Is it necessary to have a set of International Auditing Standards? Would it be better if the International Accounting Standards were allowed to be set by or be based upon U.S. auditing standards? Or perhaps International Auditing Standards should be set by the United Nations? In your opinion, is it perhaps easier for the world to reach an agreement on International Auditing Standards than it is for the world to reach an agreement on International Accounting Standards? Why or why not for each of the above individual questions? Be specific.

Frigid Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1, 2016, and operated at 100% of capacity during the first month. The following data summarize the results for July:

Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 300 units @ $14.00 = $ 4,200 Jan. 10 Sales 250 units @ $44.00 Mar. 14 Purchase 520 units @ $19.00 = 9,880 Mar. 15 Sales 460 units @ $44.00 July 30 Purchase 500 units @ $24.00 = 12,000 Oct. 5 Sales 480 units @ $44.00 Oct. 26 Purchase 200 units @ $29.00 = 5,800 Totals 1,520 units $ 31,880 1,190 units Exercise 6-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Required: Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO. 2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO. 3. Compute the gross margin for FIFO method and LIFO method.

Problem 16-2A Weighted average: Cost per equivalent unit; costs assigned to products LO C2, C3

[The following information applies to the questions displayed below.]

Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the process. During November, the company transferred 740,000 units of product to finished goods. At the end of November, the work in process inventory consists of 191,000 units that are 70% complete with respect to conversion. Beginning inventory had $544,635 of direct materials and $218,425 of conversion cost. The direct material cost added in November is $3,644,865, and the conversion cost added is $4,150,075. Beginning work in process consisted of 70,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 70,000 were from beginning work in process and 670,000 units were started and completed during the period.

Problem 16-2A Part 3

3. Compute the direct material cost and the conversion cost assigned to units completed and transferred out and ending work in process inventory. (Round "Cost per EUP" to 2 decimal places.)

EUP Cost per EUP Total cost

Cost of units transferred out:

Direct materials

Conversion

   Total costs transferred out

Cost of ending work in process

   Direct materials

   Conversion

   Total cost of ending work in process

Total costs accounted for

On January 1, 2017, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $805,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $740,000, retained earnings of $290,000, and a noncontrolling interest fair value of $345,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing.

During the next two years, Smashing reported the following:

Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2017 and 2018, 30 percent of the current year purchases remain in Smashing's inventory.

a.) Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2018.

b.) Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing.

Refer to the December 2019 Annual Report of Chevron below. Using the information below

Note: "Net before-tax gains on asset sales and investments" include gains/losses from investment sales including marketable securities.

1. What is the net book value of Chevron's property and equipment on December 31, 2019?

At December 31      2019    and 2018

Total Current Assets                                                                         28,329                     34,021              

Long-term receivables, net                                                             1,511                     1,942     

Investments and advances                                                             38,688                  35,546      

Properties, plant and equipment, at cost                                   326,722               340,244      

Less: Accumulated depreciation                                                    176,228               171,037      

Properties, plant and equipment, net                                          150,494               169,207     

Deferred charges and other assets                                             10,532                    6,766      

Goodwill                                                                                                4,463                    4,518     

Assets held for sale                                                                          3,411                    1,863     

Total Assets                                                                                        $ 237,428     $ 253,863      

Accounting for Gift Cards

Assume Ikeo Inc. sold $160,000 of gift cards during the last two weeks of December 2020. No gift cards were redeemed in 2020, while $144,000 of the gift cards were redeemed for store purchases during 2021. On December 31, 2021, Ikeo Inc. calculates the remaining balance of unredeemed gift cards of $16,000 ($160,000 less $144,000). Based on previous experiences, Ikeo estimates gift card breakage to be 5% of total gift card sales. Ikeo uses the proportional method to recognize income on gift card breakage.

Required

a. Record the sale of gift cards in 2020.

b. Record the redemption of gift cards in 2021.

c. Record revenue in 2021 due to gift card breakage using the proportional method.

Weldon Corporation’s fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during 2021:

Required:

Prepare journal entries for each of the above transactions and additional year-end adjusting entries indicated. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations and round your final answers to nearest whole dollar.)

4. Record the cash received on the discounted note.

6. The Blankenship Company paid its account in full.

7. Sold stock with a book value of $5,500 and accepted a $7,000 noninterest-bearing note with a discount rate of 9% due on February 28, 2022.

8. To record the accrual of interest earned on note receivable.

9. To record the accrual of bad debt expense.

We are learning in this topic about adjusting entries. If our business affairs are to be conducted in a godly manner, we could consider Luke 16:12: "And if you have not been trustworthy with someone else's property, who will give you property of your own?" Think about this verse and explain how this might be applied to the topic of adjusting entries.

1) Determine the price of a $1 million bond issue under each of the following independent assumptions:

2) Prepare journal entries to record the issuance for each of the following the above independent assumptions

3) Only for Assumption 1 and 2, prepare an amortization schedule that determines interest at the effective rate.

On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $250,000 in cash. The equipment had originally cost $225,000 but had a book value of only $137,500 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method.

Ackerman reported $350,000 in net income in 2018 (not including any investment income) while Brannigan reported $114,500. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $4,500 per year.

a.) What is consolidated net income for 2018?

b.) What is the parent's share of consolidated net income for 2018 if Ackerman owns only 90 percent of Brannigan?

c.) What is the parent's share of consolidated net income for 2018 if Ackerman owns only 90 percent of Brannigan and the equipment transfer was upstream?

d.) What is the consolidated net income for 2019 if Ackerman reports $370,000 (does not include investment income) and Brannigan $125,000 in income? Assume that Brannigan is a wholly owned subsidiary and the equipment transfer was downstream.

On June 3, Swifty Company sold to Chester Company merchandise having a sale price of $2,100 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $96, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company.

(a) Prepare journal entries on the Swifty Company books to record all the events noted above under each of the following bases.

(1) Sales and receivables are entered at gross selling price.

(2) Sales and receivables are entered at net of cash discounts.

b.

1.

Looking to compare, thanks.

A) Allocate the two support departments' costs to the two operating departments using the following methods?

Direct Method
Step-down method (Allocate AS first)
Step -down method (Allocate IS first)

B) Compare and Explain differences in the support department costs allocated to each operating department?

C) What approaches might be used to decide the sequence in which to allocate support departments when using the step-down method?