Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $380,000 of manufacturing overhead for an estimated allocation base of 1,000 direct labor-hours. The following transactions took place during the year:

Raw materials purchased on account, $220,000.

Raw materials used in production (all direct materials), $205,000.

Utility bills incurred on account, $63,000 (90% related to factory operations, and the remainder related to selling and administrative activities).

Accrued salary and wage costs:

Maintenance costs incurred on account in the factory, $58,000

Advertising costs incurred on account, $140,000.

Depreciation was recorded for the year, $88,000 (85% related to factory equipment, and the remainder related to selling and administrative equipment).

Rental cost incurred on account, $113,000 (90% related to factory facilities, and the remainder related to selling and administrative facilities).

Manufacturing overhead cost was applied to jobs, $ ? .

Cost of goods manufactured for the year, $810,000.

Sales for the year (all on account) totaled $1,400,000. These goods cost $840,000 according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were:

Required:

1. Prepare journal entries to record the preceding transactions.

2. Post your entries to T-accounts. (Don’t forget to enter the beginning inventory balances above.)

3. Prepare a schedule of cost of goods manufactured.

4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.

4B. Prepare a schedule of cost of goods sold.

5. Prepare an income statement for the year.

As part of the Final Project, you will need to create and include an original chart. Input the data into an Excel document and create a chart you will be using in your Final Project. Be sure to include a clear title for the chart and correctly label all data and units. Include your approved topic somewhere on the page.
*accounting

I just need a sample of calculations. it's to show proper use of excel chart.

you can use any data regarding accounting i just need to show a proper pie chart

(v) Magic plc has a retail business which is treated as a separate cash generating unit and which has suffered badly during the recession. The carrying amounts of the assets comprising the retail business are:

$'000

Building 900

Plant and equipment 300

Inventory 70

Other current assets 130

Goodwill 40

On 31 December 2017, an impairment review has suggested that the recoverable amount of the cash generating unit is estimated at MUR 1.3m.

Required

i. What will be the carrying amount of the inventory after the impairment loss in (iii) has been accounted for?

j. What will be the carrying amount of the building after the impairment loss has been accounted for?

HOW THE $140 IS BEING DISTRIBUTED FOR IMPAIRMENT? WHETHER INVENTORY AND OTHER ASSETS BE IMPAIRED TOO OR ONLY FIXED ASSETS?

Read “an introduction to XBRL” and answer the follow questions:

a. What are the most important features of XBRL? Describe two of them.

b. Who are the user of XBRL? Describe two of them.

c. What are the benefits of XBRL for Securities Regulators and Stock Exchanges?

Describe two of them.

The SEC issued an order that allows voluntary filing using Inline XBRL through

March 2020. Read the introduction page and the AICPA’s comment letter, and tour

around the mock filing. Answer the following questions:

a. What is Inline XBRL?

b. What are the benefits of having Inline XBRL?

c. What is your favorite feature of the Inline XBRL Viewer? Please describe.

Accounting for Dilutive securities and Earning per share.

On November 1, 2017, Larkspur Company adopted a stock-option plan that granted options to key executives to purchase 30,000 shares of the company’s $10 par value common stock. The options were granted on January 2, 2018, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $30, and the fair value option-pricing model determines the total compensation expense to be $450,000.

All of the options were exercised during the year 2020: 20,000 on January 3 when the market price was $69, and 10,000 on May 1 when the market price was $78 a share.

Prepare journal entries relating to the stock option plan for the years 2018, 2019, and 2020. Assume that the employee performs services equally in 2018 and 2019.

4.      Suppose we have two risky assets, Stock I and Stock J, and a risk-free asset. Stock I has an expected return of 25% and a beta of 1.5. Stock J has an expected return of 20% and a beta of 0.8. The risk-free asset’s return is 5%.     

a. Calculate the expected returns and betas on portfolios with x% invested in Stock I and the rest invested in the risk-free asset, where x% = 0%, 50%, 100%, and 150%.                     

b. Using the four portfolio betas calculated in part (a), reverse engineer (i.e., derive mathematically) the portfolio weights for a portfolio consisting of only Stock J and the risk-free asset.    

Hint: For example, if we wished to obtain a portfolio beta of 0.5, then the weights on Stock J and the risk-free asset must be 62.5% and 37.5%, respectively, and the expected return for this portfolio must be 14.375%.              

1. Calculate the reward-to-risk ratios for Stock I and Stock J.        

2. Plot the portfolio betas against the portfolio expected returns for Stock I on a graph, and link all the points together with a line. Then plot the portfolio betas against the portfolio expected returns for Stock J on the same graph and link all these points together with another line. Ensure that the x-axis and y-axis are clearly labelled. (Hint: This can be done easily with the charting function in Microsoft Excel.)                                 
3. Using the graph in part (d) above, together with your answers in part (c) above, elaborate on the efficiency of the market containing Stock I and Stock J.                                                                    

roduce Company needs to know the pounds of bananas to have on hand each day. Each pound of bananas costs $.25 and can be sold for $.40 Unsold bananas are worthless at the end of the day. The following demands were found after studying the last six months sales: 200 pounds of bananas one fourth of the time. 300 pounds of bananas one half of the time 400 pounds of bananas one half of the time required determine whether ABC grocery should order 200,300 or 400 pounds of banans

Hospital Equipment Company (HEC) acquired several fMRI machines for its inventory at a cost of $3,600 per machine. HEC usually sells these machines to hospitals at a price of $6,960. HEC also separately sells 12 months of training and repair services for fMRI machines for $1,740. HEC is paid $6,960 cash on November 30 for the sale of an fMRI machine delivered on December 1. HEC sold the machine at its regular price, but included one year of free training and repair service. Required: For the machine sold at its regular price, but with one year of “free” training and repair service, determine the dollar amount of revenue earned from the equipment sale versus the revenue earned from the training and repair services.

Step 5: Manufacturing Overhead Budget

Buff Company expects variable overhead costs to fluctuate with production volume according to the following rates:

Indirect materials: $0.90 per direct labor

Indirect labor: $1.70 per direct labor

Utilities: $0.30 per direct labor

Maintenance: $0.10 per direct labor

Buff Company also incurs fixed overhead costs. The amounts of fixed overhead costs are already provided in the budget below. Use this information to complete the manufacturing overhead budget.

Buff Company Manufacturing Overhead Sales Budget

For the year ending December 31, 2017

Variable costs Indirect materials ($0.90/hour) Q1_________ Q2_________ Q3_________ Q4_________

Indirect labor ($1.70/hour) Q1_________ Q2_________ Q3_________ Q4_________

Utilities ($0.30/hour) Q1_________ Q2_________ Q3_________ Q4_________

Maintenance ($0.10/hour) Q1_________ Q2_________ Q3_________ Q4_________

Total variable costs Q1_________ Q2_________ Q3_________ Q4_________

Fixed costs

Supervisory salaries Q1 $37,600 Q2 $37,600 Q3 $37,600 Q4 $37,600 Total in a year $150400

Depreciation Q1 $2,900 Q2 $2,900 Q3 $2,900 Q4 $2,900 Total in a year $11600

Property taxes and insurance Q1 $1,600 Q2 $1,600 Q3 $1,600 Q4 $1,600 Total in a year $6,400

Maintenance Q1 $3,400 Q2 $3,400 Q3 $3,400 Q4 $3,400Total in a year $13,600

Total fixed costs Q1_________ Q2_________ Q3_________ Q4_________

Total manufacturing overhead Q1_________ Q2_________ Q3_________ Q4_________

Direct labor hours Q1_________ Q2_________ Q3_________ Q4_________

Using the yearly amounts, what is the annual budgeted overhead rate per direct labor hour?

Step 6: Selling and Administrative Expense Budget

Buff Company expects variable selling and administrative expenses to fluctuate with unit sales volume according to the following rates:

Sales commission $3.60 per unit sold

Freight-out: $2.80 per unit sold

Buff Company also incurs fixed selling and administrative expenses. The amounts of fixed selling and administrative expenses are already provided in the budget below. Use this information to complete the selling and admin. expense budget

Buff Company Selling and Admi Sales Budget For the year ending December 31, 2017

Budgeted sales in units Q1 1,800 Q2 1,700 Q3 2,300 Q4 2,800 Total in a year 8,600

Variable expenses

Sales commissions ($3.60 per unit) Q1_________ Q2_________ Q3_________ Q4_________

Freight-out ($2.80 per unit) Q1_________ Q2_________ Q3_________ Q4_________

Total variable expenses Q1_________ Q2_________ Q3_________ Q4_________

Fixed expenses Advertising Q1 $3,200 Q2 $3,200 Q3 $3,200 Q4 $3,200 Total in a year $12,800

Sales salaries Q1 $13,600 Q2 $13,600 Q3 $13,600 Q4 $13,600 Total in a year $54,400

Office salaries Q1 $7,000 Q2 $7,000 Q3 $7,000 Q4 $7,000 Total in a year $28,000

Depreciation Q1 $800 Q2 $800 Q3 $800 Q4 $800 Total in a year $3,200

Property taxes and insurance Q1 $1,000 Q2 $1,000 Q3 $1,000 Q4 $1,000 Total in a year $4,000

Total fixed expenses Q1_________ Q2_________ Q3_________ Q4_________

Total selling and administrative expenses Q1_________ Q2_________ Q3_________ Q4_________

Step 7: Budgeted Income Statement

Complete the following schedule to determine the cost of goods sold:

Cost to produce one product

Direct materials Quantity 1.50 Unit cost $1.00

Direct labor Quantity 2.50 Unit cost $12.00

Manufacturing overhead Quantity 2.50

Total unit cost _________

Cost of goods sold

Total Unit cost × Number of units budgeted to be sold during 2017 = Budgeted Cost of Goods Sold________

Additional information:

Interest expense for 2017: $1,000

Income tax expense for 2017: $16,500

Use the information above as well as data from the other operating budgets to complete the Budgeted Income Statement

Buff Company Budgeted Income Statement For the Year Ending December 31, 2017

Sales________

Cost of goods sold_______

Gross profit_______

Selling and administrative expenses______

Income from operations________

Interest expense______

Income before income taxes______

Income tax expense_______

Net income_______

[1] Describe management’s responsibilities in implementing effective internal control over financial reporting in a public company.What responsibilities did Koss Corporation’s management have to prevent or detect the embezzlement and accounting fraud?

[2] In what ways did Koss management fail in its responsibilities relating to internal control over financial reporting? Note: Please be brief but be specific—consider organizing your response in accordance with the components (and principles) of COSO’s 2013 Internal Control: Integrated Framework (which can be found at www.coso.org).

[3] As Koss Corporation’s financial statement auditor, what responsibilities did Grant Thornton have to detect the embezzlement and accounting fraud? List and briefly describe at least three red flags that could have alerted the auditor to the fraud.What audit procedures might the auditor have used to address those red flags in order to discover the accounting fraud and the embezzlement?

[4] Based on the information presented in the case, do you believe Grant Thornton failed in its responsibilities to provide reasonable assurance that Koss Corporation’s financial statements were presented fairly in all materials respects? Justify your answer using specific arguments and examples. Include in your answer an assessment as to whether you believe an $8.5 million embezzlement in a single year at Koss would typically be considered material by most auditors, and why.

[5] Assume the role of an expert witness who has been asked by a court of law to assess whether and to what extent Koss management and Grant Thornton were responsible for failing to prevent or detect the embezzlement and accounting fraud.Write a two-page professional opinion summarizing what you believe went wrong, and whether and how Koss management and Grant Thornton failed in their responsibilities. Cite specific examples to support your conclusion. Conclude your report with an assessment of whether Koss management and Grant Thornton should be held at least partly responsible for failing to prevent or detect the fraud.

[6] List and briefly justify three or four specific steps that you believe would be most important for Koss Corporation to move forward after discovery of the fraud.

James Buchanan Orthotics and Prosthetics is planning to request a line of credit from its bank. The company has produced sales estimates, and these appear in the worksheet below. Collection estimates are as follows: 10 percent within the month of sale, 75 percent in the month following the sale, and 15 percent in the second month following the sale. Labor and supplies estimates also appear in the worksheet below. Payments for labor and supplies are typically made during the month following the one in which these costs have been incurred. General and administrative salaries will amount to approximately $27,000 a month; lease payments under long-term lease contracts will be $9,000 a month; depreciation charges will be $36,000 a month; miscellaneous expenses will be $2,700 a month; income tax payments of $63,000 will be due in both September and December; and a progress payment of $180,000 on a new building must be paid in October. Cash on hand on July 1 will amount to $132,000, and a minimum cash balance of $90,000 will be maintained throughout the cash budget period. What loan will be the company require in October? Many say nothing in October but someone else says Loan Balance for October - $ 151500 What is the correct way? May June July August September October November December January Collections worksheet: Billed charges $180,000 $180,000 $360,000 $540,000 $720,000 $360,000 $360,000 $90,000 $180,000 Collections Within 30 days 30-60 days 60-90 days Total collections Supplies worksheet: Amount of labor and supplies $90,000 $90,000 $126,000 $882,000 $306,000 $234,000 $162,000 $90,000 Payments made for labor and supplies Net cash gain (loss): Total collections Total purchases General and administrative salaries Lease payments Miscellaneous expenses Taxes Progress payment Total payments Net cash gain/loss Borrowing/surplus summary: Cash at beginning with no borrowing Cash at end with no borrowing Target cash balance (given) Cumulative surplus cash / loan balance

Brief Exercise 14-1

Pina Corporation issues $460,000 of 9% bonds, due in 11 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%.

Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.)

You are the chief accountant for Jared Jo Your assistant has prepared an income statement for the current year and has developed the following additional information by analyzing changes in the company’s balance sheet accounts.

FOR THE YEAR ENDED DECEMBER 31, 2019

Revenue:

Net sales $9,500,000

Interest income 320,000

Gain on sales of marketable securities 70,000

Total revenue and gains $9,890,000

Costs and expenses:

Cost of goods sold $4,860,000

Operating expenses (including depreciation of $700,000) 3,740,000

Interest expense 270,000 Income tax expense 300,000

Loss on sales of plant assets 90,000

Total costs, expenses, and losses 9,260,000

Net income $ 630,000

Changes in the company’s balance sheet accounts over the year are summarized as follows.

1. Accounts Receivable decreased by $85,000.

2. Accrued Interest Receivable increased by $15,000.

3. Inventory decreased by $280,000, and Accounts Payable to suppliers of merchandise decreased by $240,000.

4. Short-term prepayments of operating expenses decreased by $18,000, and accrued liabilities for operating expenses increased by $35,000.

5. The liability for Accrued Interest Payable decreased by $16,000 during the year.

6. The liability for Accrued Income Taxes Payable increased by $25,000 during the year.

7. The following schedule summarizes the total debit and credit entries during the year in other balance sheet accounts.

Marketable Securities $ 120,000 $ 210,000

Notes Receivable (cash loans made to others) 250,000 190,000

Plant Assets (see paragraph 8) 3,800,000 360,000

Notes Payable (short-term borrowing) 620,000   740,000

Bonds Payable 1,100,000

Capital Stock 50,000

Additional Paid-in Capital (from issuance of stock) 840,000

Retained Earnings (see paragraph 9) 320,000 630,000

8. The $360,000 in credit entries to the Plant Assets account is net of any debits to accumulated depreciation when plant assets were retired. The $360,000 in credit entries represents the book value of all plant assets sold or retired during the year.

9. The $320,000 debit to Retained Earnings represents dividends declared and paid during the year. The $630,000 credit entry represents the net income for the year.

10. All investing and financing activities were cash transactions.

11. Cash and cash equivalents amounted to $448,000 at the beginning of the year and to $330,000 at year-end.

Instructions You are to prepare a statement of cash flows for the current year. Cash flows from operating activities are to be determined by the direct method. Uses of cash should be reflected as negative balances. Show your calculations for the following: a. Cash received from customers. b. Interest received. c. Cash paid to suppliers and employees. d. Interest paid. e. Income taxes paid. f. Proceeds from sales of marketable securities. g. Proceeds from sales of plant assets. h. Proceeds from issuing capital stock.

Eastern Aviation operated both an airline and several restaurants located near airports. During the year just ended, all restaurant operations were discontinued and the following operating results were reported.

All of these amounts are before income taxes unless indicated otherwise. The company's income tax rate is 40 percent. The nonrecurring loss resulted from damage to a warehouse that is not related to the discontinued restaurant operations. Eastern Aviation had 1,000,000 shares of capital stock outstanding throughout the year.

Required:

a. Prepare a condensed income statement, including proper presentation of the discontinued restaurant operations and the nonrecurring loss. Include all appropriate earnings per share figures.

b. Assume that you expect the profitability of Eastern Aviation operations to decline by 5 percent next year, and the profitability of the restaurants to decline by 10 percent. What is your estimate of the company’s net earnings per share next year?