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North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.

Other data not yet recorded at December 31:

Rent expired during the year, $1,170.

Depreciation expense for the year, $1,130.

Utilities used and unpaid, $8,700.

Income tax expense, $360.

T Accounts

Adjusted TB

Summarize the adjusting journal entries in T-accounts. After entering the beginning balances and computing the adjusted ending balances.

NORTH STARAdjusted Trial BalanceAs of December 31Account TitlesDebitCreditCash$11,700Accounts Receivable5,700Prepaid Rent1,170Equipment20,700Accumulated Depreciation2,260Accounts Payable9,830Income Tax Payable360Common Stock24,500Retained Earnings1,800Sales Revenue48,780Salaries and Wages Expense24,700Utilities Expense20,900Rent Expense1,170Depreciation Expense1,130Income Tax Expense360Totals$87,530$87,530

I keep getting that i am missing something

Occupational fraud victims are concerned about how to detect fraud effectively and efficiently. Write an essay on "Occupational Fraud: Detection". In the essay, State and describe the manner in which occupational fraud may be detected, and explain what factors determine the effectiveness and efficiency of the manner of fraud detection.

Arbour Inc. had the following balances on its balance sheet at the beginning of year 4. The balances in the two accounts are "normal" (so Accounts receivable is a positive asset and the allowance is a negative asset). Note that net realizable value is NOT an account balance. It is Accounts receivable net of the allowance balance.

Accounts Receivable.................................61000
Allowance for uncollectible accounts........7300
Net realizable value...................................53700

During the year, Arbour recorded the following:
--Sales on account of..................... $660000
--Collections on account of............ $633600
--Write-offs of delinquent accounts.... $18700

At the end of Year4, Arbour Company recorded an adjusting entry that recognized $19800 of bad debt expense.

Enter all normal balances as positive numbers (just a number, no + sign.)

1. What would be the balance in Accounts Receivable after all of the entries above?

2. What would be the balance in the Allowance for Uncollectible Accounts after all of the entries above?

Amanda would like to organize BAL as either an LLC (taxed as a sole proprietorship) or a C corporation. In either form, the entity is expected to generate an 8 percent annual before-tax return on a $500,000 investment. Amanda’s marginal income tax rate is 37 percent and her tax rate on dividends and capital gains is 23.8 percent (including the 3.8 percent net investment income tax). If Amanda organizes BAL as an LLC, she will be required to pay an additional 2.9 percent for self-employment tax and an additional 0.9 percent for the additional Medicare tax. Also, she is eligible to claim a full deduction for qualified business income on BAL’s income. Assume that BAL will distribute half of its after-tax earnings every year as a dividend if it is formed as a C corporation. (Round your intermediate computations to the nearest whole dollar amount.)

b. What is the overall tax rate on BAL’s income in the first year if BAL is organized as an LLC or as a C corporation? (Round your final answers to 2 decimal places.)

Problem 1

Hood lease equipment from Ford on January 1, 2019. Ford purchased the equipment from a manufacturer at a cost of$250,000, its fair value. Terms of the lease are as follows:

Lease term 2 years, (8 quarterly periods)

Quarterly payments, $15,000 beginning Jan 1, 2019

Economic life of asset, 5 years

Interest rate charged by lessor, 10%

Required:

Prepare appropriate journal entries for the lessee through December 31, 2019. Appropriate adjusting entries are recorded at the end of the fiscal year.

1. BTC uses the cost formula Y = $5,300 + $0.60X to estimate its maintenance costs where X represents machine hours. If the August budget calls for 8,000 hours of planned machine time, what maintenance cost is expected to be incurred during August?

2. MCK bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Its estimates for the upcoming appear below:

            Machine hours                                    52,800

            Variable manufacturing overhead      $4.10 per machine hour

            Fixed manufacturing overhead           $425,000

What is MCK's predetermined overhead rate based on these estimates?

Renter’s Dilemma

Hucks, Inc. (Hucks), a publicly traded corporation, plans to lease equipment from Jackson Co. (Jackson) on January 1, 2020, for a period of three years. Lease payments of $100,000 are due to Jackson each year. Other expenses (e.g., insurance, taxes, and maintenance) are also to be paid by Hucks and amount to $2,000 per year. Jackson will not incur any initial direct costs. The lease contains no purchase or renewal options and the equipment reverts back to Jackson on the expiration of the lease. The remaining useful life of the equipment is four years. The fair value of the equipment at lease inception is $265,000. Hucks has guaranteed $20,000 as the residual value at the end of the lease term. The $20,000 represents the expected value of the leased equipment to Hucks at the end of the lease term. The salvage value of the equipment is expected to be $2,000 after the end of its economic life. Hucks’s incremental borrowing rate is 11 percent (Jackson’s implicit rate is 10 percent and is calculable by Hucks from the lease agreement).

The junior accountant of Hucks analyzed the assets under lease, determined whether the lease was an operating lease or finance lease, and prepared the applicable journal entries. The senior accountant of Hucks reviewed the junior accountant’s analysis and prepared a separate analysis. As the finance controller, you were given both analyses to determine the correct accounting treatment. Calculations and journal entries performed by your junior and senior accountant follow:

Present Value of the Lease Obligation

Using the rate implicit in the lease (10 percent), the present value of the guaranteed residual value would be $15,026 ($20,000 x 0.7513), and the present value of the annual payments would be $248,685 ($100,000 x 2.4869).

Using the incremental borrowing rate (11 percent), the present value of the guaranteed residual value would be $14,624 ($20,000 x 0.7312), and the present value of the annual payments would be $244,371 ($100,000 x 2.4437).

Junior accountant analysis:

Since the equipment reverts back to Jackson, it is an operating lease. 840

Entry to be posted in years 1, 2, and 3:

Dr. Rent expense                        $100,000

Dr. Insurance expense                   $2,000

              Cr. Cash                                                        $102,000

        (Operating lease rental paid to Jackson)

1. Was the assistant controller’s analysis correct? Why or why not?

2. Show the correct analysis including all year one entry(ies)?

3. Use FASB codification to support the answer?

"Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well,” said Kim Clark, president of Martell Company. “Our $26,250 overall manufacturing cost variance is only 2.5% of the $1,050,000 standard cost of products made during the year. That's well within the 3% parameter set by management for acceptable variances. It looks like everyone will be in line for a bonus this year."

The company produces and sells a single product. The standard cost card for the product follows:

The following additional information is available for the year just completed:

1. The company manufactured 20,000 units of product during the year.
2. A total of 78,000 feet of material was purchased during the year at a cost of $3.75 per foot. All of this material was used to manufacture the 20,000 units produced. There were no beginning or ending inventories for the year.
3. The company worked 32,500 direct labor-hours during the year at a direct labor cost of $11.80 per hour.
4. Overhead is applied to products on the basis of standard direct labor-hours. Data relating to manufacturing overhead costs follow:

Required:

1. Compute the materials price and quantity variances for the year.

2. Compute the labor rate and efficiency variances for the year.

3. For manufacturing overhead compute:

a. The variable overhead rate and efficiency variances for the year.

b. The fixed overhead budget and volume variances for the year.

The costs per unit and period for Milligan Exploration for all relevant ranges of activity is as follows:

                                                                        Cost per Unit             Cost per Period

            Selling price per unit                                      14.25

            Direct materials                                               5.00

            Direct labor                                                     2.90

            Variable manufacturing overhead                  1.25

            Fixed manufacturing overhead                       -                       $21,000

            Sales commissions                                          1.00

            Variable administrative expense                     0.55

            Fixed selling and administrative exp.                                     $7,500

1. If Milligan produces 4,200 units, what is the total amount of direct manufacturing cost incurred?

2. If 5,000 units are produced by Milligan, what is the total amount of indirect manufacturing overhead cost incurred?

3. What is Milligan’s contribution margin per unit sold?

What is Fair Presentation and explain what its' characteristics are?

The use of long-term debt is a traditional part of the fiscal policy of state and local governments.

True or False

When a lease payment is made, an entry is made in the debt service (or appropriate governmental) fund to record an expenditure, and an entry is made in the governmental activities accounts to reduce Lease Obligations Payable.

True or False

The use of encumbrance accounting is required for debt service funds.

True or False

Debt service funds for term bonds would generally include sinking fund investments.

True or False

Governmental fund liabilities and expenditures for debt service on general long-term debt are generally recognized in the reporting period that debt payments are due.

True or False

Which of the following statements is true?

Multiple Choice

Debt margin is reported in the governmental activities column of the government-wide statements.

Debt limit represents the total amount of indebtedness of specified kinds that is allowed by law to be outstanding at any one time.

Overlapping debt is a calculation of the difference between the amount of debt limit calculated as prescribed by law and the net amount of outstanding indebtedness subject to limitation.

All of the given statements are true.

Wallace & Wallace, CPAs, audited the financial statements of West Co., a nonpublic entity, for the year ended September 30, 20X1, and expressed an unqualified opinion. For the year ended September 30, 20X2, West issued comparative financial statements. Wallace & Wallace reviewed West's 20X2 financial statements and Gordon, an assistant on the engagement, drafted the accountant's review report below. Martin, the engagement supervisor, decided not to reissue the prior year's auditor's report, but instructed Gordon to include a separate paragraph in the current year's review report describing the responsibility assumed for the prior year's audited financial statements.

Martin reviewed Gordon's draft and indicated in Martin's Review Notes that there were many deficiencies in Gordon's draft. Accountant's Review Report

We have reviewed the accompanying balance sheet of West Company as of September 30, 20X2, and the related statements of income and cash flows for the year then ended.

A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review also includes assessing the accounting principles used and significant estimates made by management, as well as, evaluating the overall financial statement presentation. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America. Our responsibility is to conduct the review in accordance with standards issued by the American Institute of Certified Public Accountants. Those standards require us to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. We believe that the results of our procedures provide a reasonable basis for our report. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements. Accordingly, the accompanying financial statements have been prepared assuming that the company will continue as a going concern. Furthermore, we have no responsibility to update this report for events and circumstances occurring after the date of this report. The financial statements for the year ended September 30, 20X1, were audited by us and we expressed an unqualified opinion on them in our report dated November 7, 20X1, but we have not performed any auditing procedures since that date. In our opinion, the financial statements referred to above are presented fairly, in all material respects, for the year then ended in conformity with generally accepted accounting principles.

Wallace & Wallace, CPAs November 6, 20X2 For each report deficiency noted by Martin, select whether (1) Martin is correct; (2) Gordon is correct; or (3) both are incorrect.

1. There should be a reference to the prior year's audited financial statements in the first (introductory) paragraph.

2. All of the current year's basic financial statements are not properly identified in the first (introductory) paragraph.

3. The standards referred to in the third (accountant's responsibilities) paragraph should not be standards issued by the American Institute of Certified Public Accountants, but should be Standards for the Compilation and Review of Financial Statements.

4. The title of the report should be Independent Review Report. The statement in the third paragraph that the accountant is required to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements should be in the introductory paragraph following the description of a review.

5. There should be a statement in the second (management's responsibilities) paragraph that describes management's responsibilities relative to internal control.

6. There should be a comparison of the scope of a review to an audit in the introductory paragraph.

7. There should be no reference to assessing the accounting principles used; significant estimates made by management; and evaluating the overall financial statement presentationin the introductory paragraph.

8. There should be a reference to "conformity with generally accepted accounting principles" in the fourth paragraph.

9. There should be a reference to consistency in the fourth paragraph.

10. There should be a restriction on the distribution of the accountant's review report in the fourth paragraph.

11. The reference to "going concern" in the fourth paragraph should be in the first paragraph.

12. The accountant's lack of responsibility to update the report in the fourth paragraph should be in the first paragraph.

13. There should be no mention of the type of opinion expressed on the prior year's audited financial statements in the fifth (separate) paragraph.

14. All of the prior year's basic financial statements are not properly identified in the fifth (separate) paragraph.

15. The reference in the fifth (separate) paragraph to the fair presentation of the prior year's audited financial statements in accordance with generally accepted accounting principles should be omitted.

16. The report should be dual dated to indicate the date of the prior year's auditor's report.

Jet Li Berhad (JLB) has built an offshore wind farm with the purpose of testing the efficiency of its prototype wind turbines. JLB has applied to the authority for approval for production of its new prototype but has only received permission to test the prototype wind turbine. The wind farm development will enable JLB to test the reliability of the new wind turbines which should assist in developing more efficient and cost effective offshore wind turbines but as yet, there has not been any commercial production of the prototype wind turbines as there is still some slight doubt over the durability of the wind turbine in extreme weather conditions. The renewable energy generated during the testing phase of the wind turbines is sold to the national regulator of electricity. There is sufficient resource to complete the wind farm project but the energy income has not been included in management’s resource planning. The Board of Directors of JLB wishes to know how the expenditure on the wind farm and the income from the sale of energy should be treated in the financial statements.

Required :

As the accountant of Jet Li Berhad, advise the Board of Directors regarding the recognition of development costs and the income from the sale of energy in the financial statements in accordance to MFRS 138 Intangible Assets.

6) Unearned revenue is classified as

a. an asset account.

b.   a revenue account.

c. a contra-revenue account.

d.   a liability account.

7) Which of the following would not result in unearned revenue?

a. Rent collected in advance from tenants

b.   Services performed on account

c. Sale of season tickets to football games

d.   Sale of two-year magazine subscriptions

8) If an adjusting entry is not made for an accrued expense,

a. expenses will be overstated.

b.   liabilities will be understated.

c. net income will be understated.

d.   owner’s equity will be understated.