Nash Company manufactures equipment. Nash’s products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Nash has the following arrangement with Winkerbean Inc.

Nash delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30, 2020. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately.

Assuming Nash does not have market data with which to determine the standalone selling price of the installation services. As a result, an expected cost plus margin approach is used. The cost of installation is $39,200; Nash prices these services with a 25% margin relative to cost.

(a)

How should the transaction price of $1,040,000 be allocated among the service obligations? (Do not round intermediate calculations. Round final answers to 0 decimal places.)

(b)

Prepare the journal entries for Nash for this revenue arrangement on June 1, 2020, assuming Nash receives payment when installation is completed. (Credit account titles are automatically indented when the 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.)

Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019 the end of the current year, Pitman Company’s accounting clerk prepared the following unadjusted trial balance:

Pitman Company

UNADJUSTED TRIAL BALANCE

October 31, 2019

The data needed to determine year-end adjustments are as follows:

1/ John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $850,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Years Amount 1-6 $ 85,000 7 75,000 8 65,000 9 55,000 10 45,000 If purchased, the restaurant would be held for 10 years and then sold for an estimated $750,000. Required: Determine the present value, assuming that John desires a 10% rate of return on this investment. (Assume that all cash flows occur at the end of the year.) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)

2/ On January 4, 2018, Runyan Bakery paid $326 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery's operations. Runyan received dividends of $3.50 per share on December 15, 2018, and Lavery reported net income of $160 million for the year ended December 31, 2018. The market value of Lavery's common stock at December 31, 2018, was $30 per share. On the purchase date, the book value of Lavery's net assets was $810 million and:

1. The fair value of Lavery's depreciable assets, with an average remaining useful life of four years, exceeded their book value by $40 million.
2. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill.

Required:
1. Prepare all appropriate journal entries related to the investment during 2018, assuming Runyan accounts for this investment by the equity method.
2. Prepare the journal entries required by Runyan, assuming that the 10 million shares represent a 10% interest in the net assets of Lavery rather than a 30% interest.

there are two different question

Please make an Excel Document for the listed information.

Annual Salary: $35,404.96
Monthly Salary: $2,950.41

Annual 10% (Savings): $3,540.49

Monthly Amount (Savings): $295.04

Monthly Payments:

Apartment - $850

Electricity - $47.08

Internet - $49.50

Phone - $98.88

Cable - $100.05

Student Loan - $710.86

Gym - $53.63

Netflix - $10.79

Spotify - $10.12

Food, Gas, Etc. - $350

New Car - $399.98

Insurance - $303.96

Amount Spent Monthly: $2,984.85

Amount Spent Annually: $35,818.20

On 11/1/X1 JacobCo Inc. hired an external engineering firm to design a new production line to produce a new fishing lure product line. The design of the new production line was completed on 11/28/X1 and JacobCo. Inc. received an invoice from the engineering firm in amount of $225,000. Construction started on a new production line on 12/8/X1 and was completed on 12/31/X1. The total construction cost of the new production line was $895,000. Interest expense from 11/1/X1 when the project was started to 12/31/X1 when it was completed amounted to $43,000 in total. Of that total interest expense $4,200 was attributable to the new production line.

The production line had an estimated engineering physical life of eight years. It is estimated that the production line could be scrapped and have a salvage value of approximately $30,000 at the end of that time.

The marketing department estimated that the new fishing lure product line would provide revenues to JacobCo. Inc. for the next five years. At the end of that time period the fishing lure product line will be discontinued and the production line will be scrapped and will sold for $10,000. The marketing department also estimates that the total number of fishing lures that will be sold over the next five years will be 500,000 units. The production line started into operation on 1/1/X2.

Required: Calculate depreciation for 12/31/X2 and 12/31/X3 and make the required journal entries using :

A. Straight line depreciation.

B. 200% double declining balance.

C. Units of Production assuming that 102,500 lures were produced in the year ending 12/31/X2 and 91,000 lures were produced in the year ending 12/31/X3.

Cannington Inc. designs, manufactures, and markets personal computers and related software. Cannington also manufactures and distributes music players (cPod), mobile phones (cPhone), and smartwatches (Cannington Watch) along with related accessories and services, including online distribution of third-party music, videos, and applications. The following information was taken from a recent annual report of Cannington:

a. Compute the book value of the fixed assets for the current year and the preceding year.

A comparison of the book values of the current and preceding years indicates that they  . A comparison of the total cost and accumulated depreciation reveals that Cannington purchased $fill in the blank 4 million of additional fixed assets, which was offset by the additional depreciation expense of $fill in the blank 5 million taken during the current year.

b. Would you normally expect Cannington’s book value of fixed assets to increase or decrease during the year?

Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.

3.

value:
3.33 points

Required information

Required:
1. Determine Shadee's budgeted total sales for May and June.

  

2. Determine Shadee's budgeted production in units for May and June.

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References

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4.

value:
3.33 points

Required information

Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.25 per unit produced.         


Required:
1. Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.)

             

2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

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References

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Hint #1

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5.

value:
3.33 points

Required information

Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour.        

Required:
Determine Shadee's budgeted direct labor cost for May and June.

After establishing their company’s fiscal year-end to be October 31, Natalie and Curtis began operating Cookie & Coffee Creations Inc. on November 1, 2018. The company had the following selected transactions during its first fiscal year of operations.

Jan.    1 Issued an additional 800 preferred shares to Natalie’s brother for $4,000 cash.

June. 30 Repurchased 750 shares issued to the lawyer, for $500 cash. The lawyer had decided to retire and wanted to liquidate all of her assets.

Oct.   15 The company had a very successful first year of operations and as a result declared dividends of $28,000, payable November 15, 2019. (Indicate the amounts payable to the preferred stockholders and to the common stockholders.)

Oct.   31 The company earned revenues of $472,500 and incurred expenses of $416,500 (including the $750 legal expense from November 1 but excluding income tax). Record income tax expense, assuming the company has a 20% income tax rate.

Instructions:

(a) Prepare the journal entries to record each of the above transactions.

(b) Prepare all of the closing entries required on October 31, 2019.

(c) Prepare the retained earnings statement for the year ended October 31, 2019.

(d) Prepare the stockholders’ equity section of the balance sheet as of October 31, 2019.

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2015, the accounting records provided the following information for product 1:

In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 300 towels were in process and were 60 percent complete. The costs incurred were $576. During the month, costs of $10,800 were incurred, 2,700 towels were started, and 150 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete.

Required: a. Prepare a production cost report; the company uses FIFO process costing.

b. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables.

Pitino acquired 80 percent of Brey's outstanding shares on January 1, 2019, in exchange for $369,000 in cash. The subsidiary's stockholders' equity accounts totaled $353,000, and the noncontrolling interest had a fair value of $92,250 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $19,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (five-year remaining life).

Brey reported net income from its own operations of $67,000 in 2019 and $83,000 in 2020. Brey declared dividends of $18,000 in 2019 and $22,000 in 2020.

Brey sells inventory to Pitino as follows:

At December 31, 2021, Pitino owes Brey $19,000 for inventory acquired during the period.

The following separate account balances are for these two companies for December 31, 2021, and the year then ended.

Note: Parentheses indicate a credit balance.

1. What was the annual amortization resulting from the acquisition-date fair-value allocations?

2. Were the intra-entity transfers upstream or downstream?

3. What intra-entity gross profit in inventory existed as of January 1, 2021?

4. What intra-entity gross profit in inventory existed as of December 31, 2021?

5. What amounts make up the $59,540 Equity Earnings of Brey account balance for 2021?

6. What is the net income attributable to the noncontrolling interest for 2021?

7. What amounts make up the $456,000 Investment in Brey account balance as of December 31, 2021?

8. Prepare the 2021 worksheet entry to eliminate the subsidiary’s beginning owners’ equity balances.

9. Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies.

I ONLY NEED QUESTIONS 7,8, AND 9

Question 2: Input price and input efficiency variances

The budgeted and actual data for direct materials and labor are as follows:

Actual sales volume is 100 units. Budgeted sales volume is 80 units.

a) Without computations, characterize the following variances as favorable or unfavorable:
input price variance for DM F U

input efficiency variance for DM F U

input price variance for DL F U

input efficiency variance for DL F U


b) Compute the input price and input efficiency variances for DM and DL.
As a preliminary step, compute actual input quantity (total pounds or hours we actually used) and flexible budget input quantity (total pounds or hours we should have used for actual output):
    actual input quantity for DM =  pounds
    flexible budget input quantity for DM =  pounds
    actual input quantity for DL =  hours
    flexible budget input quantity for DL =  hours
Next, compute the variances. Enter favorable variances as a positive number and unfavorable variances as a negative number. Do NOT enter F or U.
    input price variance for DM = $
    input efficiency variance for DM = $
    input price variance for DL = $
    input efficiency variance for DL = $

Please read the "Bernard L. Madoff: The Fraud of the Century" case study (C37 in the Case Study section near the end of textbook).

Required:

After reading the case, please respond to the following questions:

1. Under the fundamental principles governing an audit covered in Chapter 2, we learned that auditors are required to exercise due care and maintain professional skepticism throughout the audit. Based on the case information, do you believe that the auditors from Friehling & Horowitz exercised due care and maintained professional skepticism throughout the audit? Why or why not?
2. After the Madoff case, the SEC instituted a number of reforms to its operations. Please visit the SEC's website (www.sec.gov (Links to an external site.)Links to an external site.) and search for Post-Madoff reforms. Next, please identify the two reforms that you believe will have the best chance of detecting illegal activity such as the activities of Madoff. Make sure to provide justification for your choices.
3. Consider section 24 of the Securities Act of 1933 and section 32 of the Securities Exchange Act of 1934 (see Module C in Part III of textbook). Based on the case information, do you believe that Madoff's auditor, Friehling, should be facing criminal charges? Why or why not?

Clark and Shiffer LLP perform activities related to e-commerce consulting and information systems in Vancouver, British Columbia. The firm, which bills $162 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff. The cost per hour for professional staff time is $72. Selected information follows. • Billable hours to clients for the year totaled 8,200, consisting of: information systems services, 4,920; e-commerce consulting, 3,280. • Administrative cost of $414,760 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $221,520; in-house computing, $156,000; and miscellaneous office charges, $37,240. A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data: