Axe Ltd. purchased a building worth Tshs. 200,000 on January 1, 2008. The building has a useful life of 20 years and the company uses straight line method. On December 31, 2010 the company intends to switch to revaluation model and carries out a revaluation exercise which estimates the fair value of the building to be Tshs.190,000 as at December 31, 2010. On December 31, 2012 Axe Ltd. revalues the building again to find out that the fair value should be Tshs.140,000. The expected useful life has remained unchanged
Required: Calculate
a)Revaluation surplus amounts and show the Journal to record the revaluations
b)Depreciation charge for each period
c)Excess depreciation to be transferredand show the Journal to record the transfer

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,300 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $718,668 in total. The ending work in process inventory in January consisted of 2,600 units, which were 60% complete with respect to materials and 40% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

TAKE HOME QUIZ

ABC Incorporated began operations on Jan 1^st, 2012 with an initial issuance of 10,000 shares,( each with par value $0.10), for $5 per share

1. On Jan 1^st, 2012, the company purchased a two-year fire insurance policy worth $10,000 and had paid it with cash.
2. Company purchased equipment worth $100,000 on Jan 1^st by signing a one-year Notes Payable. Interest rate on the loan was 8% and the interest and the entire principal will be paid on Jan 1^st 2013. The depreciation on equipment for the year 2012 was $20,000
3. On February 1^st, 2012 the company entered into a contract to provide consulting services. It received an advance of $120,000. The company performs 5% of the work for which it was contracted, every month.
4. On November 15^th, 2012, the company bought a piece of land for $200,000 by taking a 30-year mortgage loan.
5. On Dec 1^st, the company makes a mortgage payment $2,000 which was composed of $1,500 principal payment and $500 interest expense.
6. In 2012, the company purchased (in cash) and used up office supplies worth $20,000.
7. Company purchased Investments worth $20,000 on Apr 1^st 2012. The company receives 10% interest on its Investments annually on June 30^th
8. On Feb 15^th, 2012, the company bought toys inventory worth $90,000 on credit from its suppliers.
9. On March 20^th, 2012, the company sold toys for $180,000. The company received 50% cash and the rest remained on account. The cost of these toys sold was $40,000
10. The company’s franchisees owe ABC’s $800 in royalties for sales the franchisees made in the last week of December 2012.
11. Utilities expenses for the year 2012 were $10,000 and were paid in cash.
12. Wages accrued in the last week of 2012 were $2,000 and will be paid in the first week of 2013.
13. On December 15^th, 2012, the company declared cash dividends of $20,000 which will be paid sometime in 2013.

Required:

Prepare the journal entries (both regular and adjusting), trial balance, Income Statement, Statement of Retained Earnings and Balance Sheet for the year ending December 31^st 2012. Also create a T-Account for Cash.

On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The following transactions occur from August 1 through December 31. Also, the balances are provided for the month ended July 31.
  
The articles of incorporation state that the corporation will sell 32,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following business activities occur during July for Great Adventures.
  
Jul. 1 Sell $16,000 of common stock to Suzie.
Jul. 1 Sell $16,000 of common stock to Tony.
Jul. 1 Purchase a one-year insurance policy for $5,760 ($480 per month) to cover injuries to participants during outdoor clinics.
Jul. 2 Pay legal fees of $2,000 associated with incorporation.
Jul. 4 Purchase office supplies of $1,600 on account.
Jul. 7 Pay for advertising of $220 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $30 the day of the clinic.
Jul. 8 Purchase 10 mountain bikes, paying $10,900 cash.
Jul. 15 On the day of the clinic, Great Adventures receives cash of $1,500 from 50 bikers. Tony conducts the mountain biking clinic.
Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $2,000.
Jul. 24 Pay for advertising of $690 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $100 in advance or $150 on the day of the clinic.
Jul. 30 Great Adventures receives cash of $7,000 in advance from 70 kayakers for the upcoming kayak clinic.
Aug. 1 Great Adventures obtains a $46,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6% annual interest is due each year on July 31.
Aug. 4 The company purchases 14 kayaks, paying $27,000 cash.
Aug. 10 Twenty additional kayakers pay $3,000 ($150 each), in addition to the $7,000 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic.
Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,700 cash.
Aug. 24 Office supplies of $1,600 purchased on July 4 are paid in full.
Sep. 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed, purchasing a one-year rental policy for $2,760 ($230 per month).
Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,900 cash.
Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $19,700 cash.
Dec. 1 Tony decides to hold the company’s first adventure race on December 15. Four-person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $510.Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $60 in salary for each team that competes in the race. His salary will be paid after the race.Dec. 8 The company pays $1,000 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense.Dec. 12 The company purchases racing supplies for $2,900 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse.Dec. 15 The company receives $20,400 cash from a total of forty teams, and the race is held.Dec. 16 The company pays Victor’s salary of $2,400.
Dec. 31 The company pays a dividend of $4,300 ($2,150 to Tony and $2,150 to Suzie).
Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,200. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married!

The following information relates to year-end adjusting entries as of December 31, 2018.
  
a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,200.
b. Six months’ worth of insurance has expired.
c. Four months’ worth of rent has expired.
d. Of the $1,600 of office supplies purchased on July 4, $400 remains.
e. Interest expense on the $46,000 loan obtained from the city council on August 1 should be recorded.
f. Of the $2,900 of racing supplies purchased on December 12, $130 remains.
g. Suzie calculates that the company owes $14,200 in income taxes.
  
Assume the following ending balances for the month of July.

5-c. Prepare a classified balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated with minus sign.)

Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:

The company’s beginning cash balance for the upcoming fiscal year will be $47,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded.

complete the company's cash budget for the upcoming fiscal year. (Cash deficiency, repayments, and interest, should be indicated by a minus sign.)

All analysis should be done in MS Excel, and a memo to your boss explaining the situation, your

analysis, and conclusion should be prepared in MS Word. You must upload both files to be graded.

You will only get full credit for the assignment if your analysis is correct, all calculations and/or formulas

use cell references, and your memo has the right content, flows well, and is properly formatted, and

grammatically correct. An example of a good memo, and an Excel template is provided for your benefit.

You can add or delete columns in the excel template as needed.

Playtan Corporation has a machine that either should be repaired or should be replaced soon.

You have recently been hired by Playtan and one of your assignments is to help decide whether

replacing the machine, or repairing it is in the best interest of your company.

Investment required for repairing the machine is only $500,000 and cost to replace the machine

is $3,000,000. Repairing the machine will cut down on the number of returns from customers

and increase cash flows, while replacing the machine may increase the number of units sold.

Playtan has evaluated and calculated additional cash flows that will be generated under the two

scenarios over the next five years as follows:

Year

Cash flow (if repaired)

Cash Flow (if replaced)

1

197,000

1,613,000

2

160,000

1,185,000

3

178,000

978,100

4

139,000

997,800

5

117,000

990,000

Playtan does not accept projects that will pay back in more than 3 years, or any projects that will not

maximize shareholder wealth. So, you will need to use all capital budgeting techniques you’ve learnt in

your Finance class to ensure that the right option is chosen.

Cost of capital for the project (repair or replacement) could be anywhere from 8% to 14%, so you will

conduct your analyses at various weighted average cost of capital (WACC) or Required rate of return

points including at least five at 8%, 9%, 11%, 13%, and 14% for both scenarios, and also draw an NPV

profile for both situation using your calculations.

Use your knowledge of capital budgeting and time value of money to decide which of the options is better

for Playtan. All analysis must be done in Excel. Your excel model should be such that it can be used by

Playtan or any other corporation for similar capital budgeting situations – so anyone can change any

numbers and use the model again. This would require all calculations to be using cell references and excel

functions. You must write a memo to your boss, explaining the situation, your analysis, and your

conclusion. You must also explain the drawbacks of your technique/s if there are any.

Make sure that all your submissions have your full name, class, and section number included.

What is the nature and purpose of a "letter of representations"? Comment on the quality or strength of the audit evidence yielded by a letter of representations.

What are the primary responsibilities of a "concurring partner" under current U.S. auditing standards?

Which of the following is assessed using the debt​ ratio?

A.

net income

B.

profitability

C.

revenues

D.

risk of default

1. Following a style similar to the technique set forth in Legal Research, Writing & Analysis, prepare a brief of the following case:

   Moline Properties, Inc. v. Commissioner of Internal Revenue

319 U. S. 436 (1943).

Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:

1. As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances:

2. Actual sales for December and budgeted sales for the next four months are as follows:

3. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales.

4. The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)

5. Monthly expenses are budgeted as follows: salaries and wages, $15,000 per month: advertising, $55,000 per month; shipping, 5% of sales; other expenses, 3% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $42,100 for the quarter.

6. Each month’s ending inventory should equal 25% of the following month’s cost of goods sold.

7. One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid in the following month.

8. During February, the company will purchase a new copy machine for $1,000 cash. During March, other equipment will be purchased for cash at a cost of $70,000.

9. During January, the company will declare and pay $45,000 in cash dividends.

10. Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required:

Using the data above, complete the following statements and schedules for the first quarter:

1. Schedule of expected cash collections:

2-a. Merchandise purchases budget:

2-b. Schedule of expected cash disbursements for merchandise purchases:

3. Cash budget:

4. Prepare an absorption costing income statement for the quarter ending March 31.

5. Prepare a balance sheet as of March 31.

Required information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $ 96,700 $ 62,000 Accounts receivable, net 92,000 69,000 Inventory 81,800 113,500 Prepaid expenses 6,200 9,000 Total current assets 276,700 253,500 Equipment 142,000 133,000 Accum. depreciation—Equipment (36,000 ) (18,000 ) Total assets $ 382,700 $ 368,500 Liabilities and Equity Accounts payable $ 43,000 $ 57,000 Wages payable 7,800 18,600 Income taxes payable 5,200 7,400 Total current liabilities 56,000 83,000 Notes payable (long term) 48,000 78,000 Total liabilities 104,000 161,000 Equity Common stock, $5 par value 256,000 178,000 Retained earnings 22,700 29,500 Total liabilities and equity $ 382,700 $ 368,500 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $ 768,000 Cost of goods sold 429,000 Gross profit 339,000 Operating expenses Depreciation expense $ 76,600 Other expenses 85,000 Total operating expenses 161,600 177,400 Other gains (losses) Gain on sale of equipment 3,800 Income before taxes 181,200 Income taxes expense 45,690 Net income $ 135,510 Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $75,600 cash. Received cash for the sale of equipment that had cost $66,600, yielding a $3,800 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit.

Required:

(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.)

which statement is true?
a.customer do not pay sales tax
b.A transaction entered in the sales receipt window will not be tracked through the accounts receivable or customer report.
c.all customer sales arerecordedin the sales receipt window.
d.all customer sales are recorded in the invoice window.

Buzzy Company sold $400,000 worth of 12%, ten year bonds on July1st, 2019, at a time when the market rate of interest on similar investments was 10%. The semiannual bonds pay interest on December 31st and June 30th . (a) Using the appropriate Present Value Table(s), determine the amount the bonds should sell for; their present value. (b) Journalize the necessary entry for the sale of the bonds. (c) Journalize the first interest payment on December 31, 2019 including the discount (or premium?) amortization assuming the company makes use of the straight-line method of bond interest amortization.