Walton Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles:

During 2017, Walton planned to produce 32,000 drip candles. Production lagged behind expectations, and it actually produced only 25,000 drip candles. At year-end, direct materials purchased and used amounted to 43,900 pounds at a unit price of $0.56 per pound. Direct labor costs were actually $6.40 per hour and 24,900 actual hours were worked to produce the drip candles. Overhead for the year actually amounted to $150,000. Overhead is applied to products using a predetermined overhead rate based on estimated units.

Required

1. a.&b. Compute the standard cost per candle for direct materials, direct labor, overhead and also the total standard cost for one drip candle.

2. c.&d. Compute the actual cost per candle for direct materials, direct labor, overhead and also the total actual cost per candle.

3. e. Compute the price and usage variances for direct materials and direct labor.

4. f. Compute the fixed cost spending and volume variances.

Talkington Electronics issues a $400,000, 8%, 15-year mortgage note on December 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $59,612. Payments are due on December 31.

Prepare installment payments schedule and journal entries for a mortgage note payable.

Instructions

1. Prepare an installment payments schedule for the first 4 years.
2. Prepare the entries for (1) the loan and (2) the first installment payment.
3. Show how the total mortgage liability should be reported on the balance sheet at December 31, 2020.

Please show all work!

Issuing Stock

Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 100,000 shares of preferred 3% stock, $65 par and 700,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations:

Journalize the transactions.

Feb. 5. Issued 105,000 shares of common stock at par for cash.

Feb. 5. Issued 400 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.

Apr. 9. Issued 18,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $33,000, $179,000, and $40,000, respectively.

If an amount box does not require an entry, leave it blank.

June 14. Issued 35,000 shares of preferred stock at $76 for cash.

If an amount box does not require an entry, leave it blank.

On January 1, 2014, Borstad Company purchased equipment for $1,150,000. It is depreciating the equipment over 25 years using the straight-line method and a zero residual value. Late in 2019, because of technological changes in the industry and reduced selling prices for its products, Borstad believes that its equipment may be impaired and will have a remaining useful life of 8 years. Borstad estimates that the equipment will produce cash inflows of $450,000 and will incur cash outflows of $341,000 each year for the next 8 years. It is not able to determine the fair value of the equipment based on a current selling price. Borstad’s discount rate is 10%.

The following data were drawn from the records of Jordan Corporation.

Required

1. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity.
2. Calculate the materials price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U).
3. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours.
4. Calculate the labor price and usage variances. Indicate whether the variances are favorable (F) or unfavorable (U).
5. Calculate the predetermined overhead rate, assuming that Jordan uses the number of units as the allocation base.
6. Calculate the fixed cost spending variance. Indicate whether the variance is favorable (F) or unfavorable (U).
7. Calculate the fixed cost volume variance. Indicate whether the variance is favorable (F) or unfavorable (U).

What set of standards does a company use when it operates in multiple countries? For example, for a US company, can they use both GAAP and IFRS? Do they need to choose one?

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $17,500; cost of goods sold, $7,300; selling expenses, $1,410; general and administrative expenses, $910; interest revenue, $160; interest expense, $290. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount.

1. Investments were sold during the year at a loss of $330. Schembri also had an unrealized gain of $400 for the year on investments in debt securities that qualify as components of comprehensive income.
2. One of the company’s factories was closed during the year. Restructuring costs incurred were $1,400.
3. During the year, Schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of $540 in 2021 prior to the sale, and its assets were sold at a gain of $1,600.
4. In 2021, the company’s accountant discovered that depreciation expense in 2020 for the office building was understated by $310.
5. Negative foreign currency translation adjustment for the year totaled $340.

Required:
1. Prepare Schembri’s single, continuous multiple-step statement of comprehensive income for 2021, including earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 800,000 shares were issued on July 1, 2021.
2. Prepare a separate statement of comprehensive income for 2021.

Culture audits are an emerging engagement. E&Y is one of the leaders in this initiative. what a cultural audit is and provide me with information on what is the intent of a cultural audit, how will it impact a review of a corporation, is it tied to ethics (why or why not) and does it help with the financial statement audit and the development of a audit plan?

Thank you

Margin of Safety

Yellow Sticker Company’s variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for $0.50. The monthly target operating income is $10,500.

The following selected accounts appear in the ledger of Upscale Construction Inc. at the beginning of the current year:

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

1. Issued 80,000 shares of common stock at $23, receiving cash.
2. Issued 20,000 shares of preferred 2% stock at $192.
3. Purchased 48,000 shares of treasury common for $21 per share.
4. Sold 24,000 shares of treasury common for $24 per share.
5. Sold 16,000 shares of treasury common for $19 per share.
6. Declared cash dividends of $3.50 per share on preferred stock and $0.06 per share on common stock.
7. Paid the cash dividends.

Required:

Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank.

a. Issued 80,000 shares of common stock at $23, receiving cash.

b. Issued 20,000 shares of preferred 2% stock at $192.

c. Purchased 48,000 shares of treasury common for $21 per share.

d. Sold 24,000 shares of treasury common for $24 per share.

e. Sold 16,000 shares of treasury common for $19 per share.

f. Declared cash dividends of $3.50 per share on preferred stock and $0.06 per share on common stock.

g. Paid the cash dividends.

On January 1, 2021, the Shagri Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The only interest-bearing debt the company had outstanding during 2021 was long-term bonds with a book value of $11,400,000 and an effective interest rate of 9%. Construction expenditures incurred during 2021 were as follows:

Required:
Calculate the amount of interest capitalized for 2021.
  

Kershaw Electric sold $6,000,000, 10%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020, and paid interest on January 1. The bonds were sold at 98.

Prepare entries to record issuance of bonds, interest accrual, and bond redemption.

Instructions

1. Prepare the journal entry to record the issuance of the bonds on January 1, 2020.
2. At December 31, 2020, $8,000 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2020.
3. On January 1, 2022, when the carrying value of the bonds was $5,896,000, the company redeemed the bonds at 102. Record the redemption of the bonds assuming that interest for the period has already been paid.

Please show all work!

Allocating joint cost
Keiffer Production manufactures three joint products in a single process. The following information is available for August:

Allocate the joint cost of $1,450,800 to the production based on the following:

a. number of gallons.
Note: Round proportions to the nearest tenth of a percentage (i.e. round 13.45% to 13.5%) and dollar amounts to the nearest whole dollar.

b. sales value at split-off.
Note: Round proportions to the nearest whole percentage (i.e. round 13.45% to 13%) and dollar amounts to the nearest whole dollar.

c. approximated net realizable values at split-off.
Note: Round proportions to the nearest whole percentage (i.e. round 13.45% to 13%) and dollar amounts to the nearest whole dollar.

Describe organizational barriers that put people at a disadvantage for promotion, including corporate culture and the pipeline theory. Use anecdotes from your experiences with these types of barriers.

analyze sensitivity, scenario, and simulation:

• Compare and contrast these methods.
• Identify the positive and negative of each method.
• Provide examples of companies that are using these methods.
  • What industries are they involved in?
  • Why do these companies/industries use these methods