Why do you think it is more important to differentiate yourself as a company when dealing with business to business transactions and customers than business to consumer customers?

Analyzing the effects of Business Transactions:
On March 1, Suresh starts software development center for developing customer-specific computer software. The
transactions for the said month are as follows:
1) Investment by owner : On March 1, Suresh invests Rs 50,000/- in cash in the company.
2) Receipt of loan : On March 2, Suresh took a loan of Rs 20,000/- from Manoj for the company.
3) Purchase of assets on credit : On March 3, Suresh purchased 2 computers with accessories, costing Rs
22,000/- each.
4) Purchases on cash : On March 4, purchased supplies of floppy disks Rs 1000/-.
5) Purchase returns : On March 6, assets’ accessories purchased on March 3, worth Rs 1000/- being faulty,
was returned to suppliers.
6) Purchases on credit: On March 10, purchased stationery for Rs 6,000/- on credit.
7) Receipt of revenue: On March 19, the company completes its maiden sale of software to a retail store
and receives a sum of Rs 15,000/-.
8) Revenues receivables: On March 20, billed customers for services rendered, Rs 19,000/-.
9) Payment of a liability: With more cash now than in the beginning, on March 21, the company paid Rs
2000/- to its creditors for stationery purchased.
10) Payment of expenses: On March 29, the company pays salaries to its employees, amounting to Rs
4000/- and office rent of Rs 1,200/-.
11) Revenues receivables: On March 30, the company completes a software package, the customer agrees
to pay the price of Rs 8,000/- a week later.
12) Payments: On March 30, Repaid a part of the Manoj's loan, Rs 5,000/- along with interest of Rs. 500/-.
13) Withdrawal by owner: On March 31, Suresh withdraws Rs 3,500/- for his personal use.
14) Depreciation is provided @ 5% for the month of March.
15) Tax @ 20% to be provided.
Required :
Prepare, for the month of March:
1. Transaction statement (in the format taught in class A+E = L+I), (15 m)
2. Income statement (5 m)
3. Balance Sheet (5 m)

TheRecallComputerCo.hassixterritories,eachrepresentedbyonesalesperson.After extensive planning, the company determines that each territory would be expected to achieve the following percentages of total company sales for 2012:

Territory 1 27% Territory 2 15% Territory 3 18%

Territory 4 12% Territory 5 20% Territory 6 8%

These figures are used as the standard for comparing each sales representative’s actual 2016 sales. The company projected sales for 2016 of $18,500,000. Determine which sales representative’s territory had the best performance by using the performance index, if the actual sales for 2016 in each territory were $5,425,000, $3,205,000, $3,710,000, $2,400,000, $3,900,000, and $2,000,000, respectively, for territories 1–6.

On April 1, 2017, Robert King created a new travel agency, King Travel. The following transactions occurred during the company’s first month.

Apr. 1 King invested $44,000 cash and computer equipment worth $22,200 in the company.

Apr. 2 The company rented furnished office space by paying $2,000 cash for the first month’s (April) rent.

Apr. 3 The company purchased $2,000 of office supplies for cash.

Apr. 10 The company paid $1,800 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.

Apr. 14 The company paid $1,540 cash for two weeks’ salaries earned by employees.

Apr. 24 The company collected $12,000 cash on commissions from airlines on tickets obtained for customers.

Apr. 28 The company paid $1,540 cash for two weeks’ salaries earned by employees.

Apr. 29 The company paid $650 cash for minor repairs to the company’s computer.

Apr. 30 The company paid $600 cash for this month’s telephone bill.

Apr. 30 King withdrew $1,700 cash from the company for personal use.

Information for month-end adjustments follows:

Two-thirds (or $100) of one month’s insurance coverage has expired.

At the end of the month, $950 of office supplies are still available.

This month’s depreciation on the computer equipment is $370. Employees earned $616 of unpaid and unrecorded salaries as of month-end.

The company earned $1,810 of commissions that are not yet billed at month-end.

Record the entry to close the revenue accounts

Record the entry close to the expense accounts.

Record the entry to close income summary Record the entry to close owners withdrawals account

GENERAL JOURNAL, GENERAL LEDGER, TRIAL BALANCE, INCOME STATEMENT, ST OWNERS EQUITY, BALANCE SHEET, POST CLOSING.

Problem I: Suppose you are the manager of Speedy Oil Change which claims that it will change the oil in customers’ cars in less than 30 minutes on average. Further suppose that several complaints have been filed from customers stating that their oil change took longer than 30 minutes. Upper-level management at Speedy Oil Change headquarters has requested that you investigate the complaints. To begin your investigation, you randomly audit 36 oil changes performed by Speedy Oil Change and record the time each customer waited for the oil change. The number of minutes to complete each of the 36 oil changes is reported below.

(data similar to http://org.elon.edu/econ/sac/Descriptive.htm)

In the questions below, you will test if the mean is significantly less than 30 minutes at a significance level of 0.01.

6. Using the confidence interval you created, calculate the range of values that answers the question “how much less than 30 minutes is our mean oil change?”

7. What other factors might you need to consider in order to address the customer complaints?

On October 1, 2020, Isshita Karim established an interior decorating business, Isshita Designs. During the month, John completed the following transactions related to the business:

Oct.       1

.           Isshita transferred cash from a personal bank account to an account to be used for the business, $15,000.

              4.      Paid rent for the month of October, $1,100.

            10.      Purchased a used truck for $7,500, paying 1,500 cash and signing a note payable for the remainder.

            12.      Received $300 in advance for jobs to be performed in November.

13.      Purchased equipment on account, $3,100.

            14.      Purchased supplies for cash, $719.

            15.      Paid annual premiums for property and casualty insurance, $600.

            15.      Received cash for job completed, $1,950.

            21.      Paid creditor a portion of the amount owed for equipment purchased on October 13, $1,500.

            24.      Recorded jobs completed on account and sent invoices to customers, $2,500.

            26.      Received an invoice for truck expenses, to be paid in November, $175.

            27.      Paid utilities bills, $140.

            27.      Paid miscellaneous expenses, $90.

            29.      Received cash from customers on account, 1,700.

            30.      Paid wages to employees, $900.

            31.      Withdrew cash for personal use, $200.

Isshita Designs

Journal Entries

You are an auditor at a public accounting firm. You are conducting an audit for the financial year ending December 31, 2019. Your client has go public. This client is a property development company. Your client builds property in the form of apartment units, housing / real estate and also property investment products in the form of lots ready to build. In addition, this client also has a project development cooperation with its customers. The client is bound by a contract signed by both parties before a notary for the construction of a project with this customer. The project has not been completed 100%, however, the client says that the project has been completed 60% and the client acknowledges 60% of the development as revenue in the 2019 financial year.

a. In your opinion, as an auditor, what account should the client classify the apartment and housing / real estate complex be? Explain your answer!

b.   What is the audit procedure that you will apply to ensure the recognition of revenue that is 60% of the project!

c. What audit evidence will you examine and what are the related assertions? Explain your answer!

Problem 3-14B Compute and Use Activity Rates to Determine the Costs of Serving Customers [LO3-2, LO3-3, LO3-4]

Problem 3-14A Compute and Use Activity Rates to Determine the Costs of Serving Customers [LO3-2, LO3-3, LO3-4]