Chapter 11 : Nonprofit and International Accounting
On January 1, 2017, Xiamen Company made amendments to its defined benefit pension plan that resulted in 61,600 yuan of past service cost. The plan has 5,160 active employees with an average expected remaining working life of 16 years. There currently are no retirees under the plan.
Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes.
Required:
In: Accounting
Can you do a 5 force analysis on the company Google and how they acquired Fitbit please.
In: Operations Management
Chapelle Appliances sells dishwashers for $ 1,200 each, which includes a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2020, Chapelle sold 600 dishwashers on account. Based on experience, the company has estimated the total 2-year warranty costs at $ 40 for parts and $ 75 for labour. (Assume sales all occur at December 31, 2020.)
In 2021, Chapelle Company incurred actual warranty costs relative to 2020 dishwasher sales of $ 4,000 for parts and $ 7,500 for labour.
Required:
Using the expense warranty approach (assurance-type warranty), prepare the entries to reflect all the above transactions for 2020 and 2021.
Assume that the company uses the ‘service-type warranty approach, and estimates that the value of the 2-year warranty for the dishwasher is $150. Record all entries for 2020 and 2021. Assume any warranty expenditures are expected to be incurred evenly over the two-year warranty period.
In: Accounting
Acorn Limited is a listed company based in Vermont. On January 1, 2018, the company granted 1,000 share units to its CFO. Each share unit has a contractual service period of three years and a vesting condition based on the details below.
At the end of 2020, each share unit is convertible into 100 common shares of Acorn Limited if both of the following criteria are met:
2018-2020 Accumulated company net income is greater than $5 million.
2018-2020 Stock price increase is greater than 25%.
On the grant date, the company’s common shares had a fair value of $6 per share and the company was expected to meet both of the criteria above.
During 2018 and 2019, the company was expected to meet both of the criteria above. However, during 2020 the company’s stock price decreased and the company did not meet the stock price increase criteria at the end of the year.
The company’s accountant has asked for your help to check the compensation costs recorded for these share units during 2018-2019 and record the appropriate journal entry at the end of 2020.
End of 2018 -> 100*6*(1/3)=200
End of 2019-> (100*6(2/3))-200=200
Ignore the effects of taxes.
what are the journal entries for 2018,2019,&2020?
In: Accounting
A company reported the following accounts in its unadjusted trial balance at December 31, 2020: Dividends ................... $ 14,000 Income Tax Expense .......... $ 25,000 Salaries Expense ............ $ 31,000 Rental Revenue .............. $ 33,000 Cash ........................ $ 36,000 Supplies .................... $ 37,000 Cost of Goods Sold .......... $ 52,000 Unearned Revenue ............ $ 54,000 Accounts Receivable ......... $ 57,000 Land ........................ $ 69,000 Accounts Payable ............ $ 76,000 Trademark ................... $ 88,000 Inventory ................... $ 91,000 Retained Earnings ........... $ 95,000 (at January 1, 2020)Sales Revenue ............... $119,000 Common Stock ................ $123,000 The Company needs to record adjusting entries at December 31, 2020 related to the following three items: 1) A utility bill totaling $16,000 was received in late December. The Company expects to pay the bill in January, 2021. 2) A physical count revealed that supplies costing $15,000 were still on hand as of December 31, 2020. 3) The unearned revenue relates to a $54,000 payment received on July 1, 2020. The payment was from a customer who paid the company for services to be provided each month for 18 months, beginning on July 1, 2020. Calculate Company's total liabilities at December 31, 2020 afterthe appropriate adjusting entries have been recorded and posted.
In: Accounting
The comparative balance sheets for 2021 and 2020 and the income
statement for 2021 are given below for Arduous Company. Additional
information from Arduous’s accounting records is provided
also.
| ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) |
||||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Cash | $ | 109 | $ | 81 | ||||
| Accounts receivable | 190 | 194 | ||||||
| Investment revenue receivable | 6 | 4 | ||||||
| Inventory | 205 | 200 | ||||||
| Prepaid insurance | 4 | 8 | ||||||
| Long-term investment | 156 | 125 | ||||||
| Land | 196 | 150 | ||||||
| Buildings and equipment | 412 | 400 | ||||||
| Less: Accumulated depreciation | (97 | ) | (120 | ) | ||||
| Patent | 30 | 32 | ||||||
| $ | 1,211 | $ | 1,074 | |||||
| Liabilities | ||||||||
| Accounts payable | $ | 50 | $ | 65 | ||||
| Salaries payable | 6 | 11 | ||||||
| Interest payable (bonds) | 8 | 4 | ||||||
| Income tax payable | 12 | 14 | ||||||
| Deferred tax liability | 11 | 8 | ||||||
| Notes payable | 23 | 0 | ||||||
| Lease liability | 75 | 0 | ||||||
| Bonds payable | 215 | 275 | ||||||
| Less: Discount on bonds | (22 | ) | (25 | ) | ||||
| Shareholders’ Equity | ||||||||
| Common stock | 430 | 410 | ||||||
| Paid-in capital—excess of par | 95 | 85 | ||||||
| Preferred stock | 75 | 0 | ||||||
| Retained earnings | 242 | 227 | ||||||
| Less: Treasury stock | (9 | ) | 0 | |||||
| $ | 1,211 | $ | 1,074 | |||||
| ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) |
||||||
| Revenues and gain: | ||||||
| Sales revenue | $ | 410 | ||||
| Investment revenue | 11 | |||||
| Gain on sale of Treasury bills | 2 | $ | 423 | |||
| Expenses and loss: | ||||||
| Cost of goods sold | 180 | |||||
| Salaries expense | 73 | |||||
| Depreciation expense | 12 | |||||
| Amortization expense | 2 | |||||
| Insurance expense | 7 | |||||
| Interest expense | 28 | |||||
| Loss on sale of equipment | 18 | |||||
| Income tax expense | 36 | 356 | ||||
| Net income | $ | 67 | ||||
Additional information from the accounting records:
In: Accounting
In your judgement, should a U.S. company operating in a foreign country in which collusive price-fixing is not ilegal obey the U.S. laws against collusion? Explain!
In: Operations Management
Are America's top chief executive officers (CEOs) really worth
all that money? One way to answer this question is to look at row
B, the annual company percentage increase in revenue,
versus row A, the CEO's annual percentage salary increase
in that same company. Suppose that a random sample of companies
yielded the following data:
|
B: Percent increase for company |
38 |
9 |
28 |
29 |
19 |
9 |
15 |
30 |
|
A: Percent increase for CEO |
35 |
11 |
19 |
19 |
17 |
1 |
11 |
34 |
Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Assume that the distribution of differences is approximately normal, mound-shaped and symmetric. Use a 10% level of significance. Find (or estimate) the P-value.
In: Statistics and Probability
Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose that a random sample of companies yielded the following data: B: Percent for company 21 11 16 20 5 8 4 22 A: Percent for CEO 18 5 14 22 10 12 1 17 Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 1% level of significance. What is the value of the test statistic? Select one: a. -0.730 b. -0.683 c. 0.683 d. 0.730 e. -0.639
In: Statistics and Probability
On January 1, 2019, Vaughn Company, a small machine-tool
manufacturer, acquired for $2,100,000 a piece of new industrial
equipment. The new equipment had a useful life of 5 years, and the
salvage value was estimated to be $83,700. Vaughn estimates that
the new equipment can produce 16,000 machine tools in its first
year. It estimates that production will decline by 2,830 units per
year over the remaining useful life of the equipment.
The following depreciation methods may be used: (1) straight-line,
(2) double-declining-balance, (3) sum-of-the-years’-digits, and (4)
units-of-output. For tax purposes, the class life is 7 years. Use
the MACRS tables for computing depreciation.
Compute accumulated depreciation by using MACRS and optional
straight-line method for the 3-year period ending December 31,
2021. Ignore present value considerations.
|
Accumulated Depreciation |
||||||
| Methods |
2019 |
2020 |
2021 |
|||
| MACRS | $ | $ | $ | |||
| Optional straight-line method | $ | $ | $ | |||
In: Accounting