Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2006 by two talented engineers with little business training. In 2018, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2018 before any adjusting entries or closing entries were prepared. The income tax rate is 40% for all years.

1. A five-year casualty insurance policy was purchased at the beginning of 2016 for $35,000. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2018, the company changed the salvage values used in calculating depreciation for its office building. The building cost $600,000 on December 29, 2007, and has been depreciated on a straigh-tline basis assuming a useful life of 40 years and a salvage value of $100,000. Declining real estate values in the area indicate that the salvage value will be no more than $25,000.
3. On December 31, 2017, merchandise inventory was overstated by $25,000 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2018 for both financial statement and income tax purposes. The change will cause a $960,000 increase in the beginning inventory at January 1, 2019.
5. At the end of 2017, the company failed to accrue $15,500 of sales commissions earned by employees during 2017. The expense was recorded when the commissions were paid in early 2018.
6. At the beginning of 2016, the company purchased a machine at a cost of $720,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2017, was $460,800. On January 1, 2018, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.75% is a better indication of the actual cost. Management effects the change in 2018. Credit sales for 2018 are $4,000,000; in 2017 they were $3,700,000.

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for 2018 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund income tax.

Bramble Company owns 9,000 acres of timberland purchased in 2006 at a cost of $1,540 per acre. At the time of purchase, the land without the timber was valued at $440 per acre. In 2007, Bramble built fire lanes and roads, with a life of 30 years, at a cost of $92,400. Every year, Bramble sprays to prevent disease at a cost of $3,300 per year and spends $7,700 to maintain the fire lanes and roads. During 2008, Bramble selectively logged and sold 770,000 board feet of timber, of the estimated 3,850,000 board feet. In 2009, Bramble planted new seedlings to replace the trees cut at a cost of $110,000.

A. Determine the depreciation expense and the cost of timber sold related to depletion for 2008. (Round intermediate calculations to 5 decimal places, e.g. 1.54687 and final answers to 0 decimal places, e.g. 5,125.)

B. Bramble has not logged since 2008. If Bramble logged and sold 990,000 board feet of timber in 2019, when the timber cruise (appraiser) estimated 5,500,000 board feet, determine the cost of timber sold related to depletion for 2019. (Round intermediate calculations to 5 decimal places, e.g. 1.54687 and final answers to 0 decimal places, e.g. 5,125.)

The U.S. Census Bureau signed a $600 million contract with Harris corporation in 2006 to build 500,000 devices, but still weren’t sure which features they wanted included in the units. Census officials did not specify the testing process to measure the performance of the handheld devices. Four hundred change requests were added to the project requirements. Two years and hundreds of millions of taxpayer dollars later, the handhelds were far too slow and unreliable to be used for the 2010 U.S. census.

• What could Census Bureau management and the Harris Corporation have done to prevent this outcome?

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2006 by two talented engineers with little business training. In 2018, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2018 before any adjusting entries or closing entries were prepared. The income tax rate is 40% for all years.

1. A five-year casualty insurance policy was purchased at the beginning of 2016 for $30,500. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2018, the company changed the salvage values used in calculating depreciation for its office building. The building cost $574,000 on December 29, 2007, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $110,000. Declining real estate values in the area indicate that the salvage value will be no more than $27,500.
3. On December 31, 2017, merchandise inventory was overstated by $20,500 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2018 for both financial statement and income tax purposes. The change will cause a $915,000 increase in the beginning inventory at January 1, 2019.
5. At the end of 2017, the company failed to accrue $14,600 of sales commissions earned by employees during 2017. The expense was recorded when the commissions were paid in early 2018.
6. At the beginning of 2016, the company purchased a machine at a cost of $630,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2017, was $403,200. On January 1, 2018, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.80% is a better indication of the actual cost. Management effects the change in 2018. Credit sales for 2018 are $3,100,000; in 2017 they were $2,800,000

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for 2018 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund income tax.

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2006 by two talented engineers with little business training. In 2018, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2018 before any adjusting entries or closing entries were prepared.

1. A five-year casualty insurance policy was purchased at the beginning of 2016 for $31,500. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2018, the company changed the salvage value used in calculating depreciation for its office building. The building cost $592,000 on December 29, 2007, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $120,000. Declining real estate values in the area indicate that the salvage value will be no more than $30,000.
3. On December 31, 2017, merchandise inventory was overstated by $21,500 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2018 for both financial statement and income tax purposes. The change will cause a $925,000 increase in the beginning inventory at January 1, 2019.
5. At the end of 2017, the company failed to accrue $14,800 of sales commissions earned by employees during 2017. The expense was recorded when the commissions were paid in early 2018.
6. At the beginning of 2016, the company purchased a machine at a cost of $650,000. Its useful life was estimated to be 10 years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2017, was $416,000. On January 1, 2018, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.70% is a better indication of the actual cost. Management effects the change in 2018. Credit sales for 2018 are $3,300,000; in 2017 they were $3,000,000.
8. 
   Required:
   For each situation:
   1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
   2. Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for 2018 related to the situation described. (Ignore tax effects.)
     
   

Be sure to answer all parts. In 2006, an ex-KGB agent was murdered in London. Subsequent investigation showed that the cause of death was poisoning with the radioactive isotope 210Po, which was added to his drinks/food. (a) 210Po is prepared by bombarding 209Bi with neutrons. Write an equation for the reaction. Show the mass number and atomic number of all species. Tip: use the sup-subscript button to insert all symbols. (b) Who discovered the element polonium? Marie and Pierre Curie Enrico Fermi (c) The half-life of 210Po is 138 d. It decays with the emission of an α−particle. Write an equation for the decay process. Show the mass number and atomic number of all species. Tip: use the sup-subscript button to insert all symbols. (d) Calculate the energy of an emitted α−particle. Assume both the parent and daughter nuclei to have zero kinetic energy. The atomic masses are: 210Po (209.98285 amu), 206Pb (205.97444 amu), α−particle (4.00150 amu). (Enter your answer in scientific notation). × 10 J (e) Ingestion of 1.0 mg of 210Po could prove fatal. What is the total energy released by this quantity of 210Po, assuming every atom decays? (Enter your answer in scientific notation). × 10 J

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2006 by two talented engineers with little business training. In 2018, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2018 before any adjusting entries or closing entries were prepared.

1. A five-year casualty insurance policy was purchased at the beginning of 2016 for $35,500. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2018, the company changed the salvage value used in calculating depreciation for its office building. The building cost $614,000 on December 29, 2007, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $110,000. Declining real estate values in the area indicate that the salvage value will be no more than $27,500.
3. On December 31, 2017, merchandise inventory was overstated by $25,500 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2018 for both financial statement and income tax purposes. The change will cause a $965,000 increase in the beginning inventory at January 1, 2019.
5. At the end of 2017, the company failed to accrue $15,600 of sales commissions earned by employees during 2017. The expense was recorded when the commissions were paid in early 2018.
6. At the beginning of 2016, the company purchased a machine at a cost of $730,000. Its useful life was estimated to be 10 years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2017, was $467,200. On January 1, 2018, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.80% is a better indication of the actual cost. Management effects the change in 2018. Credit sales for 2018 are $4,100,000; in 2017 they were $3,800,000.

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for 2018 related to the situation described. (Ignore tax effects.)

b)Social
c)Technological
d)Market
e)None. All of the above are major kinds of globalization drivers

a)existed before the time of Christ.
c)B and D.
d)was influenced by the rise of the Ottoman Empire.

b)more liberal
c)harsher
d)more confronting
e)A and C

b)if they are going to work in a firm with no foreign operations.
c)Neither A nor B because they can learn on the job.
d)Both A and B.

8.International business differs from domestic business in that a firm operating across borders must deal with

b)C and D.
c)the foreign environment.
d)the international environment.
e)the domestic environment.

b)international business.
c)the Pacific Rim.
d)foreign exchange.

QUESTION 45

Special issues in measuring service productivity are that the service is

a. focused on unique individual attributes or desires, and is therefore difficult to standardize.

b. often an intellectual task performed by professionals.

c. often difficult to automate or mechanize.

d. often difficult to evaluate for quality.

e. all of the above.

QUESTION 46

The Foreign Corrupt Practices Act (FCPA) is the law that

a. makes bribing foreign government officials illegal.

b. makes it illegal to “dump” products on foreign markets.

c. makes it illegal to hire undocumented foreign workers.

d. is all of the above

e. a and b only.

QUESTION 47

Costs of overstocking are

a. obsolescence and perishability.

b. opportunity losses.

c. ordering excess inventory.

d. all of these.

e. both a and c.

QUESTION 48

A gap in service quality can result from

a. differences between what customers want and what service providers think customers want.

b. differences between what service providers think customers want and the service they designed and delivered.

c. differences between the service that was designed and the actual service delivered.

d. differences between promised service and the service actually delivered.

e. all of the above.

QUESTION 49

The XYZ Box plant uses two 8-hour work shifts per day to manufacture packing boxes. In the past, 1000 packing boxes were produced by the end of each day. The use of new technology has enabled productivity to increase by 30%. Labor-time productivity is now

a. 62.5 boxes per hour.

b. 162.5 boxes per shift-hour.

c. 650.0 boxes per shift-hour.

d. 208.3 boxes per shift-hour.

e. 81.25 boxes per shift-hour.

How will you use your Accounting education to serve your community? What strengths do you possess that will contribute to a successful career in the business profession?