Why would Category 1 assets be used to fund a pension plan?

Millwight, CPA, is considering various risks in planning the audit of Arro Financial, a securities firm that has recently experienced difficulty due to the global financial crisis. Select from the option list provided whether each factor would most likely increase inherent risk, decrease inherent risk, increase control risk, decrease control risk, or have no effect on risk. Each choice may be used once, more than once, or not at all.

1.     Arro replaced member of the audit committee with an outside board member with significantly more financial experience.

2.     The internal auditor for Arro reports directly to the CFO

3.     Arro was able to increase coverage of their liability insurance by changing the insurance provider

4.     Arro has been operating at a loss, but the turnaround in the economy will result in a profitable year

5.     Arro has settled a significant lawsuit with a customer that had been ongoing for several years.

6.     Arro is in the process of installing a new computer software system that will not be fully operational until the following year. Some of the financial processes have been transferred to the new system, but others have not

7.     Arro has recently engaged in hedging activities by the purchase of derivatives

8.     Arro has adopted a new code of ethical conduct that each employee must read and agree to abide by

9.     Arro's board of directors changed its meeting location from Arro's bank to Arro's facility

10. Arro has received a letter from a federal agency responsible for oversight requesting records of transactions for several significant customer accounts

****PLEASE ONLY ANSWER E AND F**** Rain Gear, Inc., produces rain jackets. The master budget shows the following standards information and indicates the company expected to produce and sell 28,000 units for the year. Variable manufacturing overhead is allocated based on direct labor hours.

Rain Gear actually produced and sold 30,000 units for the year. During the year, the company purchased and used 130,000 yards of material for $429,000. A total of 65,000 labor hours were worked during the year at a cost of $637,000. Variable overhead costs totaled $231,000 for the year.

1. Provide a flexible budget of production costs for the year

Direct materials (30000*4*3)=360000

Direct labor (30000*2*10)= 600000

Variable manufacturing overhead (30000*2*4)= 240000

Total variable production costs= 1200000

2. Calculate the materials price variance and materials quantity variance. Enter your calculations into the table below to present your findings:

3. Calculate the labor rate variance and labor efficiency variance. Enter your calculations into the table below to present your findings:

4. Calculate the variable overhead spending variance and variable overhead efficiency variance. Enter your calculations into the table below to present your findings:

5. Company policy is to investigate all variances greater than 10 percent of the flexible budget amount for each of the three variable production costs: direct materials, direct labor, and variable overhead. Identify which of the six variances calculated in requirements bthrough eshould be investigated.

6. Provide two possible explanations for each variance identified in requirement e.

Cyrus is a tipped employee in Illinois. He is single with one withholding allowance and the minimum cash wage in Illinois is $4.95 per hour for a 40-hour workweek. The tip credit in Illinois is $3.30 per hour (i.e., the minimum wage in Illinois is $8.25 per hour), and tips are not included in overtime calculations. During a one-week period, Cyrus worked 52 hours and earned $180 in tips. What is his gross pay?

Question 2 facts – Joe reconciles his checking account check register to the penny every month with the bank’s statement. After accurately recording all of the transactions that he initiated during the month, his check registered showed a balance in his checking account of $1,900 as of the end of the month. When he received his bank statement for the month, he noted for the first time the following as of the end of the month: outstanding checks - $300; service charge for safe deposit box - $25; interest earned on the account - $1; unrecorded (by Joe) automatic electronic funds transfers for his monthly car insurance - $75; Joe’s check #1162, which he correctly wrote for $20, actually cleared his bank account for $200 (he called the bank immediately!) and the bank’s statement balance of $1,921.

Question 2 (8 points) – What should Joe’s check register show as the correct account balance in his checking account as of the end of the month?

Design an interview plan for an accounting job: This plan will describe every aspect of preparing and conducting the interviews for this job opening. It should be at least 1 page in length and cover everything from developing the interview questions to the room set up for the interviews. Think about who, what, why, when, where, and how. You need to describe how you will prepare and conduct the interviews in addition to giving a sample (no more than 5) of the questions you will ask.

On January 1, 2018, Whittington Stoves issued $810 million of its 10% bonds for $746 million. The bonds were priced to yield 12%. Interest is payable semiannually on June 30 and December 31. Whittington records interest at the effective rate and elected the option to report these bonds at their fair value. One million dollars of the increase in fair value was due to a change in the general (risk-free) rate of interest. On December 31, 2018, the fair value of the bonds was $762 million as determined by their market value on the NYSE.

Required:
1. Prepare the journal entry to record interest on June 30, 2018 (the first interest payment).
2. Prepare the journal entry to record interest on December 31, 2018 (the second interest payment).
3. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2018, balance sheet.

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December 2016: 1 Prius Company Volt Company 2 Materials inventory, December 1 $281,680.00 $179,000.00 3 Materials inventory, December 31 (a) 175,500.00 4 Materials purchased 714,000.00 341,500.00 5 Cost of direct materials used in production 752,400.00 (a) 6 Direct labor 1,058,800.00 (b) 7 Factory overhead 325,400.00 178,600.00 8 Total manufacturing costs incurred during December (b) 1,038,000.00 9 Total manufacturing costs 2,677,200.00 1,481,500.00 10 Work in process inventory, December 1 540,600.00 443,500.00 11 Work in process inventory, December 31 453,200.00 (c) 12 Cost of goods manufactured (c) 1,025,500.00 13 Finished goods inventory, December 1 477,800.00 201,500.00 14 Finished goods inventory, December 31 496,400.00 (d) 15 Sales 4,140,000.00 1,678,000.00 16 Cost of goods sold (d) 1,042,000.00 17 Gross profit (e) (e) 18 Operating expenses 543,000.00 (f) 19 Net income (f) 380,500.00 Required: A. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. B. Prepare Volt Company’s statement of cost of goods manufactured for December.* C. Prepare Volt Company’s income statement for December.* * Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Enter all amounts as positive numbers. Amount Descriptions Cost of direct materials used in production Cost of finished goods available for sale Cost of goods manufactured Cost of goods sold Cost of materials available for use Direct Labor Factory overhead Finished goods inventory, December 1, 2016 Finished goods inventory, December 31, 2016 Gross profit Materials inventory, December 1, 2016 Materials inventory, December 31, 2016 Net income Operating expenses Purchases Sales Total manufacturing costs incurred during December Work in process inventory, December 1, 2016 Work in process inventory, December 31, 2016 A. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers. Letter Prius Company Volt Company a. $243,280 $345,000 b. $2,136,600 $514,400 c. $2,224,000 $456,000 d. $2,205,400 $185,000 e. $1,391,600 $636,000 f. $1,391,600 $255,500 Points: 11 / 12 Check My Work A. For Prius Company: (Note: Use similar relationships to find the missing amounts for the Volt Company items a through f.) a. The beginning and ending materials inventory amounts and the amount of materials purchased are used in the calculation of the cost of direct materials used in production. b. The three costs of a manufactured product are added to determine total manufacturing costs incurred during December. c. The beginning and ending work in process amounts and the manufacturing costs incurred during December are used in the calculation of the cost of goods manufactured. d. The beginning and ending finished goods amounts and the cost of goods manufactured are used in the calculation of the cost of goods sold. e. Sales and one expense amount are used to determine gross profit. f. Sales and expense amounts are used to determine net income.

For 2020, prepare a pension worksheet for Brownie Company that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

On August 1, 2018, Limbaugh Communications issued $22 million of 11% nonconvertible bonds at 105. The bonds are due on July 31, 2038. Each $1,000 bond was issued with 40 detachable stock warrants, each of which entitled the bondholder to purchase, for $50, one share of Limbaugh Communications’ no par common stock. Interstate Containers purchased 20% of the bond issue. On August 1, 2018, the market value of the common stock was $48 per share and the market value of each warrant was $10. In February 2029, when Limbaugh’s common stock had a market price of $62 per share and the unamortized discount balance was $2 million, Interstate Containers exercised the warrants it held. Required: 1. Prepare the journal entries on August 1, 2018, to record (a) the issuance of the bonds by Limbaugh and (b) the investment by Interstate. 2. Prepare the journal entries for both Limbaugh and Interstate in February 2029, to record the exercise of the warrants.

ou have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

During March, the company worked 19,000 machine-hours and produced 13,000 units. The company had originally planned to work 21,000 machine-hours during March.

Required:

1. Calculate the activity variances for March.

2. Calculate the spending variances for March

For a recent year, McDugal's company-owned restaurants had the following sales and expenses (in millions): Sales $20,200 Food and packaging $7,702 Payroll 5,400 Occupancy (rent, depreciation, etc.) 3,998 General, selling, and admin. expenses 3,100 Other expense 400 Total expenses (20,600) Operating income (loss) $(400) Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is McDonald's contribution margin? Enter your answer in million, rounded to one decimal place. $ million b. What is McDonald's contribution margin ratio? Round your percentage answer to one decimal place. % c. How much would operating income increase if same-store sales increased by $1,200 million for the coming year, with no change in the contribution margin ratio or fixed costs? $ million d. What would have been the operating income or loss for the recent year if sales had been $1,200 million more? $ million e. To achieve break even for the recent year, by how much would sales need to increase? Enter your anwer in million rounded to the nearest whole number. $ million

Calculating 'cash flows at the end'

Today (Year 0), Kangaroo Enterprises is evaluating whether to purchase a new jetboat to operate scenic thrill rides around Lord Howe Island. The company currently has two other boats offering a snorkelling tour and a glass bottom boat tour. The jetboat costs $1,800,000. The jetboat project is expected to last ten years. The Australian Tax Office states the jetboat should be depreciated to zero over a 15-year life.

In Year 0, the new jetboat tour will result in an increase in inventory for Kangaroo Enterprises from $17,000 to $24,000. The company anticipates that accounts payable immediately required for the jetboat tour will increase by $11,000.

The company has already agreed to sell the jetboat in ten years’ time to an unrelated firm for $250,000.

The company is expecting the jetboat rides will be very popular and are anticipating paying a one-off special dividend to shareholders of $150,000 at the end of the project.

Assume the company tax rate is 30%.

What are the 'cash flows at the end'?

Equity Method Accounting, Subsequent Years

PL Communications acquired all of the stock of SJ Telecom on January 1, 2019. It is now December 31, 2021, three years later. PL Communications uses the complete equity method to report its investment in SJ Telecom on its own books. Both companies have December 31 year-ends. The following information is available:

• PL Communications paid $400 million to acquire SJ Telecom.

• At the date of acquisition, the book values of all of SJ Telecom’s reported assets and liabilities approximated fair value. Previously unreported limited-lived identifiable intangibles with a fair value of $20 million were recognized. These intangibles had an estimated life of 5 years, straight-line. There have been no impairment losses.

• Total goodwill impairment losses for 2019 and 2020 were $1 million. There is no goodwill impairment for 2021.

• The change in SJ Telecom’s retained earnings from January 1, 2019, to December 31, 2020, was $12 million.

• In 2021, SJ Telecom reported net income of $6,500,000 and declared and paid dividends of $1,500,000.

• SJ Telecom does not report any other comprehensive income.

Required

Enter both answers in millions (using decimal places, if applicable).

a. Calculate equity in net income for 2021, reported on the books of PL Communications.

$_____ million

b. Calculate the December 31, 2021 balance in Investment in SJ Telecom, reported on the books of PL Communications.

$_____ million