The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2019, the end of the year, and its revenue and expenses for the year follow. The capital of Ian Eisele, owner, was $650,000 on January 1, 2019, the beginning of the year. During the year, Ian withdrew $36,000.

Rosewood Guitar, Inc. is preparing it cash receipts schedule for the 1^stquarter ending 20x1.  In doing so, its budget director prepared the following budgeted sales schedule:

Addition Information:

• Sales for the prior November and December 200x0 were $150,000 and $165,000, respectively.
• 55% of sales are for cash, the remaining 45% are credit sales.
  • Credit sales are collected as follows:
    • 15% in the month of sale
    • 65% in the month following the sale, and the remaining
    • 15% in the second month following the sale.
• The company estimates that the remainder of credit sales will be uncollectible.

Required

1. Prepare a cash receipts schedule for the first quarter of 20x1. (Please show your detailed schedule)
2. What is the total amount of uncollected accounts receivable for the 3-month period, January, February and March?
3. Briefly, provide the definition for the term “budgetary slack.”  Why does, budgetary slack occur?
4. What is the primary indication that “budgetary slack” is occurring?

Activity Availability, Capacity Used, Unused Capacity

Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid $30,000 per year and is able to process 3,000 purchase orders. Last year, 13,350 purchase orders were processed by the five agents.

Required:

1. Calculate the activity rate per purchase order.

$ per purchase order

2. Calculate, in terms of purchase orders, the:

3. Calculate the dollar cost of:

4. Express total activity availability in terms of activity capacity used and unused capacity. Express total activity availability in terms of activity capacity used and unused capacity.
Purchase orders

Dollars cost

5. What if one of the purchasing agents agreed to work half time for $15,000?

a. How many purchase orders could be processed by four and a half purchasing agents?

purchase orders

b. What would unused capacity be in purchase orders?

purchase orders

Flounder Company, which is subject to a 40% income tax rate, projected its income before taxes for next year as shown here:

1) If Flounder wants $7,650,000 in pretax earning, what is the required level of sales, in dollars?

2) If Flounder’s net assets are $61,200,000, what amount of revenue must be achieved for Flounder to earn a 10% after-tax return on assets?

3) If Flounder wants after-tax earnings of 30% of sales, what is the required level of sales in dollars and in units?

Problem 15-3A Recording, adjusting, and reporting long-term available-for-sale securities LO P3 [The following information applies to the questions displayed below.] Grass Security, which began operations in 2017, invests in long-term available-for-sale securities. Following is a series of transactions and events determining its long-term investment activity. 2017 Jan. 20 Purchased 1,500 shares of Johnson & Johnson at $21.00 per share plus a $290 commission. Feb. 9 Purchased 1,700 shares of Sony at $46.70 per share plus a $275 commission. June 12 Purchased 2,000 shares of Mattel at $27.50 per share plus a $245 commission. Dec. 31 Per share fair values for stocks in the portfolio are Johnson & Johnson, $22.00; Mattel, $31.40; and Sony, $38.50. 2018 Apr. 15 Sold 1,500 shares of Johnson & Johnson at $24.00 per share less a $575 commission. July 5 Sold 2,000 shares of Mattel at $24.40 per share less a $285 commission. July 22 Purchased 1,100 shares of Sara Lee at $23.00 per share plus a $530 commission. Aug. 19 Purchased 1,400 shares of Eastman Kodak at $17.50 per share plus a $248 commission. Dec. 31 Per share fair values for stocks in the portfolio are: Kodak, $19.75; Sara Lee, $20.50; and Sony, $35.50. 2019 Feb. 27 Purchased 2,900 shares of Microsoft at $67.50 per share plus a $575 commission. June 21 Sold 1,700 shares of Sony at $48.50 per share less a(n) $930 commission. June 30 Purchased 1,900 shares of Black & Decker at $36.50 per share plus a $485 commission. Aug. 3 Sold 1,100 shares of Sara Lee at $16.75 per share less a $485 commission. Nov. 1 Sold 1,400 shares of Eastman Kodak at $23.25 per share less a(n) $675 commission. Dec. 31 Per share fair values for stocks in the portfolio are: Black & Decker, $39.50; and Microsoft, $69.50. Problem 15-3A Part 3 3. Complete the following table that summarizes (a) the realized gains and losses and (b) the unrealized gains or losses for the portfolio of long-term available-for-sale securities at each year-end. (Do not round your intermediate calculations. Losses should be indicated by a minus sign. )

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 40,000 Rets per year. Costs associated with this level of production and sales are given below:

The Rets normally sell for $56 each. Fixed manufacturing overhead is $200,000 per year within the range of 30,000 through 40,000 Rets per year.

Required:

1. Assume that due to a recession, Polaski Company expects to sell only 30,000 Rets through regular channels next year. A large retail chain has offered to purchase 10,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 75%. However, Polaski Company would have to purchase a special machine to engrave the retail chain’s name on the 10,000 units. This machine would cost $20,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. What is the financial advantage (disadvantage) of accepting the special order? (Round your intermediate calculations to 2 decimal places.)

2. Refer to the original data. Assume again that Polaski Company expects to sell only 30,000 Rets through regular channels next year. The U.S. Army would like to make a one-time-only purchase of 10,000 Rets. The Army would pay a fixed fee of $1.60 per Ret, and it would reimburse Polaski Company for all costs of production (variable and fixed) associated with the units. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. What is the financial advantage (disadvantage) of accepting the U.S. Army's special order?

3. Assume the same situation as described in (2) above, except that the company expects to sell 40,000 Rets through regular channels next year. Thus, accepting the U.S. Army’s order would require giving up regular sales of 10,000 Rets. Given this new information, what is the financial advantage (disadvantage) of accepting the U.S. Army's special order?

Discuss the reasons for documentation in both accounting information systems, IT, and in auditing (flowcharts, DFDs etc.). Focus on DFDs (data flow diagrams), System flowcharts, and Document flowcharts. Questions to be Addressed 1. What is the purpose of documentation or documenting Accounting Information Systems? 2. Why do you need to understand documentation? 3. What documentation techniques are used to document accounting information systems? 4. What are data flow diagrams, flowcharts, and business process diagrams (we will cover business processes and business process diagrams in Week 4)? A. How are they alike and different? B. How are they prepared?

The following is a partial trial balance for the Green Star Corporation as of December 31, 2016: Account Title Debits Credits Sales revenue 1,900,000 Interest revenue 45,000 Gain on sale of investments 65,000 Cost of goods sold 840,000 Selling expenses 235,000 General and administrative expenses 90,000 Interest expense 55,000 Income tax expense 145,000 150,000 shares of common stock were outstanding throughout 2016. Required: 1. Prepare a single-step income statement for 2016, including EPS disclosures. (Round EPS answer to 2 decimal places.)

rev: 02_25_2015_QC_CS-7596

Dalley Inc. has the following information for its first year of operations:

All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to increase by 15%, but sales prices are expected to fall by 5%. Material costs per unit are expected to decrease by 6%. Other unit variable manufacturing costs are expected to decrease by 2% per unit. Fixed manufacturing costs (other than depreciation) are expected to increase by 5%.

Variable marketing costs per unit will remain constant. Administrative costs (other than depreciation) are expected to increase by 10%.

Assume there are no inventories. Dalley operates on a cash basis.

Required:

Prepare a budgeted income statement for year 2.

How do you calculate the numbers in the journal entry to record amortization of excess acquisition price?

Income from sawmill Corp $4,000

              Investment in Sawmill $4,000

Powder Company spent $240,000 to acquire all of Sawmill Corporation's stock on January 1, 20X2. On December 31, 20X4, the trial balances of the two companies were as follows:

Sawmill Corporation reported retained earnings of $100,000 at the date of acquisition. The difference between the acquisition price and underlying book value is assigned to buildings and equipment with a remaining economic life of 10 years from the date of acquisition. Sawmill's accumulated depreciation on the acquisition date was $25,000. At December 31, 20X4, Sawmill owed Powder $2,500.

Required:
a. Prepare the following journal entries recorded by Powder with regard to its investment in Sawmill during 20X4.

1. Sauer Company sells folding chairs for $40.00 per unit. Variable cost is $15.00 per unit. Each chair requires 4 direct labor hours and 2 machine hours to produce. Which of the following is the correct contribution margin per machine hour?
   1. $12.50
   2. $0.08
   3. None of these
   4. $0.10
   5. e. $6.25
2. Archer Company uses a job order cost system. During the month of September, the company worked on Job B. The information contained on the cost sheet is as follows:

3.                             Job B

   Beg Balance       $1,500

   Direct Material 800

   Direct Labor       2,300

   The company applies overhead at 120% of direct labor cost. During September Job B was completed and sold in October. If Job B sold for $8,000, what was the amount of gross profit for this job? (Ignore any consideration of over/under applied overhead)

4. 1. a. $3,400
   2. b. $2,940
   3. c. $7,360
   4. d. $640

Blue Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company’s merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $38,200 would have been the same under either the conventional retail system or the LIFO retail system.

On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level.

Determine the cost of the 2020 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method.

Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below.

1. $76,400 in raw materials were purchased for cash.
2. $72,300 in raw materials were used in production. Of this amount, $65,100 was for direct materials and the remainder was for indirect materials.
3. Total labor wages of $150,800 were incurred and paid. Of this amount, $134,900 was for direct labor and the remainder was for indirect labor.
4. Additional manufacturing overhead costs of $126,500 were incurred and paid.
5. Manufacturing overhead of $122,600 was applied to production using the company’s predetermined overhead rate.
6. All of the jobs in process at the end of the month were completed.
7. All of the completed jobs were shipped to customers.
8. Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold.

Required:

1. Post the above transactions to T-accounts.
2. Determine the adjusted cost of goods sold for the period.