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)

subject: company accounting    

  Consolidation

Indigo Ltd gives $55 000 as an interest-free loan to Violet Ltd on 1 July 2019. Violet Ltd made a $20 000 repayment by 30 June 2020.Violet Ltd owns all the share capital of Indigo Ltd. The following transactions are independent:

1. Indigo Ltd rented a spare warehouse to Violet Ltd starting from 1 July 2019 for 1 year. The total charge for the rental was $3 500, and Violet Ltd paid half of this amount to Indigo Ltd on 1 January 2020 and the rest on 1 July 2020.
2. During March 2020, Indigo Ltd declared a $5000 dividend. The dividend was paid in August 2020.

Required

In relation to the above intragroup transactions:

1.      Prepare adjusting journal entries for the consolidation worksheet at 30 June 2020.

2.     Explain in detail why you made each adjusting journal entry.

Penny Worth Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat are as follows:

During May, the company produced 3,340 band hats; 3,870 yards of material were purchased for $41,022, and 3,050 yards of material were used in production. Also during May, 4,240 direct labor hours were worked at a cost of $59,360. Calculate material price and quantity variances and labor rate and efficiency variances. Indicate whether the variances are favorable or unfavorable.

Material price variance $ _______ (favorable or unfavorable)

Material Quantity variance $ _______ (favorable or unfavorable)

LAbor rate variance $ _______ (favorable or unfavorable)

Labor efficiency variance $ _______ (favorable or unfavorable)

Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow:

The beginning work in process inventory was 90% complete with respect to materials and 75% complete with respect to labor and overhead. The ending work in process inventory was 70% complete with respect to materials and 10% complete with respect to labor and overhead.

Required:

1. Compute the first department's equivalent units of production for materials, labor, and overhead for the month.

2. Determine the first department's cost per equivalent unit for materials, labor, and overhead for the month. (Round your answers to 2 decimal places.)

Johnson, Inc. manufactures car seats in its Houston plant. Each car seat passes through the Assembly Dept and the Testing Dept. This problem focuses on the Assembly Dept. the process-costing system at Johnson, Inc. has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the Assembly Dept finished work on each car seat, it is immediately transferred to Testing.

Johnson, Inc. uses the First In First Out Method of process costing. Data for the Assembly Dept for June 2016 is:

                                                      Physical Units             Direct                  Conversion     

                                                (Car Seats)                 Materials           Costs

Work-in-process, June 1*             5,000               $1,250,000      $402,750

Started during Jun 2016              20,000

Completed during Jun 2016        22,500

Work-in-process Jun 30**            2,500

Total costs added during

   June 2016                                                           $4,500,000      $2,337,500

*Degree of completion: DM ?%; CC 60%

**Degree of completion: DM ?%; CC 70%

1. For each cost category; compute equivalent units in the Assembly Dept. Show

      physical units in the first column of the schedule.

2. For each cost category, summarize total Assembly Dept costs for June 2016 and

             calculate the cost per equivalent unit.

3. Assign total costs to units completed and transferred out and to units in ending Work in Process

4. Prepare the journal entry to move costs from WIP-Assembly Dept to the WIP-         

Testing Department.

Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June.

Required:

1. Calculate the Blending Department's equivalent units of production for materials and conversion in June.

2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June.

3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June.

4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June.

5. Prepare a cost reconciliation report for the Blending Department for June.