Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows: Activity Activity Rate Fabrication $28 per machine hour Assembly $20 per direct labor hour Setup $75 per setup Inspecting $30 per inspection Production scheduling $12 per production order Purchasing $ 8 per purchase order The activity-base usage quantities and units produced for each product were as follows: Activity Base Elliptical Machines Treadmill Machine hours 700 600 Direct labor hours 182 64 Setups 20 15 Inspections 10 16 Production orders 30 20 Purchase orders 56 75 Units produced 400 250 Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product. If required round your answers to nearest cent. Total Activity Cost Activity Cost Per Unit Elliptical machines $ $ Treadmill

Capricorn Inc. is a private company reporting under ASPE. Its unadjusted trial balance at its fiscal year end, December 31, 2023 is shown below:

No new shares were issued or reacquired during 2023.

The following transactions have not yet been recorded for 2023:
1. On December 31, 2023, the board of directors declared a total cash dividend of $54,000
2. The bonds were issued at par with a contract interest rate of 4%. Interest is paid semi-annually on July 1 and January 1.
3. The income tax rate for 2023 is 20%

Required:
Using a blank MS Excel workbook, answer the following questions:

1. Prepare the adjusting entries required for December 31, 2023 (
2. Prepare the closing entries for December 31, 2023
3. Prepare an income statement for the year ended December 31, 2023
4. Prepare a statement of retained earnings for the year ended December 31, 2023
5. Prepare a classified balance sheet at December 31, 2023
6. Calculate Capricorn’s earnings per share for 2023.

Chris Guthrie was recently hired by S&S Air, Inc., to asset the company with its financial planning and to evaluate the company's performance. Chris graduated from college five years ago with a finance degree. He has been employed in the finance department of a Fortune 500 company since then.

S&S Air was founded 10 years ago by friends Mark Sexton and Todd Story. The company has manufactured and sold light airplanes over this period, and the company's products have received high reviews for safety and reliability. The company has a niche market in that is sells primarily to individuals who own and fly their own airplanes. The company has two models: the Birdie, which sells for $103,000, and the Eagle, which sells for $178,000.

Although the company manufactures aircraft, its operations are different from commercial aircraft companies. S&S Air builds aircraft to order. By using prefabricated parts, the company can complete the manufacture of an airplane in only five weeks. The company also receives a deposit on each order, as well as another partial payment before the order is complete. In contast, a commercial airplane may take one and one-half to two years to manufacture once the order is placed.

Mark and Todd have provided financial statements (which are to the left and below). In addition, Chris has gathered the industry ratios for the light airplance manufacturing industry (below).

Questions:

1. Using the financial statements provided above, calculate each of the ratios listed in the industry table for S&S Air (all 14 of them).

2. Mark and Todd agree a ratio analysis can provide a measure of the company's performance. They have chosen Boeing as an aspirant (comparison) company. Would you choose Boeing as an aspirant company? Why or why not? There are other aircraft manufacturers S&S Air could use as aspirant companies. Discuss whether it is appropriate to use any of the following companies: Bombadier, Embraer, Cirrus Aircraft Corporation, and Cessna Aircraft Company.

3. Compare the performance of S&S Air to the industry, using the 14 ratios you calculated in part 1 and the industry table provided. For each ratio, comment on whether it would be viewed as positive or negative (favorable or unfavorable) to the industry and why.

Discuss the differences between cash and accrual accounting. What is one significant advantage of accrual accounting over cash accounting?

JBeats produce and sell a product that has variable costs of $33 and a selling price of $68 . Its current sales total $204,000 per month. Fixed manufacturing costs total $25,000 per month and fixed selling and administrative costs total $17,000 per month. The company is considering a proposal that will increase the selling price by 5%, increase the fixed manufacturing costs by 5%, and increase the fixed selling and administrative costs by $3,500.

A. Compute JBeats’s current break-even point in units.

B. Compute JBeats’s margin of safety in dollars.

C. Compute JBeats’ss net income.

D. Compute JBeats’s breakeven point in units assuming they accept the proposal.

E. Compute JBeats’s net income assuming they accept the proposal and sales total 3,300.

Label and place your final answer for A-E at the top of the answer box. Then after the answer to E, label and show your work for each part of the question. Just show me numbers – that is usually enough for me to follow your logic.

Monty Company reported the following amounts in the stockholders’ equity section of its December 31, 2016, balance sheet.

During 2017, Monty took part in the following transactions concerning stockholders’ equity.

please explain detail

The main role of Management Accounting is: Planning Control and Decision making. Decision making is the selection of the correct cost element and take the right decision in the best interest of the organization be: -Make or buy decision -Accept or reject decision -Shut down decision -Limiting factor decision In relation to Decision making explain the above statement. Your assignment, should include limiting factor with several constraint and making use of linear programing technique).

Before Splish Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share).

Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes. (Credit account titles are automatically indented when 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.)

please explain detail

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $15,300; cost of goods sold, $6,200; selling expenses, $1,300; general and administrative expenses, $800; interest revenue, $40; interest expense, $180. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount.

1. Investments were sold during the year at a loss of $220. Schembri also had an unrealized gain of $320 for the year on investments in debt securities that qualify as components of comprehensive income.
2. One of the company’s factories was closed during the year. Restructuring costs incurred were $1,200.
3. During the year, Schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of $560 in 2021 prior to the sale, and its assets were sold at a gain of $1,400.
4. In 2021, the company’s accountant discovered that depreciation expense in 2020 for the office building was understated by $200.
5. Negative foreign currency translation adjustment for the year totaled $240.

Required:
1. Prepare Schembri’s single, continuous multiple-step statement of comprehensive income for 2021, including earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares were issued on July 1, 2021.
2. Prepare a separate statement of comprehensive income for 2021

Spark Inc is a relatively new company and you have been recruited to assist the management with advice and getting to the correct financial figures.

1. Distinguish between a stock split and a stock dividend. Is there any reason for the difference in accounting treatment of these two events?

2. Assume that when you were in high school you saved $1,000 to invest for your college education. You purchased 200 shares of Smiley Incorporated, a small but growing company. Over the three years that you have owned the stock, the corporation's board of directors has taken the following actions:

• Declared a 2-for-1 stock split.

• Declared a 20 percent stock dividend.

• Declared a 3-for-1 stock split.

  The current price of the stock is $12 per share.

• 2.1. Calculate the current number of shares and the market value of your investment.

• 2.2. Explain the likely reason the board of directors of the company has not declared a cash dividend.

QUESTION 3 (Points 15)

3. Spark INC., had retained earnings at the beginning of the current year of $460,000. During the year the company earned net income of $250,000 and declared dividends as follows:

$1 per share for the current-year dividend on the 10,000 shares of preferred stock outstanding.
$1 per share for the dividend in arrears for one year on the 10,000 shares of preferred stock outstanding.
$0.50 per share for the current-year dividend on the 200,000 shares of common stock outstanding.
In addition, the company discovered an overstatement in the prior year's net income of $65,000 and corrected that error in the current year. Prepare a statement of retained earnings for the year ended 2019 and also Write a short report on your findings.

QUESTION 4 (Points 10)

4. At the beginning of the current year, Spark INC. had dividends payable of $1,600,000. During the current year, the company declared cash dividends of $4,500,000, of which $970,000 appeared as a liability at year-end.

4.1. Determine the amount of cash dividends paid during this year. QUESTION 5 (Points 30)

5. The accounting staff of Sparks INC has assembled the following information for the year ended December 31, 2019:

5.1. Prepare a statement of cash flows in the format Example below (Allison corporation) Place brackets around amounts representing cash outflows. Use the direct method of reporting cash flows from operating activities.

5.2. Some of the items above will be listed in your statement without change. However, you will have to combine certain given information to compute the amounts of
5.2.1. collections from customers,
5.2.2. cash paid to suppliers and employees, and

5.2.3. proceeds from sales of plant assets.
(Hint: Not every item listed is used in preparing a statement of cash flows.) Example of a statement of cash flow format:

QUESTION 6 (Points 30)

6. Comparative balance sheets report average total assets for the year of $2,575,000 and average total equity of $1,917,000 (dollar amounts in thousands, except earnings per share).

6.1. Prepare an income statement for the year in a multiple-step format.

Compute the following:

6.2. Gross profit rate,

6.3. Net income as a percentage of net sales,

6.4. Return on assets, and

6.5. Return on equity for the year.

(Round computations to the nearest one-tenth of 1 percent.)

6.6. Explain why interest revenue is not included in the company's gross profit computation. .....END....

Shamrock Corporation’s charter authorized issuance of 100,000 shares of $10 par value common stock and 53,400 shares of $50 preferred stock. The following transactions involving the issuance of shares of stock were completed. Each transaction is independent of the others.

Record the transactions listed above in journal entry form. (Round Round intermediate calculations to 6 decimal places, e.g. 0.546872 and final answers to 0 decimal places, e.g. $38,487. Credit account titles are automatically indented when 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.

please explain detail

Waterway Services Ltd. follows ASPE and had earned accounting income before taxes of $518,000 for the year ended December 31, 2020.

During 2020, Waterway paid $80,000 for meals and entertainment expenses.

In 2017, Waterway’s tax accountant made a mistake when preparing the company’s income tax return. In 2020, Waterway paid $9,700 in penalties related to this error. These penalties were not deductible for tax purposes.

Waterway owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property. At the beginning of 2020, Waterway rented the building to Trung Inc. for two years at $56,000 per year. Trung paid the entire two years’ rent in advance.

Waterway used the straight-line depreciation method for accounting purposes and recorded depreciation expense of $311,600. For tax purposes, Waterway claimed the maximum capital cost allowance of $465,300. This asset had been purchased at the beginning of the year for $3,069,000.

In 2020, Waterway began selling its products with a two-year warranty against manufacturing defects. In 2020, Waterway accrued $294,000 of warranty expenses: actual expenditures for 2020 were $90,600 with the remaining $203,400 anticipated in 2021.

In 2020, Waterway was subject to a 25% income tax rate. During the year, the federal government announced that tax rates would be decreased to 23% for all future years beginning January 1, 2021.

Prepare the journal entries to record current and future income taxes for 2020

Read the article, “House Counts on Honor Amongst Thieves: Votes Against Mandatory Auditor Rotation (Links to an external site.)Links to an external site..” Based on the information presented in the article, discuss the following: What is the main theme of this article; what is the author’s concern? What are the pros and cons regarding auditor rotations? Use facts from the article to support each. What is your opinion? Should rotation be required; why or why not?

Mastery Problem: Job Order Costing

Purl of Great Price Company

Maria Young is the sole stockholder of Purl of Great Price Company (POGP Company), which produces high-end knitted sweaters and sweater vests for sale to retail outlets. The company started in January of the current year, and employs three knitters (each of whom work 40 hours per week) and one office manager/knitting supervisor (this employee works 20 hours per week as office manager, and 20 hours per week as knitting supervisor). All wages are paid in cash at the end of each month.

Each knitter has a knitting machine that is used about 2/3 of the knitter’s time, the rest of the knitter’s time being involved in hand knitting and piecing together the garments. The company also has a packaging machine used to wrap the garments in plastic for shipping, which is operated by the office manager/knitting supervisor approximately 5 hours per week.

The knitting machines were purchased on January 1 of the current year, and cost $2,400 each, with an anticipated useful life of 10 years and no salvage value. The packaging machine was purchased on the same date and cost $4,800, with the same anticipated useful life and salvage value.

Nov. 30 Trial Balance

Predetermined Factory Overhead Rate

Since the company is more reliant on labor than machines, Maria decides to use direct labor hours (DLH) as the activity base for her predetermined factory overhead rate, rather than machine hours (MH).

Compute the predetermined factory overhead rate for the current year.

$10.20 per DLH

Feedback

Review the definitions of items that are included in factory overhead for the computation of estimated total factory overhead costs.

Job Cost Sheets

On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materials Requisition table to add the materials to the Job Cost Sheet for Job 83.

On December 15, review the Time Ticket tables to add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job 62 for the period December 1 through December 15.

On December 31, the last work day of the year for the knitters, review Time Ticket tables to add the appropriate amount of direct labor and factory overhead costs to the Job Cost Sheet for Job 83 for the period December 16 through December 31.

If there is no amount or an amount is zero, enter "0". If required, round your answers to the nearest cent.

Feedback

Recall that the factory overhead is applied for this company using direct labor hours (DLH).

Journal

On December 10, POGP Company receives an order for 200 sweater vests and assigns Job 83 to the order. Review the Materials Requisition table to journalize the entry to record the addition of the materials to Work in Process. If an amount box does not require an entry, leave it blank.

Feedback

Think about the flow of costs incurred to do a job and the accounts affected by sales to customers.

On December 15, review the Time Ticket tables to journalize the entry to record the addition of direct labor to Work in Process for the period December 1 through December 15. If an amount box does not require an entry, leave it blank.

On December 15, review the Time Ticket tables to journalize the entry to record the addition of factory overhead to Work in Process for the period December 1 through December 15. If an amount box does not require an entry, leave it blank.

On December 21, Job 62 is completed. Review the Job Cost Sheets and your journal entries. Journalize the entry to move the associated costs to the finished goods account. If an amount box does not require an entry, leave it blank.

On December 22, 75 of the 100 sweaters from Job 62 are sold on account for $125 each. Journalize the following transactions:

a. The entry to record the sale.

b. The entry to record the transfer of costs from Finished Goods to Cost of Goods Sold.

If an amount box does not require an entry, leave it blank.

On December 31, the last work day of the year for the knitters, review the Time Ticket tables to journalize the entry to record the addition of direct labor to Work in Process for the period December 16 through December 31. If an amount box does not require an entry, leave it blank.

On December 31, the last work day of the year for the knitters, review the Time Ticket tables to journalize the entry to record the addition of factory overhead to Work in Process for the period December 16 through December 31. If an amount box does not require an entry, leave it blank.

On December 31, journalize the following transactions. Note that expenses (b), (c), and (d) were paid in cash.

a. One month’s depreciation on equipment

b. One month’s payroll for all employees

c. One month’s rent of $2,000

d. One month’s factory utilities of $1,275

If an amount box does not require an entry, leave it blank.

On December 31, prepare the journal entry to dispose of the balance in the factory overhead account. If an amount box does not require an entry, leave it blank.

Feedback

Final Question

What are the balances in the following accounts as of December 31? If an amount is zero, enter "0".