You oversee the $250 petty cash for your company. When an employee needs a special item that is not in inventory, you take money from petty cash to purchase that item.
One day, you are short on cash for lunch. You decide to borrow $10 each day for the next 3 days until payday for a total of $30 from petty cash. After payday, you do not have enough to repay petty cash, so you decide to record a cash short/over expense of $30.
Since this is the first time you have ever done this, is this a problem? If so, what steps should be taken to fix this problem? If not, why not?
In: Accounting
Define in own words
CHAPTER 5 – Accounting Systems
In: Accounting
Baltic Limited is a listed company based in California. On January 1, 2019, the company granted 10,000 share units to its vice president. Each share unit has a contractual service period of five years and a vesting condition based on market performance.
Each share unit is convertible into ordinary shares of Baltic Limited as follows:
On the grant date, the company’s ordinary shares have a fair value of $10 per share.
Management believes the probability of the above scenarios occurring are 40% and 60%, and uses this information to calculate the fair value of the share unit award.
The company’s accountant has asked for your help to calculate compensation costs for these share units so that the appropriate journal entry can be recorded in 2019.
Ignore the effects of taxes.
Provide the journal entries and calculations to answer this question.
In: Accounting
Prepare a Production Cost Report: FIFO Method
(LO 8-2, 4, 5)
Lansing, Inc. provides the following information for one of its department’s operations for June (no new material is added in Department T):
WIP inventory—Department T
Beginning inventory (15,000 units, 60% complete with respect to
Department T costs)
Transferred-in costs (from Department S) $ 116,000
Department T conversion costs 53,150
Current work (35,000 units started)
Prior department costs 280,000
Department T costs 209,050
The ending inventory has 5,000 units, which are 20 percent complete
with respect to Department T costs and 100 percent complete for
prior department costs.
Required
Prepare a production cost report using FIFO.
In: Accounting
The Westchester Chamber of Commerce periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year’s program. Advertising alternatives include television, radio, and newspaper. Audience estimates, costs, and maximum media usage limitations are as shown: Constraint Television Radio Newspaper Audience per advertisement 100000 18000 40000 Cost per advertisement $1400 $300 $600 Maximum media usage 10 20 10 To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized. If the promotional budget is limited to $21,200, how many commercial messages should be run on each medium to maximize total audience contact? What is the allocation of the budget among the three media? If required, round your answers to the nearest dollar. Let T = number of television spot advertisements R = number of radio advertisements N = number of newspaper advertisements Budget ($) T = R = N = Total Budget = $ What is the total audience reached? Round your answer to the nearest whole number. By how much would audience contact increase if an extra $100 were allocated to the promotional budget? Round your answer to the nearest whole number.
In: Accounting
One of the benefits of Data Analytics is the ability to see and test the full population. In that case, why is sampling (even monetary sampling) still used, and how is it useful?
In: Accounting
1. Explain that auditor’s public interest responsibility including the source of their responsibility they extends to which they embrace this responsibility & tangible ways that entry-level auditors can embrace this responsibility?
2. Explain the concept of professional skepticism including its underlying attributes and in addition to describing the different approaches to professional skepticism and how they are used in audit?
3. Applied question(use example):1. Use of example of testing revenue explain the steps and performance of standard analytical produces 2. Using the example of testing sales, returns and allowances explain the process of testing accountants
4. Although auditors are required to exercise professional judgment they are human and thus prune to a number of judgment traps, bias, Explain at least three of the typical judgement traps
In: Accounting
What key questions does a Master Budget for Manufacturing Companies answer?
In: Accounting
The trial balance of pacillo security services inc as of January 1 2018 had the following normal balances
Cash- $93,708
Petty Cash- 100
Accounts Receivable- 22,540
Allowance for doubtful accounts- 1,334
Supplies- 250
Prepaid rent- 3,600
Merchandise inventory (18@$285)- 5,130
Land- 4,000
Salaries Payable- 2,100
Common Stock- 50,000
Retained Earnings- 75,894
During 2018 Pacillo Security Services experienced the following transactions:
Adjustments
DIRECTIONS: PREPARE AN INCOME STATEMENT, A STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY, AND A BALANCE SHEET
In: Accounting
In: Accounting
CSU, Inc., is a calendar year S corporation. CSU’s Form 1120S shows nonseparately stated ordinary income of $120,000 for the year. Taewon owns 30% of the CSU stock throughout the year. The following information is obtained from the corporate records.
|
Tax-exempt interest income |
$ 4,500 |
|
Salary paid to Taewon |
(78,000) |
|
Charitable contributions |
(9,000) |
|
Dividends received from a non-U.S. corporation |
7,500 |
|
Short-term capital loss |
(9,000) |
|
Depreciation recapture income |
16,500 |
|
Refund of prior state income taxes |
7,500 |
|
Cost of goods sold |
($108,000) |
|
Long-term capital loss |
(10,500) |
|
Administrative expenses |
(27,000) |
|
Long-term capital gain |
21,000 |
|
Selling expenses |
(16,500) |
|
Taewon’s beginning stock basis |
48,000 |
|
Taewon’s additional stock purchases |
13,500 |
|
Beginning AAA |
46,500 |
|
Taewon’s loan to corporation |
30,000 |
In: Accounting
The Bradford Company issued 12% bonds, dated January 1, with a face amount of $96 million on January 1, 2018. The bonds mature on December 31, 2027 (10 years). For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2018. 2. to 4. Prepare the journal entry to record their issuance by The Bradford Company on January 1, 2018, interest on June 30, 2018 and interest on December 31, 2018 (at the effective rate).
In: Accounting
In: Accounting
Analytical procedures are required on every audit.
In: Accounting
Smart Company prepared its annual financial statements dated
December 31, 2020. The company applies the FIFO inventory costing
method; however, the company neglected to apply the LC&NRV
valuation to the ending inventory. The preliminary 2020 statement
of earnings follows:
| Sales revenue | $ | 297,000 | ||||
| Cost of sales | ||||||
| Beginning inventory | $ | 32,700 | ||||
| Purchases | 201,000 | |||||
| Cost of goods available for sale | 233,700 | |||||
| Ending inventory (FIFO cost) | 75,536 | |||||
| Cost of sales | 158,164 | |||||
| Gross profit | 138,836 | |||||
| Operating expenses | 63,700 | |||||
| Pretax earnings | 75,136 | |||||
| Income tax expense (40%) | 30,054 | |||||
| Net earnings | $ | 45,082 | ||||
Assume that you have been asked to restate the 2020 financial
statements to incorporate the LC&NRV inventory valuation rule.
You have developed the following data relating to the ending
inventory at December 31, 2020:
| Acquisition Cost | ||||||||||||
| Item | Quantity | Unit | Total | Net Realizable Value | ||||||||
| A | 3,220 | $ | 4.70 | $ | 15,134 | $ | 5.70 | |||||
| B | 1,670 | 6.70 | 11,189 | 5.20 | ||||||||
| C | 7,270 | 3.20 | 23,264 | 5.20 | ||||||||
| D | 3,370 | 7.70 | 25,949 | 5.70 | ||||||||
| $ | 75,536 | |||||||||||
1. Restate the statement of earnings to reflect the valuation of the ending inventory on December 31, 2020, at the LC&NRV. Apply the LC&NRV rule on an item-by-item basis.(FINISHED BELOW ANSWER QUESTION 2)
|
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2. Compare and explain the LC&NRV effect on each amount that was changed in part 1. (Negative answers should be indicated by a minus sign.)
In: Accounting