Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $700,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $800,000, which includes interest revenue of $21,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%. Prepare the journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

La Femme Accessories Inc. produces women's handbags. The cost of producing 1,240 handbags is as follows: Direct materials $14,300 Direct labor 8,500 Factory overhead 6,000 Total manufacturing cost $28,800 The selling and administrative expenses are $28,900. The management desires a profit equal to 14% of invested assets of $496,000. If required, round your answers to nearest whole number. a. Determine the amount of desired profit from the production and sale of 1,240 handbags. $ b. Determine the product cost per unit for the production of 1,240 handbags. $ per unit c. Determine the product cost markup percentage for handbags. % d. Determine the selling price of handbags. Round your answers to nearest whole value. Cost $ per unit Markup $ per unit Selling price $ per unit

When are consolidation targets inappropriate as they give those involved in business nothing to aim for? Discuss in 80 to 100 words.

Comment on whether or not ‘Grow the business as much as possible’ is an appropriate budget target. If not, redraft it so it would be suitable to enable ongoing monitoring of financial performance.

Which of the following procedures is the auditor least likely to perform when an auditor decides to use the work of an auditor's specialist as audit evidence?

a. Obtain knowledge of the specialist's qualifications.
b. Refer to the auditor's specialist in the audit report to indicate a division of responsibility.
c. Review the working papers of the auditor's specialist.
d. Inquire of the entity and the auditor's specialist about any known interests that the entity has with the auditor's external specialist that may affect that specialist's objectivity.

Boxcom Company had a total bi-weekly payroll of $ 90,000. The entire payroll was subject to CPP (4.95%), EI (1.66%), and income tax withholdings of $ 11,880. Union dues of $ 1,125 and Health insurance premiums of $ 2,850 were also withheld. Boxcom will match employee CPP and 1.4 times employees EI

Instructions                                            

1. Prepare the journal entries to record the employee wages/salaries and payroll deductions
2. Prepare the journal entries to record the employer payroll contributions   
3. Prepare the journal entries to record the remittance to the Receiver General (Canada Revenue Agency)

On January 1, 2017 Pioneer Co. issued $550,000 of 5 year 12% bonds for $592,468 yielding a market rate of 10%. Interest is payable semiannually on June 30 and December 31.

a) Confirm the bond issuance price and show your work.

b) Why are two different present value tables used to price the bond?

c) Is this bond issuing at a discount, premium or par? Explain your answer.

d) Create your own amortization table. The table should show the carrying value at January 1 as the first row. Include 2 full years of interest payments. Refer to the videos and text for amortization table examples.

e) Record the following entries on the included Financial Statement Impact Template. a. Jan 1, 2017 bond issuance b. June 30, 2017 interest payment c. Dec 31, 2017 interest payment

f) This company chose to issue a bond as means to raise capital. Identify two reasons a company may choose this type of financing.

Headquartered in Montreal, Canada, Valeant Pharmaceuticals International is a multinational company that develops and markets prescription and non-prescription products in dermatology and neurology. The company is listed both on the NYSE and Toronto Stock Exchange. Its 2015 Income Statement reported the following line item.

$Millions 2015 2014 2013

Loss of Extinguishment debt------------------ $20.0 $129.6 $65.0

a) What is a ‘Loss of extinguishment of debt’? When does such a loss occur?

b) How is this loss calculated?

c) How does this loss impact the financial statements?

d) Why might management want to retire this debt early, even if it was at a loss?

A Belgium subsidiary's beginning and ending trial balances appear below:

Exchange rates ($/€) are:

The subsidiary was acquired at the beginning of the year. Its sales, inventory purchases, and out-of-pocket selling and administrative expenses occurred evenly during the year. Equipment was purchased for €10,000 when the exchange rate was $1.23. Depreciation for the year includes €200 related to the equipment purchased during the year. The ending inventory was purchased at the end of the year, and the beginning inventory was purchased at the end of the previous year.

If the subsidiary's functional currency is the U.S. dollar, what is the remeasurement gain or loss for the year?

Mosaic’s Company balance sheet at December 31, 2018, reported the following:

Accounts receivable...........................................$2,500,000

Allowance for uncollectible accounts...................$66,600

The following are the transactions to be taken into consideration for 2019:

a. Total credit sales for 2019 were $3,600,000.

b. 2% of sales were estimated to be uncollectible.

c. The company received cash payments on account during 2019 for $1,000,000

d. Accounts receivable identified to be uncollectible totaled $94,000.

e. December 31, 2019, aging of receivables indicates that $75,000 of the receivables is uncollectible.

Requirements:

1. What was the net realizable value of the receivables as at December 31, 2018?

2. Prepare the journal entries for the company’s 2019 transactions.

3. Prepare the Accounts receivable and the Allowance for uncollectible Accounts T-accounts based on the information presented above. (Note: The opening balances and the transactions from the journal entries must be recorded in their respective accounts)

4. What is the net realizable value of receivables as at December 31, 2019? (Show workings)

Buzz Appliances manufactures two​ products: Food Processors and Espresso Machines. The following data are​ available:

The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The​ company's production capacity is

1 comma 7001,700

machine hours per month.The company has demand of

2 comma 1002,100

espresso machines. How many espresso machines and food processors should they produce based on demand and available machine​ hours?

A.

700700

espresso machines and

2 comma 0002,000

food processors

B.

2 comma 1002,100

espresso machines and

1 comma 0001,000

food processors

C.

700700

espresso machines and

1 comma 0001,000

food processors

D.

2 comma 1002,100

espresso machines and 0 food processors

Choose a business idea in which you are interested. Prepare a six-month cash projection based on your best guess of likely cash inflows and outflows. Create a detailed table which specifies the anticipated cash receipts and payments. Provide details of the projected monthly cash balance.

1. What is the primary objective of obtaining an understanding of the company's objectives, strategies, and related business risks in a financial statement audit?

a. Determine whether sufficient objectives have been created.

b. Identify suggestions for addressing the risks.

c. Provide a basis for issuing an opinion the financial statements.

d. Identify risks that may result in material misstatement of financial statements.

Journal Entries, T-Accounts

Ehrling Brothers Company makes jobs to customer order. During the month of July, the following occurred:

1. Materials were purchased on account for $45,760.
2. Materials totaling $40,980 were requisitioned for use in producing various jobs.
3. Direct labor payroll for the month was $22,400 with an average wage of $14 per hour.
4. Actual overhead of $8,860 was incurred and paid in cash.
5. Manufacturing overhead is charged to production at the rate of $5.40 per direct labor hour.
6. Completed jobs costing $58,000 were transferred to Finished Goods.
7. Jobs costing $58,000 were sold on account for $ 73,750. Make the entry to record the revenue from the sale first, followed by the entry to record the cost of the jobs.

Beginning balances as of July 1 were:

Required:

1. Prepare the journal entries for the preceding events.

2. Calculate the ending balances of:

Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their sales.

The company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. Its predetermined overhead rate is based on a cost formula that estimated $330,000 of manufacturing overhead for an estimated activity level of $200,000 direct labor dollars. At the beginning of the year, the inventory balances were as follows:

During the year, the following transactions were completed:

1. Raw materials purchased for cash, $275,000.
2. Raw materials used in production, $280,000 (materials costing $220,000 were charged directly to jobs; the remaining materials were indirect).
3. Cash paid to employees as follows:

4. Cash paid for rent during the year was $18,000 ($13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities).
5. Cash paid for utility costs in the factory, $57,000.
6. Cash paid for advertising, $140,000.
7. Depreciation recorded on equipment, $100,000. ($88,000 of this amount related to equipment used in factory operations; the remaining $12,000 related to equipment used in selling and administrative activities.)
8. Manufacturing overhead cost was applied to jobs, $ ? .
9. Goods that had cost $675,000 to manufacture according to their job cost sheets were completed.
10. Sales for the year (all paid in cash) totaled $1,250,000. The total cost to manufacture these goods according to their job cost sheets was $700,000.

Required:

1. Prepare journal entries to record the transactions for the year.

2. Prepare T-accounts for each inventory account, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don’t forget to enter the beginning balances in your inventory accounts).

3A. Is Manufacturing Overhead underapplied or overapplied for the year?

3B. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.

4. Prepare an income statement for the year. (All of the information needed for the income statement is available in the journal entries and T-accounts you have prepared.)