EX23-03

Budget Performance Report

Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows:

At the beginning of July, GBC management planned to produce 430,000 bottles. The actual number of bottles produced for July was 464,400 bottles. The actual costs for July of the current year were as follows:

Enter all amounts as positive numbers.

a. Prepare the July manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production.

b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your answers to two decimal places.

c. The Company's actual costs were $740.44   than budgeted.   direct labor and direct material cost variances more than offset a small   factory overhead cost variance.

Empire Building Co. makes toxic material used in chemical weapons. On December 31, 2008 they buy a factory for $5 million(cash) for the production of Policus, a dangerous chemical. The plant is expected to be used for 10 years, at which time it will be dismantled and the site will be cleaned up. Empire estimates that it will cost them $10 million at the end of 2018 to remove the factory and clean the area. The risk free rate on December 31, 2018 is 4% and the adjusted risk rate for the company is 8%.

a) Record the journal entry(ies) for the purchase of the factory.

b) Record the required adjusting entry(ies) at the end of 2009.

c) On December 31, 2018 the factory is removed at a cost of 7$ million and site is cleaned up at for an additional $4 million . Record the required journal entry(ies) for the factory clean up.

Advanced Products Corporation has supplied the following data from its activity-based costing system:

During the year, Advanced Products completed one order for a new customer, Shenzhen Enterprises. This customer did not order any other products during the year. Data concerning that order follow:

Required:

1. Prepare a report showing the first-stage allocations of overhead costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. Calculate the total overhead costs for the order from Shenzhen Enterprises including customer support costs.

4. Calculate the customer margin for Shenzhen Enterprises.

For a recent year, McDonald's Company-owned restaurants had the following sales and expenses (in millions):

Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.

a. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars.)
$ million

b. What is McDonald's contribution margin ratio?
%

c. How much would income from operations increase if same-store sales increased by $1,500 million for the coming year, with no change in the contribution margin ratio or fixed costs? Round your answer to the closest million.
$ million

Data for the next 3 questions: Beauty Company issued $1,000,000, 4%, 10-year, bonds. Interest to be paid semiannually. The market rate on bonds issue date was 6%.

1. Provide the journal entry that must be made on issue date of the bonds

2.Complete the following partial amortization schedule. Include only the final number for each cell

Schedule Title

3. Provide the necessary journal entry that company must make for the 2nd interest payment on the bond.

Data for the next 3 questions: Holly Company issued $2,000,000, 6%, 10-year, bonds. Interest to be paid semiannually. The market rate on bonds issue date was 5%.

4.Provide the journal entry that must be made on issue date of the bonds

5.Complete the following partial amortization schedule. Include only the final number for each cell

Schedule Title:

6.Provide the necessary journal entry that company must make for the 2nd interest payment on the bonds.

Analyze why they have used this way to answer the below question (The question is already answered I need analysis for the answer like a paragraph for each case)

Example: On 1/2/08, See-Saw Systems (S3) purchased a patent valued at €8 million; it had a useful life of 8 years with zero residual value, and S3 used straight-line depreciation. On 1/2/10, the fair value of the patent had decreased to €4.5 million. On 1/2/12, the fair value had increased to €6 million, and on 1/2/14, the fair value had dropped to €1 million. Assuming S3 uses the revaluation model, determine how the gains and losses are reported.

Straight-line amortization is €8 million ÷ 8 years = €1 million per year, so the book value on 1/2/10 is:

€8 million − 2(€1 million) = €6 million

The revaluation to €4.5 million results in a €1.5 million loss, which appears on S3’s income statement.

Straight-line amortization is now €4.5 million ÷ 6 years = €750,000 per year. On 1/2/12 the book value is:

€4.5 million − 2(€750,000) = €3 million

The revaluation to €6 million results in a €3 million gain. Because S3 had a previous €1.5 million loss on its income statement, the first €1.5 million of the gain is shown on the income statement to reverse the loss; the remaining €1.5 million gain goes to the Revaluation Surplus account on S3’s balance sheet.

Straight-line amortization is now €6 million ÷ 4 years = €1.5 million per year.

On 1/2/14 the book value is:

€6 million − 2(€1.5 million) = €3 million

The revaluation to €1 million results in a €2 million loss. Because S3 had a previous €1.5 million gain in the Revaluation Surplus account in equity, the first €1.5 million of the loss reduces the Revaluation Surplus account to zero. The remaining €500,000 million loss is shown on S3’s income statement.

EX24-05

Service Department Charges

In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $58,380, and the Purchasing Department had expenses of $22,000 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.

b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. If required, round your answers to two decimal places. Do not round your interim calculations, round your answers to two decimal places, if required.

c. Residential's service department charge is   than the other two divisions because Residential is a   user of service department services. Residential has many employees on a weekly payroll, which translates into a   number of check-issuing transactions.

Question 1

1. Where can you find the significant account policies used by the company in the Notes to Consolidate Financial Statements (state the name and the number of the note)?
2. Summarize accounting policies for investments.

Question 2

Question 3

From the 2017 financial statements of UPS, provide the amount for the following items:

1. Total fair value of trading and available-for-sale securities: ____________

2. Total fair value of trading securities: _____________

3. Total cost of trading securities: _______________

4. Total unrealized gain (loss) of trading securities: ____________

5. Total fair value of available-for-sale securities: _______________

6. Total cost of available-for-sale securities: _________________

7. Total unrealized gain (loss) for available-for-sale securities: ____________

8. Accumulated other comprehensive gain or loss: ____________

9. Investment income and other: ________________

10. Change in unrealized gains or losses on marketable securities: __________

11. Diluted earnings per share? ___________

how are capital gains on form 1120s taxes?

The following income statement and information about changes in noncash current assets and current liabilities are reported.

Changes in current asset and current liability accounts for the year that relate to operations follow.

Required:

Prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

6.Harry’s Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. Wilson, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecasted sales figures:

Of the firm’s sales, 50 percent are for cash and the remaining 50 percent are on credit. Of credit sales, 50 percent are paid in the month after sale and 50 percent are paid in the second month after the sale. Materials cost 35 percent of sales and are purchased and received each month in an amount sufficient to cover the following month’s expected sales. Materials are paid for in the month after they are received. Labor expense is 45 percent of sales and is paid for in the month of sales. Selling and administrative expense is 10 percent of sales and is also paid in the month of sales. Overhead expense is $22,000 in cash per month.
  
Depreciation expense is $10,800 per month. Taxes of $8,800 will be paid in January, and dividends of $6,000 will be paid in March. Cash at the beginning of January is $96,000, and the minimum desired cash balance is $91,000.

b. Prepare a schedule of monthly cash payments for January, February, and March.

c. Prepare a monthly cash budget with borrowings and repayments for January, February, and March. (Negative amounts should be indicated by a minus sign. Assume the January beginning loan balance is $0.)

On the income statement, income from discontinued operations is shown: Multiple Choice without any income tax effect. as an accounting principle change. as a separate section of income from continuing operations. net of taxes after income from continuing operations.

On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:

During January 2021, the following transactions occur:

The following information is available on January 31, 2021.

1. The company estimates future uncollectible accounts. The company determines $4,600 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
2. Supplies at the end of January total $800.
3. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
4. Unpaid salaries at the end of January are $35,200.

REQUIREMENT:

1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1-7). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.
2. Record the adjusting entries in the 'General Journal' tab (these are shown as items 8-11).
3. Review the adjusted 'Trial Balance' as of January 31, 2021, in the 'Trial Balance' tab.
4. Prepare an income statement for the period ended January 31, 2021, in the 'Income Statement' tab.
5. Prepare a classified balance sheet as of January 31, 2021 in the 'Balance Sheet' tab.
6. Record the closing entries in the 'General Journal' tab (these are shown as items 12 and 13).
7. Using the information from the requirements above, complete the 'Analysis' tab.