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.

A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.

Antara Ltd operates in the construction industry and do not prepare consolidated financial statements. Laura Jones is the senior accountant of the company, leading the financial reporting team. As a result of being profitable for the last five years, on 1 July 2018, Antara Ltd acquired 25% of the issued ordinary shares of Blanca Ltd paying $198 000 in cash. This provided Antara Ltd with the significant influence over Blanca Ltd. At the acquisition date, Laura and her team received the information below for Blanca Ltd:  Equity comprised $180 000 share capital and $144 000 retained earnings.  All identifiable assets and liabilities were recorded at their carrying amounts equal to the fair values with the exceptions of three assets: Inventory, Land, and Equipment. $ $ Inventory 126 000 153 000 Land 162 000 198 000 Equipment 414 000 432 000 Other information related to the above assets includes:  Blanca Ltd sold all the inventory by 30 June 2020.  After acquisition, Land was revalued by Blanca Ltd and revaluation was recognised in Blanca Ltd’s own accounting book. The company uses the revaluation model to account for its non-current assets. At 30 June 2019, Blanca Ltd had Land recorded at $252 000 fair value, and at 30 June 2020 at $288 000 fair value.  Blanca Ltd planned to use Equipment for another 5 years, using the straight line method of depreciation. During two financial years following the acquisition, Antara Ltd and Blanca Ltd carried out the inter-entity transactions below.  Antara Ltd sold a machine to Blanca Ltd for $85 000. The machine had a carrying amount of $79 600 at the time of sale on 1 January 2019. Blanca Ltd planned to use the machine for a further 3-year with depreciation based on the straight line method.  On 15 May 2019, Antara Ltd sold inventory to Blanca Ltd for $20 800. The inventory had cost Antara Ltd $10 000. Blanca Ltd sold half of the inventory externally by 30 June 2019.  On 30 April 2020, Antara Ltd sold inventory to Blanca Ltd for $126 000. The profit before-tax of this transaction was $14 400. Blanca Ltd sold 90% of the inventory externally by 30 June 2020. ACCT6005 Assessment 2 Case Study Brief.docx Page 3 of 6 Blanca Ltd’s balance of Retained earnings at 30 June 2019 was $306 000. Both companies apply the tax rate of 30%. Laura approved the following consolidated statements of profit or loss and other comprehensive incomes for Antara Ltd and Blanca Ltd for the year ended 30 June 2020. She made a note that the statement for Antara Ltd does not include the financial results of Blanca Ltd prepared using the equity account method. Accounts Revenues $900 000 $432 000 Expenses 504 000 144 000 Profit before tax 396 000 288 000 Income tax expense (144 000) (90 000) Profit after tax 252 000 198 000 Other comprehensive income (OCI) items Gains on non-current asset revaluation 54 000 25 200 Comprehensive income $306 000 $223 200 For the financial year ended 30 June 2020, the Chief Financial Officer (CFO) of Antara Ltd has been advised by the company’s auditor that the consolidated financial statements should be prepared, which include the financial results of Blanca Ltd based on the equity method. The CFO came to Laura seeking her professional opinions regarding this matter. Laura has decided to ask you as a member of her reporting team to undertake a number of tasks to provide her with sufficient information before she responds to the CFO. The tasks comprise Part A and Part B below. Part A Practical Problem Solving a) Prepare the journal entries for Antara Ltd at 30 June 2020 to account for its investment in Blanca Ltd, assuming Antara Ltd prepares consolidated financial statements. b) Prepare the consolidated statement of profit or loss and other comprehensive income for Antara Ltd for the year ended at 30 June 2020, assuming this statement includes Blanca Ltd’s financial results.

1 The purchases of items from foreigners will be equal to the sales of items to foreigners.

True

False

2 The following chart indicates a hypothetical newspaper quotation of the exchange rates of various currencies.

On February 2, the U.S. dollar (appreciated /depreciated) against the British pound.

On February 2, the U.S. dollar (appreciated /depreciated)   against the Canadian dollar.

3

Suppose the exchange rate between the United States and Mexico freely fluctuates in the open market.

Indicate whether each of the following would cause the dollar to appreciate, depreciate or remain unchanged relative to the peso.

4 Economies with sluggish growth often run trade surpluses.

True

False

Briefly summarize the key point of the article, but DO NOT include any direct text from the article (i.e., don't quote or copy from the article), tell me in YOUR OWN words. This should be brief. NO LESS THAN 200 words

Explain what other businesses, or your employer, could learn from the key point(s) in this article.

Startups Show Car and Home Insurers They Need to Get Smarter

Industry faces growing threat from technology when profits are already a struggle

When you make an insurance claim with Lemonade, the online-only startup that mainly sells renters policies to young American urbanites, you quickly fill in details on its slick mobile app and then record a quick video to explain the claim again.

Smart software analyzes this video for telltale signs of dishonesty, one of 18 antifraud algorithms that Lemonade says helps it pay claims fast. About one-third are paid instantly, according to Daniel Schreiber, co-founder and CEO, while the average claim is settled in less than a day.

For established insurers this is a risk, especially when insurance policies are relatively small like Lemonade’s or in highly competitive markets where insurers struggle to turn a profit, like auto insurance.

The profits available from simply supplying funds to underwrite risks have been squeezed because capital is plentiful in insurance markets. Smaller, smarter challengers that can manage customers and the claims process at lower cost will find ways to take industry profits, sell more competitive policies, or both.

Lemonade isn’t alone. Another, more established U.S. startup is Snapsheet, which provides its app to U.S. insurers including Chubb and several smaller groups such as Ohio Mutual and NJM insurance. It can assess car damage claims in under three hours based on photos from customers via a mobile app. It closes most claims in less than three days: the traditional process can take up to 30.

Some auto insurers have become more efficient, but the industry remains fragmented. Photo: Bloomberg News

For sure, some auto insurers have become more efficient. Progressive, for example, has its own repair shop network. But the industry remains fragmented and companies know they must improve their processes, especially the efficiency and costs of claims adjusters, according to Tim Zawacki at S&P Global Market Intelligence. Auto insurance is intensely competitive: savings worth just a single cent in every dollar of premiums would make a huge difference.

Big property and casualty insurers give away too much revenue (and potential profit) to a whole network of companies that help insurers deal with clients and claims. About 60 cents of every dollar of premiums gets paid directly or indirectly to these companies, according to forthcoming research by Oliver Wyman.

Just 16 cents of that goes to things like car repairs or physical therapy and so benefits claimants. The rest pays for services from claims adjusters, brokers, software companies and other intermediaries—many of which make better profits than insurers do.

This is a big problem for insurers, which as a group have failed to earn their cost of capital for years, according to Oliver Wyman. They should try to recapture some of this lost value by building their own technology, or buying a company that can cut their costs significantly.

Some have started: Allstate , for example, has its own photo app to speed up claims estimates, while Liberty Mutual, USAA and Intact of Canada all have stakes in Snapsheet.

But insurers will struggle to boost profits while the property and casualty industry is flooded with capital and investment returns remain depressed. Their only option is to get quicker and smarter

Objective

This assignment examines the importance of the cost of quality to an organization. Through this, we will gain a better understanding of how we can measure the cost of quality in an organization and what benefits can be gained from the cost of quality.

Scenario

This is a true story that dominates the global media in 2019/20 and shook an established and trusted company to its core. More details are easily available online but the following summary was taken from Wikipedia.

The Story

Boeing is a major airline manufacturer. The introduction of it’s new Boeing 737 Max plan resulted in 346 deaths.

The Challenge

In March 2019, aviation authorities around the world grounded the Boeing 737 Max passenger aircraft after two new airplanes crashed within five months of each other, killing all 346 people aboard. After the first accident, Lion air Flight 610 on October 29, 2018, investigators determined that the MAX's new Maneuvering Characteristics Augmentation System  (MCAS), which was omitted from flight manuals and crew training, automatically and repeatedly forced the aircraft to nosedive.

The Response

In April 2019, Boeing admitted that MCAS played a role in both accidents. In October, the Indonesian authorities concluded that problems with airplane design, certification, maintenance, and flight crew actions contributed to the Lion Air accident. In November 2019, the FAA revoked Boeing's authority to issue airworthiness certificates for individual MAX airplanes. In December 2019, the U.S. House of Representatives criticized the FAA and Boeing for their inaction despite known risks.

in December 2019, Boeing ousted its CEO over mismanagement of the crisis. Airlines canceled 183 orders for the MAX in 2019. In January 2020, Boeing halted production until regulators clear the airliner to fly again. Boeing revealed derogatory messages between its employees, sent during certification, about the MAX design, FAA regulation, and Lion Air's request for flight simulator training. Boeing estimated the grounding and production suspension will result in an additional $6.3 billion to produce the aircraft, reducing the margin of the 737 program in the future, with $18.4 billion in total future losses arising from the grounding.

Deliverables

Analyze the above scenario using the 4 Costs of Quality given below:

• Appraisal cost
• Prevention cost
• Internal failure cost
• External failure cost

Your detailed analysis and report should reflect:

• Root cause(s) of the issue
• What should have been done to prevent the current situation?
• What was done to turn the situation around?
• How did Boeing officials manage this crisis?

On July 1, 2019, the City of Belvedere accepted a gift of cash in the amount of $3,360,000 from a number of individuals and foundations and signed an agreement to establish a private-purpose trust. The $3,360,000 and any additional gifts are to be invested and retained as principal. Income from the trust is to be distributed to community nonprofit groups as directed by a Board consisting of city officials and other community leaders. The agreement provides that any increases in the market value of the principal investments are to be held in trust; if the investments fall below the gift amounts, then earnings are to be withheld until the principal amount is re-established.

The following events and transactions occurred during the fiscal year ended June 30, 2020. Record them in the Belvedere Community Trust Fund:

1. On July 1, the original gift of cash was received.
2. On August 1, $2,212,000 in XYZ Company bonds were purchased at par plus accrued interest ($36,867). The bonds pay an annual rate of 5 percent interest semiannually on April 1 and October 1.
3. On August 2, $904,000 in ABC Company common stock was purchased. ABC normally declares and pays dividends semiannually, on January 31 and July 31.
4. On October 1, the first semiannual interest payment ($55,300) was received from XYZ Company. Note that part of this is for accrued interest due at the time of purchase; the remaining part is an addition that may be used for distribution.
5. On January 31, a cash dividend was received from ABC Company in the amount of $25,000.
6. On March 1, the ABC stock was sold for $921,000. On the same day, DEF Company stock was purchased for $980,000.
7. On April 1, the second semiannual interest payment was received from XYZ Company.
8. During the month of June, distributions were approved by the Board and paid in cash in the amount of $93,000.
9. Administrative expenses were recorded and paid in the amount of $7,000.
10. An accrual for interest on the XYZ bonds was made as of June 30, 2020.
11. As of June 30, 2020, the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $2,213,000. The fair value of the DEF stock was determined to be $976,000.
12. Closing entries were prepared.

Required:
a. The above events and transactions occurred during the fiscal year ended June 30, 2020. Record them in the Belvedere Community Trust Fund.
b. Prepare (1) a Statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund and (2) a Statement of Fiduciary Net Position.

Requirement 1:

On July 1, the original gift of cash was received.

On August 1, $2,212,000 in XYZ Company bonds were purchased at par plus accrued interest ($36,867). The bonds pay an annual rate of 5 percent interest semiannually on April 1 and October 1.

On August 2, $904,000 in ABC Company common stock was purchased. ABC normally declares and pays dividends semiannually, on January 31 and July 31.

On October 1, the first semiannual interest payment ($55,300) was received from XYZ Company. Note that part of this is for accrued interest due at the time of purchase; the remaining part is an addition that may be used for distribution.

On January 31, a cash dividend was received from ABC Company in the amount of $25,000.

On March 1, the ABC stock was sold for $921,000.

Record the entry for the purchase of DEF Company stock on March 1 for $980,000.

On April 1, the second semiannual interest payment was received from XYZ Company.

During the month of June, distributions were approved by the Board and paid in cash in the amount of $93,000.

Administrative expenses were recorded and paid in the amount of $7,000.

An accrual for interest on the XYZ bonds was made as of June 30, 2020.

As of June 30, 2020, the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $2,213,000. The fair value of the DEF stock was determined to be $976,000.

Record the closing entries.

Requirement 2:

Prepare a Statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund.

Requirement 3:

Prepare a Statement of Fiduciary Net Position.

Puppy Walk Inc. is a dog walking service and retailer of dog supplies and food operating out of Vancouver. The founder, Doggy Higgins is the president and owns 100% of the common shares. The company’s yearend is December 31. The inhouse bookkeeper had a car accident and is unfortunately not able to prepare the 2019 financial statements. It is now January 2020 and you have been asked to make any required adjusting journal entries and prepare the 2019 financial statements. The unadjusted trial balance for Puppy Walk is contained in the appendix: The following information has been made available for you to make any required adjusting entries. 1. The following invoices were received in January 2020 and were not accrued in 2019. Legal fees $1,200 Janitorial services $1,200 Air conditioner repairs $400 New photocopier $3,200 2. You noticed a purchase order placed by Puppy Walk was placed for a new warehouse forklift in November 2019 that will be delivered in April of 2020. At time the order was placed a $4,000 deposit was provided and it was charged to the equipment account. 3. 15% of the bank loan will be paid in 2020. The remainder will be paid over the following four years. No payments on the principal of the loan were made in 2019. 4. The interest rate on the bank loan is 7% per annuum paid quarterly. There was no payment made for the last quarter of the year 5. Depreciation on the current equipment is $21,000. 6. The now photocopier was delivered and operating November 30, 2019 and has a life of 4 years with a residual value of $400. Copyright Steve Gibson 2020 . 7. The insurance was purchased August 31, 2019 and covered two years from that date. 8. A physical review of some inventory in the warehouse that was purchased for $7,000 is now obsolete and worthless. (chapter 7 of textbook) 9. During 2019 an old photocopier that had an original cost of $3,000 and accumulated depreciation of $1,700 was thrown out. (chapter 8 of textbook). No entry was recorded at the time. 10. $11,000 of staff salaries were owed at the end of the year as well, Doggy Higgins is going to be paid a $10,000 bonus in January 2020. 11. A physical count of the supplies inventory indicated the value at year-end was $4,200. 12. In October a customer paid a $4,500 deposit for a custom dog cage to be delivered in January. At the time, this was recorded as sales. 13. Income is taxed at 25%. In Excel, prepare all the necessary journal entries, adjusted trial balance, closing entries, income statement, statement in changes in shareholders’ equity and balance sheet for December 31, 2019 and year ending December 31,2019.

Trial Balance as December 31, 2019 Debit Credit Cash 500,000 Accounts Payable 95,000 Accounts Receivable 270,000 Equipment 372,000 Accumulated Depreciation equipment 100,200 Advertising expense 25,000 Bank loan 300,000 Sales 2,650,000 Common shares 147,450 COGS 1,400,500 Dividends declared 150,000 Goodwill 185,000 Income tax expense interest expense-bank loan 15,750 inventory 320,000 Prepaid insurance 24,000 Rent expense 100,000 Retained earnings 452,000 Salaries expense 370,000 Bonus expense Supplies Inventory(A) 12,400 Customer deposits (L) Depreciation expense Legal fees Repairs expense interest payable Deposit (A) Insurance expense salary payable bonus payable supplies expense Loss on disposal of equipment Janitorial services Current portion of bank loan Income tax payable Total 3,744,650 3,744,650

Puppy Walk Inc. is a dog walking service and retailer of dog supplies and food operating out of Vancouver. The founder, Doggy Higgins is the president and owns 100% of the common shares. The company’s yearend is December 31. The inhouse bookkeeper had a car accident and is unfortunately not able to prepare the 2019 financial statements. It is now January 2020 and you have been asked to make any required adjusting journal entries and prepare the 2019 financial statements. The unadjusted trial balance for Puppy Walk is contained in the appendix: The following information has been made available for you to make any required adjusting entries. 1. The following invoices were received in January 2020 and were not accrued in 2019. Legal fees $1,200 Janitorial services $1,200 Air conditioner repairs $400 New photocopier $3,200 2. You noticed a purchase order placed by Puppy Walk was placed for a new warehouse forklift in November 2019 that will be delivered in April of 2020. At time the order was placed a $4,000 deposit was provided and it was charged to the equipment account. 3. 15% of the bank loan will be paid in 2020. The remainder will be paid over the following four years. No payments on the principal of the loan were made in 2019. 4. The interest rate on the bank loan is 7% per annuum paid quarterly. There was no payment made for the last quarter of the year 5. Depreciation on the current equipment is $21,000. 6. The now photocopier was delivered and operating November 30, 2019 and has a life of 4 years with a residual value of $400. Copyright Steve Gibson 2020 . 7. The insurance was purchased August 31, 2019 and covered two years from that date. 8. A physical review of some inventory in the warehouse that was purchased for $7,000 is now obsolete and worthless. (chapter 7 of textbook) 9. During 2019 an old photo copier that had an original cost of $3,000 and accumulated depreciation of $1,700 was thrown out. (chapter 8 of textbook). No entry was recorded at the time. 10. $11,000 of staff salaries were owed at the end of the year as well, Doggy Higgins is going to be paid a $10,000 bonus in January 2020. 11. A physical count of the supplies inventory indicated the value at year end was $4,200. 12.In October a customer paid a $4,500 deposit for a custom dog cage to be delivered in January. At the time, this was recorded as sales. 13. Income is taxed at 25%. In Excel, prepare all the necessary journal entries, adjusted trial balance, closing entries, income statement, statement in changes in shareholders’ equity and balance sheet for December 31, 2019 and year ending December 31,2019.

Trial Balance as December 31, 2019 Debit Credit Cash 500,000 Accounts Payable 95,000 Accounts Receivable 270,000 Equipment 372,000 Accumulated Depreciation equipment 100,200 Advertising expense 25,000 Bank loan 300,000 Sales 2,650,000 Common shares 147,450 COGS 1,400,500 Dividends declared 150,000 Goodwill 185,000 Income tax expense interest expense-bank loan 15,750 inventory 320,000 Prepaid insurance 24,000 Rent expense 100,000 Retained earnings 452,000 Salaries expense 370,000 Bonus expense Supplies Inventory(A) 12,400 Customer deposits (L) Depreciation expense Legal fees Repairs expense interest payable Deposit (A) Insurance expense salary payable bonus payable supplies expense Loss on disposal of equipment Janitorial services Current portion of bank loan Income tax payable Total 3,744,650 3,744,650

You have just entered an MBA program and have decided to pay for your living expenses using a credit card that has no minimum monthly payment. You intend to charge $1, 000 per month on the card for the next 21 months. The card carries a monthly interest rate of 1%. How much money will you owe on the card 22 months from now, when you receive your first statement postgraduation?

A survey of MBA graduates of a business school obtained data on the first-year salary after graduation and years of work experience prior to obtaining their MBA. The data are given in excel.

Q: Write out the assumptions of simple linear regression. Use the output to validate assumptions or indicate if an assumption is not met.