Supply Ltd entered into a non-cancellable five-year lease arrangement with Customer Ltd on 1 July 2019. The lease is for an item of machinery. There are to be five annual payments of $315 000, the first being made on 30 June 2020. The implicit interest rate is 12%. The Machinery is expected to have an economic life of six years, after which time it will have an expected residual value of $210 000. There is a bargain purchase option that Customer Ltd will be able to exercise at the end of the fifth year for $280 000. Customer Ltd determined that this contract contains a lease.

REQUIRED: Prepare the journal entries in the books of the lessee (Customer Ltd) from 1 July 2019 to 30 June 2020 (the end of the reporting period). Show all working

Supply Ltd entered into a non-cancellable five-year lease arrangement with Customer Ltd on 1 July 2019. The lease is for an item of machinery. There are to be five annual payments of $315 000, the first being made on 30 June 2020. The implicit interest rate is 12%. The Machinery is expected to have an economic life of six years, after which time it will have an expected residual value of $210 000. There is a bargain purchase option that Customer Ltd will be able to exercise at the end of the fifth year for $280 000. Customer Ltd determined that this contract contains a lease.

REQUIRED: Prepare the journal entries in the books of the lessee (Customer Ltd) from 1 July 2019 to 30 June 2020 (the end of the reporting period). Show all working

Supply Ltd entered into a non-cancellable five-year lease arrangement with Customer Ltd on 1 July 2019. The lease is for an item of machinery. There are to be five annual payments of $315 000, the first being made on 30 June 2020. The implicit interest rate is 12%. The Machinery is expected to have an economic life of six years, after which time it will have an expected residual value of $210 000. There is a bargain purchase option that Customer Ltd will be able to exercise at the end of the fifth year for $280 000. Customer Ltd determined that this contract contains a lease.

REQUIRED:

Prepare the journal entries in the books of the lessee (Customer Ltd) from 1 July 2019 to 30 June 2020 (the end of the reporting period). Show all working.

Brief Exercise 19-10 Performance-based options [LO19-2]

On October 1, 2018, Farmer Fabrication issued stock options for 280,000 shares to a division manager. The options have an estimated fair value of $5 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 2% in four years. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 2% by the end of 2020.

Required:

1. What is the revised estimate of the total compensation?
2. What action will be taken to account for the options in 2019?
3. Prepare the journal entries to record compensation expense in 2019 and 2020.

As part of his effort in promoting innovation and healthy relationship among all the

employees working in different locations (branches), Andrus started an annual activity

where groups of employees (based on location) compete to pitch their most extreme ideas

to one another. Each group would present their ideas, then the branches vote one by one.

(They are not allowed to vote for their own branch) Each branch awards 8 votes to their

favorite, 4 to the second, 2 to the third and 1 to the fourth. Clearly, tactical voting is

important, so the order of voting is changed every year. This year, the branches vote in

order from most northerly to most southerly. The results before the last two branches have

voted are shown below (in voting order). Who still stands a chance of winning? Walk me

through your entire thought process!

1. As part of his effort in promoting innovation and healthy relationship among all the employees working in different locations (branches), Andrus started an annual activity where groups of employees (based on location) compete to pitch their most extreme ideas to one another. Each group would present their ideas, then the branches vote one by one. (They are not allowed to vote for their own branch) Each branch awards 8 votes to their favorite, 4 to the second, 2 to the third and 1 to the fourth. Clearly, tactical voting is important, so the order of voting is changed every year. This year, the branches vote in order from most northerly to most southerly. The results before the last two branches have voted are shown below (in voting order). Who still stands a chance of winning? Walk me through your entire thought process! (30 points)

As part of his effort in promoting innovation and healthy relationship among all the employees working in different locations (branches), Andrus started an annual activity where groups of employees (based on location) compete to pitch their most extreme ideas to one another. Each group would present their ideas, then the branches vote one by one. (They are not allowed to vote for their own branch) Each branch awards 8 votes to their favorite, 4 to the second, 2 to the third and 1 to the fourth. Clearly, tactical voting is important, so the order of voting is changed every year. This year, the branches vote in order from most northerly to most southerly. The results before the last two branches have voted are shown below (in voting order). Who still stands a chance of winning? Walk me through your entire thought process! (30 points)

Backwoods American, Inc., produces expensive water-repellent, down-lined parkas. The co. implemented a TQM program in 2005. Following are the quality-related accounting data that have been accumulated for the 5-year period after the program's start.

• List some examples of each quality-related costs - i.e., of prevention, appraisal, and internal and external failure costs - that might result from the production of the parkas.
• The BA Inc produces 20,000 parkas annually. The quality management program implemented improved average percentage of good parkas produced by 2% each year beginning with 83% good quality parkas in 2005. Only 20% of poor quality parkas can be reworked (and made good). Compute the product yield for each of the 5 years.
• Assuming a rework cost of $12/parka, determine the manufacturing cost per good parka for each of the 5 years. What do these results imply about the co's quality management program?

1. Do the variables have significant correlation? For full credit, you must show each step of the hypothesis test. Use the 0.05 significance.

2. In 2008, the price of gas dropped drastically and hit a low average of $1.59 for the nation. What effect do you think this will have on the alternative-fuel car sales, if any? Do you think that this would affect the number of alternative-fueled vehicles used in the United States? Do you think that it would follow the same pattern as before 2008? Write 2 or 3 sentences explaining how you think the new vehicles will affect the number of alternative-fueled vehicles in the United States.

3. Use your regression equation to predict the number of alternative-fueled vehicles used in the United States in 2010. Assume that the pattern remains the same after the introduction of the electric-gas vehicles. Show your work.

4. Search online to find some evidence for or against your opinion in part e. Give the information that you found and state the URL to the data. Was your prediction correct or incorrect? Why do you think that happened? Write 2 or 3 sentences summarizing the information that you found and explain why you think that happened. Be sure to answer each question.

Care in this capacity can range from a short-term to long-term based upon the changing needs of the patient. Patient age can range from pediatric to elderly. Care can be provided in the patient’s private home, group home, or assisted living setting. Medical homes fall into this category and are a new focus of Accountable Care Organizations through the Affordable Care Act of 2010.

Scenario

As the Director of Human Resources within a home care environment, you are responsible for the ad- ministration of the organization’s labor budgets. Your Director of Clinical Services, who has a MSN, has presented some challenges regarding the compensation of her staff.

This specific assisted nursing facility focuses on long-term care, providing approximately 500 nursing and support personnel who deliver direct and indirect care to approximately 225 patients representing various stages of acuity and need for nursing care. Your overall labor budget represents approximately 60% of expense revenue.

The Director of Clinical Service complains that several of her registered nurses are threatening to leave the organization, allegedly because a competitor nearby pays their nurses higher wages. In fact, Direc- tor of Clinical Service asks for an across-the-board immediate pay adjustment of an additional $5.00 an hour for the nurses. She is awaiting a response from you before the day is over.

After reading the Home Care scenario in the Allied Health Community, consider what types of effects might be seen throughout the organization if it were to administer the $5 raise. How would one justify which nurses receive it?