Following are several figures reported for Allister and Barone as of December 31, 2018:

Allister acquired 90 percent of Barone in January 2017. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $86,000 that was unrecorded on its accounting records and had a 4-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2018, Barone sells inventory costing $145,000 to Allister for $210,000. Of this amount, 10 percent remains unsold in Allister's warehouse at year-end.

Determine balances for the following items that would appear on Allister's consolidated financial statements for 2018:

Trico Company set the following standard unit costs for its single product.

The predetermined overhead rate is based on a planned operating volume of 80% of the productive capacity of 60,000 units per quarter. The following flexible budget information is available.

During the current quarter, the company operated at 90% of capacity and produced 54,000 units of product; actual direct labor totaled 265,000 hours. Units produced were assigned the following standard costs.

Actual costs incurred during the current quarter follow.

Problem 21-4A Computation of materials, labor, and overhead variances LO P2, P3

Required:
1. Compute the direct materials cost variance, including its price and quantity variances.

AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price

2. Compute the direct labor cost variance, including its rate and efficiency variances.

AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate

3. Compute the overhead controllable and volume variances.

Select at least two of the following types of organizations and describe at least two types of standard costs they might use:

Cleaning service

Insurance agent/agency

Physician’s office

Lube and tire shop

Additionally, explain the types of direct and overhead variances each of your selected organizations might encounter. Provide an example of each.

Explain how costs change as volume changes.

Please no hand-written answers.

Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:

Required:

Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balance of Cash as of September 1, 2019.

Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger.

Prepare a schedule of accounts payable.

GENERAL LEDGER ACCOUNTS

ACCOUNTS PAYABLE LEDGER ACCOUNTS

Alaska Supply Company
Cold Mountain Clothing Company
Colorado Ski Shop
Swenson Ski Goods

Analyze:
What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.

Read the following and then thoughtfully discuss the questions.

Often airline frequent flier programs upgrade high volume passengers one, three, or five days in advance.

What are the differential costs of this practice?

What are the opportunity costs?

What are the opportunity costs of not doing this?

Would it be wise to sell a seat to a passenger walking up to the gate at the last minute a ticket based on the variable cost? Why or why not?

Use the following information to complete this exercise: sales, 850 units for $21,600; beginning inventory, 600 units; purchases, 700 units; ending inventory, 450 units; and operating expenses, $7,600. Required: 1. Complete the table for each situation. In Situations A and B (costs rising), assume the following: beginning inventory, 600 units at $10 = $6,000; purchases, 700 units at $12 = $8,400. In Situations C and D (costs falling), assume the opposite; that is, beginning inventory, 600 units at $12 = $7,200; purchases, 700 units at $10 = $7,000. Use periodic inventory procedures.

The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.50 per share on January 1, 2017. The remaining 20 percent of Devine’s shares also traded actively at $7.50 per share before and after Holtz’s acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine’s underlying accounts except that a building with a 5-year future life was undervalued by $46,500 and a fully amortized trademark with an estimated 10-year remaining life had a $76,000 fair value. At the acquisition date, Devine reported common stock of $100,000 and a retained earnings balance of $351,500.

Following are the separate financial statements for the year ending December 31, 2018:

At year-end, there were no intra-entity receivables or payables.

1. Prepare a worksheet to consolidate these two companies as of December 31, 2018.

2. Prepare a 2018 consolidated income statement for Holtz and Devine.

3. If instead the noncontrolling interest shares of Devine had traded for $5.74 surrounding Holtz’s acquisition date, what is the impact on goodwill?

The Verbrugge Publishing Company's 2018 balance sheet and income statement are as follows (in millions of dollars).

Verbrugge and its creditors have agreed upon a voluntary reorganization plan. In this plan, each share of the $6 preferred will be exchanged for one share of $2.30 preferred with a par value of $35.50 plus one 7% subordinated income debenture with a par value of $77. The $10.50 preferred issue will be retired with cash.

1. Construct the projected balance sheet while assuming that reorganization takes place. Show the new preferred stock at its par value. Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places.

   The projected balance sheet (in millions of dollars) follows:

   Current assets	$		Current liabilities	$
   Net fixed assets	$		Advance payments	$
   Goodwill	$		Reserves	$
   			Subordinated debentures	$
   			$2.3 preferred stock, $35.50 par value (1,200,000 shares)	$
   			Common stock, $1.50 par value (6,000,000 shares)	$
   			Retained earnings	$
   Total assets	$		Total claims	$

2. Construct the projected income statement. What is the income available to common shareholders in the proposed recapitalization? Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places.

   The projected income statement (in millions of dollars) follows:

   Net sales	$
   Operating expense	$
   Net operating income	$
   Other income	$
   EBIT	$
   Interest expense	$
   EBT	$
   Taxes (50%)	$
   Net income	$
   Dividends on $2.30 preferred	$
   Income available to common stockholders	$

3. Required earnings is defined as the amount that is just enough to meet fixed charges (debenture interest and/or preferred dividends). What are the required pre-tax earnings before and after the recapitalization? Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places.

   The required pre-tax earnings before recapitalization: $   million

   The required pre-tax earnings after recapitalization: $   million

4. How is the debt ratio affected by the reorganization? Round your answers to two decimal places.

   The debt ratio before reorganization:   %

   The debt ratio after reorganization:   %

   If you were a holder of Verbrugge's common stock, would you vote in favor of the reorganization? Why or why not?

   -Select-YesNoItem 28 , because (1) earnings to shareholders are -Select-increaseddecreasedItem 29 , (2) earnings required to cover fixed charges (including preferred dividends) are -Select-increaseddecreasedItem 30 , and (3) income debentures are -Select-lessmoreItem 31 risky to the shareholders than preferred stock.

In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a single product line, Nicole agreed. Nicole’s Getaway Spa (NGS) would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. NGS would keep track of its new inventory using a perpetual inventory system. On December 31, NGS purchased 20 units at a total cost of $5.30 per unit. Nicole purchased 20 more units at $7.30 in February. In March, Nicole purchased 20 units at $9.30 per unit. In May, 40 units were purchased at $9.10 per unit. In June, NGS sold 40 units at a selling price of $11.30 per unit and 50 units at $11.70 per unit.

4.value: 0.25 pointsRequired information Required: 1. State whether the transportation cost included in each purchase should be recorded as a cost of the inventory or immediately expensed. Cost of the Inventory Immediately Expensed

5.value:

2. Compute the Cost of Goods Available for Sale, Cost of Goods Sold, and Cost of Ending Inventory using the first-in, first-out (FIFO) method. (Round "Cost per Unit" to 2 decimal places.)

6.value:

4. Would a different inventory cost flow assumption allow Nicole’s Getaway Spa to better minimize its income tax?

The LIFO method would allow Nicole’s Getaway Spa to better minimize income tax. Product costs have been increasing, so LIFO will produce the highest Cost of Goods Sold, which results in the lowest Income before Income Tax Expense.

The FIFO method would allow Nicole’s Getaway Spa to better minimize income tax. Product costs have been increasing, so FIFO will produce the highest Cost of Goods Sold, which results in the lowest Income before Income Tax Expense.

The following events occurred in the newly formed company, Armidale Ltd, which was registered on 31 January 2019.

2019 Feb 1 Armidale Ltd issued a prospectus calling for applications for 600000 ordinary shares to be issued at a price of $3, payable $2 on the application, $ 50c on an allotment and the balance as and when required.

Mar. 1 Applications closed with the issue oversubscribed by $1800000. The directors allotted shares on the basis of 1 share for every 3 applied for. Excess application money was applied against amounts owing on allotment and the balance was refunded.

sept. 20 A final call on shares was made.

Oct. 20 Call money was received.

Nov. 1 Shareholders were offered a 1-for-5 rights issue at a price of $2.80, with rights to be exercised by 15 December. If rights are not exercised, they will lapse.

Dec. 15 Holders of 560000 shares exercised their rights to take up new shares in accordance with the rights issue by paying in the appropriate money to the company.

Required:

Prepare journal entries and

Ledger (T accounts) to record the events in the records of Armidale Ltd for 2016.

two more pages of elaboration to how Trumpcare and Obamacare relates to health care finance. 30 resources

Obamacare, also known as the Affordable Care Act (ACA), was passed in 2010 as a health care insurance plan for all Americans. The law made many changes to the existing minimum coverage in insurance, and increase the federal subsidies for the middle-income households of the country. Trumpcare, also known as the American Health Care Act (AHCA), is a replacement health insurance plan designed to partly repeal the existing ACA. The new healthcare bill, is one step closer to repealing . The nonpartisan Congressional Budget Office (CBO) has an estimate with ACA as the law of the land, the uninsured Americans would be 28 million will remain stable for the next decade. The analysis of an earlier version of the bill, there is an estimate of 54 million could be uninsured by 2026 in case of implementation of the AHCA. The ACA have provision to impose penalty on consumers who can afford to buy health insurance but do not do so, known as the individual mandate payment. it’s paid when you file your federal tax return. This penalty can be either 2.5% of   income up to the total yearly premium or $695 per person up to $2,085, whichever is higher. AHCA eliminates the individual mandate and offers an incentive to consumers who maintain insurance coverage: insurance companies can charge a 30% penalty who buy health insurance after had a gap in required coverage exceeding 63 days. The 30% penalty would apply for 12 months. The ACA requires that all major health policies sold to consumers offer coverage for 10 categories of essential health benefits: Outpatient services, Emergency services , Maternity and newborn care, Hospitalization. Prescription medication , Mental health and substance abuse services, Laboratory services. Pediatric services, Rehabilitation services, including vision and oral. Preventative, wellness, and chronic disease management services. The AHCA eliminates these protections by giving a waiver to define what they consider essential health benefits. States could allow insurance companies to sell plans that do not cover prescription drugs or maternity care. The ACA and AHCA have the same rules for newborns. A baby can be added to family existing health insurance plan or can buy a new plan to give cover the baby. AHCA is making major changes in the health insurance by reducing the requirements and making change in the structure of total offered government subsidies. On the analysis, the CBO has reported the current changes would make health insurance more affordable for few customers. Obamacare: The ACA increased Medicare taxes for the households having incomes above $250,000. The legislation gave some tax credits to middle-income earners to help them pay out-of-pocket health expenses. The AHCA repeals taxes of previous insurance plan. It was mandatory for the companies employing more than 50 employees to offer health insurance or pay a penalty. Trumpcare: The mandatory insurance of employees and penalty has been repealed under Senate plan. Insurance for dependents under 26 (Obamacare) : It requires insurer that the children under the age of 26 are allowed to be covered under the parent's policy. Trumpcare: Well this requirement is not repealed by trump care. Trumpcare: Pre-existing condition coverage (Obamacare):The insurer is prohibited from denying  coverage or charging more to individuals who have pre-existing medical conditions. Trumpcare: Gives states the ability to opt-out of requirements that insurers charge the same premiums for healthy and sick customers. Women care (Obamacare): It is mandatory for the insurance companies to provide core services including maternity care and contraceptives and the insurance companies are prohibited from charging women more than men for the same health plan. Planned Parenthood receives federal funding for family planning and other medical services used by Medicaid recipients. Abortion cannot be funded with federal dollars. Trumpcare: Insurance companies prohibited from charging women more for health insurance, but states could apply for waivers that allow them to drop coverage for maternity care and contraceptives. The bill also bans women from using government money to buy plans that covers abortion and ends non-abortion Medicaid reimbursement to Planned Parenthood, a non-profit group that provides abortion services in some of its clinics, for one year. Older Americans (Obamacare):The insurer are not allowed to charge the older Americans more than three times the cost for younger Americans. Trumpcare: States can receive waivers to allow them to charge older Americans more. Insurance marketplaces (Obamacare) : The Obamacare marketplaces, such as HealthCare.gov, enable people who don't get health benefits at work to compare plans, just as they might compare hotel rooms or airline tickets online. All plans on the marketplaces must offer a basic set of benefits, such as hospital care, mental health services and prescription drugs. Trumpcare: Under both the House and Senate bills, it is unclear how the marketplaces would work because insurers might potentially offer health plans that do not offer the same set of benefits.

The board of directors of Let’s Eat, Inc., a large food and beverage manufacturer, asks a CFE Certified Fraud Examiner (CFE) to investigate a potential bribery scheme involving one of its senior managersVice-Presidents, Marshall Smith. Mr. Smith recently contracted with a relief organization to supply food and water to a region of the world that was devastated by a massive earthquake. The board suspects that Let’s Eat is paying bribes to get the supplies into the region, and it wants the CFE to look into the matter and report back. The CFE interviews Mr. Smith, who explains that he accepted the contract with the relief organization as a charitable effort, and that he expects to break even on the contract. He also tells the examiner that the drivers who deliver the supplies are given cash to keep with them so that when they are stopped by the local militia, they can pay whatever is demanded and continue their mission. Smith says that these special payments are a cost of doing business. He also mentions that in the past, drivers without cash were murdered. The CFE is sure that none of the money is flowing back to Mr. Smith, whose only motive is to get the supplies delivered. Also, the operation is expected to be completed within the next few months. The CFE considers whether he should report the special payments to the board or keep silent.

Please answer the following questions about this case:

What harm might be done to the relief agency if the examiner CFE were to report the special payments to the board?

What might the consequences be to the earthquake victims if the examinerCFE were to report the special payments to the board?

If you were in the examiner’s CFE’s position, how would you feel if earthquake victims died from dehydration or starvation as a result of not receiving the supplies?

What good might come out of the examiner CFE reporting the special payments to the board and what harm might result if the examiner CFE overlooked the special payments?

What should legal considerations be taken into account considered by the CFE?

On January 1, 2017, Blossom Company's accounting records contained these liability accounts.

During January, the following selected transactions occurred.

During January, the company’s employees earned wages of $78,300. Withholdings related to these wages were $5,990 for Social Security (FICA), $5,593 for federal income tax, and $1,678 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. Wages or payroll tax expense have not been recorded as of January 31.

Bal

Jan 1

Jan 5

Jan 12

Jan 14

Jan 20 Adj.

Jan 31

Jan 31

Jan 31

Bal