The following errors were found when the new accountant at Headlands’s Motors was preparing the April 30 bank reconciliation.

Describe the impact of each of these items on the bank reconciliation.

Prepare the necessary journal entries to correct the accounts as you determined above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the above part.)

Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the month of March are as follows.

Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricycles. (Round answers to 0 decimal places, e.g. 2,520.)

Calculate the unit costs of production for materials and conversion costs for both the bicycles and the tricycles. (Round unit costs to 3 decimal places, e.g. 25.215.)

Calculate the assignment of costs to units transferred out and in process at the end of the accounting period for both the bicycles and the tricycles. (Round answers to 0 decimal places, e.g. 2,520.)

Bicycles

Tricycles

Prepare a production cost report for the month of March for the bicycles only. (Round unit costs to 3 decimal places, e.g. 25.123 and all other answers to 0 decimal places, e.g. 2,520.)

The following is a list of 10 control plans from Chapter 8. These are followed by a list of 10 B/AR/CR business process controls or deficiencies. Match the 10 B/AR/CR business process control plans with a pervasive control plan from Chapter 8 that could prevent the deficiencies noted in the preceding list or have an impact on the successful execution of the business process control.

Match letters A-J to numbers 1-10

Sales (10,000units) $ 70,000 Less variable costs (35,000) Contribution margin $ 35,000 Less fixed costs (32,500) Net income $ 2,500 Requirements: 1. Compute Break-even point in units and explain what the number that you calculated means. 2. Compute break-even point in sales volume (in dollar) and explain what the number that you calculated means. 3. How much sales should be in order to earn a before tax profit of $15000.

Tony and Suzie graduate from college in May 2018 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they’ll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts.
  
On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 20,000 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 $10,000 of common stock to Suzie.
Jul. 1 Sell $10,000 of common stock to Tony.
Jul. 1 Purchase a one-year insurance policy for $4,200 ($350 per month) to cover injuries to participants during outdoor clinics.
Jul. 2 Pay legal fees of $1,100 associated with incorporation.
Jul. 4 Purchase office supplies of $1,300 on account.
Jul. 7 Pay for advertising of $370 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $60 the day of the clinic.
Jul. 8    Purchase 10 mountain bikes, paying $11,200 cash.
Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,600 from 60 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 $4,150.
Jul. 24 Pay for advertising of $840 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $120 in advance or $170 on the day of the clinic.
Jul. 30 Great Adventures receives cash of $8,400 in advance from 70 kayakers for the upcoming kayak clinic.

1. Record each transaction in July. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

What accounting treatment is required for convertible debt and why? What accounting treatment is required for debt issued with stock warrants and why?

At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book–tax difference of $75 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $180 million and the tax rate is 40%.

Required:
1. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized.
2. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized.

• Record valuation allowance for the end of 2018.

Explain the key techniques you can use to analyze financial statements. What starting information is required, what steps are performed, what are the results, and how are they used in decision-making?

Problem 23-2A (Part Level Submission) Ayala Corporation accumulates the following data relative to jobs started and finished during the month of June 2017. Costs and Production Data Actual Standard Raw materials unit cost $2.30 $2.20 Raw materials units used 11,100 10,400 Direct labor payroll $174,640 $171,360 Direct labor hours worked 14,800 15,300 Manufacturing overhead incurred $214,678 Manufacturing overhead applied $218,178 Machine hours expected to be used at normal capacity 43,500 Budgeted fixed overhead for June $65,250 Variable overhead rate per machine hour $3.10 Fixed overhead rate per machine hour $1.50 Overhead is applied on the basis of standard machine hours. 3.10 hours of machine time are required for each direct labor hour. The jobs were sold for $476,000. Selling and administrative expenses were $40,000. Assume that the amount of raw materials purchased equaled the amount used. (a) Compute all of the variances for (1) direct materials and (2) direct labor. (Round answers to 0 decimal places, e.g. 125.) (1) Total materials variance $ Materials price variance $ Materials quantity variance $ (2) Total labor variance $ Labor price variance $ Labor quantity variance $

Seattle Coffee Limited's bank statement for the month of November 30, 2020 showed a balance per bank of $7,000. The company's general ledger Cash account showed a balance of $5,904 at November 30, 2020. Other information is as follows:

1. Cash receipts for November 30 recorded on the company's books were $5,200, but this amount does not appear on the bank statement.

2. The bank statement shows a Bank charge fee for $40 for cheque printing charges.

3. Cheque #119 payable in the amount of $248 to Holt Corporation was recorded in the general journal for $284 and cleared the bank for $248. The correct amount of Cheque #119 is $248. The bookkeeper made an error.

4. The total amount of cheques outstanding at November 30 was $5,800.

5. The bank statement shows and EFT for Utilities of $200.

6. The bank returned an NSF cheque from a customer for $560.

7. The bank statement included a deposit for $1,260, which represents the electronic collection of customer accounts which have not yet been recorded on the company’s books.

Instructions

(a) Prepare a bank reconciliation for Seattle Coffee Limited at November 30, 2020. (hint: use the template on Moodle to ensure correct formatting)

(b) Prepare any journal entries necessary as a result of the bank reconciliation.

The following selected account balances were taken from ABC Company's accounting records during 2018: January 1, 2018 December 31, 2018 Inventory 69,000 35,000 Accounts payable 47,000 41,000 Long-term notes payable 165,000 130,000 Income tax payable 11,000 7,000 Investments 89,000 68,000 Accounts receivable 77,000 84,000 Land 60,000 89,000 Common stock 100,000 175,000 Retained earnings 26,000 41,000 The following information was taken from ABC Company's 2018 income statement: Sales revenue $422,000 Cost of goods sold 361,000 Gain on sale of investments 11,000 Income tax expense 22,000 Net income $ 50,000 Calculate the net cash flow from financing activities for 2018. If your answer is negative, place a minus sign in front of your answer (e.g., -1234).

On January 1, 2018, XYZ Company paid $380,000 to purchase land, building, and equipment. The market values of these assets on that date were: land $60,000; building $200,000; equipment $140,000. Before the property could be used, XYZ Company had to spend $5,000 to put the equipment in working order. The building was assigned a useful life of 20 years with a $4,000 salvage value. The building will be depreciated using the straight-line method. On October 1, 2028, XYZ Company sold the building for $73,000 cash. Calculate the amount of the loss recorded on the sale of the building.

Provide, in your own words, an overview of the four financial statements listed in the text: the Income Statement (also called the P&L), the Balance Sheet, the Statement of Cash Flows, and the Statement of Stockholder's Equity. What information is contained in each, and what judgments can you make about a company from each of the statements?