For the following terms find the correct definition below and place the letter of that response in the blank space next to the term. Each definition is used only once – there are four terms that are not used.

E20-22

Englehart Co. provides the following information about its postretirement benefit plan for the year 2017.

Service Cost $90,000

Prior service cost and amortization 3,000

Contribution to the plan 56,000

Actual and expected return on plan assets 62,000

Benefits paid 40,000

Plan assets at January 1, 2017 710,000

Accumulated postretirement benefit obligation

at January 1, 2017 760,000

Accumulated OCI (PSC) at January 1, 2017 100,000 Dr.

Discount rate 9%

Instructions

Compute the postretirement benefit expense for 2017.

E20-23

Using the information in E20-22, prepare a worksheet inserting January 1, 2017, balances, showing December 31,2017, balances, and the journal entry recording postretirement benefit expense.

A prospective client comes to you for some more expert planning advice. He has a high deductible health insurance plan with an HSA. What are the tax advantages to saving money in an HSA account and what benefits may be available if he chooses not to use the funds until the future? The client is also thinking about starting his own accounting business on the side and wants to know what self‐employment tax is. He is also want to know what advantages are associated with setting up an educational assistance program. The prospective client is also trying to figure out if he can contribute to an IRA, a SEP‐IRA, and his employer‐sponsored 401k plan. What factors should he be considering or aware of from a tax planning perspective?

Blossom Company shows the following balances in selected accounts of its adjusted trial balance.

Supplies $37,760

Supplies Expense 7,080

Accounts Receivable 14,160

Dividends 25,960

Retained Earnings 82,600

Service Revenue 127,440

Salaries and Wages Expense 47,200

Utilities Expense 9,440

Rent Expense 21,240

Prepare the remaining closing entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

1)Describe some consequences to a company that makes a poor decision when selecting an ERP system.

2)One major difference between financial accounting and managerial accounting is that financial accountants prepare financial statements for external investors while managerial accountants prepare financial statements for internal managers.

True

False

3)Define descriptive, predictive and prescriptive analytics. Give an example of each.

The following data is provided MCGA Ltd:

Direct Labour $30,100
Purchase of raw materials $52,890
Factory Management monthly salary        $ 12,900
Repair for factory (50%) and office (50%) $ 5,160
Advertising expense $38,700
Factory Insurance $387
Sales person, salaries $ 21,500
Rent for factory machinery $   9,890
Factory supplies $ 1,978
Depreciation, office equipment $ 1,505
Depreciation, factory equipment $ 9,030
Beg, Raw Materials $ 3,440
Ending, Raw Materials $ 7,095
Beg, Work-in-Process $ 4,300
Ending, Work-in-Process $ 2,215
Beg, Finished Goods $ 9,998
Ending, Finished Goods $ 16,383
Sales Revenue $1,075,000

  Please calculate the Net Income

Would a client's valuation be negatively impacted by inconsistencies between short-term and long-term strategies?

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows:

* $3 per unit variable; $248,000 fixed each year.

The company’s $33 unit product cost is computed as follows:

Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.

Production and cost data for the first two years of operations are:

Questions:

1. Using variable costing, what is the unit product cost for both years?

2. What is the variable costing net operating income in Year 1 and in Year 2?

3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

On 1 July the Winter Shoe Store paid $6,000 to Ace Realty for 6 month’s rent beginning 1 July. Prepaid Rent was debited for the full amount. If financial statements are prepared on 31 July, the adjusting entry to be made by the Winter Shoe Store is:

Select one:

a. Debit Rent expense, $6,000; Credit Prepaid rent, $6,000

b. Debit Prepaid rent, $1,000; Credit Rent expense, $1,000

c. Debit Rent expense, $1,000; Credit Prepaid rent, $1,000

d. Debit Rent expense, $6,000; Credit Prepaid rent, $6,000

e. None of the above

Sleep Master, Inc. manufactures bedding sets. The budgeted production is for 57,000 comforters in 2017. Each comforter requires 6 yards of material. The estimated January 1, 2017, beginning inventory is 31,000 yards. The desired ending balance is 27,000 yards of material. If the material costs $1.50 per yard, determine the materials budget for 2017.

The City of Sweetwater maintains an Employees’ Retirement Fund, a single employer defined benefit plan that provides annuity and disability benefits. The fund is financed by actuarially determined contributions from the city’s General Fund and by contributions from employees. Administration of the retirement fund is handled by General Fund employees, and the retirement fund does not bear any administrative expenses. The Statement of Fiduciary Net Position for the Employees’ Retirement Fund as of July 1, 2016, is shown here:

During the year ended June 30, 2017, the following transactions occurred:

1. The interest receivable on investments was collected in cash.
2. Member contributions in the amount of $276,500 were received in cash. The city’s General Fund also contributed $810,000 in cash.
3. Annuity benefits of $738,000 and disability benefits of $166,000 were recorded as liabilities.
4. Accounts payable and accrued expenses in the amount of $959,000 were paid in cash.
5. Interest income of $246,000 and dividends in the amount of $30,500 were received in cash. In addition, bond interest income of $54,000 was accrued at year-end.
6. Refunds of $88,000 were made in cash to terminated, nonvested participants.
7. Common stocks, carried at a fair value of $509,000, were sold for $485,000. That $485,000, plus an additional $314,000, was invested in stocks.
8. At year-end, it was determined that the fair value of stocks held by the pension plan had decreased by $50,000; the fair value of bonds had increased by $43,000.
9. Nominal accounts for the year were closed.

Required:

1. Record the transactions on the books of the Employees’ Retirement Fund.
2. Prepare a Statement of Changes in Fiduciary Net Position for the Employees’ Retirement Fund for the year ended June 30, 2017.
3. Prepare a Statement of Fiduciary Net Position for the Employees’ Retirement Fund as of June 30, 2017.

Spring Manufacturing Company makes two components identified as C12 and D57. Selected budgetary data for 2019 follow:

The firm expects the average wage rate to be $25 per hour in 2019. Spring Manufacturing uses direct labor hours to apply overhead. Each year the firm determines the overhead application rate for the year based on budgeted direct labor hours for the year. The firm maintains negligible Work-in-Process Inventory and expects the cost per unit for both beginning and ending inventories of finished products to be identical.

The effective income tax rate for the company is 30%.

Required:

1. Prepare the Sales budget for 2019.

2. Prepare the Production budget for 2019.

3. Prepare the Direct materials purchases budget (units and dollars) for 2019.

4. Prepare the Direct labor budget for 2019.

5. Prepare the Factory overhead budget for 2019.

6. Prepare the Cost of goods sold and ending finished goods inventory budgets for 2019.

7. Prepare the Selling and administrative expense budget, broken down into two components: Selling Expenses, and Administrative Expenses for 2019.

8. Prepare the Budgeted income statement, the last item of which is labeled After-tax Operating Income for 2019.

the segmented income statement for XYZ Company for the year ended December 31, 2016, follows: XYZ COMPANY Segmented Income Statement For the Year Ended December 31, 2016 Total Company Product A Product B Product C Sales $ 592,000 $ 297,000 $ 118,000 $ 177,000 Variable expenses 273,000 154,000 49,000 70,000 Contribution margin $ 319,000 $ 143,000 $ 69,000 $ 107,000 Fixed expenses 283,000 165,000 47,000 71,000 Operating income $ 36,000 $ (22,000 ) $ 22,000 $ 36,000 The company is concerned about the performance of product A, and you have been asked to analyze the situation and recommend to the president whether to continue or discontinue the product. During your investigation, you discover that certain fixed expenses are traceable directly to each product line as indicated here: Total Company Product A Product B Product C Direct fixed expenses $102,000 $74,000 $9,000 $19,000 The remaining fixed expenses are considered to be corporate-wide expenses that have been allocated to each product line based on sales revenue. Required: What will be the effect of the decision to discontinue product A on operating income, assume that product A is discontinued. Prepare a segmented income statement for the remaining products. Allocate corporate-wide fixed expenses as described, round intermediate calculations to 2 decimal places, Starting with the segmented income statement, use the information you discovered during your investigation to present a more appropriately designed segmented income statement.

SAM does not keep a full set of double entry accounts.

Summarised Bank Account:-
Debit entries: Receipts from customers 60500
: Sale of Non current asset 750

Credit entries : Payments to suppliers 34900
: Wages 15000
: Heating 2500
: Drawings   5000
: Purchase of Non current asset 8000
: General Expenses 6000

Additional Information:
1 May 2017 30 April 2018
Bank 100 cr ?
Inventory 5250 11000
Trade Receivables 9750 8400
Trade Payables 10500 9300
Non current assets (book value) 40000 42000
Heating 600 prepaid 250 accrued
6% Bank Loan 20000 20000
Capital 25000 ?

The Non current asset sold during the year had a book value of $1000

Prepare

(i) An Income Statement for the year ended 30 April 2018
(ii) A Statement of Financial Position as at 30 April 2018

Patty Banyan is a single taxpayer, age 27 (birthdate May 18, 1992) living at 543 Space Drive, Houston, TX 77099. Her Social Security number is 466-33-1234. For 2019, Patty has no dependents, and received a W-2, from her job at a local restaurant where she parks cars. These wages are Patty's only income for 2019.

Required:
Complete Form 1040 for Patty Banyan for the 2019 tax year. If there is an over-payment, she would like a refund.

• She wants to donate $3 to the Presidential Election Campaign Fund. The election to donate does not affect tax liability in any way.
• Patty has health care coverage for the full year.
• Enter all amounts as positive numbers.
• If an amount box requires no entry or the amount is zero, enter "0".
• If required, round amounts to the nearest dollar.