I am having difficulty figuring out the rest of this problem, primarily with regards to calculating APIC and Retained earnings for Stock Dividends. Also, I need assistance with the fourth problem, how to calculate the total value of shareholders' equity.

Could you please help show me how to solve?

Accounting for Share Transactions
The shareholders' equity section of the consolidated balance sheet of Wilson Industries appeared as follows at the beginning of the year:

The following events occurred sequentially during the year:

1. A 2-for-1 forward stock split was executed.
2. A ten percent stock dividend was distributed when the Wilson share price was $80 per share.
3. Treasury stock valued at $12,000,000 was repurchased when the Wilson share price was $75 per share.

Required

1. How many Class A common shares are outstanding following the above events?

13260000

2. What is the par value per share of the Class A common stock following the above events? Round to the nearest three decimal places.

$0.02

3. Prepare a spreadsheet to illustrate the financial effects associated with the above three share transactions.

Use a negative sign with answers to indicate a reduction in an account balance and with treasury stock repurchase and balance.

4. Calculate the total value of shareholders' equity following the above events.

$????

Explain how internal control work done by auditors impacts the audit risk equation. Does control risk change if the auditors are providing an opinion over internal controls? How is detection risk impacted?

P9-6A Altona Limited purchased delivery equipment on March 1, 2016, for $130,000 cash. At that time, the equipment was estimated to have a useful life of five years and a residual value of $10,000. The equipment was disposed of on November 30, 2018. Altona uses the diminishing-balance method at one time the straight-line depreciation rate, has an August 31 year end, and makes adjusting entries annually. Please show steps.

Instructions

(a) Record the acquisition of equipment on March 1, 2016.

(b) Record depreciation at August 31, 2016, 2017, and 2018.

(c) Record the disposal of the equipment on November 30, 2018, under each of the following independent assumptions:

1. It was sold for $60,000.
2. It was sold for $80,000.
3. It was retired for no proceeds.

1. Briefly explain the concept of a balanced scorecard. Why are non-financial performance measures important?
2. ZY Airlines is concerned about the quality of customer service at their call center. You have been asked to develop two measures of customer-satisfaction and quantifiable targets for those measures.

On January 1, Orange Crates had assets of P30,000 and owner’s equity of P20,000.
During the year, the company had cash revenue or income of P10,000, cash expenses of
P8,000, paid 3,000 to its creditors, and its owner withdrew P1,000. What are the assets,
liabilities, and owner’s equity at the end of the year?

Emery Communications Company is considering the production and marketing of a communications system that will increase the efficiency of messaging for small businesses or branch offices of large companies. Each unit hooked into the system is assigned a mailbox number, which can be matched to a telephone extension number, providing access to messages 24 hours a day. Up to 20 units can be hooked into the system, allowing the delivery of the same message to as many as 20 people. Personal codes can be used to make messages confidential. Furthermore, messages can be reviewed, recorded, cancelled, replied to, or deleted all during the same message playback. Indicators wired to the telephone blink whenever new messages are present.

To produce this product, a $1.75 million investment in new equipment is required. The equipment will last 10 years but will need major maintenance costing $150,000 at the end of its sixth year. The salvage value of the equipment at the end of 10 years is estimated to be $100,000. If this new system is produced, working capital must also be increased by $90,000. This capital will be restored at the end of the product's 10-year life cycle. Revenues from the sale of the product are estimated at $1.65 million per year. Cash operating expenses are estimated at $1.32 million per year.

Required:

1.Prepare a schedule of cash flows for the proposed project. (Assume that there are no income taxes.)

2.Assuming that Emery's cost of capital is 12%, compute the project's NPV. Should the product be produced?

1. Go to the Microsoft Corporate website (Official Home Page) and click on “Investors” at the bottom of the page. This will direct you to the Investor Relations Page. Click on Annual Reports and select download the 2019 Annual Report. Scroll down to the 2019, 2018, 2017 comparative financial statement of Cash Flows Statement (About half way down the document).

Questions:

a. What cash flow format does Microsoft use? How do you know? What are the cash flows for Operating, Investing, and Financing in 2019?

b. Explain the Financing cash flows for 2019. What are the two major financing cash flows? What is Microsoft doing? Explain your answer in detail.

c. Explain the Investing cash flows for 2019. What are the two major Investing cash flows? What is Microsoft doing? Explain in detail.

d. Looking at the balance sheet for 2019 – what is Cash, Cash Equivalents, and Short term investments at June 30, 2019? What is a cash equivalent (look it up in your text book)?

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

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 220 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 110 units from the March 25 purchase.

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

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 220 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 110 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2017, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2017) follows.

Business Solutions had the following transactions and events in December 2017.   

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:

1. The December 31 inventory count of computer supplies shows $620 still available.
2. Three months have expired since the 12-month insurance premium was paid in advance.
3. As of December 31, Lyn Addie has not been paid for four days of work at $110 per day.
4. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
5. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
6. Three of the four months' prepaid rent has expired.

Required:
1. Prepare journal entries to record each of the December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect a through f.
2-b. Post the journal entries to record each of the December transactions, adjusting entries to the accounts in the ledger.
3. Prepare an adjusted trial balance as of December 31, 2017.
4. Prepare an income statement for the three months ended December 31, 2017.
5. Prepare a statement of retained earnings for the three months ended December 31, 2017.
6. Prepare a balance sheet as of December 31, 2017.
7. Record and post the necessary closing entries as of December 31, 2017.
8. Prepare a post-closing trial balance as of December 31, 2017.

Preparing the [I] consolidation entries for sale of depreciable assets-Equity method

Assume on Jan. 1, 2016, a parent sells to its wholly owned subsidiary, for a sale price of $162,000, equipment that originally cost $184,000. The parent originally purchased the equipment on January 1, 2012 and depreciated the equipment assuming a 10 year useful life ( straight- line with no salvage value). The subsidiary has adopted the parent's depreciation policy and depreciated the equipment over the remaining useful life of 6 years. The parent uses the equity method to account for its equity Investment.

A.) Compute the annual pre-consolidation depreciation expense for subsidiary (post-intercompany sale) and the parent (pre-intercompany sale)

B.) Compute the pre-consolidation Gain on Sale recognized by the parent during 2016.

C.) Prepare the required [I] consolidation entry in 2016 (assume a full year of depreciation)

D.) Prepare the required [I] consolidation entry in 2019 (assuming the subsidiary is still holding the equipment)

E.) How long must we continue to make the [I} consolidation entries

Olivia’s Outdoor Essentials produces gear for climbing, hiking, and camping. Last month, Olivia reported the following: Beginning Work in Process Inventory: $20,000 Ending Work in Process Inventory: $25,000 Beginning Finished Goods Inventory: $15,000 Ending Finished Goods Inventory: $13,000 Direct Labor: $60,000 Beginning Raw Materials Inventory: $20,000 New Raw Materials Purchased: $48,000 Ending Raw Materials Inventory: $10,000 Indirect Materials Used: $8,000 Indirect Labor: $10,000 Other Applied Manufacturing Overhead: $30,000 Required: a. What was the Manufacturing Costs for the period? b. What was the Cost of Goods Manufactured for the period? c. What was the Cost of Goods Sold for the period?

1. 8. BONUS: Nilam Patel is the primary stockholder in two hotel corporations. One corporation owns a 90‐room economy property located in the suburbs of a large western town. The other corporation is a 350‐room full‐service convention hotel in the downtown city center for which Nilam has employed a management company to operate the property. Nilam is preparing balance sheets for both properties using a common size format. Complete the two balance sheets. Then answer the questions that follow.

   Nilam Patel's Two Hotel's Balance Sheets

   	December 31		Common Size
   	90‐Room Property	350‐Room Property	90‐Room Property (%)	350‐Room Property (%)
   ASSETS
   Current Assets
   Cash
   Cash in House Banks		$86,000
   Cash in Demand Deposits	85,000	330,250
   Total Cash	103,500	416,250
   Short‐Term Investments	56,000	165,000
   Receivables
   Accounts Receivable	150,000	327,150
   Notes Receivable	35,000	136,250
   Other	750	30,800
   Total Receivables	185,750	494,200
   Less Allowance for Doubtful Accounts	19,250
   Net Receivables	166,500	431,900	1.4	1.1
   Due from Management Company	—	50,000	0.0	0.1
   Food Inventories	15,125	69,750	0.1	0.2
   Beverage Inventories	—	42,550	0.0	0.1
   Gift Shop Inventories	300	6,950	0.0	0.0
   Supplies Inventories	6,550	13,550	0.1	0.0
   Prepaid Expenses	56,000	120,100	0.5	0.3
   Deferred Income Taxes—Current	48,000	135,000	0.4	0.3
   Total Current Assets
   Investments	72,500	274,150	0.6	0.7
   Property and Equipment
   Land	2,000,000	8,450,000
   Building	6,500,000	18,500,000
   Leaseholds and Leasehold improvements	2,037,250	5,850,000
   Furnishings and Equipment	1,288,000	3,105,000
   Total Property and Equipment	11,825,250	35,905,000
   Less Accumulated Depreciation and Amortization	575,000	2,575,000
   Net Property and Equipment	11,250,250	38,480,000
   Other Assets
   Intangible Assets	—	75,000	0.0	0.2
   Deferred Income Taxes—Non‐current	66,000	158,000	0.6	0.4
   Operating Equipment	35,100	111,000	0.3	0.3
   Restricted Cash	25,000	95,000	0.2	0.2
   Total Other Assets	126,100	439,000	1.1	1.1
   TOTAL ASSETS			100.0	100.0
   LIABILITIES AND OWNERS' EQUITY
   Current Liabilities
   Notes Payable
   Banks	17,500	116,250	0.1	0.3
   Others	8,000	17,500	0.1	0.0
   Total Notes Payable	25,500	133,750	0.2	0.3
   Accounts Payable	2,500	125,100
   Accrued Expenses	45,000	42,500
   Advance Deposits	500	42,250
   Income Taxes Payable	15,000	78,000
   Deferred Income Taxes—Current	40,000	235,000
   Current Maturities of Long‐Term Debt	420,000
   Other	50,000	58,000
   Total Current Liabilities	598,500	2,399,600	5.0	5.9
   Long‐term Debt, Net of Current Maturities
   Mortgage Note		24,383,030
   Obligations Under Capital Leases	18,000	385,000	0.2	0.9
   Total Long‐Term Liabilities	6,868,000
   Owners' Equity
   Common Stock	500,000	2,000,000
   Paid in Capital		8,711,500
   Retained Earnings	879,325	2,765,070
   Total Owners' Equity	4,434,325	13,476,570
   TOTAL LIABILITIES AND OWNERS' EQUITY			100	100

   1. What was the amount of cash in the 90‐room property's Cash in House Banks account at year end?
   2. What is the amount of Allowance for Doubtful Accounts in the 350‐room property? Do you think it is excessive? Explain your answer?
   3. What would explain the lack of a beverage inventory value in the 90‐room hotel?
   4. What was the dollar amount of Total Assets in the 90‐room hotel?
   5. What was the dollar amount of Total Assets in the 350‐room hotel?
   6. What was the dollar amount of Current Maturities of Long‐Term Debt in the 350‐room property? Why is that amount likely so much higher than for the 90‐room property?
   7. What was the dollar amount of Paid in Capital for the 90‐room property?
   8. What is the Owners' Equity percentage of Total Assets in the 90‐room property? What is it in the 350‐room property?

iii. Charging of Fees: Advanced Accounting Service Pty Ltd planning to register as a tax agent and provides taxation service to its clients. a) Can Advanced Accounting Service Pty Ltd start charging fees if they provide any client service now? b) What section of TAS act this can be referred to? (REF: s.50-5TAS Act)