On January 1, 2017, Frostburg Company purchased for $68,500, equipment having a service life of six years and an estimated residual value of $4,000. Frostburg has recorded depreciation of the equipment using the straight-line method. On December 31, 2019, before making any annual adjusting entries, the equipment was exchanged for new machinery having a fair value of $35,000. The transaction has commercial substance. Use this information to prepare all General Journal entries (without explanation) required to record the events for December 31, 2019.

Data relating to the balances of various accounts affected by adjusting or closing entries appear below. (The entries that caused the changes in the balances are not given.) You are asked to supply the missing journal entries that would logically account for the changes in the account balances.

1.   Interest receivable at 1/1/14 was $1,000. During 2014 cash received from debtors for interest on outstanding notes receivable amounted to $5,000. The 2014 income statement showed interest revenue in the amount of $6,400. You are to provide the missing adjusting entry that must have been made, assuming reversing entries are not made.

2.   Unearned rent at 1/1/14 was $5,300 and at 12/31/14 was $8,000. The records indicate cash receipts from rental sources during 2014 amounted to $55,000, all of which was credited to the Unearned Rent Revenue account. You are to prepare the missing adjusting entry.

3.   Accumulated depreciation—equipment at 1/1/14 was $230,000. At 12/31/14 the balance of the account was $280,000. During 2014, one piece of equipment was sold. The equipment had an original cost of $40,000 and was 3/4 depreciated when sold. You are to prepare the missing adjusting entry.

4.   Allowance for doubtful accounts on 1/1/14 was $50,000. The balance in the allowance account on 12/31/14 after making the annual adjusting entry was $65,000 and during 2014 bad debts written off amounted to $30,000. You are to provide the missing adjusting entry.

5.   Prepaid rent at 1/1/14 was $29,000. During 2014 rent payments of $120,000 were made and charged to "rent expense." The 2014 income statement shows as a general expense the item "rent expense" in the amount of $145,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made.

6.   Retained earnings at 1/1/14 was $130,000 and at 12/31/14 it was $210,000. During 2014, cash dividends of $50,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry.

a leading firm in the sports​ industry, produces basketballs for the consumer market. For the year ended December​ 31,

2017​,

Verena

sold

242,100

basketballs at an average selling price of

$41

per unit. The following information also relates to

2017

​(assume constant unit costs and no variances of any​ kind):

Inventory, January 1, 2017:

29,300 basketballs

Inventory, December 31, 2017:

27,200 basketballs

Fixed manufacturing costs:

$1,200,000

Fixed administrative costs:

$3,234,000

Direct materials costs:

$12 per basketball

Direct labor costs:

$9 per basketball

Have you ever wondered whether a licensed CPA could lose his or her license to practice for violating the AICPA code of conduct? Each state board of accountancy regulates and controls licensure of professional CPAs. As a licensed CPA, you will need to be familiar with the legal liabilities that apply to accountants within the framework of the AICPA code of conduct. It would be outside the scope of this course to examine all U.S. state laws that govern licensed CPAs. Please review the repercussions to a CPA for violating the code and post your responses to this thread. Do you think they are too strong or not strong enough?

Topic: creative accounting

a)Existing case

b)What the next action to prevent?

Please refer 2 items as below from Microsoft’s Letter to Shareholders as below. And refer them to Porter’s five forces.

Data and AI

Our customers will increasingly need to build their own AI to extract insights from the ever-increasing amount of data they collect — and we are investing to make Azure the best cloud for their comprehensive data estates. We are democratizing data science and AI with Azure Cognitive Services, Azure Machine Learning and data services such as Azure Cosmos DB — the first globally distributed, multi-model database — to help organizations of all sizes convert their data into insights and experiences for competitive advantage. In less than a year, Azure Cosmos DB has already exceeded $100 million in annualized revenue. Azure Database for MySQL and PostgreSQL makes it even easier to bring open source-powered applications to Azure, expanding our opportunity in this space. And we are seeing rapid customer adoption of Azure Databricks for data preparation, advanced analytics and machine learning scenarios. We are leading in the field of AI research, achieving human parity with object recognition, speech recognition, machine reading and — this year — language translation. But that is not enough. We are committed to translating these breakthroughs into toolsets our customers can use. More than 1 million developers have already used our Cognitive Services to quickly and easily create AI applications. Our Azure Bot Service has nearly 300,000 developers, and we are driving new advances in our underlying cloud infrastructure, building the world’s first AI supercomputer in Azure. Microsoft Translator brings AI-powered translation to developers where their data is, whether in the cloud or on the edge. Our pending acquisition of GitHub recognizes the increasingly vital role developers will play in value creation and growth across every industry, and will enable us to bring our tools and services to new audiences while enabling GitHub to grow and retain its developer-first ethos.

Gaming

We are pursuing an expansive opportunity in gaming — from the way games are created and distributed to how they are played and viewed — surpassing $10 billion in revenue this year for the first time. We are investing aggressively in content, community and cloud services across every endpoint to expand usage and deepen engagement with gamers. Xbox Live now has 57 million monthly active users, and we are investing in new services like Mixer — which blurs the line between watching and playing — and Game Pass, our new unlimited subscription service. The addition of five new gaming studios this year bolsters our first-party content development to support our fast-growing gaming services. And our acquisition of PlayFab accelerates our vision to build a world-class cloud platform for the gaming industry across mobile, PC and console. I’m excited about our opportunity in the fast-growing $100 billion gaming market and what’s to come.

Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2018, for $778,400 cash. At the acquisition date, Sierra’s total fair value, including the noncontrolling interest, was assessed at $973,000 although Sierra’s book value was only $674,000. Also, several individual items on Sierra’s financial records had fair values that differed from their book values as follows:

For internal reporting purposes, Padre, Inc., employs the equity method to account for this investment. The following account balances are for the year ending December 31, 2018, for both companies.

At year-end, there were no intra-entity receivables or payables.

Using the acquisition method, prepare the worksheet to consolidate these two companies. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.)

Mr. and Mrs. Sedlock file a joint return and have a taxable income of $370,000 without considering the following information below. Determine the increase in their tax liability for the following independent fact situations.

a. They have a STCG of $20,000 and a LTCL of $12,000.

b. They have a LTCG of $30,000 due to the sale of a collectible and a LTCG of $9,000 due to the sale of General Motors stock.

c. Same as part b except they also have a STCL of $4,400.

Typical balance sheet classifications are as follows.

1.      Current Assets                                                                              g.     Long-Term Liabilities
2.      Investments and Funds                                                              h.     Capital Stock
3.      Property, Plant and Equipment                                                 i.      Additional Paid-In Capital
4.      Intangible Assets                                                                         j.      Retained Earnings
5.      Other Assets                                                                                 k.     Notes to Financial Statements
6.      Current Liabilities                                                                        l.      Not Reported on Balance Sheet

Indicate by use of the above letters how each of the following items would be classified on a balance sheet prepared at December 31, 2014. If a contra account, or any amount that is negative or opposite the normal balance, put parentheses around the letter selected. A letter may be used more than once or not at all.

_____     1.     Accrued salaries and wages

_____     2.     Rent revenues for 3 months collected in advance

_____     3.     Land used as plant site

_____     4.     Equity securities classified as trading

_____     5.     Cash

_____     6.     Accrued interest payable due in 30 days

_____     7.     Premium on preferred stock issued

_____     8.     Premium on bonda payable

_____     9.     Petty cash fund

_____ 10.     Unamortized discount on bonds payable due 2017

_____ 11.     Common stock at par value

_____ 12.     Bond indenture covenants

_____ 13.     Unamortized premium on bonds payable due in 2018

_____ 14.     Allowance for doubtful accounts

_____ 15.     Accumulated depreciation—equipment

_____ 16.     Reserve for plant expansion

_____ 17.     Retired equipment awaiting sale

_____ 18.     Inventory held on consignment

_____ 19.     Trading securities

_____ 20.     Investment in stock of ABC Company (held for influence)

_____ 21.     Dividends in arrears on preferred stock

9. Where does the reconciliation of cash appear in the Statement of Cash Flows and where do the notes to the Statement of Cash Flows appear

review the financial statements of the march of dimes for 2013 as presented in table 12-8. comment as you can (even in the absence of guidelines as to what constitutes norms for comparable foundations) on the fiscal strength of the organization as of Dec. 21, 2013 with respect to: liquidity, burden of debt relative to assets, adequacy of available resources to meet expenditures, current fiscal performance as indicated by surpluses or deficits and riskiness of revenue stream

Family Medical Care (FMC) is a family medical practice with 8 physicians, a nursing staff of 10 to 12 nurses, and an administrative staff that varies from 6 to 9 personnel. Rajat Patel, the chief physician at FMC, is interested in studying the efficiency of the practice as a basis to set some benchmarks for further improvement, for rewarding his staff, and for comparing the efficiency of the FMC practice to other family medical practices. He is able to get comparable data for other practices from industry sources. So that the data are consistent with the industry sources, Patel has asked Marin & Associates, his accounting firm, to develop a set of productivity measures that would satisfy this requirement. Upon investigation, Joseph Marin finds that the measures to be used are the partial financial and operational productivity measures as defined in the chapter. The following information is for the last 2 years for the FMC practice:

Required:

1. Compute the partial financial productivity ratios for nursing and administrative support for the current and prior year.

2. Separate the change in the partial financial productivity ratio from the prior year to the current year into productivity changes, input price changes, and output changes.

(For all requirements, round your answers to 4 decimal places. Negative values should be indicated by a minus sign.)

The following data have been taken from the accounting records of Graham Corporation for the year ended December 31, 2019. Total manufacturing overhead costs incurred $338,000 Manufacturing overhead applied to Work in Process 345,000 Purchases of raw materials 235,000 Direct labor 135,000 Raw materials inventory - January 1, 2019 10,000 Raw materials inventory - December 31, 2019 15,000 Work in process inventory - January 1, 2019 20,000 Work in process inventory - December 31, 2019 35,000 Finished goods inventory – January 1, 2019 75,000 Finished goods inventory – December 31, 2019 90,000

a. Prepare a Schedule of Cost of Goods Manufactured for the year.
b. Prepare a Schedule of Cost of Goods Sold for the year.

Forester Company has five products in its inventory. Information about the December 31, 2021, inventory follows.

The cost to sell for each product consists of a 20 percent sales commission. The normal profit for each product is 30 percent of the selling price.

Required:
1. Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products.

Determine the carrying value of inventory at December 31, 2021, assuming the lower of cost or market (LCM) rule is applied to individual products. (Do not round intermediate calculations.)

Inventory by Three Methods

The units of an item available for sale during the year were as follows:

There are 22 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost under each of the following methods.

a. Determine the inventory cost by the first-in, first-out method.
$

b. Determine the inventory cost by the last-in, first-out method.
$

c. Determine the inventory cost by the average cost method. When computing your answer, round the average cost per unit to the nearest whole dollar.
$