Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $430,000 for a standard production run that generates 200,000 pints of Smooth Skin and 170,000 pints of Silken Skin. Smooth Skin sells for $4.00 per pint, while Silken Skin sells for $5.20 per pint. (Do not round intermediate calculations. Round final answers to nearest whole dollar amounts.)

Required: 1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method?

2. If no separable costs are incurred after the split-off point, how much of the joint cost of each production run is allocated to Silken Skin using the physical measure method?

3. If separable processing costs beyond the split-off point are $1.40 per pint for Smooth Skin and $1.40 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Silken Skin using a net realizable value method?

4. If separable processing costs beyond the split-off point are $1.40 per pint for Smooth Skin and $1.40 per pint for Silken Skin, how much of the joint cost of each production run is allocated to Smooth Skin using a physical measure method?

[The following information applies to the questions displayed below.]

Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country's rural regions. The company expects to distribute 450,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributed product) as follows:

Although overhead costs were related to revenues throughout the company, the experience in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business.

Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year:

These data are considered representative for both past and future operations in Brazil.

Determine the variable cost per case assuming that 450,000 cases will be shipped next month based on the controller's analysis of accounts. (round your answer to 2 decimal places).

VARIABLE COST PER CASE _______?_____

Prepare an estimate of operating costs

ESTIMATE OF OPERATING COST _________?_________

Use the high-low method to compute an estimate of operating costs assuming that,450,000 cases will be shipped next month. (Round variable cost to 5 decimal places. Round
intermediate calculations and final answer to the nearest whole dollar amount).

ESTIMATE OF OPERATING COST    _____?__________

Enter the regression coefficients. (Round "Cases" to 5 decimal places.)

INTERCEPT _____?______
CASES ____?_______

Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a simple regression
of operating costs on cases shipped. (Round variable costs per unit to 5 decimal places. Round the intercept and final answer to the nearest
whole dollar amount)

ESTIMATE OF OPERATING COST    _____?___________

Enter the regression coefficients. (Round "Cases" to 5 decimal places and "Price Index" to 5 decimal places.)

INTERCEPT    _______?__________
CASES    _______?__________
PRICE INDEX _________?________

Compute the estimation of operating costs assuming that 450,000 cases will be shipped next month by using the results of a multiple regression
of operating costs on cases shipped and the price level. Assume a price level of 146 for next month. (Round "Cases" and "Price Index" to 5 decimals
places. Round the final answer to the nearest whole dollar amount.

ESTIMATE OF OPERATING COST    ________?______________

Question 6: The following selected information is from Imagine Corporation’s partial aging schedule at the end of August:

Number of Days Outstanding:   Accounts Receivable:   Estimated Percentage Uncollectible: Estimated Uncollectible Accounts

0-30 days $280, 000 1%

31-60 days $90,000 3%

61-90 days $45,000 10%

Over 90 days $18,000 15%

Total: $433,000

The unadjusted balance in Allowance for Doubtful Accounts is a debit of $4,300.

Required

(a) Complete the aging schedule and calculate the total estimated uncollectible accounts from the above information.

(b) Prepare the adjusting journal entry to record the bad debts for the month using the information determined in part (a)

(c) In September, management determined that $4,200 of the outstanding receivables were uncollectible. Prepare the journal entry to write off the uncollectible amount.

(d) Imagine Corporation subsequently collected $2,300 of the $4,200 that was determined to be uncollectible in part (c). Prepare the journal entry(ies) to record the collection.

After several months of planning, Denise Murphy started a property management business for

the for the properties that its owners invest called ABC Property Management (“ABC”). The

following events occurred during its first month:

1. On May 1, Murphy started the firm, investing $3,000 cash and $15,000 of equipment.
2. On May 2, ABC paid $600 cash for furniture for the shop.
3. On May 3, ABC paid $500 cash to rent space in a strip mall for May.
4. On May 4, ABC purchased $1,200 of equipment on credit for the shop (using a long-term note payable).
5. On May 5, ABC opened for business. Cash received from services provided in the first week and a half of business (ended May 15) is $825.
6. On May 15, it provided $100 of property management services on account (invoiced).
7. On May 17, it received a $100 check for services previously rendered on account.
8. On May 17, it paid $125 to an assistant for work during the store opening.
9. Cash received from services provided during the second half of May is $930.
10. On May 31, it paid an $400 installment toward principal on the note payable entered into on May 4.
11. On May 31, it paid $900 cash dividends to Murphy.

1. Set-up T-accounts for each of the accounts and post the journal entries completed in Homework 2 to those T-accounts (Please note it is the same Problem as in Homework 2).
2. Prepare a simplified balance sheet and income statement.

Some nonfinancial factors included in capital investment decisions are more important now than they were 20-25 years ago. Give some examples of the types of nonfinancial factors that managers would consider more important in today's capital investment decisions than they were in the past.

The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:

The following additional information is taken from the records:

1. Land was sold for $45.
2. Equipment was acquired for cash.
3. There were no disposals of equipment during the year.
4. The common stock was issued for cash.
5. There was a $139 credit to Retained Earnings for net income.
6. There was a $43 debit to Retained Earnings for cash dividends declared.

a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

b. Was Olson-Jones Industries Inc.’s net cash flow from operations more or less than net income?

Amortization and Impairment Testing of Identifiable Intangible Assets

During the year ended July 30, 2016, Cisco Systems, Inc. acquired the following identifiable intangible assets through its purchase of two companies (in thousands):

Cisco acquired Lancope, Inc. in December 2015, and Jasper Technologies, Inc. in March 2016. Cisco separately tests identifiable intangibles acquired from each company for impairment, and collects the following information to conduct impairment tests at the end of fiscal 2016 (in thousands):

Required

a. Calculate amortization expense for the above identifiable intangibles for fiscal 2016. Intangibles are amortized on a straight-line basis starting in the month following acquisition.

• Round answers to the nearest whole number.
• Enter answers in thousands.

b. Calculate impairment losses for fiscal 2016.

• Round answers to the nearest whole number.
• Enter answers in thousands.

c. Determine the amounts reported on Cisco’s fiscal 2016 balance sheet for technology, customer relationships, and in-process R&D.

• Round answers to the nearest whole number.
• Enter answers in thousands.

Statement: I do not need to know accounting. I can hire an accountant.

Problem statement: If you do not know accounting, how do you know your business is performed effectively?

Open ended questions:

The impact of disruptive technologies on

1. accounting education, how should you as a business and technology student adapt? (100-500 words)
2. accounting practice, how should you as a business and technology student get ready for working? (100-500 words)
3. business practice, how should business can get ready for the technologies change? (100-500 words)

QUESTION:

Do you think the US should adopt IFRS. Why or why not? I really just want your opinion about changing from US GAAP to IFRS. What will be the pros and cons?

Marin Company owes $225,000 plus $20,200 of accrued interest to Headland State Bank. The debt is a 10-year, 10% note. During 2020, Marin’s business deteriorated due to a faltering regional economy. On December 31, 2020, Headland State Bank agrees to accept an old machine and cancel the entire debt. The machine has a cost of $317,000, accumulated depreciation of $174,350, and a fair value of $202,000.

Prepare journal entries for Marin Company and Headland State Bank to record this debt settlement. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

eTextbook and Media

List of Accounts

How should Marin report the following in its 2020 income statement?

eTextbook and Media

List of Accounts

Assume that, instead of transferring the machine, Marin decides to grant 12,000 shares of its common stock ($10 par) which has a fair value of $202,000 in full settlement of the loan obligation. If Headland State Bank treats Marin’s stock as a trading investment, prepare the entries to record the transaction for both parties. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Problem 8-19 Cash Budget; Income Statement; Balance Sheet [LO8-2, LO8-4, LO8-8, LO8-9, LO8-10]

Minden Company is a wholesale distributor of premium European chocolates. The company’s balance sheet as of April 30 is given below:

The company is in the process of preparing a budget for May and has assembled the following data:

1. Sales are budgeted at $254,000 for May. Of these sales, $76,200 will be for cash; the remainder will be credit sales. One-half of a month’s credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May.

2. Purchases of inventory are expected to total $137,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April 30 accounts payable to suppliers will be paid during May.

3. The May 31 inventory balance is budgeted at $45,000.

4. Selling and administrative expenses for May are budgeted at $98,400, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $5,550 for the month.

5. The note payable on the April 30 balance sheet will be paid during May, with $350 in interest. (All of the interest relates to May.)

6. New refrigerating equipment costing $8,700 will be purchased for cash during May.

7. During May, the company will borrow $27,400 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.

Required:

1. Calculate the expected cash collections from customers for May.

2. Calculate the expected cash disbursements for merchandise purchases for May.

3. Prepare a cash budget for May.

4. Prepare a budgeted income statement for May.

5. Prepare a budgeted balance sheet as of May 31.

1. Transfer Pricing

   Birrell Scientific Inc. manufactures electronic products, with two operating divisions, the GPS Systems and Communication Systems divisions. Condensed divisional income statements, which involve no intracompany transfers and which include a breakdown of expenses into variable and fixed components, are as follows:

   Birrell Scientific Inc. Divisional Income Statements For the Year Ended December 31, 20Y5
   	GPS Systems Division			Communication Systems Division			Total
   Sales:
   85,000 units @ $60 per unit	$5,100,000						$5,100,000
   145,000 units @ $115 per unit				$16,675,000			16,675,000
   	$5,100,000			$16,675,000			$21,775,000
   Expenses:
   Variable:
   85,000 units @ $40 per unit	$(3,400,000)						$(3,400,000)
   145,000 units @ $90 per unit*				$(13,050,000)			(13,050,000)
   Fixed	250,000			(500,000)			(750,000)
   Total expenses	$(3,650,000)			$(13,550,000)			$(17,200,000)
   Operating income	$1,450,000			$3,125,000			$4,575,000

   *$60 of the $90 per unit represents materials costs, and the remaining $30 per unit represents other variable conversion expenses incurred within the Communication Systems Division.

   The GPS Systems Division is presently producing 85,000 units out of a total capacity of 150,000 units. Materials used in producing the Communication Systems Division's product are currently purchased from outside suppliers at a price of $60 per unit. The GPS Systems Division is able to produce the materials used by the Communication Systems Division at a variable cost of $40 per unit. Except for the possible transfer of materials between divisions, no changes are expected in sales and expenses.

   Required:

   1. Would the market price of $60 per unit be an appropriate transfer price for Birrell Scientific Inc.?
   No

   • Yes
   • No

   2. If the Communication Systems Division purchases 25,000 units from the GPS Systems Division, rather than externally, at a negotiated transfer price of $52 per unit, how much would the operating income of each division and the total company operating income increase?

   The GPS Systems Division's operating income would increase by
   $

   The Communication Systems Division's operating income would increase by
   $

   Birrell Scientific Inc.'s total operating income would increase by
   $

   Feedback

   Review how transfer pricing functions.

   2. Multiply the units transferred by the difference between the transfer price (supplying company) or the market price (purchasing company) and the variable cost per unit.

   3. Prepare condensed divisional income statements for Birrell Scientific Inc. based on the data in part (2).

   Birrell Scientific, Inc.
   Divisional Income Statements
   For the Year Ended December 31, 20Y5
   	GPS Division	Communication Division	Total
   Sales:
   85,000 units	$		$
   25,000 units
   145,000 units		$
   	$	$	$
   Expenses:
   Variable:
   110,000 units	$		$
   25,000 units		$
   120,000 units
   Fixed
   Total expenses	$	$	$
   Operating income	$	$	$

   Feedback

   3. Keep in mind, 25,000 units are transferred in at $52 per unit plus $38 in other variable conversion expenses incurred within the division.

   4. If a transfer price of $49 per unit is negotiated, how much would the operating income of each division and the total company operating income increase?

   The GPS Systems Division’s operating income would increase by
   $

   The Communication Systems Division's operating income would increase by
   $

   Birrell Scientific Scientific Inc.'s total operating income would increase by
   $

   5a. What is the range of possible negotiated transfer prices that would be acceptable for Birrell Scientific Inc.?

   Between $ and $

   5b. Assuming that the managers of the two divisions cannot agree on a transfer price, what transfer price would represent the best compromise? If required, round your answer to the nearest dollar.

   $50

   • 35
   • 40
   • 50
   • 65

The following balances are from the accounts of Tappan Parts:

Direct materials used during the year amount to $46,500 and the cost of goods sold for the year was $53,100.

Prepare a cost of goods sold statement.

petro company donated inventory to hospitals. the basis of the inventory was 70,000 and its fair market value was 120000. petro made no other cintributions this year. what is the charitable contribution deduction assuming that petry co taxes income before the dividend received deduction and charitable contributions deduction is 600,000 and included in income was a 100000 dividende received from a 15% owned domestic coproation