Goddard Company has used the FIFO method of inventory valuation since it began operations in 2015. Goddard decided to change to the average cost method for determining inventory costs at the beginning of 2018. The following schedule shows year-end inventory balances under the FIFO and average cost methods:

Required:
1. Ignoring income taxes, prepare the 2018 journal entry to adjust the accounts to reflect the average cost method.
2. How much higher or lower would cost of goods sold be in the 2017 revised income statement?

• Required 1

Ignoring income taxes, prepare the 2018 journal entry to adjust the accounts to reflect the average cost method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record the adjustment necessary to reflect the average cost method.

Note: Enter debits before credits.

• Required 2

How much higher or lower would cost of goods sold be in the 2017 revised income statement?

What is activity based costing vs lean costing?

In 2018, Rashaun (62 years old) retired and planned on immediately receiving distributions (making withdrawals) from his traditional IRA account. The balance of his IRA account is $210,000 (before reducing it for withdrawals/distributions described below). Over the years, Rashaun has contributed $57,790 to the IRA. Of his $57,790 contributions, $41,790 was nondeductible and $16,000 was deductible. Assume Rashaun did not make any contributions to the account during 2018. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)

a. If Rashaun currently withdraws $20,000 from the IRA, how much tax will he be required to pay on the withdrawal if his marginal tax rate is 24 percent?

b. If Rashaun currently withdraws $70,000 from the IRA, how much tax will he be required to pay on the withdrawal if his marginal tax rate is 28 percent?

Current Attempt in Progress

Condensed balance sheet and income statement data for Riverbed Corporation are presented here.

Additional information:

Compute the following ratios for 2021 and 2022.

20) 20. George, a high-bracket taxpayer, wishes to shift some of his own taxable income from corporate bonds he owns to his 25-year-old daughter, Debra, so that Debra rather than George is taxed on the interest. One alternative is to make a gift of the interest, and the other is to make a gift of the bonds themselves. Evaluate the pros and cons of each alternative.

The audit senior on the audit of Frankel Factors is preparing the audit plan for the year ended June 30, 2023. The following notes relate to the payroll application system that went live on January 1, 2023:

1. The new payroll application is more complex than the old system, but its reporting function provides more detail. For example, the new application calculates leave, pension, payroll tax, and employee benefit expenses, as well as the corresponding accruals.
2. Due to the brief time available to implement the new system, the previous application ceased operation on December 31, 2022, and the new application went live on January 1, 2023, without running parallel with the previous application. Staff training and testing of the new application was limited.
3. Access to the master files is restricted to the payroll supervisor and her assistant. Access to transaction files is restricted to payroll staff who are responsible for the processing of bi-weekly and monthly pay.
Prior to the introduction of the new payroll application system, the payroll master file and transaction files were kept in a separate database from the general ledger application. At the end of each month, the IT staff imported transaction data from the database into the general ledger. Management decided to upgrade the existing accounting system due to the frequent problems encountered by IT staff when importing data into the general ledger.

Payroll controls
1. a.Analysis: Based on the information above, explain two concerns about the payroll application's integration with the general ledger application.
2. b.Analysis: Describe (don't just list) one IT application control to ensure the accuracy of the salaries and wages expenses transaction.
3. c.Analysis: Describe (don't just list) one IT application control to ensure the occurrence of the salaries and wages expenses transaction.
4. d. Evaluation: design and describe in details appropriate tests of controls you would use to satisfy yourself about the effectiveness of these internal controls.

Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and 10,000 shares of 9%, $100 par preferred stock. It enters into the following transactions on December 31:

Required:

Chart of Accounts

General Journal

Prepare journal entries to record the transactions on December 31. Memorandum entry is not recorded. Additional Instruction

PAGE 1PAGE 2

GENERAL JOURNAL

Record items 1 and 2 on page 1 and items 3-5 on page 2

Flora's Gifts reported the following current-month data for its only product. The company uses a periodic inventory system, and its ending inventory consists of 90 units—65 units from the January 6 purchase and 25 units from the January 25 purchase. Jan. 1 Beginning inventory 210 units @ $4.50 = $ 945.00 Jan. 6 Purchase 385 units @ $4.30 = 1,655.50 Jan. 17 Purchase 615 units @ $3.80 = 2,337.00 Jan. 25 Purchase 37 units @ $3.50 = 129.50 Totals 1,247 units $ 5,067.00 Determine the cost assigned to ending inventory and to cost of goods sold for the following.

Unit Information with BWIP, FIFO Method

Jackson Products produces a barbeque sauce using three departments: Cooking, Mixing, and Bottling. In the Cooking Department, all materials are added at the beginning of the process. Output is measured in ounces. The production data for July are as follows:

Required:

1. Prepare a physical flow schedule for July.

2. Prepare an equivalent units schedule for July using the FIFO method. Enter percentages as whole numbers. If an amount box does not require an entry, enter "0".

3. What if 60 percent of the materials were added at the beginning of the process and 40 percent were added at the end of the process (all ingredients used are treated as the same type or category of materials)? How many equivalent units of materials would there be?
equivalent units

Prepare a balance sheet as of December 31, 2019.

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2019, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2019) follows.

Business Solutions had the following transactions and events in December 2019.   

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months.

1. The December 31 inventory count of computer supplies shows $590 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Lyn Addie has not been paid for four days of work at $110 per day.
4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
6. Three of the four months' prepaid rent have expired.

Required:
1. Prepare journal entries to record each of the December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a through f.
2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.
3. Prepare an adjusted trial balance as of December 31, 2019.
4. Prepare an income statement for the three months ended December 31, 2019.
5. Prepare a statement of retained earnings for the three months ended December 31, 2019.
6. Prepare a balance sheet as of December 31, 2019.
7. Record and post the necessary closing entries as of December 31, 2019.
8. Prepare a post-closing trial balance as of December 31, 2019.

Blendit (BLD) just developed new universal titanium replacement mixer blades. These replacement blades can be used in most mixers currently on the market. BLD is selling these blades with a right of return for 30 days. On January 15, management believes it is probable that 10% of the titanium blades sold will be returned. This belief is based on significant experience in estimating returns on other mixer blades BLD has developed and sold in the past. BLD estimates the cost of processing any returned blades will be insignificant. On January 15,Chef's Toolbox (CTX0 purchases and pays for 40 blades at a cost of $20 each. The cost to manufacture each blade was $14. On January 31, BLD's assessment of potential returns had not changed from its assessment on January 15. Requirements: · Review ASC 606-10-05-04, ASC 606-10-32-2 through 12, ASC 606-10-55-22 through 28 · Prepare a detailed explanation of each of the five steps of revenue recognition. Include references to the guidance to support your proposed accounting. Show any calculations you make to support your journal entries. · Record all accounting entries for BLD for the month of January based on the new guidance on revenue recognition in ASC 606

The following is the Easton Company adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,400 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 881,105 Interest Income 5,500 Dividends 9,000 Rent Expense 59,500 Wages Expense 529,000 Supplies Expense 42,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________ Totals $1,530,565 $1,530,565 Use this information to prepare the Single-Step Income Statement for the fiscal year. There are additional lines in the formatted income statement form to allow for authorized alternate presentations.

The following is the Easton Company's adjusted Trial Balance. Easton Company Adjusted Trial Balance December 31, 2018 Account Title Debit Credit Cash $88,665 Accounts Receivable 232,000 Supplies 17,000 Equipment 395,000 Accumulated Depreciation $224,260 Accounts Payable 72,555 Capital Stock 220,000 Retained Earnings 127,145 Service Revenue 877,105 Interest Income 5,500 Dividends 7,000 Rent Expense 59,900 Wages Expense 529,000 Supplies Expense 40,000 Utilities Expense 8,000 Depreciation Expense 150,000 ________ Totals $1,526,565 $1,526,565 Use this information to prepare the Balance Sheet for the fiscal year. There are additional lines in the formatted Balance Sheet form to allow for authorized alternate presentations.

Michael Company uses job-order costing. The company has gathered the following data:

Direct materials purchased for cash                   $60,000

Direct materials requisitioned                            $50,000

Direct labor costs incurred                                  $90,000

Factory overhead costs incurred                         $60,000

Cost of goods completed                                   $180,000

Cost of goods sold                                             $170,000

Sales for cash                                                    $300,000

Factory overhead applied                                             ?

Factory overhead costs are applied at 90% of direct labor costs.

Required:

1. A) Prepare the required journal entries for the above transactions.
2. B) Prepare the journal entry to dispose of the overhead variance using the immediate write-off method.