Q Ltd. bought a new machinery on July 01, 2015 for $72,000. The machinery is expected to have a useful life of 8 years, after which, it will be scrapped for $3,500. On August 01, 2016, the company bought a new machinery and following costs were incurred on it: Purchase price$ 480,000 Non-refundable taxes $ 72,000 Delivery charges $ 25,000 Transporation insurance $ 6,500 Installation charges $ 3,200 Test run charges $ 800 Maintainance contract for further 3 years $ 12,000 The estimated useful life of the machinery is 13 years, and the salvage value is expected to be $18,500. During the year 2019, the company re-estimated the expected life of the machincery bought on July 01, 2015, and the number was revised to 11 years. The company bought a new machinery in the year 2020 for $63,000. The machinery was expected to produce a total of 130,000. The machinery was used to produced 23,000 units during the year 2020, 38,400 units during the year 2021, 58,200 in 2022, and 10,600 in 2023. In the year 2022, the company revised the salvage value of the machinery bought on August 01, 2016 from $18,500 to $21,300. Prepare the depreciation chart from 2015 to 2023 assuming that the company's fiscal year end is December 31.

If investors expect the future value of the U.S. dollar to decrease relative to the value of the euro, everything else held constant, this would cause all of the following EXCEPT:

Select one:

the U.S. dollar to depreciate against the euro today

the supply of the U.S. dollars to decrease today

the demand for the U.S. dollars to decrease today

the euro to appreciate against the U.S. dollar today

Clear my choice

Greg Norman is the auditor in charge of the Rogers Pharmaceutical Company audit. In assessing the internal controls for the company, Greg finds that the company bills customers and receives payments at three offices in three separate states using three different and incompatible software systems for tracking payments. Rogers’s terms of sale varies with the customer and varies from 30 days to 90 days. Open invoices are aged based on when they were booked to the receivables, but cash, chargebacks, or rebates are aged based on when they were applied to the account. Thus, a credit could be posted to the customer’s account when it was received, but the related invoice(s) remains open as a receivable and continues to age. Chargebacks are significant and linked to batch of product rather than invoice. Most similar companies have credit limits or credit checks but Rogers’s does not because all wholesalers are board certified M.D.’s, like the company’s founder.

Rogers’s total accounts receivable was $25,276,025.

Rogers’s total accounts receivable past due over 61 days was $17,434,500.

Rogers’s past top-five wholesalers had accounts receivable of $13,457,516.

Rogers’s top-five wholesale customers had $5,428,850 past due over 61 days.

Rogers’s allowance for doubtful accounts of $266,000 did not include any estimates for the top-five wholesale customers because it was management’s belief at the time that the top-five wholesalers did not present a collection risk.

Required:

Based on these control issues and findings, explain some of the most likely sources of misstatement that exist.

In April 2010, a gold mining company, Cahaya Emas was formed. Cahaya Emas had convinced numerous mining experts that they had rights to one of the largest gold deposits ever discovered. The gold mine, located on a remote island in the East Coast of Peninsula Malaysia, supposedly had so much gold that the actual price of gold on the open market dropped significantly due to the anticipation of an increased gold supply. Within a few months, thousands of Malaysian – big-time investors, pension and mutual fund, managers and many small investors, including factory workers – got caught up in “Gold fever”. The company’s stock price shot from pennies to more than $250 per share before a 10-for-1 stock split was announced. Thousands of investors believed they were on the verge of becoming millionaires.
Two years later, the president and CFO, who are also the founder of the company were found committing financial statement fraud which went on for about two years. The president and the CFO were the fraud perpetrators. Kate, the accountant was aware of the financial statement fraud being committed by the management of her company, but she never reported it.
As is the case with many frauds of this type, numerous class-action lawsuits were filed against Cahaya Emas management, alleging that they misled the shareholders.

REQUIRED:
A.   Discuss some of the possible reasons for Kate’s hesitance to come forward to report the financial statement fraud.
B.   What were some of the perpetrators’ motivations to commit financial statement fraud?

When Ronnia Cherry, 30, and Stefan Grant, 27, rented a house in Atlanta through Airbnb last year, they were caught off guard by police officers at their door, with guns drawn, responding to a neighbor’s report that they were thieves.

“We had to explain the owner gave us the security codes,” said Ms. Cherry, who, like Mr. Grant, is among the rising tide of black travelers decrying racist experiences while using the home-sharing service, and giving birth to the social media campaign #AirbnbWhileBlack.

The long-simmering issue was inflamed last month when an Airbnb host in North Carolina made hateful, racist posts in canceling a booking by a black guest.

It is the latest in a series of stories, both anecdotal and academic, regarding bias in the home-sharing system. In May, Gregory Selden, a black Airbnb user, turned to Twitter to share his experience of being turned down by a Philadelphia host. He posted that he then “made a fake profile as a white guy and was accepted immediately.” He has since filed a lawsuit against Airbnb, saying that it violated his civil rights A January study from Harvard Business School found that Airbnb users with distinctly African-American names were roughly 16 percent less likely to be accepted as guests than those with distinctly white names. The difference persisted, according to the report, whether the host was black, white, male or female, or whether the accommodations were shared or not. When it comes to accepting guests, hosts may stipulate that they don’t want smokers or teenagers renting their property, but federal law prohibits discrimination on the basis of race, color, religion, sex or national origin.

Airbnb addressed the North Carolina incident by banning the host from its service. On June 1, the company’s chief executive, Brian Chesky, posted on Twitter: “The incident in NC was disturbing and unacceptable. Racism and discrimination have no place on Airbnb. We have permanently banned this host.”

The next day, the company announced that it had hired Laura Murphy, the former head of the legislative office of the American Civil Liberties Union in Washington, to lead a review of Airbnb practices that it expects to conclude in September. (Airbnb has also said it will announce actions it will take in handling discrimination soon.) The issue has inspired others to come forward with their experiences of alleged bias at Airbnb, including Shadi Petosky, who recently tweeted that a host had turned her down because she is transgender. Ms. Petosky wrote that she complained of the incident to Airbnb when it occurred in 2015, to no avail, and that she decided to post about it, given the North Carolina incident and the #AirbnbWhileBlack complaints.

Airbnb also removed that host, according to Nick Papas, a company spokesman. “We are conducting a comprehensive review and examining what can be done to ensure we resolve these kinds of issues quickly and help make sure everyone is treated fairly,” he said in a written statement.

Almost 1 in 5 American leisure travelers has used a home-sharing service in the past 12 months, according to the San Francisco-based Atmosphere Research Group, which specializes in travel-industry analysis.

“Airbnb wasn’t the one who discriminated; it was the homeowner who exhibited ugly behavior,” said Henry H. Harteveldt, the founder of Atmosphere Research Group. “It does show Airbnb didn’t think to include a stated policy or training about nondiscrimination.”

Ms. Cherry and Mr. Grant, who rented the Atlanta house, said that they were not waiting for Airbnb to address bias and announced this month that they plan to start Noirbnb. “It’s a black-owned company that’s serving a market we know very well,” Ms. Cherry said. She added that the service, still in the planning phases, will welcome all people of all races. “We want to educate and empower other travelers of color.” Rafat Ali, the founder of the travel news site Skift, has experienced both sides of the argument, as a journalist who covers Airbnb extensively and as a traveler who sensed that he was turned down for a booking based on being, as he put it, “a brown Muslim guy.”

“I think this needed to happen to get them out of their tech mind-set,” Mr. Ali said. “They have to see the human cost of this now, and I’m sure they’ll try to figure out some checks and balances.”

One of those already in place at Airbnb is Instant Booking, which acts like a hotel booking engine in the sense that it is fast and identity-free. “Now my preference is to Instant Book, rather than email the owner,” Mr. Ali said.

Just how existing anti-discrimination laws apply to home-sharing services is unclear and may be a matter for future litigation under the Civil Rights Act of 1866 or the Fair Housing Act, according to Deborah N. Archer, a law professor at New York Law School, the director of the school’s Racial Justice Project and a co-director of the Impact Center for Public Interest Law.

“People who experience racial discrimination while using Airbnb should continue to document their experiences and file complaints with Airbnb,” Ms. Archer wrote in an email. “The issue of racial discrimination in renting is something that Airbnb has to acknowledge and address systemically, not just on a case-by-case basis. People should also file complaints with federal, state, and local fair housing agencies.”

QUESTION:

What evidence presented in the articles suggest that there are still bias issues confronting African Americans while leisure traveling in the United States?

What have African Americans done while traveling in the U.S. in response to this historical racial bias?

What evidence presented in the articles suggest that there is less bias by the general population towards African Americans traveling in foreign countries?

1.The following information is available for completed Job No. 402: Direct materials, $220000; direct labor, $280000; manufacturing overhead applied, $210000; units produced, 5000 units; units sold, 4000 units. The cost of the finished goods on hand from this job is

2.If a company has a discontinued operation gain of $45000 and a 34% tax rate, what is the effect on net income?

3.Cullumber Company sold its licorice division resulting in a loss of $83000. Assuming a tax rate of 29%, the loss on this disposal will be reported on the income statement at what amount?

4.Crane Company's accounting records reflect the following inventories:

During 2017, $700000 of raw materials were purchased, direct labor costs amounted to $670000, and manufacturing overhead incurred was $640000.
Crane Company's total manufacturing costs incurred in 2017 amounted to

5.Vaughn Manufacturing's accounting records reflect the following inventories:

During 2020, $1000000 of raw materials were purchased, direct labor costs amounted to $768200, and manufacturing overhead incurred was $768000.

If Vaughn Manufacturing's cost of goods manufactured for 2020 amounted to $2346200, its cost of goods sold for the year is

6.Coronado Industries's accounting records reflect the following inventories:

During 2020, Coronado purchased $1450000 of raw materials, incurred direct labor costs of $250000, and incurred manufacturing overhead totaling $160000.
How much raw materials were transferred to production during 2020 for Coronado?

7.Waterway Industries reported total manufacturing costs of $400000, manufacturing overhead totaling $60000, and direct materials totaling $65000. How much is direct labor cost?

Hemming Co. reported the following current-year purchases and sales for its only product.

Jan. 1 Beginning inventory 205 units @ $10.20 = $ 2,091 (Units Acquired at Cost)

Jan. 10 Sales 160 units @ $40.20 (Units sold at Retail)

Mar. 14 Purchase 300 units @ $15.20 = 4,560 (Units Acquired at Cost)

Mar. 15 Sales 250 units @ $40.20 (Units sold at Retail)

July 30 Purchase 400 units @ $20.20 = 8,080 (Units Acquired at Cost)

Oct. 5 Sales 375 units @ $40.20 (Unites sold at Retail)

Oct. 26 Purchase 105 units @ $25.20 = 2,646 (Units Acquired at Cost)

Totals: 1,010 units acquired at cost, $17,377, 785 units sold at retail

(Required: Hemming uses a perpetual inventory system.)

1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.

2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.

3. Compute the gross margin for FIFO method and LIFO method.

Tesbury International

When Tesbury started to expand internationally in the early 1990s, the company set up an international division to oversee the process. The international division was based in Bentonville, Arkansas, at the company headquarters in the United States. Today, the international division oversees operations for Tesbury as the largest global retailer in the world with 11,695 stores under 63 banners in 28 countries that collectively generate almost $500 billion in sales per annum. Some 2.2 million Tesbury employees work in these international positions to serve more than 100 million customers weekly. 40% of the company’s customers are outside the United States.

In terms of reporting structure, the international division is divided into three regions – Europe, Asia and America with the CEO of each region reporting to the CEO of the international division, who in turn reports to the CEO of Tesbury.

Initially, the senior management of the international division exerted tight control over merchandising strategy and operations in different countries. They also made almost all decisions for the representative managers in the different countries. This means that the managers in the various countries had limited flexibility to respond to issues concerning their particular area.

The reason for the tight control was straightforward; Tesbury’s senior managers wanted to make sure that international stores copied the format for stores, merchandising and operations that had served the company so well in the United States. They believed naively perhaps that topmost control over merchandising strategy and operations was the way to make sure this was the case.

By the late 1990s, with the international division approaching $20 billion in sales, Tesbury’s managers concluded that this approach was not serving them well. Country managers has to get permission from their superiors in Bentonville before changing strategy and operations and this was slowing decision making. There was information overload at the headquarters and this led to some poor decisions. Tesbury found that managers in Bentonville were not necessarily the best ones to decide on store layout in Mexico, merchandising strategy in Argentina, or compensation policy in the United Kingdom.

At a point in its international expansion, Tesbury decided to acquire Britain’s Bestfresh supermarket chain. It is estimated that this acquisition will some $14 billion to Tesbury’s international divisions. With this acquisition in mind, Tesbury managers realise that it was not appropriate for managers in Bentonville in America to be making all important decisions for Bestfresh in the United Kingdom. As one manager puts it, “you cannot run the world from one place.”

As a practical matter, given the product mix in Tesbury stores, products and services have to be tailored to conditions prevailing in the local market. Currently, significant responsibility for sourcing remains at the country and regional level, however, Tesbury would like to have a better and more efficient merchandising and operating strategy.

1. Identify the organisational structure that Tesbury used in its international expansion strategy and explain two reasons why the company used this structure.

2. Explain two problems that the use of this structure created for the company that hindered its smooth operations.

3. Recommend an alternative structure for the international expansion into the United Kingdom and explain three reasons why this structure might work well for the company.

4. Changing the structure would involve organizational change. Explain organizational change and examine three steps that can be used to change the structure

Record entries from the transaction and event list provided below in proper journal entry format. NOTE: You are recording entries for the fiscal year 2019 (Jan 1 – Dec 31) and make adjusting entries at year-end. This list must be chronologically organized. Make sure that I can easily identify the journal entry or adjusting journal entry with the related transaction/event. Show your work if the entry requires you to make a calculation (i.e. depreciation, interest expense, etc.).

Before booking an entry, remember to evaluate the substance of each transaction/event. Do accounting standards require the event or transaction to be booked into your company’s accounting records? NOTE: All interest rates included in the transaction list are stated at an annual rate

January

1. On January 1st, the company issued 280,000 additional shares (par of $.25) to raise capital for the New Year. Assume no change in price from Dec 31, 2018.

2. Purchased a truck for $140,000 cash on the 1st of January. The truck will be depreciated over an 8 year period. You decide to use the 200% declining-balance depreciation method because it is determined that the truck will be more productive when it is newer. The truck has an estimated salvage value of $8,000. [Adjusting Entry Required]

3. On January 1st, a 5 year, $130,000 long-term note payable was taken from a local bank.

4. On January 5th, you receive payment from interest earned and accrued in 2018.

5. On January 22nd you purchased 8,500 additional units of inventory at a cost of $63.00 per unit. You paid 45% in cash and purchased the remainder on account.

6. On January 25th you pay $112,000 cash toward your accounts payable.

7. Purchased new office equipment for $230,000 with cash from California Furniture on January 1, 2019. The new furniture will be depreciated over a ten-year period on a straightline basis. The cabinet has an estimated salvage value of $15,000. [Adjusting Entry Required]

February

8. Paid cash for $160,000 worth of radio advertising on February 1 st. This gives you radio advertising until January 31st, 2020. [Adjusting Entry Required]

9. February 13th you collect $365,000 of account payments from customers.

March

10. Purchased a parcel of land on March 1, 2019 for $650,000 by paying $425,000 in cash and signing a short-term note payable with the seller for $225,000. You must repay the $225,000 in exactly one year on March 1, 2020. You agree to pay the seller 4.5 percent interest (annual rate) on a quarterly basis (June 1, September 1, December 1, 2019, and March 1, 2020). [Adjusting Entry Required]

11. On March 19th you purchased $33,480 of office supplies from Super Office Supplies with cash.

12. On March 20th you received a payment of $125,000 for 260 hours of service to be performed in the future.

April

13. April 21st , your customers bought 15,000 units of your product for $125 per unit (you decide what your company sells). The cost of this product is determined by the method of inventory valuation used by your company. Customers paid you 55% in cash and the remainder was on account.

14. On April 27nd you purchased 9,250 units at a cost of $67 per unit. You paid 45% in cash and purchased the remainder on account.

15. On April 29th you pay $550,000 cash toward your accounts payable.

May

16. On May 1st you pay all dividends owed to your owners.

June

17. Leased additional warehouse space from Leasing Solutions for two years on June 1st due expiration of the previous rental contract. $92,000 cash was paid for the new contract on this date which covers the rental fee for two years. There is no value left in the previous contract. [Adjusting Entry Required]

18. Wage expenses from January 1 – June 30 $530,000. Pay this in full including your beginning balance in wages payable.

19. On June 19th, $95,000 of prepaid insurance was used.

20. On June 26th a customer that previously bought your product on account has filed for bankruptcy. He owed you $62,500. You expect to collect $0.

July

21. Your company issued 1,000, 3.8% bonds (face value of each bond is $1,000) at 101.8250 on July 1st, 2019. The bonds are due on July 1, 2024, with interest payable each January 1 and July 1. The market rate at the time of the bond issuance was 3.4%. Use the effectiveinterest method to calculate both the interest expense and the amortization of the bond discount when each interest payment is made. [Adjusting Entry Required]

August

22. On August 6th , a piece of land that was originally purchased for $1,250,000 was sold for $1,550,000 cash.

23. August 15th , your customers bought 9,000 units of your product at $116.00 per unit. The cost of this product is determined by the method of inventory valuation used by your company. Customers paid you 50% in cash and the remainder was on account.

24. Received on August 25th a $156,000 cash payment from a customer paying on their account.

25. Purchased a Patent (Intangible Asset) for $165,000 on August 1st. The patent will be amortized over a 10 year period on a straight-line basis. [Adjusting Entry Required]

September

26. $122,000 cash was paid for an investment in Company X's marketable securities on September 3rd .

27. On September 12th, a piece of equipment was sold for $650,000 cash. The equipment was originally purchased for $1,100,000. At the time of the sale, it had been depreciated by $235,000.

28. Purchased and used $3,500 worth of fuel for the delivery truck on September 18th .

October

29. Your top sales officer met with a new customer to discuss a potential future contract. She informs you that the customer is considering signing the $200,000 deal, which would become effective February 2020.

30. On October 1st, you purchased 11,250 units at the decreased price of $61 per unit. The purchase was made on account.

31. On October 10th you paid your supplier $132,000 cash for inventory purchased on account.

November

32. November 1 st, the CEO, in an effort to adjust ratios, ordered the repurchasing of the company’s own stock. The quantity of stock repurchased was 175,000 shares.

33. Purchased a three-year building insurance policy on November 1st for $442,000 cash. [Adjusting Entry Required]

34. On November 17th a customer pays you $450,000 for work that you will finish in January of 2020.

35. November 19th , your customers bought 8,650 units of your product at $110 per unit. The cost of this product is determined by the method of inventory valuation used by your company. Customers paid you 55% in cash and the remainder was on account.

36. An employment contract is signed with a new regional manager. You have offered him $150,000 per year. He will not begin working for the company until March 2020.

December

37. Wages earned from July 1st through December 31st was $480,000. Wages earned between Dec. 15th and Dec 31st amounting to $27,500 was not paid this until Jan 7th.

38. At the end of the year, $42,000 cash was paid to the local bank for the long-term note payable taken out on January 1, 2019. $38,000 of this was applied to the loan principal. The remaining amount was the accumulated interest due for 2019.

39. On December 31st, the marketable (trading) securities you purchased on September 23, 2019 transaction now has a fair market value of $134,000.

40. On December 31st, $480,000 depreciation expense for the year was calculated for equipment purchased before January 1, 2019.

41. On December 31st, you declare dividends of $.32 per share to be paid at a later date.

42. On December 31st, the utility bill was paid for the year. The amount was $66,000 and you paid in cash.

43. On December 31st, you pay in cash recurring interest on the long-term note acquired prior to the year 2017.

HINT: See prior year financial statements.

44. On December 31st, your company earned interest on the average 2019 cash balance which will be paid January 5th, 2020. The average interest rate for the year was 4.0%. Note: Compute the average cash using only the beginning and ending balance.

45. By December 31st, 85 of the prepaid service hours from March 20, 2019 were completed.

46. A count of office supplies indicated that $27,000 of office supplies had been used by December 31st .

47. Since the inception of your company, you have been able to collect 84% of your ending accounts receivable balance from customers that bought your product on account. Based on this information, adjust your allowance for bad debt account. NOTE: Use your 2019 ending accounts receivable balance to make this calculation.

1. Explain why negative or harmful mutations have no role in the evolution of a population.
2. How do pseudogenes offer evidence in support of evolution?
3. Give an example of the bottleneck and founder effects.
4. Explain how bottleneck effect has affected cheetahs.
5. If variation in a species was only due to meiosis, how would that limit the evolution of that species?
6. If it is survival of the fittest, explain why organisms would show altruistic behaviour or kinship. For example, why would lions group together as a pride?
7. Explain how altruism and cooperation are not contrary to evolution.
8. Explain how cumulative selection allows for more detailed structures.