1.Explain patient financial obligations for services rendered?

2. Describe banking procedures as related to the ambulatory care setting?

3. Identify precautions for accepting the following types of payment

a) cash

b) check

c) credit card

d) debit card

1. Describe the term relevant range. Why is it important to stay within the relevant range when estimating costs?
2. Describe the variables in the cost equation Y = f + vX.

The following table shows the balances from various accounts in the adjusted trial balance for UniLink Telecom Corp. as of December 31, 2020:

Required:
1. Assuming that the company’s income tax rate is 30%, what are the tax effects and after-tax measures of the items labelled as pre-tax? (Negative answers should be indicated by a minus sign.)

2. Prepare a multi-step income statement for the year ended December 31, 2020. (Amounts to be deducted should be indicated by a minus sign in the other revenues and expenses section and the discontinued operations section.)

A company completed the following transactions during the month of October:

I.Purchased office supplies on account,  $4400.

II.Provided services for cash,  $22,000.

III.Provided services on account,  $13,000.

IV.Collected cash from a customer on account,  $8800.

V.Paid the monthly rent of  $16,000.

What was the company's net income for the month?

The following information is available to reconcile Branch Company’s book balance of cash with its bank statement cash balance as of July 31, 2017. On July 31, the company’s Cash account has a $25,864 debit balance, but its July bank statement shows a $27,654 cash balance. Check No. 3031 for $1,310 and Check No. 3040 for $647 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $431 and Check No. 3069 for $2,078, both written in July, are not among the canceled checks on the July 31 statement. In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent expense was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230. The July bank statement shows the bank collected $9,500 cash on a noninterest-bearing note for Branch, deducted a $48 collection expense, and credited the remainder to its account. Branch had not recorded this event before receiving the statement. The bank statement shows an $805 charge for a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. The July statement shows a $14 bank service charge. It has not yet been recorded in miscellaneous expenses because no previous notification had been received. Branch’s July 31 daily cash receipts of $10,652 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement. Problem 6-4A Part 1 Required: 1. Prepare the bank reconciliation for this company as of July 31, 2017. 2. Prepare the journal entries necessary to bring the company’s book balance of cash into conformity with the reconciled cash balance as of July 31, 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1A. Max's Company invests in the bonds issued by CarmCorp. On 1/1/20 Max buys $10,000 of 8% bonds that pay interest on 1/1. They mature in 5 years and yield 10%. Max pays $9,242. On 12/31/20, the fair market value of the bonds is $11,000. Assuming the bonds are classified as "Trading", prepare the journal entries for 1/1/20, 12/31/20, and 1/1/21. You may omit the closing journal entries.

1B. Max's Company invests in the bonds issued by CarmCorp. On 1/1/20 Max buys $10,000 of 8% bonds that pay interest on 1/1. They mature in 5 years and yield 10%. Max pays $9,242. On 12/31/20, the fair market value of the bonds is $11,000. Assuming the bonds are classified as "HTM", prepare the journal entries for 1/1/20, 12/31/20, and 1/1/21. You may omit the closing journal entries.

1C. Max's Company invests in the bonds issued by CarmCorp. On 1/1/20 Max buys $10,000 of 8% bonds that pay interest on 1/1. They mature in 5 years and yield 10%. Max pays $9,242. On 12/31/20, the fair market value of the bonds is $11,000. Assuming the bonds are classified as "AFS", prepare the journal entries for 1/1/20, 12/31/20, and 1/1/21. You may omit the closing journal entries.

Value-Stream Product Costing, ABC, and DBC

Brasher Company is transitioning to a lean manufacturing system and has just finalized two order fulfillment value streams. One of the value streams has two products, and the other has four products. The two-product value stream produces precision machine parts and the four-product value stream produces machine tools. Before moving to the value-stream structure, Brasher had a well-developed ABC system (one that used all duration drivers) and had experienced good success with the more accurate product costs. Management wanted to be sure that the average costing approach of value-stream costing did not produce distorted product costs. Accordingly, expected weekly activity data were provided for the two-product value streams to see how well average costing worked (see below); however, management did not want to continue using ABC because of its intense data demands and the cost of updating as changes unfolded due to lean practices. In the table below, the driver for each activity is a duration driver. Order processing, for example, uses hours available for processing orders; purchasing uses hours available for processing purchases, etc.

Machine Parts Value Stream

For the Coming Week

                                   Conversion      Part M15        Part M78    Total Activity

Activity                          Cost         (hours used)   (hours used)         hours

Order processing          $ 36,000           600                  1,800               2,400

Purchasing                      72,000           200                    300                   500

Lathe                               108,000         480                  320                   800

Milling                            200,000           800                  1,200               2,000

Drilling                           144,000           720                  1,680               2,400

Assembly                          40,000        1,200                    800               2,000

Inspection                        20,000           800                     200               1,000

Shipping                          18,000            600                     200                  800

Invoicing                         32,000             700                      800                1,500

Totals                          $670,000            6,100                  7,300            13,400

During the week, the machine parts value stream expects to produce and ship 10,000 units of M15 and 30,000 units of M78. Since materials cost is calculated separately, the main concern is with the unit conversion cost.

Required:

1. Calculate the average unit conversion cost for the two machine parts.

2. Calculate the conversion cost per unit for each part, using ABC. Comparing ABC unit cost with the average cost, what would you recommend?

3. Calculate the conversion cost per unit, using DBC (first calculating the cycle time for each product). Based on this outcome, what would you recommend to the management of Brasher Company?

Many accounting and accounting-related professionals are skilled in financial analysis, but most are not skilled in manufacturing. This is especially the case for process manufacturing environments (for example, a bottling plant or chemical factory). To provide professional accounting and financial services, one must understand the industry, product, and processes. We have an ethical responsibility to develop this understanding before offering services to clients in these areas.

Question:

1. How you would obtain an understanding of key business processes of a company that hires you to provide financial services. Please specify an industry, a product, and one selected process and draw on at least one reference, such as a professional journal or industry magazine.

1. Define and explain the differences among several kinds of employee frauds that might occur at an audit client.

1a.Identify and explain the three conditions (i.e., the fraud triangle) that often exist when a fraud occurs.

1b. Identify the relevant assertions and risks of material misstatement that are typically related to the cash balance.

1c. Give examples of substantive procedures used to test cash and relate them to the relevant assertions.

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

Chapter 14 Completion Questions

Select the necessary words from the list of possibilities to complete the following statements.

Use accrued liabilities, an adjusting journal entry, completeness, less, receiving report, related parties, representations, understatement, zero.

1. An ___ of liabilities will exaggerate the financial strength of a company.

2. Auditors are primarily concerned with establishing the ___ of recorded accounts payable.

3. In comparison to the confirmation of accounts receivable, the confirmation of accounts payable is performed ___ frequently.

4. Accounts payable from important vendors should be confirmed, even though the accounts have ___ balances at year-end.

5. When unrecorded liabilities are discovered by the auditors, they should evaluate whether the omission is sufficiently material to want ___.

6. When observing the taking of a physical inventory at year-end, the auditors will record the serial number of the last ___ issued to verify the accuracy of the cutoff of accounts payable.

7. Proper balance sheet presentation of accounts payable requires that any material amounts payable to ____ such as directors and officers, be disclosed separately from other accounts payable.

8. Auditors often obtain written ___ from management regarding the existence of unrecorded payables.

9. Most ___ represent obligations payable sometime during the succeeding period for services of a continuing nature received before the balance sheet date.

10. Because the auditors are primarily concerned with the ___ of recorded payables, much of the audit work on accounts payable is performed after the year-end date.

Write a brief report - 150-200 words minimum - with at least five sentences and two paragraphs. The report should address: What areas did you have difficulty with and what areas did you find easy to understand in Accounting class? Were you successful in time management or did you run out of time to completing work to a high-quality level? Are there any changes you should make in your approach to Accounting class?

Thank you

2.        The following note appeared in the 2018 annual report of Roca Company:

Inventories

Inventories valued at LIFO comprised approximately 44% and 42% of inventories at December 31, 2018 and 2017, respectively.

Problem 1. MACRS & Bonus Depreciation. “MMMM That’s Good, Inc.” (or MTG) owns a successful chain of over 150 casual dining restaurants nationwide. Please calculate the tax depreciation expense for 2018 for all of the assets listed below (which constitute all the new assets purchased or placed into service by MTG in 2018): (i) first using just MACRS AND then (ii) using Bonus Depreciation and MACRS.

(i) MTG purchases a building for a new restaurant on June 20, 2018 for $750,000. The land is worth $300,000. On September 15, 2018, MTG purchases new ovens/stoves, prep lines, refrigerators, and a dish washing machine (collectively the “Kitchen Equipment”) at a cost of $150,000. The restaurant is opened for business on September 30, 2018.

(ii) MTG updates its accounting and inventory management systems for 2015 by purchasing new computer hardware at a cost of $4,500 per store (total cost of $675,000). The computer equipment was all purchased on December 15, 2017 and placed into service on January 5, 2018.

(iii) In order to implement pilot testing for a new menu line at select locations, on December 3, 2018, MTG makes a bulk purchase of smoker machines for 30 of its restaurants at a cost of $25,000 each or a total cost of $750,000, and immediately installs the machines and begins use.

Problem 2.

IRC Section 179 & Elections. Assume MTG’s 179 deduction is not limited in 2018, but applying cost recovery using bonus depreciation pushes MTG into a tax loss and so management is looking to limit its total cost recovery to approximately $550,000. Please describe how you might utilize IRC section 179, bonus depreciation elections, & MACRS depreciation to achieve a total deduction for all cost recovery on new assets of $550,000 and then perform the calculation.

Problem 3.

Dispositions. Returning to the facts of Problem 1, if after the pilot testing MTG decided to sell all of the smoker machines on August 10, 2019 for $400,000, what would be the tax consequences including the amount and nature of any gain or loss?

The Alford Group had 260,000 shares of common stock outstanding at January 1, 2021. The following activities affected common shares during the year. There are no potential common shares outstanding.
  

Required:

1. Determine the 2021 EPS. (Do not round intermediate calculations.)
2. Determine the 2022 EPS.
3. At what amount will the 2021 EPS be presented in the 2022 comparative financial statements?

(For all requirements, Enter your answers in thousands.)