement 1, what is the predicted cost of radiology services for October for 3,500 appointments? (Round the answer to the nearest dollar)

3. What does the coefficient of determination tell you about the cost formula computed in requirement 1? What are the t statistics for the number of tests and the intercept term? What do these statistics tell you about the choice of number of tests as the independent variable and the probability that there are fixed costs?  

TRUE OR FALSE

1. When a depreciable asset is sold, a loss arises if the sales proceeds exceed the net book value.(TRUE OR FALSE )
2. Variable costs are costs that change with the level of activity (unit volumes).(TRUE OR FALSE )
3.         Revenue should be recorded in the same period as the cash is received.(TRUE OR FALSE )
4.         For a service business, revenue should be recorded as soon as a contract is signed and agreed.(TRUE OR FALSE )
5.         The payment of rent in 2019 will decrease assets and will reduce 2019 net income.(TRUE OR FALSE )

Enterprise Resource Planning (ERP) Systems" Please respond to the following: Give your opinion on which is the greatest risk of failure for an ERP system for an organization: selecting the wrong system ERP model or the wrong consultant not familiar with the company's business operations. Justify your answer. Give your opinion on whether or not the client should just be able to use whatever applications the ERP system provides, given that ERP systems use the best-practices approach in designing their applications, yet appropriateness of fit is considered to be an important issue when selecting an ERP. Explain your opinion.

Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey is contributing $240,000 for a 40 percent ownership interest, Mickayla is contributing a building with a value of $240,000 and a tax basis of $160,000 for a 40 percent ownership interest, and Taylor is contributing legal services for a 20 percent ownership interest. What amount of gain is each owner required to recognize under each of the following alternative situations? [Hint: Look at §351 and §721.] (Leave no answer blank. Enter zero if applicable.)

a. MMT is formed as a C corporation.

Gain to be recognized:

b. MMT is formed as an S corporation.

Gain to be recognized:

c. MMT is formed as an LLC.

Gain to be recognized:

For the Original Post*, identify what you believe is an ethical concern or potential for fraud related to foreign currency transactions and/or the translation of foreign currency financial statements. Provide a detailed description of the ethical concern or potential for fraud that you have chosen and provide justification/reasoning for your selection. Remember to use logic and the accounting principles that you have learned to develop your argument.

As assistant controller for a small firm, you are responsible for recording and posting of the daily cash receipts and disbursements to the ledger account. After you have posted the entries, your boss, the controller, prepares a trial balance and the financial statements. You make the following entries on June 30.

Cash                        1,430

Account Receivable 1,950

            Service Revenue       3,380

To record daily cash sales and sales on account

Advertising Exp        12,500

Utilities Exp               22,600

Rent Exp                   24,000

Salary & Wage Exp 17,400

          Cash                             76,500

To record daily cash disbursement

The daily cash disbursements are much larger on June 30 than on any other day because many of the company's major bills are paid on the last day of the month. After you have recorded these two transactions and before you have posted them to the ledger accounts, your boss comes to you with the following request:

As you are aware, the first half of the year has been a tough one in the consulting industry and for our business.  With first-half bonuses based on net income, I am wondering whether you or I will get a bonus this time around. However, I have a suggestion that should allow us to receive something for our hard work and at the same time not hurt anyone. Go ahead and post the June 30 cash receipts to the ledger, but don't bother to post that day's cash disbursements. Even though the treasurer writes checks on the last day of the month and you normally journalize the transaction on the same day, it is silly to bother posting entry to the ledger since it takes at least a week for the checks to clear the bank.

1. Recognize an ethical dilemma: Explain why the controller's request will result in an increase in net income. On the basis of your answer, what ethical dilemma(s) do you now face?

2. a. Do you agree with the controller that the omission of the journal entry on June 30 " will not hurt anyone"? Who may benefit from the omission of the entry? Who may be harmed?

     b. How are they likely to benefit or be harmed?

     c. What rights or claims may be violated?

     d. What specific interest are in conflict?

    e. What are your responsibilities and obligations?

Reporting of Equity in Consolidation Paris Cosmetics purchased all of the of the ordinary shares of All Mineral Company for Cash on January 1, 2019. The separate balance sheets of the two corporations before consolidation appeared as follows (not necessarily in order):

During purchase negotiations, Paris Cosmetics determined the appraised value of All Minerals Patents were €20,000 and their inventory was 19,500; and all of the remaining assets and liabilities were appraised at values approximating their book values.

During purchase negotiations, Paris Cosmetics determined the appraised value of All Minerals Patents were €20,000 and their inventory was 19,500; and all of the remaining assets and liabilities were appraised at values approximating their book values.

1. Determine how much will be ascribed to goodwill? (Hint: What is the definition of goodwill?) (5 points)
2. Prepare the consolidated Balance Sheet. Use the EU version of IFRS. Order is important. (10 points)
3. Prepare journal entry to record transactions

The city maintains a landfill that has been recorded during the current year within its parks. The landfill generated program revenues of $4,000 in Year 4 and cash expenses of $15,000. It also paid $3,000 cash for a piece of land. These transactions were recorded as would have been anticipated, but no other recording was made this year. The city assumes that it will have to pay $200,000 to clean up the landfill when it is closed in several years. The landfill was 18 percent filled at the end of Year 3 and is 26 percent filled at the end of Year 4. No payments will be necessary for several more years. For convenience, assume that the entries in all previous years were correctly handled regardless of the situation.

a. The city believes that the landfill was included correctly in all previous years as one of its enterprise funds. According to the information provided, the overall increase in net position reported was $140,000. What is the correct overall change in the net position in the government-wide financial statements?

b. The city believes that the landfill was included correctly in all previous years in one of the enterprise funds. According to the information provided, the enterprise fund reported an increase in its net position of $60,000. What is the correct change in the net position of the enterprise fund in the fund financial statements?

c. The city believes that the landfill was included correctly in all previous years within the general fund. What is the correct change in the fund balance of the general fund?