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.)

2) Terrell Corporation has the following data relating to its power usage for the first six months of the current year.

Assume usage is within the relevant range of activity.

Required:

Required information

[The following information applies to the questions displayed below.]

Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations.

Required:

1. Enter the amount of each transaction on individual items of the accounting equation. Do not determine new account balances after each transaction. (Enter the transactions in the given order. Enter reductions to account balances with a minus sign.)

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Exercise 15-7

Crawford Corporation incurred the following transactions.

Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

As auditors (or in any field) we should remain informed about current trends and issues relating to our practice. Share an existing event or trend that connects to the concepts we've covered in this lesson. For example, it may refer to management's assertions, material misstatement, reasonable assurance, or other topics relevant to the content. Provide a summary, as well as an analysis of the situation and an explanation of how it relates to our studies. In your response, please include a link to an article or video about the event or trend to learn more.

Scenario

Wanda comes to you because she is discouraged and needs to talk. Her parents have heard she is thinking of expanding her business and even possibly taking out a second mortgage on her home to fund the expansion. They have never been overly supportive of her business, but as long as it seemed like a “hobby,” they didn’t have much to say. Recently Wanda’s mother called and expressed strong reservations about Wanda taking such a large step. This made a big impression on Wanda. She tells you that she doesn’t want her business to cause a rift in the family. Perhaps she should take her parents’ advice and just forget expanding the business. Moreover, she doesn’t understand why her parents aren’t as excited about the prospects for the business as she is.

For Discussion

1. Using what you know about entrepreneurs, why would Wanda’s parents not see things the way that she does? What positive characteristics of entrepreneurs is Wanda exhibiting?
2. Do you know an entrepreneur personally? If so, what characteristics do you see in entrepreneurs that you have to presume Wanda shares? If you don’t know an entrepreneur, then look to the world of business and use one about whom you can do a little research. Some examples of famous entrepreneurs are Sir Richard Branson (Virgin Wireless, Virgin Galactic), Elon Musk (Tesla), Oprah Winfrey (The “O” Brands). What characteristics do you think these famous entrepreneurs probably share with Wanda?

ACCOUNTING The assumption of financial accounting that individual companies must be separate and distinct from their owners and other entities best describes: the economic entity assumption. the going concern assumption. the fiscal period assumption. the stable dollar assumption.

partial credit, P3-48 (similar to) Marston Corporation manufactures housewares products that are sold through a network of external sales agents. The agents are paid a commission of 19​% of revenues. Marston is considering replacing the sales agents with its own​ salespeople, who would be paid a commission of 10​% of revenues and total salaries of $ 2 comma 520 comma 000. The income statement for the year ending December​ 31, 2017​, under the two scenarios is shown here. Marston Corporation Income Statement For the Year Ended December 31, 2017 Using Sales Agents Using Own Sales Force Revenues $28,000,000 $28,000,000 Cost of goods sold Variable $13,160,000 $13,160,000 Fixed 3,170,000 16,330,000 3,170,000 16,330,000 Gross Margin 11,670,000 11,670,000 Marketing costs Commissions $5,320,000 $2,800,000 Fixed costs 2,644,000 7,964,000 5,164,000 7,964,000 Operating income $3,706,000 $3,706,000 Calculate Marston​'s 2017 contribution margin​ percentage, breakeven​ revenues, and degree of operating leverage under the two scenarios. 2. Describe the advantages and disadvantages of each type of sales alternative. 3. In 2018​, Marston uses its own​ salespeople, who demand a 15​% commission. If all other cost behavior patterns are​ unchanged, how much revenue must the salespeople generate in order to earn the same operating income as in 2017​?

Explain how straight- line depreciation is computed.