Questions
acofino Restaurantsis a local company with a commissary on Hastings St, several food bars around Vancouver,...

acofino Restaurantsis a local company with a commissary on Hastings St, several food bars around Vancouver, and several food trucks that serve West Coast and Mexican inspired fare. Suppose the company has just been awarded an exclusive permit to serve their foodstuff along 500 metres stretch of Beach Ave during Vancouver’s Celebration of Lightfireworks. On any given night during the firework show Tacofino expects that up to 10,000 visitors may want to buy their “bahn tofu” tacos that they intend to sell from the food trucks. They think that the Hotelling spatial model is a good framework to make theirbusiness decision, and here are their estimates: the taco’s reservation price is $9, a customer’s cost of traveling along crowded Beach Ave is $8/km, and a truck costs $250 to rent for one night. The cost of making tacos is flat ¢90 per taco. 4. How many trucks will Tacofino put in the street on the night of Celebration of Light? 5. What is the profit-maximizing price ($ per taco)? 6. What profit will Tacofino expect to make ($ per night)? 7. What would be the efficient number of trucks(maximizing social surplus)

In: Accounting

Security devices Inc. needs additional office space to accommodate expansion. SDI wants to avoid income statement...

Security devices Inc. needs additional office space to accommodate expansion. SDI wants to avoid income statement effects that would disrupt its attempt to “smooth” income over time. Which lease classification would management prefer? Explain.

In: Accounting

Conduct research on an ERP package, such as Microsoft Dynamics GP or Microsoft Dynamics NAV, for...


Conduct research on an ERP package, such as Microsoft Dynamics GP or Microsoft Dynamics NAV, for small to medium-sized (SME) organizations (between $30 million and $1 billion in revenues). Compare that package to the SAP system in terms of available modules, functionality, and so on.

In: Accounting

Information concerning Concord Corporation’s intangible assets is as follows. 1. On January 1, 2020, Concord signed...

Information concerning Concord Corporation’s intangible assets is as follows. 1. On January 1, 2020, Concord signed an agreement to operate as a franchisee of Hsian Copy Service, Inc. for an initial franchise fee of $60,000. Of this amount, $12,000 was paid when the agreement was signed, and the balance is payable in 4 annual payments of $12,000 each, beginning January 1, 2021. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. The present value at January 1, 2020, of the 4 annual payments discounted at 12% (the implicit rate for a loan of this type) is $36,450. The agreement also provides that 8% of the revenue from the franchise must be paid to the franchisor annually. Concord’s revenue from the franchise for 2020 was $850,000. Concord estimates the useful life of the franchise to be 10 years. (Hint: You may want to refer to Chapter 18 to determine the proper accounting treatment for the franchise fee and payments.) 2. Concord incurred $75,000 of experimental and development costs in its laboratory to develop a patent that was granted on January 2, 2020. Legal fees and other costs associated with registration of the patent totaled $20,000. Concord estimates that the useful life of the patent will be 8 years. 3. A trademark was purchased from Shanghai Company for $35,000 on July 1, 2017. Expenditures for successful litigation in defense of the trademark totaling $10,200 were paid on July 1, 2020. Concord estimates that the useful life of the trademark will be 20 years from the date of acquisition.

Prepare a schedule showing the intangible assets section of Concord’s balance sheet at December 31, 2020.

In: Accounting

Discusssion Do some research on Sarbanes-Oxley, a regulation designed to prevent accounting fraud. In this discussion...

Discusssion

Do some research on Sarbanes-Oxley, a regulation designed to prevent accounting fraud. In this discussion describe if you think Sarbanes-Oxley is adequate to prevent fraud. Use examples and cite fact and resources to support your opinion.

In: Accounting

Clausen Company internal records of its factory with 2 operating departments. The cost driver for indirect...

Clausen Company internal records of its factory with 2 operating departments. The cost driver for indirect labor is direct labor house, and the cost driver for the remaining items is number of hours of machine use. Compute the total amount of indirect labor allocated to Department 1 using activity based costing. (Please show the formula and how you got the answer)

DL HOURS MACHINE HOURS
Department 1 894 12,000
Department 2 2086 8,000
Totals 2980 20,000
Factory Overhead costs
Rent and Utilities 21,200
Indirect Labor 16,800
Depreciation - Equipment 13,500
Total Factory Overhead $51,500

Answers:

a) 8,000

b) 53,000

c) 12,270

d) 8, 480

e) 14,133

In: Accounting

What are the three forms (degree) of informational efficiency?

What are the three forms (degree) of informational efficiency?

In: Accounting

Andretti Company has a single product called a Dak. The company normally produces and sells 80,000...

Andretti Company has a single product called a Dak. The company normally produces and sells 80,000 Daks each year at a selling price of $58 per unit. The company’s unit costs at this level of activity are given below:

Direct materials $ 7.50
Direct labor 11.00
Variable manufacturing overhead 3.30
Fixed manufacturing overhead 5.00 ($400,000 total)
Variable selling expenses 1.70
Fixed selling expenses 4.00 ($320,000 total)
Total cost per unit $ 32.50

A number of questions relating to the production and sale of Daks follow. Each question is independent.

Required:

1-a. Assume that Andretti Company has sufficient capacity to produce 96,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 20% above the present 80,000 units each year if it were willing to increase the fixed selling expenses by $130,000. What is the financial advantage (disadvantage) of investing an additional $130,000 in fixed selling expenses?

1-b. Would the additional investment be justified?

2. Assume again that Andretti Company has sufficient capacity to produce 96,000 Daks each year. A customer in a foreign market wants to purchase 16,000 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $2.70 per unit and an additional $12,800 for permits and licenses. The only selling costs that would be associated with the order would be $2.40 per unit shipping cost. What is the break-even price per unit on this order?

3. The company has 600 Daks on hand that have some irregularities and are therefore considered to be "seconds." Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What is the unit cost figure that is relevant for setting a minimum selling price?

4. Due to a strike in its supplier’s plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 35% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period.

a. How much total contribution margin will Andretti forgo if it closes the plant for two months?

b. How much total fixed cost will the company avoid if it closes the plant for two months?

c. What is the financial advantage (disadvantage) of closing the plant for the two-month period?

d. Should Andretti close the plant for two months?

5. An outside manufacturer has offered to produce 80,000 Daks and ship them directly to Andretti’s customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead costs would be reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. What is Andretti’s avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?

In: Accounting

In 2019, ABC purchased a silver mine for $10,200,000 with removable silver estimated at 1,000,000 tons....

In 2019, ABC purchased a silver mine for $10,200,000 with removable silver estimated at 1,000,000 tons. ABC is required to mitigate environmental damage after mining the silver and expects to spend $5,105,126.25 five years from now in order to do so. ABC’s cost of capital for similar investments is 5%. The property has an estimated value of $500,000 after the gold has been extracted. The company incurred $2,500,000 of intangible development costs getting the mine up and running. During 2019, 200,000 tons were removed and 150,000 tons were sold.

What is the amount of depletion that ABC should expense for 2019?

In: Accounting

“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the...

“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $2,000. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid.” Teledex Company manufactures products to customers’ specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to jobs. The following estimates were made at the beginning of the year: Department Fabricating Machining Assembly Total Plant Manufacturing overhead $ 353,500 $ 404,000 $ 90,900 $ 848,400 Direct labor $ 202,000 $ 101,000 $ 303,000 $ 606,000 Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows: Department Fabricating Machining Assembly Total Plant Direct materials $ 3,200 $ 200 $ 1,600 $ 5,000 Direct labor $ 3,200 $ 500 $ 6,400 $ 10,100 Manufacturing overhead ? ? ? ? Required: 1. Using the company's plantwide approach: a. Compute the plantwide predetermined rate for the current year. b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. 2. Suppose that instead of using a plantwide predetermined overhead rate, the company had used departmental predetermined overhead rates based on direct labor cost. Under these conditions: a.Compute the predetermined overhead rate for each department for the current year. b. Determine the amount of manufacturing overhead cost that would have been applied to the Koopers job. 4. Assume that it is customary in the industry to bid jobs at 150% of total manufacturing cost (direct materials, direct labor, and applied overhead). a.What was the company’s bid price on the Koopers job using a plantwide predetermined overhead rate? b.What would the bid price have been if departmental predetermined overhead rates had been used to apply overhead cost?

In: Accounting

B1 - Snow Company started operations on February 1, 2020 by depositing $3,000,000 cash in the...

B1 - Snow Company started operations on February 1, 2020 by depositing $3,000,000 cash in the bank as capital. The following transactions took place during the first month of operations:

February 3: Purchased supplies for $22,500 in cash.

February 9: Purchased equipment for $255,000, paid $105,000 in cash and the remaining amount will be paid after 10 days.

February 12: Received a bill from Dubai News for advertising amounted to $1,650.

February 14: Paid $24,000 salaries in cash.

February 16: Paid $6,000 utilities expense in cash.

February 17: Provided services to customers for $195,000 in cash.

February 19: Paid $150,000 for equipment purchased on February 9.

February 28: The owner withdrew $7,500 cash for personal use.

Required:

  1. Prepare the trial balance of Snow Company on February 29, 2020.
  2. Prepare the financial statements of Snow Company on February 29, 2020.

In: Accounting

Oriole Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to...

Oriole Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.

June 1 Purchased books on account for $1,165 (including freight) from Catlin Publishers, terms 2/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,200. The cost of the merchandise sold was $750.
6 Received $65 credit for books returned to Catlin Publishers.
9 Paid Catlin Publishers in full.
15 Received payment in full from Garfunkel Bookstore.
17 Sold books on account to Bell Tower for $2,000. The cost of the merchandise sold was $900.
20 Purchased books on account for $900 from Priceless Book Publishers, terms 2/15, n/30.
24 Received payment in full from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $1,300. The cost of the merchandise sold was $910.
30 Granted General Bookstore $270 credit for books returned costing $85.


Journalize the transactions for the month of June for Oriole Warehouse, using a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

In: Accounting

How does the cost of money affect the value of an asset?

How does the cost of money affect the value of an asset?

In: Accounting

Read the following and answer the related questions that follow it. Auric plc is a mining...

Read the following and answer the related questions that follow it.

Auric plc is a mining company, whose main business consists of open cast
mining. It has Articles of Association that are in the form of model Articles. The
board of directors includes Penny, Howard and Emily.

At a recent board meeting, the directors considered an offer from Trek Mines
plc to sell land adjoining one of Auric plc’s mining sites for £550,000. The
board of Auric plc decided that the company should not accept the offer as it
doubted whether it could raise the finance needed to buy the land. Penny then
formed her own company, Gold Ltd, which purchased the land for £550,000. At
the same meeting, the directors discussed a proposed contract with Texas plc,
which is being considered to survey a plot of land recently purchased by Auric
plc. Howard owns 10% of the shares in Texas plc, but did not reveal his interest
at the board meeting.


Emily has an arrangement with Comic plc whereby she receives a 10%
commission for all orders placed with it by Auric plc. Six months ago, Auric plc
purchased some drilling equipment from Comic plc for £100,000, for which
Emily was paid £10,000 commission.

The shareholders of Auric plc have discovered these facts, and they have
passed an ordinary resolution directing the board of directors to commence
legal proceedings against Penny, Howard and Emily.

1.

Which one of the following generally has the customary authority to bind the company?

Group of answer choices

A non-executive director

Any individual director

The chairperson

The managing director

2.

The duty of care, skill and diligence contained in s174 was inspired by which offence?

Group of answer choices

Wrongful trading (s214(4) IA 1986)

Insider dealing

Market abuse

Fraudulent trading

3.

The duty of care, skill and diligence is measured by looking at the objective element - the care, skill and diligence of the reasonable director; and the subjective element looking at the actual director in question's knowledge and experience.

Group of answer choices

True

False

4.

Two non-executive directors were found to be negligent in Dorchester Finance v Stebbings this was because :

Group of answer choices

A director used two blank cheques handed to him by the two non-executives and he used them to misappropriate funds

A director signed two blank cheques handed to him by the two non-executives who used them to misappropriate funds

The non-executive directors were accountants and should have known better

The non-executive directors were accountants

5.

How was the director found negligent in Re D'Jan of London Ltd?

Group of answer choices

The form was filled in by his insurance broker and therefore he did not need to check it

He didn't check the renewal insurance form before signing it

He showed reasonable diligence when he signed the form

A director must always read the whole of every document which he signs

In: Accounting

Online Enterprises owns 95 percent of Downlink Corporation. On January 1, 20X1, Downlink issued $210,000 of...

Online Enterprises owns 95 percent of Downlink Corporation. On January 1, 20X1, Downlink issued $210,000 of five-year bonds at 115. Annual interest of 12 percent is paid semiannually on January 1 and July 1. Online purchased $110,000 of the bonds on August 31, 20X3, at par value. The following balances are taken from the separate 20X3 financial statements of the two companies:

Note: Assume using straight-line amortization of bond discount or premium.

Online Enterprises Downlink Corporation
  Investment in Downlink Corporation Bonds $ 115,700
  Interest Income 4,550
  Interest Receivable 6,600
  Bonds Payable $ 210,000
  Bond Premium 14,100
  Interest Expense 18,900
  Interest Payable 13,200
Required:
a.

Compute the amount of interest expense that should be reported in the consolidated income statement for 20X3. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

b.

Compute the gain or loss on constructive bond retirement that should be reported in the 20X3 consolidated income statement. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

c. Prepare the consolidation worksheet consolidation entry or entries as of December 31, 20X3, to remove the effects of the intercorporate bond ownership. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

-Record the entry to eliminate the effects of the intercompany ownership in bonds for 20X3.

-Record the entry to eliminate the intercompany interest receivables/payables for 20X3.

In: Accounting