You are the new accountant for ABC, Co. ABC, Co. is a plumbing supply and installation company.

Your boss is the President, Mr. Bigg.

As the accountant, it is your job to explain to Mr. Bigg the following accounting terms.

1. What is a chart of accounts?

2. What are adjusting journal entries?

3. What is an income statement?

Based on your course work of accounting and information systems course (ACC 4310) at your University, what would you recommend to Mr. Bigg to improve his business in regards to the following situations?

1. Accounts Receivables are billed and due at 30 days from invoice, however, most customers tend to pay up to 45 days. The company needs to improve cash flows.

2. Several customers have bounced checks and this causes issues, especially the $25.00 fee charged from the bank?

3. The company needs capital for expansion, to purchase materials, and new equipment. Why would you suggest to Mr. Bigg.

identify three countries from this group that are likely to have different reasons for not permitting the use of IFRS by domestic listed companies. describe those reasons

The Bobo Company leased equipment from Bolinger Industries on January 1, 2018. Bolinger purchased the equipment at a cost of $270,000.

Other information:

Required:

Round your answers to the nearest whole dollar amounts.

1. Calculate the amount of selling profit that Bolinger would recognize in this sales-type lease. Round to nearest dollar. Show calculations.

2. Prepare the appropriate journal entries for Bolinger on January 1, 2018. Round to nearest dollar. Show calculations.

The following CVP income statements are available for Blanc Company and Noir Company.

Calculate Contribution margin ratio. (Round answers to 2 decimal places, e.g. 0.32.)

Compute break-even point in dollars for each company. (Round answers to 0 decimal places, e.g. 1,225.)

Compute margin of safety ratio for each company. (Round answers to 3 decimal places, e.g. 0.321.)

Compute the degree of operating leverage for each company. (Round answers to 1 decimal place, e.g. 1.5.)

Assuming that sales revenue increases by 20%, prepare a CVP income statement for each company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to 0 decimal places, e.g. 1,225.)

Assuming that sales revenue decreases by 20%, prepare a CVP income statement for each company. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to 0 decimal places, e.g. 1,225.)

Sales Forecast and Flexible Budget

Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima. Forecast sales for next year are 15,560 for the Sleepeze, 11,960 for the Plushette, and 5,150 for the Ultima. Gene Dixon, vice president of sales, has provided the following information:

1. Salaries for his office (including himself at $66,950, a marketing research assistant at $44,850, and an administrative assistant at $26,000) are budgeted for $137,800 next year.
2. Depreciation on the offices and equipment is $17,450 per year.
3. Office supplies and other expenses total $20,800 per year.
4. Advertising has been steady at $18,400 per year. However, the Ultima is a new product and will require extensive advertising to educate consumers on the unique features of this high-end mattress. Gene believes the company should spend 20 percent of first-year Ultima sales for a print and television campaign.
5. Commissions on the Sleepeze and Plushette lines are 6 percent of sales. These commissions are paid to independent jobbers who sell the mattresses to retail stores.
6. Last year, shipping for the Sleepeze and Plushette lines averaged $55 per unit sold. Gene expects the Ultima line to ship for $75 per unit sold since this model features a larger mattress.

Required:

1. Suppose that Gene is considering three sales scenarios as follows:

Prepare a revenue budget for the Sales Division for the coming year for each scenario.

2. Prepare a flexible expense budget for the Sales Division for the three scenarios above. If required, round answers to the nearest dollar.

Holly Springs, Inc. contracted with Coldwater Corporation to have constructed a custom-made lathe. The machine was completed and ready for use on January 1, 2018. Holly Springs paid for the lathe by issuing a $220,000 note due in three years. Interest, specified at 2%, was payable annually on December 31 of each year. The cash market price of the lathe was unknown. It was determined by comparison with similar transactions for which 6% was a reasonable rate of interest. Holly Springs uses the effective interest method of amortization. (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. Round your intermediate and final answers to the nearest whole dollar.) Required: 1. Prepare the journal entry on January 1, 2018, for Holly Springs’ purchase of the lathe. 2. Prepare an amortization schedule for the three-year term of the note. 3. Prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity.

The management of Quest Media Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows:

The radio station requires an investment of $970,700, while the TV station requires an investment of $1,579,290. No residual value is expected from either project.

Required:

1a. Compute the net present value for each project. Use a rate of 10% and the present value of an annuity of $1 in the table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest whole dollar.

1b. Compute a present value index for each project. If required, round your answers to two decimal places.

2. Determine the internal rate of return for each project by (a) computing a present value factor for an annuity of $1 and (b) using the present value of an annuity of $1 in the table above. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest whole percent.

3. The net present value, present value index, and internal rate of return all indicate that the   is a better financial opportunity compared to the  , although both investments meet the minimum return criterion of 10%.

Cost of Goods Manufactured for a Manufacturing Company

Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter.

How do you feel that Enron and Worldcom scandals impact investor trust and the accounting profession?

At the end of the year, a company offered to buy 4,690 units of a product from X Company for a special price of $12.00 each instead of the company's regular price of $19.00 each. The following information relates to the 67,200 units of the product that X Company made and sold to its regular customers during the year:

Fixed cost of goods sold for the year were $130,368, and fixed period costs were $73,920. Variable period costs include selling commissions equal to 2% of revenue.

6. Profit on the special order is

7. Assume the following two changes for the special order: 1) variable cost of goods sold will increase by $0.90 per unit, and 2) there will be no selling commissions. What would be the effect of these two changes on the special order profit?

8. There is concern that regular customers will find out about the special order, and X Company's regular sales will fall by 500 units. As a result of these lost sales, X Company's profits would fall by

2. Loki Corporation acquired 80 percent ownership of Goose Company on January 1, 20X6, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Goose Company. Consolidated balance sheets at January 1, 20X8, and December 31, 20X8, are as follows:

The consolidated income statement for 20X8 contained the following amounts:

Loki and Goose paid dividends of $25,000 and $15,000, respectively, in 20X8.

Required:

1) Prepare a worksheet to develop a consolidated statement of cash flows for 20X8 using the indirect method of computing cash flows from operations. (8 points)

2) Prepare a consolidated statement of cash flows for 20X8. (12 points)

XYZ uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Lola Katz, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than a plantwide rate can offer. Some jobs spend most of their time in Department A, while others spend most of their time in Department B. XYZ has the following data for its two departments for the coming year:

ABC is a job-order costing manufacturer that uses a plantwide overhead rate based on machine hours. Estimations for the year include $2,000,000 in overhead and 1,000,000 machine hours. ABC produced four products in March. Data are as follows:

By March 31, Jobs 89, 90, and 91 were completed and sold. The rest of the jobs remained in process.

Rogers Corporation prepared a budget last period that called for sales of 20,000 units at a price of $30 each. The production costs per unit were estimated to amount to $14.00 variable and $6.00 fixed. All selling and administrative costs were fixed at $50,000. During the period, production was 22,000 units. The actual selling price was $33.00 per unit. Actual variable costs were $16.00 per unit and actual fixed production costs totaled $66,000. Selling and administrative costs were 10% higher than the budgeted amounts.

Required:

a. Show operating statements for the actual output, as well as a static budget and a flexible budget.

b. Explain what is indicated when comparing the operating statements