Jameson’s hotel group prepares published accounts on a quarterly basis. The senior management is reviewing the performance of one of the hotels in the group and making plans for 2018/19. They have in front of them the results for 2017/18 (based on actual results for the first two quarters and forecasts to the end of the year).

Quarter Sales Profit/(loss)
1 400,000 (280,000)

2 1,200,000 360,000

3 1,600,000 680,000

4 800,000 40,000

The total estimated number of visitors (guest nights) for 2017/18 is 50,000. The results follow a regular pattern, with no unexpected cost fluctuations beyond the seasonal trading pattern. Management intend to add to their plans for 2018/19 an anticipated increase in unit variable costs of 10% and a profit target for the hotel of $1 million.

Required: (a) Determine the total variable and total fixed costs of the hotel for 2017/18, by using both a PV chart and by calculation. (b) i. If there is no increase in visitors for 2018/19, what will be the required revenue rate per hotel visitor to meet the profit target? ii. If the required revenue rate per visitor is not raised above the 2018/19 level, how many visitors are required to meet the profit target? (c) Outline and briefly discuss the assumptions underlying the accountants’ typical PV or break-even analysis and assess whether they limit its usefulness.

Note: In order to achieve full marks for this question it is essential that you fully explain what you are doing, why you are doing it and the steps involved in providing a final solution. Ensure your answer is not just a set of calculations as 25% of the marks for this question are set aside for your explanation.

One of the longest debates in accounting history is the issue of deferred taxes. The controversy began in the 1940s and has continued, even after the FASB issued Statement of Financial Accounting Standards No.109 [FASB ASC 740: Income Taxes] in 1992. At issue is the appropriate treatment of tax consequences of economic events that occur in years other than that of the events themselves.

Required:

1. Distinguish between temporary differences and permanent differences. Provide an example of each.

2. Distinguish between intraperiod tax allocation and interperiod tax allocation (deferred tax accounting) Provide an example of each.

3. How are deferred tax assets and deferred tax liabilities classified and reported in the financial statements?

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:
2018. 2019 2020

Cost incurred during the year $2,624,000  $3,690,000  $2,074,600

Estimated costs to complete as of year-end 5,576,000   1,886,000 0

Billings during the year 2,200,000   4,114,000   3,686,000

Cash collections during the year 2,000,000   3,800,000   4,200,000

Westgate Construction uses the completed contract method of accounting for long-term construction contracts.

Required:

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.
2-a. In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred).
2-b. In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred).
2-c. In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred).

On March 1, 2019, Asbah contracted Nabali & Fares Construction Co. to construct a building on land costing $800,000 (purchased from the contractor and included in the first payment). The construction began on the office building on March 1. The following expenditures were incurred for construction: Date Expenditures March 1, 2019 $ 1,200,000 May 1, 2019 1,680,000 August 1, 2019 3,000,000 September 30, 2019 4,800,000 The building was completed and ready for occupancy on September 30, 2019. To finance purchase of the land and construction of the building, $1,500,000 was borrowed on March 1, 2019 on a 9%, 3-year note payable. Other than the construction note, the only debt outstanding during 2019 was a $1,000,000, 12%, 6-year note payable dated January 1, 2019. The interest cost to be capitalized during 2019 is

Select one: a. $ 195,000 b. $ 183,000 c. $ 159,000 d. $ 135,000

The number of wooden sailboats constructed per month in a small shipyard is a random variable that obeys the probability distribution given in Table below: Probability distribution of monthly Number of Sailboats /Probability( 2 is the sailboat and 0.15 is probability; likewise please consider in this way for the rest of the data) 2, 0.15; 3, 0.20; 4, 0.30; 5, 0.25; 6, 0.05; 7,0.05; Suppose that the sailboat builders have fixed monthly costs of $30,000 and an additional construction cost of $4,800 per boat. (a) Compute the mean and standard deviation of the number of boats constructed each month. (b) What is the mean and standard deviation of the monthly cost of the sailboat construction operation? 4 (c) How do your answers in part (b) change if the fixed monthly cost increases from $30,000 to $53,000? Try to compute your answer using the results of the calculation in part (b) only. (d) How do your answers in part (b) change if the construction cost per boat increases from $4,800 to $7,000, but the fixed monthly cost stays at $30,000? Try to compute your answer using the results of the calculations of parts (a) and (b) only.

Vania Magazines started construction of a warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2019, and completed the building on December 31, 2019. During the construction period, Vania has the following debt obligations outstanding.

Total cost amounted to $5,200,000, and the weighted average of accumulated expenditures was $3,500,000.

Jane Esplanade, the president of the company, has been shown the costs associated with this construction project and capitalized on the balance sheet. She is bothered by the “avoidable interest” included in the cost. She argues that, first, all the interest is unavoidable—no one lends money without expecting to be compensated for it. Second, why can’t the company use all the interest on all the loans when computing this avoidable interest? Finally, why can’t her company capitalize all the annual interest that accrued over the period of construction?

You are the manager of accounting for the company. In a memo, explain what avoidable interest is, how you computed it (being especially careful to explain why you used the interest rates that you did), and why the company cannot capitalize all its interest for the year. Attach a schedule supporting any computations that you use.

The Cebu City plans to increase the capacity of her existing water transmission lines. Two plans are under consideration. Plan A requires the construction of a parallel pipeline, the flow being maintained by gravity. The initial cost is P151,582,222 and the life is 40 years, with an annual operating cost of P6,350,911 for the 1st 20 years and P14,898,843 for the next 20 years. Plan B requires the construction of a booster pumping station costing P100M with the life of 40 years. The pumping equipment cost an additional amount of P25M, it has a life of 20 years and a salvage value of P2M. The annual operating cost is P5M. Using the Present Value (PV) Method and an interest of 22% cpd. annually, what is the PV of Plan A?

1. A not-for-profit organization receives $150 from a donor. The donor receives two tickets to a theater show and an acknowledgment in the theater program. The tickets have afair market value of $100. What amount is recorded as contribution revenue?  

please explain why and how to get the answer.

2. In Year 1, Gamma, a not-for-profit organization, deposited at a bank $1,000,000 given to it by a donor to purchase endowment securities. The principal of this contribution is not to be spent according to the donor's restrictions. The securities were purchased January 2, Year 2. At December 31, Year 1, the bank recorded

$2,000 interest on the deposit. In accordance with the bequest, this $2,000 was used to finance ongoing program expenses in March Year 2. At December 31, Year 1, what amount of the bank balance should be included as current assets in Gamma's classified balance sheet?

please explain why is 2000.

3. Cancer Educators, a not-for-profit organization, incurred costs of $10,000 when it combined program functions with fund-raising functions. Which of the following cost allocations might Cancer report in its statement of activities?

           Program Fund Raising General

please explain why and how to get it thanks!

Theoretical question:

What is the Research Purpose, Objective, and Design?

Also: What is the sampling method & size, data collection method as well as data analysis & Presentation?

The American Conservatory theater, a major repertory theater located in San Francisco, was completing its tenth season. The management team at ACT decided to conduct a major research study, intended to help their planning effort. A questionnaire was deceloped and mailed to their approximately 9,000 season subscribers. A return rate of 40% was obtained. A sample of 982 of these turned questionnaires was selected for analysis.

One of the major interest ACT management was in developing an understanding of the dynamics of the process whereby individuals became ACT subscriber. To assist in this process, whereby individuals became ACT suscribers. To assist in this this process, the sample was divided into four different groups according to their behavior pattern over the 5 seasons.

1. Continual subscriber (32%)- subscribed all 10 seasons

2. Gradual 31%- one or more seasons of attendance followed by becoming a suscriber

3. Sudden 21%- became a subscriber without attending prior performance

4. miscellaneous patterns 21%

The existence of a substantial "sudden subscriber" group was surprising and ran counter to conventional belief among theater managers that people were first enticed to attend a few performances at a particular theater and only after they had some positive experiences with this theater would they become suscribers.

The next step in the research study was to attempt to identify characteristics of the continual, gradual, and sudden subscriber groups that might be of use in understanding the segment differences and as inputs in the development of audience building and retention programs. Five variables appeared to be useful in this regard.

1. Years resident in the San Francisco Bay Area, measured on a scale ranging from 1= two years or less to 5= more than 20 years.

2 Age of suscribers, measured on a scale ranging from 1=25 years old or less to 5= more than 65 years old.

3.Household income, measured on a scale ranging from 1=50,000 per year.

4. whether the subscriber spend more than 20 hours each week watching TV, measured as a dummy variable: 1 if yes, 0 ifno

5. attendence at 6 other institutions that is ballet, civic light, opera, DeYoung museum, museum of modern art, opera, and symphony. The attendance score is the number of the six different activities that the respondent attended at least once in the previous year