Other data:
1. Accrued but unrecorded and uncollected consulting fees earned at December 31 amount to: $27500.
2. The company determined that $16500 of previously unearned consulting fees had been earned at December 31.
3. Office supplies on hand at December 31 total $330
4. The company purchased all of its equipment when it first began business. At that time, the estimated useful life of the equipment was six years.
5. The company prepaid its nine-month rent agreement on June 1, 2020.
6. The company prepaid its six-month insurance policy on December 1, 2020
7. Accrued but unpaid salaries total $13200 at December 31,2020.
8. On September 1, 2020, the company borrowed $66000 by signing an eight-month, 4 percent note payable. The entire amount, plus interest, is due March 31, 2021.
Account Debit Credit
Cash 304,150
Accounts Receivable 99,000
Office supplies 880
Prepaid rent. 3,960
Unexpired insurance 1,650
Office equipment 79,200
Accumulated depreciation: office equipment 26,400
Accounts payable 4,400
Notes payable (due 3/1/12) 66,000
Interest payable 660
Income taxes payable 9,900
Dividends payable 3,500
Unearned consulting fees 24,200
Capital stock 220,000
Retained earnings 44,000
Dividends 3,500
Consulting fees earned 550,000
Rent expense 16,170
Insurance expense 2,420
Office supplies expense 4,950
Depreciation expense: office equipment 12,100
Salaries expense 363,000
Utilities expense 5,280
Interest expense 3,300
Income taxes expense 49,500
Totals 949,060 949,060
1. Prepare the necessary year-end closing entries.
In: Accounting
One of your duty as employee of Wanlap Company is to prepare the
cash budget for the
period from 1 January to 30 June 2020.
Use the following information to assist you in preparing that
budget:
-80 per cent are credit sales; 80 per cent of credit sales will be
collected in the next
month; 15 per cent will be collected 60 days after sales and 4 per
cent more will be
collected 90 days after sales. The company had to bear one per cent
of credit sales
as uncollectable debt (bad debt).
-Purchases made every month are 65 per cent of sales forecasted for
the next
month. Payment for these purchases will only be made one month
after purchase.
-The company intends to maintain a minimum cash balance of
RM300,000. The
cash balance on 1 January is RM300,000.
-The company expects the delivery of a new machine in the month of
April.
Payment of RM400,000 will be made after delivery had been
done.
-Payment for tax of RM500,000 will be made in the month of March
and June.
-Rental of RM100,000 per month. Other cash expenditure is 3 per
cent of sales.
-The depreciation expenses are RM150,000 per month.
-Labor expenses are 10 per cent of sales for the next month.
-The company’s board of directors intends to maintain the dividend
payment of
RM450,000 that will be made in the month of June.
-Sales in the month of October are RM3,000,000 and RM2,000,000 in
the months
of November and December 2019 respectively.
-Sales forecast for the first seven months in the year 2020 is as
follows:
| Months | Sales |
| January February March April May June July |
3,000,000 5,000,000 5,000,000 6,000,000 3,000,000 2,000,000 2,000,000 |
-The company will make interest payments in the month of June
for RM310,000.
Prepare the following:
(A)Forecasted Cash Received schedule.
(B)Forecasted Monthly Cash Payment schedule.
(C) Cash Budget from January until 30 June 2020.
In: Finance
One of your duty as employee of Wanlap Company is to prepare the
cash budget for the
period from 1 January to 30 June 2020.
Use the following information to assist you in preparing that
budget:
-80 per cent are credit sales; 80 per cent of credit sales will be
collected in the next
month; 15 per cent will be collected 60 days after sales and 4 per
cent more will be
collected 90 days after sales. The company had to bear one per cent
of credit sales
as uncollectable debt (bad debt).
-Purchases made every month are 65 per cent of sales forecasted for
the next
month. Payment for these purchases will only be made one month
after purchase.
-The company intends to maintain a minimum cash balance of
RM300,000. The
cash balance on 1 January is RM300,000.
-The company expects the delivery of a new machine in the month of
April.
Payment of RM400,000 will be made after delivery had been
done.
-Payment for tax of RM500,000 will be made in the month of March
and June.
-Rental of RM100,000 per month. Other cash expenditure is 3 per
cent of sales.
-The depreciation expenses are RM150,000 per month.
-Labor expenses are 10 per cent of sales for the next month.
-The company’s board of directors intends to maintain the dividend
payment of
RM450,000 that will be made in the month of June.
-Sales in the month of October are RM3,000,000 and RM2,000,000 in
the months
of November and December 2019 respectively.
-Sales forecast for the first seven months in the year 2020 is as
follows:
| Months | Sales |
| January February March April May June July |
3,000,000 5,000,000 5,000,000 6,000,000 3,000,000 2,000,000 2,000,000 |
-The company will make interest payments in the month of June
for RM310,000.
Prepare the following:
(A)Forecasted Cash Received schedule.
(B)Forecasted Monthly Cash Payment schedule.
(C) Cash Budget from January until 30 June 2020.
In: Finance
For the scenarios discussed below, use supply and demand curves and a graph to analyze what will happen to both price and quantity in equilibrium given the information available below
1.You are the CEO of Coca-cola. The FDA introduces a $2 per meal tax on fast-food (but not on drinks). Analyze the market for your products. It is the fast food sellers who are obliged to pay the tax to the state.
2. You are the CEO of Coca-cola. The price of sugar increases. Analyze the results in both the regular Coke and Diet-Coke markets.
In: Economics
In previous years, Easycash Ltd presented its cashflow statement using the ‘indirect method’ however in the current year the CEO has requested that the ‘direct method’ be used.
Prepare a response to the CEO discussing whether this is a change in an accounting policy referring to the relevant Australian accounting standards. Outline the disclosures that would be required with a change in an accounting policy and discuss the differences between the two methods, and if one method is considered more useful than the other method.
Your response should be referenced where appropriate (APA style).
In: Accounting
You are the international manager of a US business that has just invented a revolutionary AI equipment, but costs only half as much to current manufacture. Your CEO has asked you to decide how to expand into the China or India market. Your options are: (i) to direct export from the United States (ii) to license a China or India firm to manufacture (iii) to set up a wholly owned subsidiary in India or China with foreign direct investment. Evaluate the pros and cons of each alternative and suggest a course of action to your CEO
In: Economics
The Chief Executive Officer (CEO) is a top corporate manager whose primary job is to lead the day-to-day running of the corporation and whose primary goal is to maximize shareholder value. To incentivize CEOs, many large corporations have been compensating CEOs with various forms of pay-for-performance in addition to a fixed annual salary. According to some estimates, over the last two decades CEO compensation in the United States has on average increased by 600%, with a disproportionate increase in equity-based compensation (e.g. stock options). These increases in executive compensation, particularly stock options, have generated enormous controversy. The recent high-profile corporate scandals and financial market tsunami have led some observers to argue that the excessive focus on shareholder value maximization in general, and inadequately designed executive compensation in particular, have led to managerial gross misbehavior as well as short-termism. Some argue that rapid increases in executive compensation represent unmerited transfers of shareholder wealth to top executives with limited if any incentive effects, and at times have led to outright frauds. The problem is exacerbated when the CEO is also the chairman of the board of directors. The adverse effects of excessive CEO compensation are particularly severe in countries where institutional checks such as shareholder protection and shareholder activism are weak.
Required：
Identify any potential conflicts of interest and suggest possible solutions.
In: Finance
The Chief Executive Officer (CEO) is a top corporate manager whose primary job is to lead the day-to-day running of the corporation and whose primary goal is to maximize shareholder value. To incentivize CEOs, many large corporations have been compensating CEOs with various forms of pay-for-performance in addition to a fixed annual salary. According to some estimates, over the last two decades CEO compensation in the United States has on average increased by 600%, with a disproportionate increase in equity-based compensation (e.g. stock options). These increases in executive compensation, particularly stock options, have generated enormous controversy. The recent high-profile corporate scandals and financial market tsunami have led some observers to argue that the excessive focus on shareholder value maximization in general, and inadequately designed executive compensation in particular, have led to managerial gross misbehavior as well as short-termism. Some argue that rapid increases in executive compensation represent unmerited transfers of shareholder wealth to top executives with limited if any incentive effects, and at times have led to outright frauds. The problem is exacerbated when the CEO is also the chairman of the board of directors. The adverse effects of excessive CEO compensation are particularly severe in countries where institutional checks such as shareholder protection and shareholder activism are weak.
Required：
1. Discuss what the relative strengths and weakness of the corporate governance system are.
In: Finance
Falcon ltd whose year end is 31 December acquired four
identical units of equipment at a cost of Sh. 600,000 each on 1
April, 2012. The useful life for each piece of the equipment is
four years after which it is expected to have a salvage value of
sh. 100,000. A similar piece of equipment was acquired on 1 June
2013 at a cost of sh. 700,000. The useful life was estimated at
four years and the salvage value sh. 150,000. One unit acquired on
1 April, 2012 was sold for sh. 200,000 on 1 August 2014. On 1
October, 2014 another piece of equipment was acquired 800,000. The
estimated useful life was four years and salvage value sh. 200,000.
On 1 September, 2015 one unit acquired on 1 April, 2012 was sold at
sh. 250,000. The company’s policy is to provide for full years
depreciation in the year of purchase and no depreciation in the
year of disposal.
Required:
Show the Equipment and Accumulated Depreciation – Equipment
accounts for the years 2012 to 2015.
In: Accounting
1.
The Dow Jones Industrial Average contains:
30 large U.S. companies that represent different types of businesses
10 large U.S. companies that represent different types of businesses
100 large U.S. companies that represent different types of businesses
500 large U.S. companies that represent different types of businesses
2.
The S&P 500 is:
Made up of 50 of the largest U.S. stocks and represents a smaller cross- section of the U.S. economy
Made up of 500 of the largest U.S. stocks and represents a wider cross- section of the U.S. economy
Made up of 500 of the largest international stocks and represents a wider cross- section of the U.S. economy
A good investment.
3.
Options are contracts that are listed on an exchange. When bought or sold, options give the investor the right or obligation to buy or sell a security or other asset, known as the “underlying,”
True
False
In: Finance