You are the external auditor of Suleman and Stock Ltd. The CEO, Ahsan Suleman, has contacted you because the company is considering setting up an internal audit department for the first time and he is looking for some guidance as to what is required for an effective internal audit department.

Required:

Explain the key considerations Ahsan Suleman should consider when setting up an internal audit department.

You are the external auditor of Suleman and Stock Ltd. The CEO, Ahsan Suleman, has contacted you because the company is considering setting up an internal audit department for the first time and he is looking for some guidance as to what is required for an effective internal audit department.

Required:

Explain the key considerations Ahsan Suleman should consider when setting up an internal audit department.

You are the external auditor of Suleman and Stock Ltd. The CEO, Ahsan Suleman, has contacted you because the company is considering setting up an internal audit department for the first time and he is looking for some guidance as to what is required for an effective internal audit department.

Required:

Explain the key considerations Ahsan Suleman should consider when setting up an internal audit department.

1. Imagine you are CEO of a local hospital. Which policies and procedures would you develop and deploy in order to facilitate superior strategy execution?

2. Natalie and Vinnie own the Mississippi River Brewing Company, a craft brewer and taproom in New Orleans. What actions could the partners take to realize full value from TQM or Six Sigma initiatives and promote a culture of operating excellence?

What are three recruitment strategies for a small business CEO? three examples below

Develop and execute vacancy and non-vacancy recruitment programs utilizing all resources that result in the hiring of top talent.

Develop and execute an employee referral program to increase the number of new hires by referral source by 25%.

Develop marketing materials to brand the company as a great place to work with competitive compensation and benefits.

Willow Deng is the sole owner of Spinnaker Pty Ltd, a private company selling sailing accessories in Adelaide. He has been experiencing tremendous growth in his business in recent years. He has approached Best Accounting Solutions Pty Ltd to help develop improved accounting systems for his business. Assume you are a graduate accountant working for Best Accounting Solutions Pty Ltd and you are required to prepare the year-end Balance Day Adjustments Journals for Spinnaker Pty Ltd.

Additional information:

1. Office Equipment is expected to have a useful life of 10 years and will then be sold for an estimated amount of $3,000.
2. Accrued salaries expense at 30 June is $4,876.
3. $9,500 of the recorded sales represents payments for goods which will not be delivered until July 2020.
4. A physical count shows supplies of $1,450 on hand at 30 June.
5. The prepaid insurance was paid for twelve months commencing 1st March.
6. A physical stock take of inventory at 30 June reveals $47,000 on hand.
7. Upon receipt of the business’s bank statement, it was observed that the business had earned $1,050 rental income on 30 June 2020. This amount was directly paid by a tenant into the business’s bank account. The accounting records need to be updated for this transaction.
8. It is estimated that 3% of the 30 June balance of accounts receivable are unlikely to be received.
9. A payment of $5,029 on 20 May for advertising expense has been incorrectly debited to freight inward account.  

REQUIRED:

It is now the end of the financial year and based on the information Willow has provided above, the CEO of Best Accounting Solutions Pty Ltd (Lisa Turner) has asked you to prepare any necessary balance day adjusting journals.

Use the General Journal document provided on the following page to record any journal entries required.

All journals must be correctly formatted and include a narration (explanation) for each entry.

The following information is used for the following two questions. Ping and Slazenger Company (its 90% owned affiliate) reported the following income information for year X1: Ping Slazenger Revenue 300,000 100,000 Cost of Sales 120,000 40,000 Selling, General, and Adm Expenses 40,000 20,000 Depreciation 20,000 10,000 Investment Income ? Total Net Income ? 30,000 During Year X1, Slazenger made sales of $20,000 to Ping. Slazenger’s Cost of Sales was $10,000. As of 12/31/X1, Ping had still owned 60% of the units acquired from Slazenger. Based on this information, how much Consolidated Income should Ping report? Select one: a. $140,000 b. $144,000 c. $146,000 d. $150,000 e. None of the Above

The next two questions are based on the following information: Assume that Meridian Company acquired 1,000 shares of of Slim Company's common stock for $10 per share on 1/1/X1 and adopted the fair value (FV) accounting method. On 1/1/X1, Slim had 10,000 shares outstanding and its equity book value included $50,000 Capital Stock and $50,000 of Retained Earnings. During year X1, Slim reported a $50,000 net income and paid dividends of $1 per share. on 12/31/X1, Slim's stock traded at $16 per share. How much investment income should Meridian recognize in year X1?

Select one:

a. $1,000

b. $5,000

c. $6,000

d. $7,000

e. None of the Above

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This question is a continuation of the previous question about Meridian and Slim. On 1/1/X2, Meridian purchased 5,000 shares of Slim stock for $17 per share and elected Meridian's CEO and CFO to Slim's Board of Directors. An appraisal of Slim's assets could not identify any asset groups that were mis-valued. During year X2, Slim reported earnings per common share of $6 and paid a dividend of $1 per share. On 12/31/X2, Slim stock traded at $21 per share. Based on this information, Meridian's investments in Slim should be reported at which of the following amounts on 12/31/X2?

Select one:

a. $125,000

b. $131,000

c. $132,000

d. $138,000

e. None of the Above

On April 1, 2020, Larkspur Company sold 16,200 of its 12%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2021, Larkspur took advantage of favorable prices of its stock to extinguish 7,500 of the bonds by issuing 247,500 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company’s stock was selling for $32 per share on March 1, 2021.

Prepare the journal entries needed on the books of Larkspur Company to record the following. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to 0 decimal places, e.g. 38,548. 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.)

Interest During Construction

Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available:

• Capitalization period: January 1, 2019, to June 30, 2020
• Expenditures on project:

  2019:
  	January 1	$ 516,000
  	May 1	477,000
  	October 1	648,000
  2020:
  	March 1	1,404,000
  	June 30	684,000

• Amounts borrowed and outstanding:
     $1.7 million borrowed at 10%, specifically for the project
     $8 million borrowed on July 1, 2018, at 12%
     $13 million borrowed on January 1, 2017, at 6%

Required:

Note: Round all final numeric answers to two decimal places.

1. Compute the amount of interest costs capitalized each year.

   Capitalized interest, 2019	$ fill in the blank 1
   Capitalized interest, 2020	$ fill in the blank 2

2. If it is assumed that the production complex has an estimated life of 20 years and a residual value of $0, compute the straight-line depreciation in 2020.

   $ fill in the blank 3

3. Since GAAP requires accrual accounting, if a company capitalizes interest during the construction period it will report   income than if it had not capitalized interest. In future periods, the same company will report   income than if it had not capitalized interest.

Alta Company is constructing a production complex that qualifies for interest capitalization. The following information is available:

• Capitalization period: January 1, 2019, to June 30, 2020
• Expenditures on project:

  2019:
  	January 1	$ 516,000
  	May 1	549,000
  	October 1	492,000
  2020:
  	March 1	1,512,000
  	June 30	600,000

• Amounts borrowed and outstanding:
     $1.4 million borrowed at 12%, specifically for the project
     $5 million borrowed on July 1, 2018, at 14%
     $18 million borrowed on January 1, 2017, at 8%

Required:

Note: Round all final numeric answers to two decimal places.

1. Compute the amount of interest costs capitalized each year.

   Capitalized interest, 2019	$ fill in the blank 1
   Capitalized interest, 2020	$ fill in the blank 2

2. If it is assumed that the production complex has an estimated life of 25 years and a residual value of $0, compute the straight-line depreciation in 2020.

   $ fill in the blank 3

3. Since GAAP requires accrual accounting, if a company capitalizes interest during the construction period it will report _________ income than if it had not capitalized interest. In future periods, the same company will report ________ income than if it had not capitalized interest.