Compare and contrast the constructive receipt doctrine and the assignment of income doctrine.

In what situations do these doctrines apply?

Problem 7-3 (Part Level Submission) Pearl Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Pearl's Accounts Receivable account was $595,600 and Allowance for Doubtful Accounts had a credit balance of $40,350. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Days Account Outstanding Amount Probability of Collection Less than 16 days $314,500 0.97 Between 16 and 30 days 119,900 0.90 Between 31 and 45 days 84,800 0.85 Between 46 and 60 days 43,000 0.82 Between 61 and 75 days 19,800 0.53 Over 75 days 13,600 0.00 Assume that accounts with a zero percent chance of collection are intended to be written off. Collapse question part (a) What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful Accounts

What type of activities does payroll reconciliation include?

(simple and original answer please, no hand writing and answer should relate to Australian payroll system or Australian legislation thx)

Q1. Carter Packaging Company is engaged in the business of producing customized tins for its corporate clients. The manufacturing facility is located in North Hamsphire, Olton.

On March 31, 2018 Boost Drinks Limited ordered 3000 tin cans to be supplied before April 16, 2008. The order is named as Job # 2 & was completed on April 11, 2008 and transferred to the warehouse. On April 14 the goods were shipped to the customer at a total prices of Cost + 25%.

Additional information:

1. Raw material was purchased for $ 13000. Out of this 22% was allocated to Job # 2B

2. Labor costs $9 per hour. Each tin requires 30 minutes to complete.

3. Supervision cost amounted to 400 for Job # 2B.

4. Machine and building depreciation were 1200 and 2000 respectively. 40% is allocated to the job # 2B.

Required:

You are required

1. Prepare a Job Order Cost Sheet for Job # 2B.

2. Pass Necessary Journal entries in the books of Carter Packaging Company

3. Prepare the FOH Control and Work in Process account for the Job # 2B.

Question 1

1-Explain how to calculate the net income for merchandising companies, why is it different than calculating the net income for service companies.

2-Prepare the income Statement for Yazeed merchandising company for December 2015 that has the followings: Sales: 9,000 Sales discount: 6,000 Salaries expenses: 200 Advertising expenses: 400 Sales returns and allowances: 10 Insurance expenses: 50,000 Costs of Goods Sold: 4,000

Reconciliation from IFRS to GAAP

You are the CFO for Mills company (reporting using IFRS) and must reconcile your financial statements for the years ending 2008, 2009, and 2010 to U.S. GAAP (The Income Statement and Statement Stockholders’ Equity). Youhave identified the following 5 areas where there are differences between IFRS and U.S. GAAP at various dates.  Be sure to consider the cumulative effects of prior year transactions for each year.

Intangible Assets

As part of a business combination in January 2004, the company acquired a brand for $15,000,000.  The brand is classified as an intangible asset with a 15 year useful life.  At year-end 2008, the brand is determined to have a selling price of $8,000,000 with zero cost to sell.  Expected future cash flows from continued use of the brand are $13,000,000 (undiscounted) and the present value of future cash flows is 9,000,000

Research and Development Costs

The company incurred research and development costs of $2,000,000 in 2008.  Of this amount, 70% related to development activities subsequent to the point at which criteria had been met that an intangible asset existed.  The development costs were completed at the end of 2008 and will be amortized over 10 years beginning 2009.

Property Plant and Equipment

On January 1, 2009 a building that had an original cost of $20,000,000 and (Purchase date January 1 2001) and was being depreciated over 20 years was determined to have a fair value of $15,000,000.   The company uses the revaluation model for such assets.

Sale Leaseback

On January 1, 2006 the company realized a gain on a sales leaseback of $6,000,000.  The term of the lease (starting the date of the sale) is 15 years.

Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company’s records under this system reveal the following inventory layers at the beginning of 2021 (listed in chronological order of acquisition):

During 2021, 30,000 units were purchased for $25 per unit. Due to unexpected demand for the company’s product, 2021 sales totaled 40,000 units at various prices, leaving 15,000 units in ending inventory.

Required:

1. Calculate the amount to report for cost of goods sold for 2021.
2. Determine the amount of LIFO liquidation profit that the company must report in a disclosure note to its 2021 financial statements. Assume an income tax rate of 25%.
3. If the company decided to purchase an additional 10,000 units at $25 per unit at the end of the year, how much income tax currently payable would be saved?

Indigo manufactures and sells swimsuits for $40.00 each. The estimated income statement for 2017 is as follows:

1) Compute the contribution margin per swimsuit and the number of swimsuits that must be sold to break even. (Round contribution margin per swimsuit to 2 decimal places, e.g. 15.25 and break even swimsuits to 0 decimal places, e.g. 125.)

2) What is the margin of safety in the number of swimsuits?

3) Compute the contribution margin ratio and the breakeven point in revenues. (Round contribution margin ratio to 3 decimal places, e.g. 0.256 and breakeven point to 0 decimal places, e.g. 125.)

4) What is the margin of safety in revenues? (Round answer to 0 decimal places, e.g. 125.)

5) Suppose next year’s revenue estimate is $150,000 higher. What would be the estimated pretax earnings?

6) Assume a tax rate of 30%. How many swimsuits must be sold to earn after-tax earnings of $230,000? (Round answer to 0 decimal places, e.g. 125.)

John Johnson has been working on Swifty Paints' cash budget for the coming year. Based on his projections for March, the beginning cash balance will be $45,700; cash collections will be $600,000; and cash disbursements will be $634,000. Swifty Paints desires to maintain a $43,000 minimum cash balance. The company has a 6% open line of credit with its bank, which provides short-term borrowings in $500 increments. All borrowings are made at the beginning of the month, and all repayments are made at the end of the month (in $500 increments). When partial payments are made against the line of credit, accrued interest applicable to the full amount due through that date is paid along with the partial principal repayment.

Presented is information pertaining to the cash flows of three mutually exclusive investment proposals:

Proposal A                     Proposal B             Proposal C

Initial investment…………………………….................$60,000                           $60,000                  $60,000

Cash flow from operations

Year 1………………………………...............................50,000                               30,000                     60,000

Year 2………………………………................................6,000                                30,000          

Year 3………………………………...............................29,000                               25,000          

Disinvestment………………………………......................0                                       0                               0

Life (years)………………………………….....................3 years                              3 years                       1 year

Required

1. Rank these investment proposals using the payback period, the accounting rate of return on initial investment, and the present value criteria. Assume that the organization’s cost of capital is 12 percent. Round calculations to four decimal places.
2. Explain the difference in rankings. Which investment would you recommend?

An inexperienced accountant for Sarasota Corp. showed the following in the income statement: income before income taxes $359,000 and unrealized gain on available-for-sale securities (before taxes) $88,800. The unrealized gain on available-for-sale securities and income before income taxes are both subject to a 28% tax rate. Prepare a correct statement of comprehensive income.

Molly and Mark are wife and husband and earned salaries this year of $12,000 and $64,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Mark and Molly also paid $2,500 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $1,500. Mark and Molly have a 10-year-old son, Matt, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matt. Mark and Molly paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year. What is Molly and Mark’s gross income? What is Molly and Mark’s adjusted gross income? What is the total amount of Molly and Mark’s deductions from AGI? What is Molly and Mark’s taxable income? What is Molly and Mark’s taxes payable or refund due for the year (use the tax rate schedules)? Complete the first two pages of Molly and Mark’s Form 1040 (download forms from the IRS website). 2018 TAX LAW

Explain in details how misconduct in workplace effects on having:

1- Actual FInancial loss

2- Cost of investigation have to be borne

3- Loss of share in the market

4- Revocation of special grant or privilege (if any) by government

"Winning the Jackpot!"

It’s probably one of the most fun ideas to think about - winning the lottery! So, let’s have some fun. Suppose you win the Powerball when the jackpot is at $300,000,000. You are given the option of a lump sum payment or an annuity. The lump sum means receiving the entire cash value at once, but the lump sum will be less than the $300,000,000. The annuity will be paid out in 30 payments over 29 years, which increase by 5% each year to keep up with the cost of living.

• In light of the above scenario, would you take the lump sum payout? Or would you take an annuity, and receive the payments over time? Provide a rationale for your response.