Assume that McKinley Electronics completed these selected transactions during March 2016​:

a. Sales of $ 2, 400, 000 are subject to estimated warranty cost of 5%. The estimated warranty payable at the beginning of the year was $ 36, 000, and warranty payments for the year totaled $ 53, 000.

b. On March 1, McKinley Electronics signed a $ 45, 000 note payable that requires annual payments of $ 9, 000 plus 6% interest on the unpaid balance each March 2.

c. Jacob, Inc., a chain of discount stores, ordered $ 145, 000 worth of wireless speakers and related products. With its order, Jacob, Inc., sent a check for $ 145, 000 in advance, and McKinley shipped $ 70 ,000 of the goods. McKinley will ship the remainder of the goods on April 3, 2016.

d. The March payroll of $ 300, 000 is subject to employee withheld income tax of $ 30,000 and FICA tax of 7.65%. On March 31, McKinley pays employees their take-home pay and accrues all tax amounts.

Select the statement account and label - Current Liabilities or Long - term Liabilities.

Calculate each​ accounts' balance and the total current liability amount at March 31​, 2016. ​(For the FICA​ tax, be sure to include both the employer and employee share of the tax. Round all amounts to the nearest whole dollar. If a box is not used in the table leave the box​ empty; do not select a label or enter a​ zero.)

What type of costing information could be relevant when preparing a profit and loss statement?

I need an explanation of the correct answer in 150 words at least.

Which of the following types of payments made by a private organization would be subject to all statutory deductions?

a) Signing bonus

b) Death benefits

c) Directors' fees

d) None of the above

Mannon Company’s accountant exclaimed, “Our cost accounting system allocates overhead based on direct labour hours, but our overheads cost appear to be more related to setup activities than to the use of direct labour. It seems as though our costing system allocates too much cost to large batches of product and not enough cost to small batches. Explain what she means.

Exercise 15-3

A job order cost sheet for Ryan Company is shown below.

(a) On the basis of the foregoing data, answer the following questions.

(1) What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job?

(2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year? (Round answers to 0 decimal places, e.g. 55%.)

(b) Prepare summary entries at January 31 to record the current year’s transactions pertaining to Job No. 92. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Q1 Which of the following taxes is not deductible?

Select one:

a. Goods and Services Tax

b. None of the answers are correct

c. Payroll tax

e. Fringe Benefits Tax

Which of the following amounts is fully deductible?

Select one:

b. Regular giving of $50 per week to the local church

d. A gift of $4,000 to a political party

e. A gift of $3,000 cash to a Deductible Gift Recipient

Q3 Which of the following transactions is fully deductible?

Select one:

a. An allowance for doubtful debts of $6,000

d. None of the answers are correct

e. A bad debt of $880 including GST (relates to sales not previously included as assessable income)

these questions is about chapter 9 of prepare tax documentation for individuals and this chapter will be determine amounts deductible under specific provision of the ACT

- specific deductions under section 8-5   

- tax related expenses

- repairs

-lease document expense

- borrowing expense

-mortgage discharge expense

- bad debit

1. HK Limited has 100 employees. Each employee earns two weeks of paid vacation per year. Vacation time not taken in the year earned can be carried over to two calendar years. Paid leave is first taken out of the balance brought forward from the previous year and then out of the current year’s entitlement (a FIFO basis). During 2019, 30 employees took both weeks’ vacation, but at the end of the year, 70 employees had vacation time carryover as follows:

During 2019, the average salary for employees is $5,000 per week.                       

2. The profit sharing plan requires HK Ltd. to pay 2% of its net profit to its two directors, Mr. Yau Wen and Ms. Shally Tin. The net profit for 2019 is $3,500,000. Mr. Wen will receive the bonus six months after the end of 2019, whereas Ms. Tin would be paid on July 2021 since she joined the company in March of 2019.                     

3. HK Ltd. agrees to pay a fixed contribution of 5% of employees’ salary to a retirement plan, subject to a cap of $1,250 per month for each employee. The contribution is paid monthly on or before the 10th of the following month. Out of the 200 employees, 160 employees earn an average monthly salary of $20,000.   The remaining employees earn more than $35,000 per month.   

Required:

Classify the nature of the employee benefit(s) above and explain the accounting treatment (provide journal entries if necessary)

Explain what is meant by product/ service standards and best practice models. (200–250 words)

If you identified a need for changes/ improvements to customer service strategies, to whom would you report this and in what format might the report be made? (30–50 words)

To whom should customer feedback be disseminated and why? (120–150 words)

Is it possible for an organisation to provide excellent customer service without every employee having a job they feel makes a real contribution? Explain your answer. (50–100 words)

We should encourage our customers to complain! In a paragraph of at least 250 words, explain what this statement means, how it should be applied, why it should be applied and why a policy of encouraging customer complaints would benefit your organisation, or indeed, any other organisation.

Sunny Ltd., a hand sanitizer manufacturer, has prepared its financial statements for the year ended at December 31, 2019. On February 28, 2020, the board of directors authorized to issue the financial statements to shareholders. The following events have occurred:

1. On December 1, 2019, the board of directors decided to issue $50,000,000, 9% convertible bonds for the purpose of expanding business in other countries. The conversion rate is fixed at 50 shares for bond with face value of $1,000. The convertible bonds are offered to the public on January 15, 2020. The market interest rate for a similar bond without conversion option is at 12%.                                                                                       [3 marks]

2. On October 23, 2019, Sunny signed a contract to sell 10,000 hand sanitizer to a local store at a price of $200 each. However, due to the increase in the cost of materials, the estimated cost of making one hand sanitizer has been increased to $250. Sunny has to deliver the hand sanitizer to its customer on January 30, 2020.                                                      [4 marks]

3. Under the terms of the sales contract, Sunny undertakes to recall its new formulated sanitizer, for its manufacturing defects within six months from the date of sale. The accountants estimated that 5% of the sanitizer will be returned for refund. In January 2020, Sunny discovered a serious problem in the manufacturing process of the new formulated sanitizer. Because of this, Sunny expected that 20% of the sanitizer sold in 2019 will be returned for refund.        [4 marks]

4. On December 15, 2019, a group of customers reported that the hand sanitizer that they bought in 2019 caused them have serious skin infection problems. They filed a lawsuit against Sunny on December 20, 2019. The company’s attorney said that it was probable that Sunny would be liable for the case. However, the amount of damage could not be estimated. [4 marks]

5. On February 12, 2020, the above lawsuit case was settled for the amount of $2,500,000.                                                                                                    [4 marks]
6. Sunny has retail stores in China doing poorly. On February 15, 2020, Sunny estimated that those stores might report a loss of $1,500,000 in 2020.                                       [4 marks]

7. In May 2019, Sunny had legal disputes with Coco Limited. Unable to reach out-of-court settlement with Coco, Sunny sued Coco for compensation for damages in August 2018. In November 2019, Sunny heard good news about the lawsuit in which the company sued Coco. Sunny’s lawyer is confident that the company will win the case and will receive about $120,000 in compensation for damages from Coco in early 2020. Sunny recognized the gain and receivable from litigation of $120,000 in year 2019.                                       [4 marks]

8. On March 1, 2020, a customer owing $600,000 to Sunny filed for bankruptcy. The financial statements include an allowance for doubtful debts pertaining to this customer only of $30,000. [3 marks]

Required:

For each of the above event, state the correct accounting treatments in accordance with Hong Kong Accounting Standards for the year ended at December 31, 2019. If it is an event after the reporting period, identify whether it is an adjusting or non-adjusting event. Give reasons for your answer.

You have been asked by senior management to report on changing customer needs and to compare changes in customer satisfaction. Explain how you would go about doing this, how you would access the necessary data and the reporting procedures you should follow. (300–350 words)