1. You are The Chief Finance Officer for your company Blue Label Inc. and a Fellow of the local accountancy body, The Zambia Institute of Chartered Accountants (ZICA).   You have just received an invitation from ZICA requesting you to be one of the presenters at a workshop organized by the institute to fulfill its mandate of enhancing professional competence in its members amid many new standards that have evolved in the recent past. Your specific role will be to talk about the evolution of IFRS 15 Revenue from Contracts with Customers. The workshop organizer has asked you to send your presentation beforehand for review by a relevant official.

Required:

Write briefing notes to the organizer that explain the following in relation to IFRS 15 Revenue from Contracts with Customers:

1. The five step revenue recognition criteria (using simple illustrations as far as possible)

2. Recognition and measurement requirements for:

1. sale and repurchase arrangements;
2. Consignment inventory and
3. Bill and hold arrangements (use simple illustrations as far as possible).

4. Customers enter a store at a rate of 3 customers per hour.

a) Compute the probability that at least two, but no more than five customers enter the store in a given hour.

b) Compute the probability that it takes more than 30 minutes for the first customer to enter the store this hour.

c) Suppose you know that exactly 1 customer entered the store during a given hour. Compute the probability that the customer entered the store between minute 10 and minute 30.

d) Let Xk be the number of customers that enter a store during hour k. Suppose you recorded how many customers entered the store each hour for the last 60 hours. What is the approximate distribution of X¯? Make sure to specify the parameter(s) of the distribution.

The author thou questioned Fowler’s case since the court drew analysis based on their unsuccessful attempt to obtain Florida driver’s license, register the car, register as Florida voter and their intention of being Florida residence as from January 20, 2006. It failed to attribute the sale of stock on February 3, 2006, where Mrs. Fowler served as Assistant Secretary for three years in North Carolina. The charitable contributions after the sale of the business in 2006 and during that year, the taxpayers spent most of 2006 - 2007 days in North Carolina before finalizing the proposal. The court and IRS'S brings out the contradiction in the governing principles of determining an individual's domicile. Since thou, the Fowlers changed their address to Florida they continued using certain correspondence and billing and bank statements from North Carolina. The insurance policy that they purchased on their North Carolina home for a period of July 31, 2006 to July 31, 2007 had a stipulated location that dwelling is not seasonal or secondary. The court failed to consider Fowlers' behavior prior to January 20,2006 and emphasized on a single observed event, hence ignoring taxpayers’ subsequent conduct.

QUESTION: DO YOU AGREE WITH THE ABOVE STATEMENT? EXPLAIN

Eva’s Environmental Company is starting a new environmental analysis company on July 1, 2018. a. Eva invests $150,000 cash in her business from her personal savings account. b. Eva purchases Office Supplies for $7,500 on account payable c. Eva borrows $350,000 cash to start her new business from the bank for 10 years on a Note Payable. d. Eva prepays her Rent for office space for one year in advance for $3,600. e. Eva purchases an environmental assessment machine for $115,000 paying 30% in cash and the balance on a long-term note payable. f. Eva collects $21,500 in advance from a customer for a project she will work on in the future. g. Eva earns service revenue on account from her customers, $15,000 h. Eva pays for 40% of the Office Supplies she purchased. i. j. Eva withdraws $850 from the company for her personal use. k. Customers pay Eva $8,500 on account receivable for sales that were previously recorded Accounts: Cash, Accounts Receivable, Prepaid Insurance, Supplies, Equipment, Accounts Payable, Notes Payable, Bank Loan Payable, Unearned Revenue, Eva’s Capital, Eva’s Drawing, Service Revenue, Salary Expense, REQUIRED: a. Analyze the Business Transactions b. Record them in the Journal c. Post to the Ledgers d. Prepare a Trial Balance for July 31, 2018

QUESTION PART A: You want to obtain a sample to estimate a population proportion. At this point in time, you have no reasonable estimate for the population proportion. You would like to be 99.9% confident that you esimate is within 1.5% of the true population proportion. How large of a sample size is required?

n =

QUESTION PART B: If n = 300 and ˆp (p-hat) = 0.3, construct a 90% confidence interval.

Give your answers to three decimals

_____< p < _____

QUESTION PART C: Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.

A sample of 53 stocks traded on the NYSE that day showed that 26 went up.

You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of α=0.02α=0.02.

What is the test statistic for this sample? (Report answer accurate to three decimal places.)
test statistic =

What is the p-value for this sample? (Report answer accurate to four decimal places.)
p-value =

The p-value is...

• less than (or equal to) αα
• greater than αα

This test statistic leads to a decision to...

• reject the null
• accept the null
• fail to reject the null

As such, the final conclusion is that...

• There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is more than 0.3.
• There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is more than 0.3.
• The sample data support the claim that the proportion of stocks that went up is is more than 0.3.
• There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is is more than 0.3.

QUESTION PART A: Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.

A sample of 61 stocks traded on the NYSE that day showed that 6 went up.

You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=0.01α=0.01.

What is the test statistic for this sample? (Report answer accurate to three decimal places.)
test statistic =

What is the p-value for this sample? (Report answer accurate to four decimal places.)
p-value =

The p-value is...

• less than (or equal to) αα
• greater than αα

This test statistic leads to a decision to...

• reject the null
• accept the null
• fail to reject the null

As such, the final conclusion is that...

• There is sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is less than 0.3.
• There is not sufficient evidence to warrant rejection of the claim that the proportion of stocks that went up is is less than 0.3.
• The sample data support the claim that the proportion of stocks that went up is is less than 0.3.
• There is not sufficient sample evidence to support the claim that the proportion of stocks that went up is is less than 0.3.

QUESTION PART B: You want to obtain a sample to estimate a population proportion. At this point in time, you have no reasonable estimate for the population proportion. You would like to be 99.9% confident that you esimate is within 2.5% of the true population proportion. How large of a sample size is required?

n =



Do not round mid-calculation. However, use a critical value accurate to three decimal places.

(I have posted this three different times and it has been wrong, so please!! it will help me a lot)

1) Under accrual basis accounting, we record revenue when ________.

A) cash is received from customers

B) cash is received for any reason

C) it meets the criteria for revenue recognition

D) a company receives cash from a customer on account

2) Under accrual basis accounting, we record expenses when ________.

A) a company pays cash to a supplier

B) a company incurs a liability

C) a company uses resources

D) a company pays cash to anyone

3) Which of the following is(are) a deficiency(deficiencies) of cash-basis accounting?

A) it omits key revenues and expenses from the balance sheet

B) it fails to match revenues and expenses to measure economic performance

C) it omits key assets and key liabilities from the balance sheet

D) B and C

4) In the United States, Generally Accepted Accounting Principles are developed primarily by ________.

A) International Accounting Standards Board

B) Financial Accounting Standards Board

C) Securities and Exchange Commission

D) International Accounting Federation

5) An audit guarantees that there are absolutely no mistakes in the financial statements. (T / F)

6) Generally Accepted Accounting Principles in the United States are developed by the International Accounting Standards Committee. (T / F)

On January 5, 2012, Mountain View Company purchased construction equipment for $698,400, with a useful life of six years and an estimated salvage value of $87,000. The company uses the straight-line method of depreciation. On July 3, 2016, this equipment was traded for new similar construction equipment that has a value of $800,000. The company paid $595,000 in cash and was given a trade-in allowance of $205,000 for the old equipment.

Prepare the general journal entries needed on July 3, 2016, to record the trade-in.

Please do not copy from Chegg otherwise I have to report the answer. Explain the answer thoroughly by showing each step of the calculation.

Nearly There (the “Company”), an SEC registrant, designs, develops, manufactures, and sells various navigation products and services. Because of significant research and development expenses and slumping sales results in recent periods, the Company is in need of additional capital to continue product development and to meet projected operating budgets for the coming year.

In November 2012, the Company issued 5 million shares of Series B preferred stock at $1.20 per share (the “Original Issue Price”) to new investors (the “Series B Preferred Stock”). Total proceeds, net of issuance costs, received by the Company from this issuance were approximately $5.9 million. The significant terms of the Series B Preferred Stock are as follows:

• The par value of the Series B Preferred Stock is $0.01 per share.

• Dividends — In each calendar year, the holders of the then outstanding Series B Preferred Stock are entitled to receive, when, as and if declared by the Company’s board of directors, cumulative dividends at the annual dividend rate of 8 percent of the Original Issue Price, as appropriately adjusted for any stock dividends, combinations, reclassifications, recapitalizations, or splits with respect to such shares.

• Voting rights — Holders of the Series B Preferred Stock have protective voting rights to vote together with the common stock holders on an as-converted basis on certain significant events (e.g., change in control, major asset sales, extraordinary distributions).

• Conversion option — At the holders’ option and at any time after the date of issuance, each share of the Series B Preferred Stock can be converted into the Company’s common stock. The initial conversion price is $1.20, which is subject to certain adjustments including:

o Stock dividends and combinations or subdivisions of common stock.

o Reclassification and reorganization.

o Adjustments for additional issuance of the Company’s equity securities.

• Conversion price adjustment — The conversion price will adjust downward if any equity security is issued by the Company for an amount per share that is less than the then-existing conversion price of the Series B Preferred Stock, thus providing “down-round protection” to the holders of the preferred stock.

• Redemption option — After the third anniversary of the original issue date of the Series B Preferred Stock and upon the vote or written consent of at least a majority of the then outstanding shares of Series B Preferred Stock, holders can redeem the outstanding shares of the Series B Preferred Stock for cash. The redemption value is the Original Issue Price plus all declared but unpaid dividends.

• Mandatory redemption — After the sixth anniversary of the original date of the Series B Preferred Stock, the outstanding shares of the Series B Preferred Stock must be redeemed for cash. The redemption value is the Original Issue Price plus all declared but unpaid dividends.

Upon evaluation of the Series B Preferred Stock, the Company considered the economic payoff profile of the potential embedded features and concluded that the following separate units of account require further evaluation: (1) the conversion option and (2) the redemption option.

Additional facts:

• The Company has adopted Accounting Standards Update 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.

• The conversion option was set at the money at issuance.

• The Company is well capitalized. The market capitalization of its common stock is $100 million.

• The Company’s common stock is publicly traded and the number of shares to be exchanged in the event that the Series B Preferred Stock is converted is small relative to the daily transaction volume of the Company’s common stock.

• The Series B Preferred Stock is not remeasured at fair value with any changes recognized in earnings under any other applicable U.S. GAAP after the issuance.

• The embedded features are deemed not to meet any scope exceptions in ASC 815- 10-15.

Required:

1. Is the host contract more akin to a debt or equity instrument for the purpose of analyzing the embedded features in the Series B Preferred Stock under the whole- instrument approach?

2. Should the Company separate the conversion option feature in the Series B Preferred Stock from the host contract and account for it as a derivative instrument?

3. Should the Company separate the redemption option in the Series B Preferred Stock from the host contract and account for it as a derivative instrument?

4. Would your answer to Questions 2 or 3 change if the Company was a private company and its common stock was not publicly traded?

Case A: Revenue Recognition for Products

Smooth Blend, Inc., a calendar year company, produces several blends of whiskey. Maturing whiskey is stored for 3 years in a large, dark aromatic warehouse owned by Smooth Blend. Smooth Blend sells the whiskey to Distributor Company at the beginning of the aging process (January 1, 2011). Distributor Company will pick up the whiskey at the end of the aging process (December 31, 2013) and take it to its facilities for bottling. Distributor Company pays the full purchase price to Smooth Blend on January 1, 2011 to protect itself against price increases.

1. When should Smooth Blend recognize revenue? Why?
2. Would your answer change
   1. If the quality control manager of Distributor Company had the right to taste the whiskey on December 31, 2013 and receive a full refund if not satisfied with the quality of the liquor?
   2. If there was no right of return but Smooth Blend promised to help Distributor Company attract customers?
   3. If Smooth Blend acquired a fixed price option from Distributor Company to repurchase the whiskey in 6 months?
3. How would your answer change if Smooth Blend sold the whiskey to Friendly Bank, agrees to oversee the aging process on the bank’s behalf, and acquires a fixed price forward from Friendly Bank to repurchase the whiskey in 6 months?