Timmins Company of Emporia, Kansas, spreads herbicides and
applies liquid fertilizer for local farmers. On May 31, 2020, the
company’s Cash account per its general ledger showed a balance of
$7,206.00.
The bank statement from Emporia State Bank on that date showed the
following balance.
| Emporia State Bank | |||||||
| Checks and Debits | Deposits and Credits | Daily Balance | |||||
| XXX | XXX | 5-31 |
8,520.00 |
||||
A comparison of the details on the bank statement with the
details in the Cash account revealed the following facts.
| 1. | The statement included a debit memo of $30 for the printing of additional company checks. | ||
| 2. | Cash sales of $760.72 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $800.72. The bank credited Timmins Company for the correct amount. | ||
| 3. | Outstanding checks at May 31 totaled $464.15, and deposits in transit were $2,013.15. | ||
| 4. | On May 18, the company issued check No. 1181 for $685 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Timmins Company for $658. | ||
| 5. | $4,000 was collected by the bank for Timmins Company on May 31 through electronic funds transfer. | ||
| 6. |
Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $390 that was incorrectly charged to Timmins Company by the bank |
||
| 7. |
On May 31, the bank statement showed an NSF charge of $650 for a check issued by Sara Ballard, a customer, to Timmins Company on account Prepare the bank reconciliation at May 31, 2020.
(List items that increase cash balance
first.) |
In: Accounting
what three ways can selection interviews be classified?how does each classification affect an interview?
In: Economics
How to analyze the qualitative data? Which kind of method can use for qualitative phone interview research?
In: Statistics and Probability
3.1. When conducting an interview for an accident/incident investigation there are important aspects to be considered. Elaborate on these aspects. (10marks )
In: Operations Management
Prepare 10-12 questions that you plan to use to interview the corporate compliance officer or compliance director
In: Operations Management
Topic: Property, plant and equipment.
Answer both parts independently of each other.
PART A (21 marks)
On 1 July 2018, ABC Ltd purchased and recorded equipment at its cost of acquisition of $320 000. The equipment is expected to have a useful life for seven years and an estimated residual value of $10 000. ABC Ltd depreciates the asset using the straight-line method. ABC Ltd uses the revaluation model to equipment and records accumulated depreciation using the net method. The reporting period end of ABC Ltd is 30 June. ABC Ltd revalued the equipment on 30 June 2020, when the fair value of the equipment was $250 000. On 1 July 2020, the useful life of the equipment is reassessed: it is expected to have a remaining useful life of 6 years. The estimated residual value remains unchanged. ABC Ltd revalued the equipment on 30 June 2021, when the fair value of the equipment was $180 000. On 30 June 2022 the equipment was sold for $200 000.
REQUIRED:
(1) Prepare journal entries to account for the revaluation of the equipment of 30 June 2020. Show all working steps.
(2) Prepare journal entries to account for the revaluation of the equipment of 30 June 2021. Show all working steps.
(3) Prepare journal entries to account for the sale of the equipment of 30 June 2022. Show all working steps.
PART B (19 marks)
ABC Ltd acquired a machine for $750 000 on 1 July 2018. The machine had a useful life of five years and was depreciated on a straight-line basis with no disposal value. ABC Ltd adopts the cost model for accounting for assets in this class. ABC Ltd makes the following estimates of the value of the machine: Date Net selling price Value in use Fair Value 30 June 2019 $550 000 520 000 590 000 30 June 2020 $460 000 420 000 490 000 Indicators of impairment were identified on 30 June 2019, while indicators of a reversal of impairment were found on 30 June 2020.
REQUIRED: Prepare journal entries relating to this asset from 30 June 2019 to 30 June 2020. Show the steps of impairment (or reversal of impairment) tests. Show all working (step by step).
In: Accounting
Question 1 Topic: Property, plant and equipment.
Answer both parts independently of each other.
PART A On 1 July 2018, ABC Ltd purchased and recorded equipment at its cost of acquisition of $320 000. The equipment is expected to have a useful life for seven years and an estimated residual value of $10 000. ABC Ltd depreciates the asset using the straight-line method. ABC Ltd uses the revaluation model to equipment and records accumulated depreciation using the net method. The reporting period end of ABC Ltd is 30 June. ABC Ltd revalued the equipment on 30 June 2020, when the fair value of the equipment was $250 000. On 1 July 2020, the useful life of the equipment is reassessed: it is expected to have a remaining useful life of 6 years. The estimated residual value remains unchanged. ABC Ltd revalued the equipment on 30 June 2021, when the fair value of the equipment was $180 000. On 30 June 2022 the equipment was sold for $200 000.
REQUIRED: (1) Prepare journal entries to account for the revaluation of the equipment of 30 June 2020. Show all working steps.
(2) Prepare journal entries to account for the revaluation of the equipment of 30 June 2021. Show all working steps.
(3) Prepare journal entries to account for the sale of the equipment of 30 June 2022. Show all working steps.
PART B
ABC Ltd acquired a machine for $750 000 on 1 July 2018. The machine had a useful life of five years and was depreciated on a straight-line basis with no disposal value. ABC Ltd adopts the cost model for accounting for assets in this class. ABC Ltd makes the following estimates of the value of the machine: Date Net selling price Value in use Fair Value 30 June 2019 $550 000 520 000 590 000 30 June 2020 $460 000 420 000 490 000 Indicators of impairment were identified on 30 June 2019, while indicators of a reversal of impairment were found on 30 June 2020.
REQUIRED: Prepare journal entries relating to this asset from 30 June 2019 to 30 June 2020. Show the steps of impairment (or reversal of impairment) tests. Show all working (step by step)
In: Accounting
Question 1 Topic: Property, plant and equipment.
Answer both parts independently of each other.
PART A On 1 July 2018, ABC Ltd purchased and recorded equipment at its cost of acquisition of $320 000. The equipment is expected to have a useful life for seven years and an estimated residual value of $10 000. ABC Ltd depreciates the asset using the straight-line method. ABC Ltd uses the revaluation model to equipment and records accumulated depreciation using the net method. The reporting period end of ABC Ltd is 30 June. ABC Ltd revalued the equipment on 30 June 2020, when the fair value of the equipment was $250 000. On 1 July 2020, the useful life of the equipment is reassessed: it is expected to have a remaining useful life of 6 years. The estimated residual value remains unchanged. ABC Ltd revalued the equipment on 30 June 2021, when the fair value of the equipment was $180 000. On 30 June 2022 the equipment was sold for $200 000.
REQUIRED: (1) Prepare journal entries to account for the revaluation of the equipment of 30 June 2020. Show all working steps.
(2) Prepare journal entries to account for the revaluation of the equipment of 30 June 2021. Show all working steps.
(3) Prepare journal entries to account for the sale of the equipment of 30 June 2022. Show all working steps.
PART B
ABC Ltd acquired a machine for $750 000 on 1 July 2018. The machine had a useful life of five years and was depreciated on a straight-line basis with no disposal value. ABC Ltd adopts the cost model for accounting for assets in this class. ABC Ltd makes the following estimates of the value of the machine: Date Net selling price Value in use Fair Value 30 June 2019 $550 000 520 000 590 000 30 June 2020 $460 000 420 000 490 000 Indicators of impairment were identified on 30 June 2019, while indicators of a reversal of impairment were found on 30 June 2020.
REQUIRED: Prepare journal entries relating to this asset from 30 June 2019 to 30 June 2020. Show the steps of impairment (or reversal of impairment) tests. Show all working (step by step)
In: Accounting
Question 1 Topic: Property, plant and equipment.
Answer both parts independently of each other.
PART A On 1 July 2018, ABC Ltd purchased and recorded equipment at its cost of acquisition of $320 000. The equipment is expected to have a useful life for seven years and an estimated residual value of $10 000. ABC Ltd depreciates the asset using the straight-line method. ABC Ltd uses the revaluation model to equipment and records accumulated depreciation using the net method. The reporting period end of ABC Ltd is 30 June. ABC Ltd revalued the equipment on 30 June 2020, when the fair value of the equipment was $250 000. On 1 July 2020, the useful life of the equipment is reassessed: it is expected to have a remaining useful life of 6 years. The estimated residual value remains unchanged. ABC Ltd revalued the equipment on 30 June 2021, when the fair value of the equipment was $180 000. On 30 June 2022 the equipment was sold for $200 000.
REQUIRED: (1) Prepare journal entries to account for the revaluation of the equipment of 30 June 2020. Show all working steps.
(2) Prepare journal entries to account for the revaluation of the equipment of 30 June 2021. Show all working steps.
(3) Prepare journal entries to account for the sale of the equipment of 30 June 2022. Show all working steps.
PART B
ABC Ltd acquired a machine for $750 000 on 1 July 2018. The machine had a useful life of five years and was depreciated on a straight-line basis with no disposal value. ABC Ltd adopts the cost model for accounting for assets in this class. ABC Ltd makes the following estimates of the value of the machine: Date Net selling price Value in use Fair Value 30 June 2019 $550 000 520 000 590 000 30 June 2020 $460 000 420 000 490 000 Indicators of impairment were identified on 30 June 2019, while indicators of a reversal of impairment were found on 30 June 2020.
REQUIRED: Prepare journal entries relating to this asset from 30 June 2019 to 30 June 2020. Show the steps of impairment (or reversal of impairment) tests. Show all working (step by step)
In: Accounting
You are CEO of a new firm, DUNSMED, Inc. which has invented a successful Covid-19 vaccine. The US government has given you an exclusive patent on the drug for 10 years. The government, in exchange for granting this exclusive patent, wants all 100,000 doses manufactured for the first year. As CEO of the company, you are in charge of pricing for the drug and the Marginal Cost is equal to the Marginal Revenue at a price of $2,000 per dose. Demand is extremely high for the drug as your firm is the only company that has invented a Covid-19 vaccine and the Marginal Cost is equal Demand at the price of $10,000 per dose but you can only fill the government's order of 100,000 doses. Please answer the following questions given this information.
a. For the first year, what type of market environment is your firm operating in? What characteristics lead you to believe that and why? Explain clearly and thoroughly (5 sentences minimum are required).
b. What is the minimum price your firm should charge for the drug per dose? Why and how did you come up with the pricing? Explain clearly and thoroughly (5 sentences minimum are required).
c. After the patent expires and the drug is no longer in strong demand, assume 10 other companies all create generic versions of the same vaccine. Your competitors are all charging $11 per dose. Marginal Revenue equals Marginal Cost at $11 per dose. What type of market environment is your firm operating in and why? What price should you charge now? Explain clearly and thoroughly (5 sentences minimum are required).
d. Given that 10 other companies are already creating the same vaccine. Would your firm earn an economic profit assuming you priced the vaccine at the same level as your competitors? Additionally, what would happen if your firm would charge more than your competitors? What would happen if you charge less than your competitors? Explain clearly and thoroughly (5 sentences minimum are required).
In: Economics