On December 1, 2015 John Trap created a new travel agency, Trap Adventures, Inc. providing exclusive adventure trips. The following transactions occurred during December 2015. (NOTE: There are no beginning balances – this is a new company.) Dec 1 John Trap invested $60,000 cash in the company for common stock. 2 Purchase office equipment for $17,500 cash. 2 The company rented furnished office space by paying $18,000 cash for the first six months (December 2015 - May 2016) rent. 3 The company purchased $1,500 of office supplies on account. 10 The company paid $3,600 cash for the premium on a 12-month insurance policy. 14 The company paid $10,750 cash for two weeks' salaries earned by employees. 24 The company collected $54,000 cash on commissions from airlines on tickets obtained for customers. 28 The company paid $12,125 cash for two weeks' salaries earned by employees. 29 The company paid $350 cash for minor repairs to the company's computer. 30 The company paid $450 cash for this month's telephone bill. 30 Dividends of $3,000 cash were paid. Final Project Requirements Using the spreadsheet found here and information above, complete the following: Adjustment Data: One month's insurance coverage has expired. The company occupied the office space for the month of December. At the end of the month, $600 of office supplies are still available. Create journal entries to record the transactions that occurred during the month of December. (Completed in Unit 3) Prepare an unadjusted trial balance (Completed in Unit 3) Create adjusting journal entries at the end of the year, December 31 based on the adjustment data. Prepare an adjusted trial balance. Prepare an income statement, statement of stockholders' equity, and classified balance sheet. Create closing journal entries to close all temporary accounts. Prepare post-closing trial balance. In addition, answer TWO of the questions below in 1-2 fully developed paragraphs. A fully developed paragraph should have a major point with 3 to 5 support sentences. One or two sentences is not acceptable or does not discuss the question. Be sure to show what you know!!! Trap Adventures, Inc. is looking for an accountant. In your own words, explain to Trap's hiring team the role of accountant and accounting within business. Provide examples of the expectations of the accountant. Discuss the financial position of Trap Adventures, Inc. using the following ratios: Current ratio Return on equity: For each ratio, provide the calculation and an explanation of the meaning. Is this a positive or negative result for the Trap Adventures, Inc.? Using Trap Adventures, Inc.'s income statement, evaluate the operations for the month of December. Complete a common-size income statement using sales as the base number. What is the largest percentage? What is the smallest percentage? What recommendations could be made to increase Trap's net income? Currently, Trap Adventures, Inc. does not own any loans or bank notes (long-term liabilities). What would happen if Trap decides to obtain a bank loan for $25,000 to fund daily operations? How would this transaction impact the financial statements - which accounts would be affected? What is the debt to equity ratio? What does the debt to equity ratio

Job Order Cost Sheet

Carlin Furniture Company refinishes and reupholsters furniture. Carlin Furniture uses a job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered job cost sheet. If the offer is accepted, a number is assigned to the job, and the costs incurred are recorded in the usual manner on the job cost sheet. After the job is completed, reasons for the variances between the estimated and actual costs are noted on the sheet. The data are then available to management in evaluating the efficiency of operations and in preparing quotes on future jobs. On July 6, 2016, an estimate of $3,003 for reupholstering a sofa and loveseat was given to Justin Flannigan. The estimate was based on the following data:

On July 10, the sofa and loveseat were picked up from the residence of Justin Flannigan, 310 Suzuki Drive, Lubbock, TX, with a commitment to return it on September 7. The job was completed on September 3.

The related materials requisitions and time tickets are summarized as follows:

Required:

Enter amounts as positive numbers.

1. Complete that portion of the job order cost sheet that would be prepared when the estimate is given to the customer.

2. Record the costs incurred, and complete the job order cost sheet.

Feedback

1 & 2. Include the estimated and actual direct materials and direct labor. Include the estimated and applied factory overhead.

Learning Objective 2, Learning Objective 3.

What is the best explanation for the variances between actual costs and estimated costs. (For this purpose, assume that three meters of materials were spoiled, the factory overhead rate has been proved to be satisfactory, and an inexperienced employee performed the work.)

1. The direct materials cost exceeded the estimate because materials were spoiled and the direct labor cost exceeded the estimate because additional hours of labor were used by an inexperienced employee.
2. Management didn't provide enough direction to complete tasks on budget.
3. The direct materials cost exceeded the estimate because materials were spoiled.
4. The direct labor cost exceeded the estimate because additional hours of labor were used by an inexperienced employee.

Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement:

In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information:

Required:

1. Prepare a contribution format income statement segmented by divisions.

2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $25,000 based on the belief that it would increase that division's sales by 11%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented?

2-b. Would you recommend the increased advertising?

Ramon had AGI of $180,000 in 2018. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently.

d. Ramon has decided to make a cash gift to the American Heart Association of $113,000. However, he is considering delaying his gift until next year when his AGI will increase to $300,000 and he will be in the 32% income tax bracket, an increase from his current-year income tax bracket of 24%. Ramon asks you to determine the tax savings from the tax deduction in present value terms if he were to make the gift this year, rather than delaying the gift until next year. See Appendix G for the present value factors, and assume a 6% discount rate.

Required information

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

Antuan Company set the following standard costs for one unit of its product.

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level.

The company incurred the following actual costs when it operated at 75% of capacity in October.

rev: 03_28_2018_QC_CS-122864

3. Compute the direct materials cost variance, including its price and quantity variances.

AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price

Describe the types of adjustments that would be made to patient accounts for the following 4 situations. Each correct answer is worth 1 point

1. (NSF) or non-sufficient funds check
2. collection agency transaction
3. credit balance
4. third party

The following are various changes in audit circumstances.

Audit Circumstance

1. The client began experiencing an increase in returns due to product changes that resulted in increased defects.

2. You found several pricing errors in your substantive tests of transactions for sales.

3. In performing substantive tests of transactions for cash receipts, you found that receipts were promptly recorded in customer accounts, but there were delays in depositing the receipts at the bank.

4. The client entered into a new loan agreement with the bank. Accounts receivable are pledged as collateral for the loan.

5. The client did not reconcile the accounts receivable subsidiary records with the accounts receivable balance in the general ledger on a regular basis.

6. Substantive analytical procedures indicated a significant slowing in accounts receivable turnover.

7. The client entered into sales contracts with new customers that differ from the client’s standard sales contracts.

8. The client had a significant increase in sales near year end.

9. Accounts receivable confirmations were ineffective due to a very low response rate in the prior-year audit.

Match each change in audit circumstance with the most likely test of details of balances response. Each response is used once.

Required

1. Expand testing of sales returns after year end and compare the level of returns with the prior year.

2. Send positive confirmations that include requests for information on side agreements and special terms.

3. Increase the number of accounts traced from the accounts receivable trial balance to the accounts receivable subsidiary records.

4. Expand the review of cash receipts after year end to evaluate the collectibility of accounts receivable.

5. Increase the sample size for sales cutoff testing for sales recorded before year end.

6. Send a confirmation to the bank confirming amounts pledged as collateral under loan agreements.

7. Increase the sample size for positive confirmations of accounts receivable.

8. While at the client’s premises at year end, obtain information on the last few cash receipts at year end for cash receipts cutoff testing.

9. Perform alternative procedures to test the existence and accuracy of accounts receivable instead of sending positive confirmations.

What is the nature of FIFO phantom profits during periods of rising inventory purchase prices?

what is channel stuffing and how managers use the method in earning management

The management of Firebolt Industries Inc. manufactures gasoline and diesel engines through two production departments, Fabrication and Assembly. Management needs accurate product cost information in order to guide product strategy. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering the multiple production department factory overhead rate method. The following factory overhead was budgeted for Firebolt:

Direct labor hours were estimated as follows:

In addition, the direct labor hours (dlh) used to produce a unit of each product in each department were determined from engineering records, as follows:

Single Plantwide Method

Shaded cells have feedback.

a. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the single plantwide factory overhead rate method, using direct labor hours as the activity base . If required, round all per-direct labor hours and per-unit answers to the nearest cent.

Points:

0 / 2

Feedback

Multiple Production Department Method

Shaded cells have feedback.

b. Determine the per-unit factory overhead allocated to the gasoline and diesel engines under the multiple production department factory overhead rate method, using direct labor hours as the activity base for each department. If required, round all per-unit answers to the nearest cent.

1) W XYZ Limited is evaluating Project X , which requires an initial investment of RO40,000 . The expected net cash flows are RO15,000 pa for five years at today's prices . However these are expected to rise by 6.0 % pa because of inflation . The firm's cost of capital is 13 % . Find the NPV by : ( a ) discounting money cash flows ( b ) discounting real cash flows .

2) XYZ Limited is evaluating Project X, which requires an initial investment of RO60,000. The expected net cash flows are RO15,000 pa for first two years, RO20,000 for the third and fourth year and RO30,000 for the fifth year. However these are expected to rise by 6.0% pa because of inflation. The firm's cost of capital is 13%. Find the NPV by: (a) discounting money cash flows (b) discounting real cash flows.

The following questions relate to nonstatistical and monetary unit sampling. Choose the best response.

1. A number of factors influence the sample size for a substantive test of details of an account balance. All other factors being equal, which of the following would lead to a larger sample size?

   1. Greater reliance on internal control

   2. Greater reliance on substantive analytical procedures

   3. Smaller expected frequency of errors

   4. Smaller measure of tolerable misstatement

2. The risk of incorrect acceptance relates to

   1. substantive tests and affects audit efficiency.

   2. substantive tests and affects audit effectiveness.

   3. tests of controls and affects audit efficiency.

   4. tests of controls and affects audit effectiveness.

3. In a probability-proportional-to-size sample with a sampling interval of $3,000, which of the following is true?

   1. An overstatement error of $200 in an item recorded at $300 will result in a projected error of $2,000.

   2. An overstatement error of $700 in an item recorded at $3,500 will result in a projected error of $600.

      1. I only

      2. II only

      3. Both I and II

      4. Neither I nor II

Please answer all parts as I cant post separatelty because they are connected

Questions 4-8 USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (5) QUESTIONS:

Ramsey, Inc. sold merchandise to Min Corporation on June 1, 2019 and accepted an interest-bearing note with an 8% APR.  Min agreed to make annual payments of P&I in the amount of $27,000 per year for 5 years with the first payment being made immediately.  The remaining payments are to be remitted each June 1^st.  Ramsey’s year-end is December 31^st. Min’s normal cost to borrow is 8%.

Required:

Question 4

Determine the Face Value of the note receivable that Ramsey would recognize on Jun 1, 2019: $____________________________

(round your answer to the nearest whole dollar

Question 5

Using the information presented in #4 above, determine the Interest Revenue that Ramsey will recognize for the year ended Dec 31, 2020 on their Income Statement: $________________________

Question 6

Using the information in #4 above, answer the next (3) questions by preparing the Balance Sheet as of Dec 31, 2019:

Current Assets:

Interest Receivable $___________________

Note Receivable $___________________

Long-Term Investments:

Note Receivable $___________________

Question #6:

Determine the balance in the Interest Receivable account as of Dec 31, 2019: $___________________

Question 7

Using the information presented in #4 above, determine the current maturity of the long-term note receivable. (I.e. how much principal will be repaid in 2020 and therefore should be classified as a current asset.)

Question 8

Using the information presented in #4 above, determine the balance of the Note Receivable that should be classified as a Long-Term Investment (I.e. the balance of the note receivable that will not be repaid within the next 12 months from the balance sheet dated Dec 31, 2019.)

what are the approaches of earnings

You  are an entrepreneur who is designing a new line of boutique hotels located along Florida’s coastlines. Each of the 75 guest rooms in each hotel will offer upscale decor, Wi-Fi, and iPod docks for a nightly rate of $299. The hotels will have a spa, an on-site restaurant and a separate full-service bar that features local musicians. Describe the demographics—age, gender, family life cycle, income and social class, ethnicity, and place of residence—of your target customer.