what is Therapeutic and Non-therapeutic communication?

International Co. started 2018 with two assets: Cash of §26,000 (Stickles) and Land that originally cost §72,000 when acquired on April 4, 2015. On May 1, 2018, the company rendered services to a customer for §36,000, an amount immediately paid in cash. On October 1, 2018, the company incurred an operating expense of §22,000 that was immediately paid. No other transactions occurred during the year so an average exchange rate is not necessary. Currency exchange rates were as follows:

Assume International was a foreign subsidiary of a U.S. multinational company and the U.S. dollar was the functional currency of the subsidiary. Prepare a schedule of changes in the net monetary assets of Boerkian for the year 2018 and properly label the resulting gain or loss.

The Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2018, the company decided to change to the average cost method. Data for 2018 are as follows:

Beginning inventory, FIFO (5,500 units @ $35.00) $ 192,500
Purchases:
5,500 units @ $41.00 $ 225,500
5,500 units @ $45.00 247,500 473,000
Cost of goods available for sale $ 665,500
Sales for 2018 (9,000 units @ $75.00) $ 675,000

Additional information:

The company's effective income tax rate is 40% for all years.
If the company had used the average cost method prior to 2018, ending inventory for 2017 would have been $170,500.
7,500 units remained in inventory at the end of 2018.

Required:
1. Prepare the journal entry at the beginning of 2018 to record the change in principle.
2. In the 2018–2016 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2018?

Investment in Equity Securities with No Significant Influence

Investment in Equity Securities with No Significant Influence Zyggy Corporation invests in the stock of other companies for trading purposes. Zyggy has the following investment activity during 2018, 2019, and 2020:

• Purchased stock of Allen Corporation on February 3, 2018, for $160,000. The investment was sold on June 18, 2018, for $168,000.
• Purchased stock of Becker Corporation on October 29, 2018, for $320,000. The investment had a fair value of $304,000 on December 31, 2018, and was sold for $324,000 on March 1, 2019.
• Purchased stock of Corey Corporation on November 1, 2018, for $480,000. Its fair value on December 31, 2018 and 2019 was $512,000 and $408,000, respectively. The investment was sold for $400,000 on February 15, 2020.

b. What gains and losses are reported on Zyggy’s income statements for 2018, 2019, and 2020?

Use a negative sign with answers to indicate a net loss, if applicable.

The Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since inception of the company in 1979. In 2018, the company decided to change to the average cost method. Data for 2018 are as follows:

Additional information:

1. The company's effective income tax rate is 40% for all years.
2. If the company had used the average cost method prior to 2018, ending inventory for 2017 would have been $130,000.
3. 7,000 units remained in inventory at the end of 2018.

Required:
1. Prepare the journal entry at the beginning of 2018 to record the change in principle.
2. In the 2018–2016 comparative financial statements, what will be the amounts of cost of goods sold and inventory reported for 2018?
  

Accounting Equation

Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts:

a. Stockholders' equity as of October 31, 2017.
$

b. Stockholders’ equity as of October 31, 2018, assuming that assets increased by $800,000 and liabilities increased by $330,000 during 2018.
$

c. Stockholders' equity as of October 31, 2018, assuming that assets decreased by $600,000 and liabilities increased by $140,000 during 2018.
$

d. Stockholders' equity as of October 31, 2018, assuming that assets increased by $440,000 and liabilities decreased by $90,000 during 2018.
$

e. Net income (or net loss) during 2018, assuming that as of October 31, 2018, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or dividends paid.
Net income    $

Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders' equity as of October 31, 2017. $ 3,650,000 b. Stockholders’ equity as of October 31, 2018, assuming that assets increased by $800,000 and liabilities increased by $330,000 during 2018. $ 4,120,000 c. Stockholders' equity as of October 31, 2018, assuming that assets decreased by $600,000 and liabilities increased by $140,000 during 2018. $ d. Stockholders' equity as of October 31, 2018, assuming that assets increased by $440,000 and liabilities decreased by $90,000 during 2018. $ e. Net income (or net loss) during 2018, assuming that as of October 31, 2018, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or dividends paid. Net income $

Accounting Equation Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders' equity as of October 31, 2017. $ b. Stockholders’ equity as of October 31, 2018, assuming that assets increased by $800,000 and liabilities increased by $330,000 during 2018. $ c. Stockholders' equity as of October 31, 2018, assuming that assets decreased by $600,000 and liabilities increased by $140,000 during 2018. $ d. Stockholders' equity as of October 31, 2018, assuming that assets increased by $440,000 and liabilities decreased by $90,000 during 2018. $ e. Net income (or net loss) during 2018, assuming that as of October 31, 2018, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or dividends paid. Net income $

On July 1, 2018 a full year’s insurance premium of $2,400, covering the period July 1, 2018,to June 30, 2019 was paid and debited to insurance expense. Assume the following:



The company has a calendar fiscal year.



January 1, 2018, retained earnings balance is $20,000.



2018 reported net income (assuming the error is not discovered)is $22,800.



2019 net income (assuming the error is not discovered) is $30,000.



2020 net income is $40,000. Ignore taxes

REQUIRED:

a.

List the effects of the error on affected accounts and on net income in 2018 and 2019,assuming no adjusting entry is made on December 31, 2018.

b.

Prepare the entry to record the error if discovered in 2018.

c.

Prepare the entry to record the error if discovered in 2019, and the 2018 and 2019 retained earnings sections of the statement of stockholders’ equity.

d.

Prepare the entry (if needed) to record the error if discovered in 2020, and the 2019 and 2020 retained earnings sections of the statement of stockholders’ equity.

Baci is a well-known lollipops maker in Western Australia and produces lollipops in two size, i.e., regular and large. The company sells their products to convenience stores, fairs, schools for fundraisers and in bulk on the internet. 2018 summer is approaching and Baci is preparing its budget for the December. All Baci’s lollipops are hand-made, mostly out of sugar, and attached to wooden sticks. Expected sales are based on past experience.

Other information for December 2018 is as follows:

Input prices :

Direct materials:

Sugar $0.50 per kg

Sticks $0.30 each

Direct manufacturing labour $8 per direct manufacturing labour hour (DMLH)

Input quantities per unit of output

Regular Large

Direct materials:

Sugar 0.25 kg 0.5 kg

Sticks 1 1

Direct manufacturing labour hour (DMLH) 0.2 hour 0.25 hour

Set-up hours per batch 0.08 hour 0.09 hour

Inventory data for direct materials1

Sugar Sticks

Beginning inventory 125 kg 350

Target ending inventory 240 kg 480

Cost of beginning inventory $64 $105

1: Baci accounts for direct materials using a FIFO cost flow assumption.

Sales and inventory data for finished goods2

Regular Large

Expected sales in units 3,000 1,800

Selling price $3 $4

Target ending inventory in units 300 180

Beginning inventory in units 200 150

Beginning inventory in dollars $500 $474

require 2: Baci uses a FIFO cost flow assumption for finished goods inventory.

All the lollipops are made in batches of 10. Baci incurs manufacturing overhead cost, and marketing and general administration costs, but customers pay for shipping. Other 3 than manufacturing labour costs, monthly processing costs are very small. Baci uses activity-based costing (ABC) and has classified all overhead costs for December 2018 as follows:

Cost type Denominator activity Rate

Manufacturing:

Set-up Set-up hours $20 per set-up hour

Processing Direct manufacturing labour hour (DMLH) $1.70 per DMLH

Non-manufacturing:

Marketing & general admin Sales revenue 10%

2. Baci’s balance sheet for 30 November 2018 follows. Use it and the following information to prepare a cash budget for Baci for December 2018:

• 80% of sales are on account, of which 50% are collected in the month of the sale, 49% are collected the following month and 1% are never collected and written off as bad debts.

• All purchases of materials are on account. Baci pays for 70% of purchases in the month of purchase and 30% in the following month.

• All other costs are paid in the month incurred.

• Baci is making monthly interest payments of 1% (12% per year) on a $20,000 long-term loan.

• Baci plans to pay the $500 of taxes owed as of 30 November 2018 in December 2018. Income tax expense for December is zero.

•40% of processing and set-up costs, and 30% of marketing and general administration costs, are depreciation.

Baci Balance Sheet as of 30 November 2018

Assets

Cash $587

Account receivable $4,800

Less: Allowance for bad debts 96 4,704

Inventories:

Direct materials 169

Finished goods 974

Fixed assets $190,000

Less: Accumulated depreciation 55,759 134,241

Total assets $140,675

Liabilities and equity

Account payable $696

Taxes payable 500

Interest payable 200

Long-term debt 20,000

Ordinary shares 10,000

Retained earnings 109,279

Total liabilities and equity $140,675