Continuous assurance auditing will send signals or messages deviated from an audit limit or parameter to internal auditors. What auditing standards and methods are necessary to ensure the effectiveness and efficiency of continuous auditing services?

use execl and show me how

The following is a payroll sheet for Otis Import Company for the month of September 2017. Selected information follows.                                                                                                                               

nemployment compensation rate allowed by the state   1.00%,Unemployment compensation rate for the federal government 0.80%,Maximum wages for unemployment for federal and state governments$7,000 Federal income tax rate for all employees 10%,FICA tax on employee and employer7.65Maximum wages for FICA tax $118,500 Employer and employee rate for an employee’s excess wages 1.45%,Maximum wages per employee to avoid the excess wages charge $118,500

(a)          Complete the payroll sheet and make the necessary entry to record the payment of the payroll.                                                                                                 

(b)          Make the entry to record the payroll tax expenses of Otis Import Company.                                         

(c)           Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.                                                                                                         

Problem 5-22 CVP Applications; Contribution Margin Ratio; Break-Even Analysis; Cost Structure [LO5-1, LO5-3, LO5-4, LO5-5, LO5-6]

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below:

Required:

1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales.

2. The president believes that a $7,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $88,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company’s monthly net operating income?

3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $40,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)?

4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by 0.50 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,200?

5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $55,000 each month.

a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales.

b. Assume that the company expects to sell 20,900 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.)

c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,900)?

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 960,000 Variable expenses 480,000 Contribution margin 480,000 Fixed expenses 160,000 Net operating income $ 320,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. If this year's sales increase by $58,000 and fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's sales to increase by 16%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize this year? 5. The sales manager is convinced that a 11% reduction in the selling price, combined with a $77,000 increase in advertising, would increase this year's unit sales by 25%. a. If the sales manager is right, what would be this year's net operating income if his ideas are implemented? b. Do you recommend implementing the sales manager's suggestions? 6. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $2.10 per unit. He thinks that this move, combined with some increase in advertising, would increase this year's sales by 25%. How much could the president increase this year's advertising expense and still earn the same $320,000 net operating income as last year?

Problem 18-3 Reacquired shares-comparison of retired shares and treasury shares [LO18-5]

National Supply’s shareholders’ equity included the following accounts at December 31, 2017:

Required:
1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock.

2. Prepare the shareholders’ equity section of National Supply’s balance sheet at December 31, 2020, assuming the shares are (a) retired and (b) accounted for as treasury stock. Net income was $16 million in 2018, $18 million in 2019, and $20 million in 2020. No dividends were paid during the three-year period.

The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.

Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system.

Additional Information:

1. Store supplies still available at fiscal year-end amount to $1,800.
2. Expired insurance, an administrative expense, for the fiscal year is $1,500.
3. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year.
4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,800 of inventory is still available at fiscal year-end.

Required:

1. Using the above information prepare adjusting journal entries:
2. Prepare a multiple-step income statement for fiscal year 2017.
3. Prepare a single-step income statement for fiscal year 2017.

Discuss the different inventory accounting methods that are used (and allowable) in GAAP. How do they differ from one another? Why would you choose one over another? Choose a sample company, identify which method they use, and explain why.

On January 1, 2019, Marshall Company (MC) signs a 10-year agreement to lease a standard non-specialized storage building from Hammer, Inc. The following information pertains to this lease agreement: a. The agreement requires rental payments of $120,000 at the beginning of each year. b. The carrying value of the building on January 1, 2019 is $2 million. c. The fair value of the building on January 1, 2019 is $2.5 million. d. The building has a remaining estimated economic life of 50 years, with no residual value. Hammer depreciates similar buildings using the straight-line method. e. The lease does not contain a renewable option clause. At the termination of the lease, the building reverts to the lessor. f. MC’s incremental borrowing rate is 14% per year. Hammer has set the annual rental payments to ensure an 11% rate of return (this rate is disclosed in the lease agreement). g. Executory costs are $25,000 annually, related to taxes on the property and maintenance, and will be paid by Hammer on October 1 each year. h. Both entities have fiscal year-ends on December 31 and have adopted ASC 842. Instructions a) List each Group I lease classification criteria and determine the appropriate lease accounting treatment for both MC and Hammer. b) Provide journal entries for both MC and Hammer in 2019

1) which balance day adjustments are classified as current liabilities in the balance sheet ?

2) cartage outwards is transferred to what ledger account in the balance sheet?

Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $382,500 of manufacturing overhead for an estimated allocation base of 850 direct labor-hours. The following transactions took place during the year:

1. Raw materials purchased on account, $300,000.
2. Raw materials used in production (all direct materials), $285,000.
3. Utility bills incurred on account, $79,000 (80% related to factory operations, and the remainder related to selling and administrative activities).
4. Accrued salary and wage costs:

5. Maintenance costs incurred on account in the factory, $74,000
6. Advertising costs incurred on account, $156,000.
7. Depreciation was recorded for the year, $92,000 (80% related to factory equipment, and the remainder related to selling and administrative equipment).
8. Rental cost incurred on account, $117,000 (85% related to factory facilities, and the remainder related to selling and administrative facilities).
9. Manufacturing overhead cost was applied to jobs, $ ? .
10. Cost of goods manufactured for the year, $970,000.
11. Sales for the year (all on account) totaled $2,200,000. These goods cost $1,000,000 according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were:

Required:

1. Prepare journal entries to record the preceding transactions.

2. Post your entries to T-accounts. (Don’t forget to enter the beginning inventory balances above.)

3. Prepare a schedule of cost of goods manufactured.

4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.

4B. Prepare a schedule of cost of goods sold.

5. Prepare an income statement for the year.

Data Performance, a computer software consulting company, has three major functional areas: computer programming, information systems consulting, and software training. Carol Bingham, a pricing analyst, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. In computing these costs, Carol is considering three different methods of the departmental allocation approach to allocate overhead costs: the direct method, the step method, and the reciprocal method. She assembled the following data from the two service departments, information systems and facilities:

(Round percentage calculations to 4 decimal places (e.g., 33.3333%). For all requirements, Do not round your intermediate calculations. Round your final answers to nearest whole dollar amount.)

Required:

1. Using computer usage time as the allocation base for the information systems department and square feet of floor space as the application base for the facilities department, apply overhead from these service departments to the production departments, using these three methods:

a. Direct method.

b. Step method (both for the information systems department going first and for the facilities department going first).

c. Reciprocal method.

This is how the answer is supposed to be set up:

Jane buys men’s sportshirts. She is in the process of estimating her June and July open to buy. As of June 10, she has actual stock on hand of $1,543,768. Jane’s area has had sales of $235,333 (against total June planned sales of $638,950). Total June markdowns of $25,238 (out of a plan of $75,862) have also been taken. The current on-order for June is $115,338, of which Jane expects that $15,000 will not arrive until July. Likewise, of the July on order of 20,432 she expects $12,000 to arrive in June. The June EOM plan is $1,210,562. Before calculating her OTB Jane decides that, if she is overbought, she will return $36,000 worth of knit shirts to one of her vendors for credit.

The July sales plan is $433,985 while the July markdown budget is $65,666. She expects $2,000 of the July on order to be past due. Likewise, she expects that $3,000 of the August on-order will arrive in July. The July EOM plan is $722,500.

Use the attached OTB worksheet to estimate Jane’s total open-to-buy for June and July.

                               Table 8

         Estimated OTB for the Month of                                

            Table 9

         Estimated OTB for the Month of