Questions
Auditing Please answer with example A) What is the limitations of external audit. B) What is...

Auditing
Please answer with example
A) What is the limitations of external audit.
B) What is the five fundamental principles as well as threats.? You should be able to explain not just writing in points else no full marks

In: Accounting

DEF Company incorporated on January 1, 2018 after receiving authorization to issue 5,000 shares of $100...

DEF Company incorporated on January 1, 2018 after receiving authorization to issue 5,000 shares of $100 par value preferred stock and 500,000 shares of $10 par value common, with the former having a 10% cumulative dividend feature. During fiscal 2018, the company engaged in the following equity transactions: January 1 Issued 500 shares of preferred stock for $120 each. January 1 Issued 10,000 shares of common stock for $25 each. June 30 Bought 1,000 shares of common stock for the treasury at $30 each. December 31 Declared the preferred stock dividend and a $1.00 per-share dividend on the common. DEF’s fiscal 2018 comprehensive income consisted of the following: sales revenue of $2,500,000, cost of goods sold of $1,600,000, operating expenses of $300,000, income taxes of $215,000, and $40,000 of other comprehensive income from a transaction not subject to income tax.

Required—Prepare in good form each of the following: DEF’s fiscal 2018 statement of stockholders’ equity.

In: Accounting

Exercise 16-22 Net operating loss carryback and carryforward [LO16-7] Wynn Sheet Metal reported an operating loss...

Exercise 16-22 Net operating loss carryback and carryforward [LO16-7]

Wynn Sheet Metal reported an operating loss of $180,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 40%. Taxable income, tax rates, and income taxes paid in Wynn’s first four years of operation were as follows:

Taxable
Income
Tax
Rates
Income Taxes
Paid
2014 $ 70,000 30 % $ 21,000
2015 80,000 30 24,000
2016 90,000 40 36,000
2017 70,000 45 31,500


Required:
1. Complete the following table given below and prepare the journal entry to recognize the income tax benefit of the operating loss. Wynn elects the carryback option.
2. Show the lower portion of the 2018 income statement that reports the income tax benefit of the operating loss.

In: Accounting

Dove Company charged various expenditures made during 2018 to an account called "Repairs and Maintenance Expense."...

Dove Company charged various expenditures made during 2018 to an account called "Repairs and Maintenance Expense." You have been asked by the internal audit committee to review each expenditure to determine whether (or not) each should be included in the Repairs and Maintenance Expense account. Here are the items currently included in the R & M Expense account: 1. Yearly engine tune-up and oil change for the company's 6 delivery trucks, $660. 2. Rearrangement of the machinery on the main production line, $10,000. (This type of rearrangement is done every four years.) 3. Installation of new aluminum siding on the manufacturing plant, $52,000. (This siding replaces wood siding and is expected to last 20 years.) 4. Purchase of two new forklifts to be used in the storeroom and loading dock, $13,500. (Each has a useful life of 10 years.) 5. Repairs on the air conditioning system, $3,450 that will not last more than the current year. (Dove plans to put in a new system in early 2019.) Required: a. For each of the expenditures listed above, indicate whether the expenditure is properly charged to the repair and maintenance account. If so, write "Properly charged to R & M Expense" next to the item number. If not, indicate where the item should be charged and why. b. Cite all textbook (and other) sources you used in making your decision. You should have a source listed for each of the five items, including page numbers.

In: Accounting

Which of the following is NOT a method used by firms to speed up cash collection?...

Which of the following is NOT a method used by firms to speed up cash collection? Question 5 options: Using lockboxes to collect payments. Move funds to the primary bank using electronic depository transfer. Use wire transfers. Use remote disbursement, that is third parties pay Accounts Payable.

In: Accounting

Bonita, Inc. had the following equity investment portfolio at January 1, 2017. Evers Company 960 shares...

Bonita, Inc. had the following equity investment portfolio at January 1, 2017.

Evers Company 960 shares @ $14 each $13,440
Rogers Company 880 shares @ $20 each 17,600
Chance Company 520 shares @ $10 each 5,200
Equity investments @ cost 36,240
Fair value adjustment (7,300 )
Equity investments @ fair value $28,940


During 2017, the following transactions took place.

1. On March 1, Rogers Company paid a $2 per share dividend.
2. On April 30, Bonita, Inc. sold 320 shares of Chance Company for $11 per share.
3. On May 15, Bonita, Inc. purchased 100 more shares of Evers Company stock at $17 per share.
4. At December 31, 2017, the stocks had the following price per share values: Evers $18, Rogers $19, and Chance $9.


During 2018, the following transactions took place.

5. On February 1, Bonita, Inc. sold the remaining Chance shares for $9 per share.
6. On March 1, Rogers Company paid a $2 per share dividend.
7. On December 21, Evers Company declared a cash dividend of $3 per share to be paid in the next month.
8. At December 31, 2018, the stocks had the following price per share values: Evers $20 and Rogers $21.

Prepare journal entries for each of the above transactions.

In: Accounting

Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand....

Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below:

   

Quarter
   First Second Third Fourth
Direct materials $ 320,000 $ 160,000 $ 80,000 $ 240,000
Direct labor 160,000 80,000 40,000 120,000
Manufacturing overhead 230,000 206,000 194,000 ?
Total manufacturing costs (a) $ 710,000 $ 446,000 $ 314,000 $ ?
Number of units to be produced (b) 120,000 60,000 30,000 90,000
Estimated unit product cost (a) ÷ (b) $ 5.92 $ 7.43 $ 10.47 $ ?

Management finds the variation in quarterly unit product costs to be confusing and difficult to work with. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product.

Required:

1. Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter?

2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter?

3. What is causing the estimated unit product cost to fluctuate from one quarter to the next?

4. Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year.

In: Accounting

Fill out the summary of T-Accounts for 1. Revenue and Expenses (Temporary Income Statement Accounts)       ...

Fill out the summary of T-Accounts for

1. Revenue and Expenses (Temporary Income Statement Accounts)

       -Includes: Sales and Service Revenue, Costs of Goods sold, Wages Expense, Insurance Expense, Rent Expense, Depreciation Expense.

2. Assets (Permanent Balance Sheet Accounts)

      -Includes: Cash, Inventory, accounts receivable, prepaid insurance, equipment, accumulated depreciation, prepaid rent.

3. Liabilities and Equities (Permanent Balance Sheet Accounts)

      -Includes: Accounts payable, unearned revenue, wages payable, common stock, retained earnings

4. What are the total Assets?

5. What are the total Liabilities & Shareholder's Equity?

    Note: Total assets and Liabilities + Shareholders equity should balance.

  1. Jan. 1: Log issued $40,000 of common stock.
  2. Jan. 1: Log paid $18,000 cash to purchase an equipment. The equipment has an estimated useful life of 5 years and an estimated salvage value of $3,000.
  3. Jan. 1: Log paid $7,000 cash for two years of insurance coverage starting on Jan. 1, 2020.
  4. March 1:Log rented a building and paid $2,400 for one year’s rent (starting 3/1).
  5. April 1: Log purchased $5,700 of inventory on account.
  6. June 1:Log sold $23,000 of software on account. The cost is $3,500.
  7. Sept. 1: Log collected $7,000 cash from its customers for the previous sales on account.
  8. Oct 31: Log paid $5,000 cash for employee wages earned during the first ten months (Jan 1 to October 31, $500 per month).
  9. Nov 1: Log paid $3,300 cash to suppliers for inventory purchases made on account.
  10. Dec 1: Log started an on-line service where customers pay an annual subscription fee when they sign up for a 12-month service plan. On Dec. 1, Log received $3,600 of cash from customers for one year of subscription fees (for online services from Dec 1, 2020 to Nov 30, 2021).

Additional Info:

-Xenon uses Straight Line Depreciation

-Two months of employee wages was accrued on Dec. 31, 2020. Xenon plans to pay employees Jan. 1 2021

In: Accounting

Companies can gain efficiencies by implementing effective ongoing monitoring of their internal control processes. Identify the...

Companies can gain efficiencies by implementing effective ongoing monitoring of their internal control processes. Identify the important onging monitoring procedures that an organization might use in assessing its controls over revenue recognition in each of the following situations:

a. A convenience store such as 7-Eleven

b. A chain restaurant such as Olive Garden

c. A manufacturing division of a larger company that makes rubberized containers for the consumer market

In: Accounting

1. Describe three of the biases or types of framing and make up an example of...

1. Describe three of the biases or types of framing and make up an example of how each might impact an investment decision.

2. If markets are efficient, how is it possible that market bubbles and crashes occur?

In: Accounting

Q1: The managing director of a consulting group has the following monthly data on total overhead...


Q1: The managing director of a consulting group has the following monthly data on total overhead costs and professional labor hours to bill to clients
Overhead Costs
$365,000 $400,000 $430,000 $477,000 $560,000 $587,000
Billable Hours
3,000 4,000 5,000 6,000 7,000 8,000
A) Develop a trendline to identify the relationship between billable hours and overhead cost
B) Interpret the coefficients of your regression model. Specifically, what does the fixed component of model mean to the consulting firm?
C) If a special job require 1,000 billable hours that would contribute a margin of $38,000 before overheads was available, would the job be attractive ?

Q2: See solution attached for the question below it is the spreadsheet
Using the data in the Excel file Credit Card Spending, develop a multiple linear regression model for estimating the average credit card expenditure as a function of both the income and family size.
A) Predict the average expense of a family that has two members and an income of $188,000 per annum, and
B) Another that has three members and an income of $39,000 income per annum.

Describe in words what it is occuring?
I.e. describe method and use add-in excel to solve the problem. You may append the screen shots of menu utilizing the Add-In. Name the add-ins

In: Accounting

Getty Company expects sales for the first three months of next year to be $195,000, $265,000...

Getty Company expects sales for the first three months of next year to be $195,000, $265,000 and $315,000, respectively. Getty expects 50 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent in the month of the sale and 90 percent in the following month. Compute a schedule of Getty’s cash receipts for the months of February and March.

In: Accounting

Using the Microsoft Excel, kindly prepare a cost production report for Department I and Department II...

Using the Microsoft Excel, kindly prepare a cost production report for Department I and Department II using the Weighted Average Method.

Paper Needs Inc, has the following production data for the month of June 20xx.

DEPARTMENT I DEPARTMENT II
QUANTITY SCHEDULE Units Percentage of completion Units Percentage of completion
Work-in process, beginning 15,000 2/3 complete    9,000 1/3 complete
Transferred to next department 30,000 ?
Work-in process, end    5,000 2/5 complete    8,000 7/8 complete
COST ANALYSIS DEPARTMENT I DEPARTMENT II
Work-in process, beginning
Cost from preceding department
Costs from this department
Materials ₱16,290 ₱7,992
Labor                             6,630                          3,996
Overhead                             2,100                          2,664
Costs added this month
Materials ₱21,720 ₱61,272
Labor                           14,618                        46,620
Overhead                             5,068                        31,080

In Department I, all materials are added at the start of the process, while labor and overhead are applied evenly throughout the process.

In Department II, 50% of materials are added at the start of the process and the balance is added when the process is ¾ completed. Conversion costs are applied uniformly to the process.

In: Accounting

ABC company which is based in the US,sells product X and has reported a revenue of...

ABC company which is based in the US,sells product X and has reported a revenue of $1,925,000 and a gross income ( profit before tax) of $50,000. answer the questions below .

1. what is the cost of the revenue ?

2. what is the gross profit margin?

3. suppose the company is in the 20% tax bracket,what is the net income?

4.what is the net profit margin

5. compare the gross and net profit margins,what do they tell you? a brief answer

6.if the company sells product x for $150 per unit,in which the variable costs per unit is $90,what is the contribution margin and what is the contribution margin ratio?

7. suppose that the fixed costs in producing product x is $720,000, calculate the breakeven point( in dollars and in units)

8.plot a break-even graph highlighting the break-even point,revenue,total costs,overall variable costs and fixed costs?

note : number 1 - 4 have been answered

In: Accounting

What are the negative impacts of business intelligence in Healthcare? What is one commonly used software...

What are the negative impacts of business intelligence in Healthcare? What is one commonly used software tool related to Healthcare? Briefly address the issue of information security for HealthCare?

In: Accounting