Write a brief summary of the AIS used at your place of employment. If you are not currently employed, you may use a previous employer or interview an acquaintance about the AIS used at his or her workplace. If you have not been employed, interview a friend or family member. Assume you are an accounting manager at this organization and, reflecting on the concepts covered in this course, describe the changes that you would make to the internal control structure. If you would not make any changes, explain why. Consider the personal attitudes, values, and culture of your employees and organization.

Nicky is the assistant to the HR manager. His best friend Jack is applying for a job with the company and Nicky agreed to be a reference for him. Jack asks for advice on preparing for the interview. Nicky has access to the interview questions that will be asked of all applicants. It would be great for his best friend to work at the same company. Nicky stops to think, what would be the consequences of his decision to share the questions? Choose all that apply.

Select one or more:

a. Nicky could lose his job.

b. If hired, Jack could lose his jobs.

c. Jack could get hired on and not be a good fit for the job.

d. Jack could get hired on and not be as capable of performing tasks as he implied in his interview.

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Scenario: Lee is the general manager for The Mattress Store. His best sales associate, Ben missed his monthly goal by one mattress this month. It is unusual for Ben to miss his goal; he was out for a week with the flu. Unfortunately, Ben did not earn his bonus for the month. Ben is upset and threatens to quit if Lee does not make the exception since Ben had the flu. The rules are clear, and bonuses are paid to those who meet their sales goal. However, Lee does have the authority to make exceptions to the rule.
Should Lee involve others in making this decision? Choose all that apply:

Select one:

a. Yes, Lee should involve the accounting department in his decision.

b. Yes, Lee should involve the payroll department in his decision.

c. Yes, Lee should involve HR in his decision.

d. No, Lee has the information he needs to make the decision on his own

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Scenario: Stanley transferred from the northside location to the southside location and accepted a promotion to manager of the store. On his first day in his new role as manager, an employee approached Stanley and asked if she could leave two hours early to attend her son's school play. She said that the previous manager always lets her leave early. Stanley does not know how to respond.
Should Stanley involve others in his decision? Choose all that apply.

Select one or more:

a. Yes, Stanley should find out if it is appropriate to grant her request.

b. Yes, Stanley should consult the other employees of the department.

c. Yes, Stanley should involve the manager of accounting.

d. No, Stanley has the information to make the decision on his own

The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020 are:

Other information:

Share capital is increased by the bonus issue of 24 000 shares for $1.00 each out of retained earnings. Plant is acquired during the period at a cost of $36 000, while plant with a carrying amount of $nil (cost of $24 000, accumulated depreciation of $24 000) is scrapped.

Required:

a)      Reconstruct the allowance for doubtful debts and accounts receivable.

(6.5 marks)

b)      Reconstruct inventory and accounts payable

c)      Reconstruct accrued salaries

d)      Reconstruct property, plant and equipment and accumulated depreciation

e) present a statement of cash flow for maybe ltd for the year ended 30 June 2020

The property, plant, and equipment section of the Jasper Company’s December 31, 2020, balance sheet contained the following:

The land and building were purchased at the beginning of 2016. Straight-line depreciation is used and a residual value of $31,000 for the building is anticipated.

The equipment is comprised of the following three machines:

The straight-line method is used to determine depreciation on the equipment. On March 31, 2021, Machine 102 was sold for $39,000. Early in 2021, the useful life of machine 101 was revised to five years in total, and the residual value was revised to zero.

Required:

1. Calculate the accumulated depreciation on the equipment at December 31, 2020.
2. Prepare the journal entry to record 2021 depreciation on machine 102 up to the date of sale.
3. Calculate the gain or loss on the sale of machine 102.
4. Prepare the journal entry for the sale of machine 102.
5. Prepare the 2021 year-end journal entries to record depreciation on the building and remaining equipment.

The property, plant, and equipment section of the Jasper Company’s December 31, 2020, balance sheet contained the following:

The land and building were purchased at the beginning of 2016. Straight-line depreciation is used and a residual value of $31,000 for the building is anticipated.

The equipment is comprised of the following three machines:

The straight-line method is used to determine depreciation on the equipment. On March 31, 2021, Machine 102 was sold for $39,000. Early in 2021, the useful life of machine 101 was revised to five years in total, and the residual value was revised to zero.

Required:

1. Calculate the accumulated depreciation on the equipment at December 31, 2020.
2. Prepare the journal entry to record 2021 depreciation on machine 102 up to the date of sale.
3. Calculate the gain or loss on the sale of machine 102.
4. Prepare the journal entry for the sale of machine 102.
5. Prepare the 2021 year-end journal entries to record depreciation on the building and remaining equipment.

The property, plant, and equipment section of the Jasper Company’s December 31, 2020, balance sheet contained the following:

The land and building were purchased at the beginning of 2016. Straight-line depreciation is used and a residual value of $31,000 for the building is anticipated.

The equipment is comprised of the following three machines:

The straight-line method is used to determine depreciation on the equipment. On March 31, 2021, Machine 102 was sold for $39,000. Early in 2021, the useful life of machine 101 was revised to five years in total, and the residual value was revised to zero.

Required:

1. Calculate the accumulated depreciation on the equipment at December 31, 2020.
2. Prepare the journal entry to record 2021 depreciation on machine 102 up to the date of sale.
3. Calculate the gain or loss on the sale of machine 102.
4. Prepare the journal entry for the sale of machine 102.
5. Prepare the 2021 year-end journal entries to record depreciation on the building and remaining equipment.

The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020 are:

Other information:

Share capital is increased by the bonus issue of 24 000 shares for $1.00 each out of retained earnings. Plant is acquired during the period at a cost of $36 000, while plant with a carrying amount of $nil (cost of $24 000, accumulated depreciation of $24 000) is scrapped.

Required:

a)      Reconstruct the allowance for doubtful debts and accounts receivable.

b)      Reconstruct inventory and accounts payable

c)      Reconstruct accrued salaries

d)      Reconstruct property, plant and equipment and accumulated depreciation

e) Present a statement of cash flow for Maybe Ltd for the year ended 30 june 2020

c. using the indirect method, calculate onlly the net cash flow from operating activities for windsor company for the year ended May 31, 2020

Investment in Trading and AFS Securities

In 2019, a company purchases debt securities at a par value of $500,000. Their year-end value is $520,000. In 2020, these securities are sold for $525,000 and new securities are purchased for $700,000. At the end of 2020, the securities have not yet been sold, and have a value of $600,000.

Required
Prepare the journal entries to record the above information for 2019 and 2020, assuming that:

a. The securities are categorized as trading securities.