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?

Define in own words

CHAPTER 5 – Accounting Systems

1. Accounting system
2. Accounts payable subsidiary ledger
3. Accounts receivable subsidiary ledger
4. Cash payments journal
5. Cash receipts journal
6. Controlling account
7. e-Commerce
8. General journal
9. General ledger
10. Internal controls
11. Invoice
12. Purchases journal
13. Revenue journal
14. Special journals
15. Subsidiary ledger

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:

• If the company’s share price increases by more than the Nasdaq Composite index over the five years, each share unit converts into 5 shares.
• If the company’s share price increases by less than or equal to the Nasdaq Composite index over the five years, each share unit converts into 1 share.

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.

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.

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.

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?

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

What key questions does a Master Budget for Manufacturing Companies answer?

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:

1. Paid the salaries payable from 2017
2. Purchased equipment and van for a lump sum of $36,000 cash on January 2, 2018. The equipment was appraised for $10,000 and the van was appraised for $30,000.
3. Paid $9,000 on May 1, 2018, for one year’s office rent in advance
4. Purchased $300 of supplies on account.
5. Purchased 120 alarm systems at a cost of $280 each. Paid cash for the purchase.
6. After numerous attempts to collect from customers, wrote off $2,350 of uncollectible accounts receivable.
7. Sold 115 alarm systems for $580 each. All sales were on account. (Be sure to compute cost of goods sold using the FIFO cost flow method.)
8. Billed $86,000 of monitoring services for the year. Credit card sales amounted to $36,000, and the credit card company charged a 4% fee. The remaining $50,000 were sales on account.
9. Replenished the petty cash fund on Jun 30. The fund had $12 cash and receipts of $45 for yard mowing, $28 for office supplies expense, and $11 for miscellaneous expenses.
10. Collected the amount due from the credit card company.
11. Paid installers and other employees a total of $52,000 cash for salaries.
12. Collected $115,500 of accounts receivable during the year.
13. Paid $12,500 of advertising expense during the year.
14. Paid $6,800 of utilities expense for the year.
15. Sold the land, which was purchased in 2011, for $12,000.
16. Paid the accounts payable.
17. Paid a dividend of $10,000 to shareholders

Adjustments

18. Determined that $180 of supplies were on hand at the end of the year.
19. Recognized the expired rent for both the old van and the office building for the year. The lease on the van was not renewed. Rent Paid on March 1, 2017, for the van was $4,800.
20. Recognized uncollectible accounts expense for the year using the allowance method. Pacilio estimates that 3% of sales on account will not be collected.
21. Recognized depreciation expense on the equipment and the van. The equipment has a five-year life and a $2,000 salvage value. The van has a four-year life and $6,000 salvage value. The company uses double-declining balance for the van and straight-straight line for the equipment.
22. Accrued salaries at December 31, 2018, were $1,500.

DIRECTIONS: PREPARE AN INCOME STATEMENT, A STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY, AND A BALANCE SHEET

1. Assume that Oceanview’s long term debt to owner’s equity makes you believe that it cannot remain in business for much longer and that it is discussed, along with management’s plans, in Note 8 of the financial statements. Type out the paragraph you would add to the Standard Report based on this information.
2. Assume that Oceanview has recorded sales of $70,000 at the end of the period that you believe should not have been recognized until the next fiscal year. Management refuses to adjust the financial statements, so you decide to issue a qualified opinion. Type out the two paragraphs that you would add to/modify in the Standard Report based on this information.

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.

1. Compute CSU’s taxable income or loss, showing the calculation (on a “white paper” schedule not on IRS forms). Taxable income should equal Form 1120S, Schedule K, line 18, which should be the same as Form 1120S, Schedule M-1, line 8. Assume the I.R.C. section 1374 and 1375 taxes do not apply. HINT: the refund of prior state income taxes is taxable other income. TI check figure $127,500.

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).

Analytical procedures are required on every audit.

1. Should the procedure be performed before or after the calculation of the expected result?
2. If the result of an analytical procedure differs significantly from the expectation, is that conclusive evidence that there is an error in the books?
3. If the result of an analytical procedure differing significantly from the expectation does not necessarily mean the books are in error, what does it mean?

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:

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:

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)

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.)