QUESTION:

Do you think the US should adopt IFRS. Why or why not? I really just want your opinion about changing from US GAAP to IFRS. What will be the pros and cons?

Every student who has ever worked on a group project has had to consider the free rider problem. On a societal level, broad taxation is often used to solve the problem. Are there other ways to get around the problem? How does one justify the inefficiencies often associated with governmental provision of necessary goods and services? How does one balance individual rights with the need to provide for the greater good?

Karen and Paul are a married couple who work as accountants. They set up their own self-managed superannuation fund. They have chosen to be individual trustees. The trust deed includes the following clauses:

‘1. This fund is to cease operating on 1 January 2030.

2. Benefits can only be taken in the form of a lump sum.’

Advise Karen and Paul as to any issues that might arise regarding the particular clauses referred to.

A starting lineup in basketball consists of two guards, two forwards, and a center. (a) A certain college team has on its roster four centers, four guards, three forwards, and one individual (X) who can play either guard or forward. How many different starting lineups can be created? [Hint: Consider lineups without X, then lineups with X as guard, then lineups with X as forward.]

1. Required --------   Prepare the journal entries for the above transaction using the accounts in the Chart of Accounts; Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accounts Payable, Notes Payable, Capital, Owners Withdrawal, Fees Earned, Insurance Expense, Rent Expense, Automobile Expense, Salary Expense. (Please show debits and credits)

Point Value = Journal entries (26),

The Woody Shore Company opened their doors to the business on August 31, 2014. The company incurred the following transactions during August 2014.

August 1              The owners deposited $87,000 into the business

August 2               Purchased supplies on credit, total $800.

August 2              Company purchased a 12 month insurance policy for their business $3,600

August 3               Paid rent for their office $2,800

August 5               Purchased equipment for $15,000 paid cash of $3,000 and signed a note with the bank for the remaining balance.

August 9               Completed service for customers and issued invoices, $7,500

August 14            Automobile expense for the company was $825

August 15            Received cash from customer for services provided $2,800

August 18            Paid monthly salary for the employees $4,000

August 22            Paid first installment for note on August 5, 450

August 25            Paid $300 on amount due from August 2

August 30            Customers from August 9 sent you cash for $3,000

August 31            Owners withdrew $2,100 from the company

Ethics Case: Theft Reimbursement, Twice

I am the assistant controller at a medium-sized, not-for-profit organization. I hired a new accounts payable clerk three months ago—let’s call her Mary, which is not her real name—and then I fired her last week because she stole $16,583 from us by altering six checks. Mary’s primary duties were to key in all the accounts payable information, and then, after the checks were printed, to match all the supporting documentation to each check. She then took the checks to the signing officers. After they were signed, she mailed the checks and filed the yellow copy with all the supporting documentation in the paid invoices filing cabinet.

We pay each member of our board of directors a $2,000 honorarium. I prepare the list of the directors and how much to pay each director, which I give to Mary for inputting into the computer. Each honorarium check simply has the name of the director and no address or other information. We normally hand them to the directors during the meeting. Similarly, our expense report reimbursement checks only have the names of the individuals and no address or other information on the checks. We send those to our employees through the interoffice mail.

Well, after they were signed, Mary took four honorarium checks and two expense report checks, and changed the names on the checks to her name. All of our checks are printed on light green paper. Well, Mary used White-Out to alter the names, but she wasn’t very smart. It was obvious that the names had been changed from the White-Out used and her name wasn’t even the same font as the typing on the rest of the check. She took the checks across the street to an ATM machine and deposited them into her bank account. She then transferred the money to her family who live in another country.

I discovered the false checks last week when I was doing the bank reconciliation. She admitted what she did and we’ve had the police charge her with theft. Our bank was very apologetic and immediately reimbursed us the full $16,583. Our bankers admitted that the checks were so obviously falsified that they never should have cleared the bank in the first place.

Well, my problem is that, after I discovered the theft and before the bank reimbursed us, I decided to claim on our insurance policies. One of those policies is a check-protector service. Well, today we received a check for $16,583 from them. So, I took the check to my boss, the controller, and I was laughing saying that we’ve been reimbursed twice and that I was going to send the check back to the insurance company. Well, he said “No.” He told me to deposit the check into a high-interest savings account. “We’ll return the $16,583 to the insurance company after the court case is settled. In the meantime we’ll earn interest on the money and since we’re a nonprofit organization we won’t even have to pay tax on the interest.”

He said the interest represents the aggravation we’re going through. Well, there has been a lot of aggravation. The other accounting clerks felt terrible about Mary. They felt violated and abused because they had trusted her. We will also have to spend a lot of time with the lawyers and time in court at Mary’s trial. My boss’ attitude is that the interest on the extra $16,583 will cover all of these additional costs associated with the Mary fiasco. He also said that the bank deserves to pay the interest to us since they should never have cashed those doctored checks in the first place.

Well, I don’t think that this is right. But I don’t want to challenge him since I was the one who hired Mary. So, like, what do you think I should do?

Questions

1. What advice would you give to the controller?

2. What preventive and detective controls can be put in place to prevent this from happening again?

On December 1, 2018. John and Patty Driver formed corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent-it, an equipment rental company that was going out of business. The newly formed company uses the following accounts:On December 1, 2018. John and Patty Driver formed corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent-it, an equipment rental company that was going out of business. The newly formed company uses the following accounts:

The corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December, the corporation entered into the following transactions:

Dec. 1 Issued to John and Patty Driver 20,000 shares of capital stock in exchange for a total of $200,000 cash.

Dec. 1 Purchased for $240,000 all of the equipment formerly owned by Rent- It. Paid $140,000 cash and issued a one-year note payable for $100.000.

Dec. 1 Paid $12,000 to Shapiro Realty as three months' advance rent on the rental yard and office formerly occupied by Rent-it.

Dec. 4 Purchased office supplies on account from Modern Office Co. for $1,000. The payment is due in 30 days (These supplies are expected to last for several months: debit the Office Supplies asset account.)

Dec. 8 Received $8,000 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fees)

Dec. 12 Paid salaries for the first two weeks in December in the amount of $5,200.

Dec. 15 Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18.000, of which $12,000 was received in cash.

Dec. 17 Purchased on account from Earth Movers, Inc., $600 in parts needed to repair a rental tractor. Payment is due in 10 days.

Dec. 23 Collected $2,000 of the accounts receivable recorded on Dec. 15.

Dec. 23 Mission Landscaping rented a backhoe at a price of $250 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks.

Dec. 26 Paid biweekly salaries of $5,200.

Dec. 27 Paid the account payable to Earth Movers, Inc. in the amount of $600.

Dec. 28 A dividend was declared for 10 cents per share, payable on January 15, 2019.

Dec. 29 Susquehanna Equipment Rentals was named, along with Mission     Landscaping and Collier Construction, as a co-defendant in a $25.000 lawsuit filed on behalf of Kevin Davenport. Mission Landscaping had      left the rented back-hoe in a fenced construction site owned by Collier Construction. After working hours on December 26, Davenport      had climbed the fence to play on parked construction equipment. While      playing on the backhoe. he fell and broke his arm. The extent of the company's legal and financial responsibility for this accident. if    any, cannot be determined at this time. (Note: This event does not      require a journal entry at this time, but may require disclosure in      notes accompanying the statements.)

Dec. 29 Purchased a 12-mouth public-liabi1ity insurance policy for $9,600. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes     into effect on January 1, 2019, and affords no coverage for the    injuries sustained by Kevin Davenport on December 26.

Dec. 31 Received a bill from Universal Utilities for the month of    December, $700. Payment is due in 30 days.

Dec. 31 Equipment rental fees earned during the second half of December amounted to $20,000, of which $15,600 was received in cash.

Data for Adjusting Entries

a. The advance payment of rent on December 1 covered a period of three months.

b. The annual interest rate on the note payable to Rent-It is 6 percent.

c. The rental equipment is being depreciated by the straight-line method over a period of eight years.

d. Office supplies on hand at December 31 are estimated at $600.

e. During December, the company earned $3,700 of the rental fees paid in advance by McNamer Construction Co. on December S.

f As of December 31, six days' rent on the backhoe rented to Mission Landscaping on December 23 has been earned.

g. Salaries earned by employees since the last payroll date (December 26) amounted to S1,400 at month-end.

h. It is estimated that the company is subject to a combined federal and state income tax rate of 40 percent of income before income taxes     (total revenue minus all expenses other than income taxes). These    taxes will be payable in 2019.

Instructions

a. Perform the following steps of the accounting cycle for the month of December:

1. Journalize (Prepare the Journal entries) the December transactions. Do not record adjusting entries at this point.

2. Post (Create T-accounts) the December transactions to the appropriate ledger accounts.

3. Prepare the unadjusted trial balance

4. Prepare the necessary adjusting entries for December.

5. Post (Create T-accounts) the December adjusting entries to the appropriate ledger accounts.

6. Prepare the adjusted trial balance.

b. Prepare an income statement and statement of retained earnings for the year ended December 31, and a balance sheet (in report form) as of December 31.

c. Prepare required disclosures to accompany the December 31 financial statements. Your solution should include a separate note addressing each of the following areas: (1) depreciation policy. (2) maturity dates of major liabilities, and (3) potential liability due to    pending litigation.

d. Prepare closing entries and post to ledger accounts.

e. Prepare an after-closing trial balance as of December 31.

f. During December, this company's cash balance has fallen from $200,000 to $65,000. Does it appear headed for insolvency in the near future? Explain your reasoning.

g. Would it be ethical for Patty Driver to maintain, the accounting records for this company, or must they be maintained by someone who is independent of the organization?

The following transactions were selected from the records of Evergreen Company:

July 12 Sold merchandise to Wally Butler, who paid the $1,140 purchase with cash. The goods cost Evergreen Company $670.

16 Sold merchandise to Claudio’s Chair Company at a selling price of $5,140 on terms 3/10, n/30. The goods cost Evergreen Company $3,570.

19 Sold merchandise to Otto’s Ottomans at a selling price of $3,070 on terms 3/10, n/30. The goods cost Evergreen Company $1,970.

23 Received cash from Claudio’s Chair Company for the amount due from Jul-16.

31 Received cash from Otto’s Ottomans for the amount due from July Jul-19. Find the revenue for the month of ended july 31.

Find the Revenue for the month ended july 31

You are tasked (decision authority) to develop a distribution plan for your state's life-saving medical resources (e.g. organs, stem cells, access to healthcare, etc.).

Today there is significant more demand than supply. You should take everything into consideration: patients characteristics (age, past, and future health, faith, quality of life, risk/benefits, smoker/nonsmoker, any other factors you consider important in this decision making process). Specifically, consider the following elements in your paper:

To what extent should we take into account individual responsibility for need in deciding who gets these medical resources?

The needs of both Robert and Susan. Both need liver transplants.

When should individual decisions and responsbility count priority for access to medical resources and health care?