12. A CPA examines a sample of copies of December and January sales invoices for the initials of the person who verified the quantitative data and the consistency between prices on purchase order and invoice. This is an example of a:

A) Substantive test with respect to the completeness of revenue.

B) Cutoff test.

C) Tests of internal control.

D) Statistical test.

13. Which of the following revenue related transactions is not linked to the accounts indicated?

A) Recognize revenues too early--accounts receivable and revenue.

B) Understate allowance for doubtful accounts--Bad debt expense, allowance for doubtful accounts.

C) Don't write off uncollectible receivables—accounts receivable, sales discounts.

D) Don't record discounts given to customers--Cash, sales discounts, accounts receivable.

14. Which of the following is necessary if the auditor can plan to observe inventory at interim dates rather than the end of fiscal year?

A) Perpetual inventory records are maintained.

B) Complete recounts are performed by independent teams.

C) Unit cost records are integrated with production-accounting records.

D) The company adopted a sophisticated Peachtree-based accounting system.

15. Effective internal control for purchases generally can be achieved in a well-planned organizational structure with a separate purchasing department that has:

A) The ability to prepare payment vouchers based on the information on a vendor's invoice.

B) The responsibility of reviewing purchase orders issued by user departments.

C) The authority to make purchases of materials and services.

D) A direct reporting responsibility to controller of the organization.

Wilson and Sons Corp. has bought a prime parcel of beachfront property and plans to build a luxury hotel. After meeting with the architectural team, the Wilson family has drawn up some information to make preliminary plans for construction. Excluding the suites, which are not part of this decision, the hotel will have four kinds of rooms: beachfront non-smoking, beachfront smoking, lagoon view non-smoking, and lagoon view smoking. In order to decide how many of each of the four kinds of rooms to plan for, the Wilson family will consider the following information.

• After adjusting for expected occupancy, the average nightly revenue for a beachfront non-smoking room is $175. The average nightly revenue for a lagoon view non-smoking room is $130. Smokers will be charged an extra $15.
• Construction costs vary. The cost estimate for a lagoon view room is $12,000 and for a beachfront room is $15,000. Air purifying systems and additional smoke detectors and sprinklers add $3000 to the cost of any smoking room. Wilson and Sons Corp. has raised $6.3 million in construction guarantees for this portion of the building.
• There will be at least 100 but no more than 180 beachfront rooms.
• Design considerations require that the number of lagoon view rooms be at least 50% more than beachfront rooms but no more than 150% of beachfront rooms.
• Industry trends recommend that the number of non-smoking rooms be at least 50% more the number of smoking rooms.

Formulate a linear programming model to maximize revenue and solve in Excel.

Include in your answer the:

1. Model
2. Excel input
3. Answer report
4. Description of the optimal solution

Betty Smith is the owner of Accurate Tax Service. For the year ending April 30, 2019, the following information is available for this service business. At the beginning of this accounting period, the balance in the Betty Smith, Capital account was $31,200. Following is a summary of activities during this accounting period:

Betty Smith, capital withdrawn: $19,000
Revenue from income tax preparation: $69,900
Revenue from monthly clients: $45,800
Salaries expense: $12,800
Advertising expense: $800
Rent expense: $6,000
Automobile expense: $1,200
Office supplies expense: $7,600.

Note: You should assume that all profit (or loss) accrued during this accounting period is absorbed into the Betty Smith, Capital account at the end of the period.

Following are the account balances at the end of this accounting period (except Betty Smith, Capital):

Cash: $63,200
Accounts receivable: $4,300
Office furniture and fixtures: $10,400
Office machines and computers: $14,000
Automobile: $9,600
Accounts payable: $1,400

Part a

Prepare an income statement for the year ending April 30, 2019.

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part b) prepare a balance sheet as of April 30, 2019.

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $9,030. The company expected to work 130 jobs in February, but actually worked 136 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made.

Data concerning the pizzeria’s costs appear below:

For its top​ managers, Airborn Travel formats its income statement as​ follows:

Airborn's relevant range is between sales of $256,000 and $362,000.

Requirement 1. Calculate the contribution margin ratio. Select the labels and enter the amounts to calculate the contribution margin ratio. ​(Enter the contribution margin ratio as a whole​ percentage, X%.)

Requirement 2. Prepare two contribution margin income​ statements: one at the $256,000 sales level and one at the $362,000 sales level. ​(Hint​: The proportion of each sales dollar that goes toward variable costs is constant within the relevant​ range.)First prepare the contribution margin income statement at the $256,000 sales level. ​(Use a minus sign or parentheses for a​ loss.)

Now prepare the contribution margin income statement at the $362,000 sales level. ​(Use a minus sign or parentheses for a​ loss.)

Grouper Corporation was incorporated and began business on January 1, 2020. It has been successful and now requires a bank loan for additional capital to finance an expansion. The bank has requested an audited income statement for the year 2020 using IFRS. The accountant for Grouper Corporation provides you with the following income statement, which Grouper plans to submit to the bank: Grouper Corporation Income Statement Sales revenue $ 846,000 Dividend revenue 32,000 Gain on recovery of earthquake loss (unusual) 25,000 Unrealized holding gain on FV-OCI equity investments 5,000 908,000 Less: Selling expenses $ 109,000 Cost of goods sold 516,000 Advertising expense 12,000 Loss on inventory due to decline in net realizable value 35,000 Loss on discontinued operations 46,000 Administrative expenses 73,000 791,000 Income before income tax 117,000 Income tax expense 23,400 Net income $ 93,600 Grouper had 100,000 common shares outstanding during the year and has an effective tax rate of 20%. Gains/losses on FV-OCI equity investments are not recycled through net income. (b) Prepare a revised single-step statement of comprehensive income. (Round percentage to 0 decimal places for intermediate calculations, e.g. 52% and per share answers to 2 decimal places, e.g. 52.75.) Grouper Corporation Statement of Comprehensive Income For the Year Ended December 31, 2020 Sales Revenue $ 846000 $ $ $. i need solution asap

FINANCIAL ACCOUNTING

Woodland Hotels Inc. operates four resorts in the heavily wooded areas of northern California. The resorts are named after the predominant trees at the resort: Pine Valley, Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office costs to each of the four resorts according to the annual revenue the resort generates. For the current year, the central office costs (000s omitted) were as follows:

Required:

1. Based on annual revenue, what amount of the central office costs are allocated to each resort?

2. Suppose that the current methods were replaced with a system of four separate cost pools with costs collected in the four pools allocated on the basis of revenues, assets invested in each resort, square footage, and number of rooms, respectively. Which costs should be collected in each of the four pools?

3. Using the cost pool system in requirement 2, how much of the central office costs would be allocated to each resort?

EJH Cinemas, a movie theater next to your university, attracts two types of customers: those who are associated with the university (students, faculty, and staff) and locals who live in the surrounding area. There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas, with a maximum willingness to pay of $7 per ticket. There are 20,000 local customers interested in purchasing tickets, with a maximum willingness to pay of $9 per ticket. The movie theater incurs a constant marginal cost of $4 per ticket. For simplicity, assume each customer purchases, at most, one ticket.

a. What will be the amount of EJH Cinemas’ total revenue if the price is $7 per ticket?

b. What is the amount of consumer surplus if the price is $7 per ticket?

c. What will be the amount of EJH Cinemas’ total revenue if the price is $9 per ticket?

d. What is the amount of consumer surplus if the price is $9 per ticket?

e. If EJH Cinemas decides to practice price discrimination, charging $9 for a standard ticket available to everyone but only $7 for a ticket if you show your university identification (students, faculty, and staff), what will be the movie theater’s total revenue?

f. If EJH Cinemas decides to practice price discrimination, charging $9 for a standard ticket available to everyone but only $7 for a ticket if you show your university identification (students, faculty, and staff), what will be the amount of consumer surplus?

g. If you were in charge of EJH Cinemas, what pricing scheme should you use?

please show the solution.

Use the following information from the ADJUSTED TRIAL BALANCE of SAM Corp. for the fiscal year ended December 31, 2008 to answer the next 17 questions.

Unearned Service Revenue                                      1,000

Wages Payable                                                      2,000

Wages Expense                                                   17,000               

Service Revenue                                                  37,000   

Rent Expense                                                        3,000

Retained Earnings, 1/1/2008                                    6,000

Prepaid Rent                                                         5,500                           

Notes Payable, Due 5/1/2020                                 20,000

Notes Payable, Due 5/1/2009                                   1,000

Land                                                                 30,000

Interest Revenue                                                    3,000

Interest Payable                                                     1,000   

Interest Expense                                                    1,000   

Equipment                                                         15,000

Dividends                                                            1,500

Depreciation Expense -- Equipment                          3,500   

Common Stock                                                   55,000   

Cash                                                                 40,000                                       

Accumulated Depreciation – Equipment                    5,000   

Accounts Receivable                                            17,500

Accounts Payable                                                              3,000

NET INCOME for the year is:

TOTAL CURRENT ASSETS reported on the December 31, 2008 balance sheet is:

TOTAL PROPERTY, PLANT, AND EQUIPMENT reported on the December 31, 2008 balance sheet is:

TOTAL ASSETS reported on the December 31, 2008 balance sheet is:

TOTAL CURRENT LIABILITIES reported on the December 31, 2008 balance sheet is:

TOTAL LONG-TERM LIABILITIES reported on the December 31, 2008 balance sheet is:

TOTAL LIABILITIES reported on the December 31, 2008 balance sheet is:

8.    Afterall the necessary closing entries are made, the ending balance in RETAINED EARNINGS is:

TOTAL OWNERS’ EQUITY reported on the December 31, 2008 balance sheet is: