On January 1, 2020, Cullumber Corporation had $1,125,000 of common stock outstanding that was issued at par. It also had retained earnings of $746,500. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $410,000 for the year. Journalize the declaration of a 16% stock dividend on December 10, 2020, for the following independent assumptions. a. Par value is $10, and market price is $19. b. Par value is $5, and market price is $20.

You set up your own business in merchandising sector in Scranton, PA - opening a luxury watch shop on 1/1/2020.

The following is related information about the business:

-   Specific sub-sector: Merchandising sector.

-   Location: Scranton, PA

-   Business model: merchandiser - buying and selling luxury watches.

-   Investment by owner: $1,000,000

- You hired a shop manager. In order to handle different aspects of business, you had one employee responsible for the purchasing, receiving, and storing of watches purchased. A second employee is responsible for the maintenance of account receivable records and collection from customers. A third employee has responsibility for personal records, timekeeping, preparation of payrolls, and distribution of payroll checks. As a part of his job, the shop manager would do some internal control functions. In addition, you hired one security officer, and 4 full-time sales assistants.

Requirements:

1. Based on information given above, identify at least 3 internal control weaknesses that the company has – be specific and explain why those are weaknesses. (review chapter 6) (10 points).

2. Set up an effective Internal Control System for your business using 5 different internal control elements. Be very specific with each element. At least 2 pages long- double spaced. (review pages 164- 168 – chapter 6 textbook). (50 points).

Note: answer to questions 1 and 2 using APA writing style.

3. Draw a document flowchart to depict that the luxury watches are shipped back to the supplier if they are found to be damaged upon arrival at the receiving warehouse of your company (review pages 368-371 – Chapter 12 textbook) (10 points)

4. You are given the following economic events of the business in 2020 (30 points):

1/1/2020: Opened the business, invested $1,000,000 cash in the business.

1/1/2020: bought a building for the business purpose for $100,000 cash. The building has a useful economic life of 10 years.

1/1/2020: purchased 100 luxury watches for $200,000 with $100,000 cash payment, the remaining amount payable on 2/1/2021. (each watch costs $2,000)

3/1/2020: purchased 50 luxury watches for $250,000 with cash. Each watch costs $5,000.

4/1/2020: purchased 40 luxury watches for $240,000 with cash. Each costs $6,000.

6/1/2020: Sold 130 watched for $1,300,000. Of which $300,000 cash was received at the time of sale. The remaining amount to be received on 5/2/2021.

7/1/2020: paid $1,200 in advance for 12 months’ property insurance (7/1/20 to 7/1/21).

8/1/2020: borrowed $500,000 from a local Chase bank. Interest rate is 12%/year. Interest is paid every 6 months- the first payment date is 2/1/2021. Principal would be paid on 8/1/2021.

9/1/2020: to expand business, you rent a showroom in the next building. Paid $24,000 cash in advance for 12 month’s rent.

12/31/2020: Paid 2020 utilities expense, advertising expense, and miscellaneous expense for $5000, $15,000, and $4,000, respectively.

Salary is paid on the last day of each month. Each month’s salary expense is $20,000.

Notes:

• On 12/31/2020: Physical inventory showed that there were 60 luxury watches on hand at the end of the period. The company used periodic inventory system, and used FIFO costing method.
• Your business used straight-line depreciation method for all fixed assets.
• Ignore tax.

Requirement: Prepare an excel file that includes

1. Tab 1 titled “accounting entries”: prepare all journal entries, adjusting entries, closing entries needed for the period ending on 12/31/2020 based on above economic events (12 points.)

2. Tab 2 titled “income statement”: prepare a multiple-step income statement for year ended 12/31/2020. (5 points)

3. Tab 3 titled “Statement of retained earning”: Prepare Statement of retained earnings for year ended 12/31/2020 (5 points)

4. Tab 4 titled “Balance sheet”: prepare a balance sheet as of 12/31/2020 (8 points)

Crain Company has a manufacturing subsidiary in Singapore that produces high-end exercise equipment for U.S. consumers. The manufacturing subsidiary has total manufacturing costs of $1,530,000, plus general and administrative expenses of $353,000. The manufacturing unit sells the equipment for $2,530,000 to the U.S. marketing subsidiary, which sells it to the final consumer for an aggregate of $3,530,000. The sales subsidiary has total marketing, general, and administrative costs of $203,000. Assume that Singapore has a corporate tax rate of 33% and that the U.S. tax rate is 46%. Assume that no tax treaties or other special tax treatments apply. Required:

What is the effect on Crain Company’s total corporate-level taxes if the manufacturing subsidiary raises its price to the sales subsidiary by 20%? (Do not round intermediate calculations. Input all amounts as positive values.)

1/1/2020: Opened the business, invested $1,000,000 cash in the business.

1/1/2020: bought a building for the business purpose for $100,000 cash. The building has a useful economic life of 10 years.

1/1/2020: purchased 100 luxury watches for $200,000 with $100,000 cash payment, the remaining amount payable on 2/1/2021. (each watch costs $2,000)

3/1/2020: purchased 50 luxury watches for $250,000 with cash. Each watch costs $5,000.

4/1/2020: purchased 40 luxury watches for $240,000 with cash. Each costs $6,000.

6/1/2020: Sold 130 watched for $1,300,000. Of which $300,000 cash was received at the time of sale. The remaining amount to be received on 5/2/2021.

7/1/2020: paid $1,200 in advance for 12 months’ property insurance (7/1/20 to 7/1/21).

8/1/2020: borrowed $500,000 from a local Chase bank. Interest rate is 12%/year. Interest is paid every 6 months- the first payment date is 2/1/2021. Principal would be paid on 8/1/2021.

9/1/2020: to expand business, you rent a showroom in the next building. Paid $24,000 cash in advance for 12 month’s rent.

12/31/2020: Paid 2020 utilities expense, advertising expense, and miscellaneous expense for $5000, $15,000, and $4,000, respectively.

Salary is paid on the last day of each month. Each month’s salary expense is $20,000.

Notes:

• On 12/31/2020: Physical inventory showed that there were 60 luxury watches on hand at the end of the period. The company used periodic inventory system, and used FIFO costing method.
• Your business used straight-line depreciation method for all fixed assets.
• Ignore tax.

Requirement:

1. Prepare all journal entries, adjusting entries, closing entries needed for the period ending on 12/31/2020 based on above economic events

1)On January 1, 2020, Bramble Company purchased at face value, a $1210, 10% bond that pays interest on January 1. Bramble Company has a calendar year end.
The adjusting entry on December 31, 2020, is

not required

2)Marigold Inc. has 5200 shares of 5%, $100 par value, cumulative preferred stock and 49200 shares of $1 par value common stock outstanding at December 31, 2020. What is the annual dividend on the preferred stock?

3)

Waterway, Inc., has 9500 shares of 5%, $100 par value, noncumulative preferred stock and 95000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $201500 dividend, the

A)preferred stockholders will receive the entire $201500.

b)preferred stockholders will receive $47500 and the common stockholders will receive $154000.

c)$47500 will be held as restricted retained earnings and paid out at some future date.

d)preferred stockholders will receive 1/10^th of what the common stockholders will receive.

4)

Outstanding stock of the Bramble Corporation included 19800 shares of $5 par common stock and 9900 shares of 6%, $10 par noncumulative preferred stock. In 2019, Bramble declared and paid dividends of $4200. In 2020, Bramble declared and paid dividends of $11000. How much of the 2020 dividend was distributed to preferred shareholders?

A)$6800

b)$4200

c)$5940

D)None of these answer choices are correct

5)

Outstanding stock of the Crane Corporation included 19000 shares of $5 par common stock and 4500 shares of 5%, $10 par noncumulative preferred stock. In 2019, Crane declared and paid dividends of $1500. In 2020, Crane declared and paid dividends of $5500. How much of the 2020 dividend was distributed to preferred shareholders?

1)$1500

2)$4000

3)$2250

4)None of these answer choices are correct

(you dont need to show the work just answer them)

Samson plc is registered for VAT.

The following information relates to the company’s VAT return for the quarter ended 31 March 2020:

1. Sales invoices totalling £330,000 were issued to VAT registered customers, of which £240,000 were for standard-rated sales and £90,000 were for zero-rated sales.

2. Samson plc offers its standard-rated customers a 5% discount for prompt payment. This discount was taken by 1/3 of the customers.

3. Purchase invoices totalling £154,000 were received from VAT registered suppliers, of which £136,000 were for standard-rated purchases and £18,000 for zero-rated purchases.

4. Standard-rated expenses amounted to £28,000. This includes £3,900 for entertaining UK customers.

5. On 15 March 2020, the company wrote off irrecoverable receivables of £4,000 and £1,680 in respect of invoices that were due for payment on 10 August 2019 and 5 November 2019 respectively.

6. On 11 January 2020, Samson plc purchased machinery for £24,000 and sold office fittings for £8,000. Input VAT had been claimed when the office fittings were originally purchased.
7. On 1 March 2020, Samson plc purchased a motor car costing £28,400 for the use of its finance director. The finance director is provided with free petrol for private mileage, and the cost of this is included in the standard-rated expenses in note (iv). The relevant quarterly scale charge is £432. Both figures are inclusive of VAT.

Unless stated otherwise, all of the figures above are exclusive of VAT.

YOU ARE REQUIRED TO:

1. Calculate the VAT payable by Samson plc for the quarter ended 31 March 2020 and state the payment due date.

2. Samson plc is experiencing cash-flow difficulties. The company submitted its VAT return and paid the VAT due for the quarter ended 31 December 2019 on 15 March 2020.

State the consequences if Samson plc does not submit the return for the quarter ended 31 March 2020 until 25 May 2020.

(maximum word count 80 words)

TOTAL 20 MARKS

UK TAX

what is the vision of the CEO in heathcare organization

A vision is not the responsibility of the CIO...it is the responsibility of the CEO or the top management team...do you agree or disagree...why?

this question is from chapter 2. Discussion question #1 page 96 of the book Information Systems Management in Practice 8th edition Mcnurlin,Sprague JR,tung bui

What are 7 or more key ways in which marketers (in hotels and other companies) could actively and effectively engage with TripAdvisor? One way to answer this question is to assume that you are the CEO of a hotel and your TripAdvisor ratings at below 2 (where 5 is the best). What specific strategic initiatives would you as the CEO pursue to address this situation?

Imagine CEO Gerd Finger wishes to introduce a new line of music equipment at Newskool Grooves and that several of the other managers do not like his idea.

1. Based on various perspectives and models of leadership, how would you describe the leadership style of the CEO Gerd Finger? Why would you associate him with form of leadership?

2. Why is Path-Goal Theory considered a contingency theory of leadership?

3. Using Path-Goal Theory, provide examples of leadership behaviours enacted by CEO Gerd Finger.

4. Of the contingencies from Path-Goal Theory, which two are most important for deciding how to best lead employees are Newskool Groove? Why?