Assignment:

Complete the entries.

I am unsure on how to do these.

12/31/2018-On December 15, Anniston contracted to perform services for a client and recorded the amount received as Unearned Revenue (amount $1,560). As of December 31, Anniston has earned 60% of this Unearned Revenue.

12/31/2018-Anniston prepaid two months of rent on December 1 ($1,450). This was debited to Prepaid Rent and is included in the Trial Balance.

12/31/2018 A physical count of supplies revealed an ending balance of $500.

12/31/2018 Anniston purchased the Equipment included on the Trial Balance on 12/1/16. The equipment has a residual value of $1,000 and is expected to last a total of 10 years. Anniston last recorded depreciation of this equipment on 12/31/17.

12/31/2018 Anniston received a bill for December's online advertising, $1,100. Anniston will not pay the bill until January (Anniston uses Accounts Payable for unpaid advertising).

12/31/2018Anniston pays its employees on Monday for the previous week's wages. Its employees earn $3,500 for the five-day workweek. December 31 falls on a Wednesday this year.

12/31/2018 On October 1, Anniston agreed to provide a four-month air system check beginning that day. The customer agreed to pay a total of $3,400 at the end of the four month service contract. As of December 31, Anniston has completed all work as necessary, but has not recorded any revenue to date.

Curly Ramen Pte Ltd is a factory that manufactures instant noodles. The company has completed a research exercise amounting to $5,200 to improve its production process. Due to the outcome of the research, it is now considering purchasing new machines to replace its older machines. The new machines will cost $290,000 altogether, and incur an additional installation expense of $10,000. The old machines can be sold now for a proceed of $51,000, but required a disposal fee of $1,000. The table below shows the cash revenue and expenses for the existing machines:

The cost of capital for the company is 4%.

Required:
a. Calculate the initial investment for the proposed machines.

b. It is estimated that the new machines are expected to increase cash revenue by 35% and expenses by 10% respectively. Calculate the following:
i. Operating cash inflows for the existing machines.
ii. Operating cash inflows for the proposed new machines.
iii. Incremental cash flows for the project.

c. i. Calculate the Net Present Value for the proposed project.
ii. Should the company continue to operate the old machine or purchase the new machine? State your reason.

d. i. Explain what is sunk cost and it’s relevance to investment decisions.
ii. Identify a sunk cost from the case above.

e. If the Internal Rate of Return (IRR) for the project is 9%, should the company accept or reject the project solely based on the IRR technique? State your reason.

Mitchener Corp. manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $300,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split-off point.

Each product may be sold at the split-off point or processed further. The additional processing costs and sales value after further processing for each product (on an annual basis) are:

The "Further Processing Costs" consist of variable and avoidable fixed costs.

INSTRUCTIONS Determine which product or products should be sold at the split-off point, and which product or products should be processed further? When complete, answer each of the following by selecting the correct match from the list provided.

Question 3

On Sept 15, 2017, Julia Inc entered into a contract to provide 12 new deep fryers to a Montreal Poutinerie. Julia normally charges $1,500 for each deep fryer. As part of the agreement, Julia will provide on-site training at the Poutinerie’s 3 locations. Julia will host 3 separate training sessions at each location. For this training, Julia normally charges $700 / day.  

The Poutinerie needed Julia’s team to re-work some electrical for the installation. This took Julia 6 hours at each location. When doing installation work normally, Julia charges $100/hour. The Poutinerie will pay Julia $25,000 in total.

The follow details are known:

The fryers were delivered on October 20, 2017

The fryers were installed between October 25 – October 31, 2017

The training was delivered on November 3 2017, November 5 2017, November 6 2017

Payments were made as follows:

$10,000 on September 30, 2017

$10,000 on October 25, 2017

$5,000 on November 20, 2017

Assume that Step 1 and 2 have been completed: There is a contract, and there are 3 separate performance obligations in the contract.

Complete steps 3 – 5 of the revenue recognition model under IFRS 15

Step 3 - Determine the Contract Price

Step 4 – Allocate the contract price to the performance obligations

Step 5 – Recognize Revenue

Note – you do not need to record the journal entries for step 5. Rather, you should discuss when to recognize revenue for each obligation.

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:

Each T-shirt is expected to sell for $21.

The purchasing manager buys the T-shirts for $8 each.

The company needs to have enough T-shirts on hand at the end of each quarter to fill 31 percent of the next quarter’s sales demand.

Selling and administrative expenses are budgeted at $62,000 per quarter plus 18 percent of total sales revenue.

Required:
1. Determine budgeted sales revenue for each quarter

2. Determine budgeted cost of merchandise purchased for each quarter

3. Determine budgeted cost of good sold for each quarter.

4. Determine selling and administrative expenses for each quarter.

5. Complete the budgeted income statement for each quarter.

a. Price discrimination is only possible in a (Click to select)(monopoly,long-run,perfectly competitive,unprofitable) market structure.

Suppose you are advising Five Banners Amusement Park, which is the only such firm in the state. Two types of visitors are interested in the park: middle-class families with young kids, and teens/college students.

b. What is wrong (from the perspective of Five Banners' revenue) with charging all visitors the same high admissions price?

• * People will expect extremely awesome rides, which are expensive to build.

• * Five Banners would have to pay its employees more.

• * Teens and college students would not be able to visit, even though they would have if the price was lower.

• * Five Banners would make less money on food sales.

c. What is wrong (from the perspective of Five Banners' revenue) with charging all visitors the same low admissions price?

• * Five Banners would start to attract competitors.

• * Five Banners will get less revenue than it could have from the families, who are willing and able to pay more.

• * The park will be overwhelmed by visitors, leading to unsafe conditions.

• * Five Banners would have to pay its employees less.

d. If Five Banners engages in price discrimination, the number of people visiting the park will be (Click to select)(the same as, less than, more than) if they charged everyone the same high monopoly price; and will be (Click to select)(the same as, more than, less than) the socially optimal number of visitors that would happen in a perfectly competitive market.

Elite HouseSitter, a HouseKeeping service, started the preparation of its adjusted trial balance as follows:

Elite HouseSitter

Preparation of adjusted trial balance

as at 30 June 2020

During the 12 months ended 30 June 2015, Elite HouseSitter:

1. used supplies of $1800
2. used up prepaid insurance of $620
3. used up $460 of the equipment through depreciation
4. accrued salary expense of $310 that Elite HouseSitter hasn’t paid yet
5. earned $360 of the unearned service revenue

Required:

1. Calculate and enter the adjustments amount directly in the Adjustments Columns. (3m)
2. Calculate and enter the balance amount directly in the Adjusted trial balance Column. (2m)
3. Prepare each adjusting journal entry for the amounts calculated above in Requirement 1. Date the entries and include explanations.   (5m)  
4. NOTE: Please use the format of following tables.

5. ELITE HOUSESITTER
   Preparation of adjusted trial balance
   as at 30 June 2020
   Account	Trial balance $		Adjustments $		Adjusted trial balance $
   	Debit	Credit	Debit	Credit	Debit	Credit
   Cash	700.00
   Supplies	3 000.00
   Prepaid insurance	800.00
   Equipment	29 000.00
   Accumulated depreciation		7 000.00
   Accounts payable		2 800.00
   Salary payable
   Unearned service revenue		500.00
   Molly, capital		7 200.00
   Molly, drawings	3 000.00
   Service revenue		25 000.00
   Salary expense	6 000.00
   Supplies expense
   Depreciation expense
   Insurance expense
   Totals	42 500.00	42 500.00

   Journal
   DATE	ACCOUNTS AND EXPLANATIONS	POST. REF.	DEBIT	CREDIT

Select one local government in your state or area and review the financial statements and audit report for the county or municipality. The financial statements of the government you selected should have at least three funds. Refer to the Continuing Problem homework for Weeks 1 through 3 for this assignment.

Write a three- to five-page paper in which you do the following:

1. Compare and contrast the Comprehensive Annual Financial Report (CAFR) of the selected local government entity with the government entity identified in the Week 1 homework. In your comparison, include the following:
   1. The publication method of the CAFR;
   2. Audit and budget information in the CAFR;
   3. The type of audit report issued; and
   4. The existence or nonexistence of an internal audit function within the government entity.
2. Prepare the analysis for the selected local government entity, including information on the introduction, financial section, and statistical section prepared in the Continuing Problem CAFR from Chapter 2.
3. Analyze the methods used by the selected local government entity in comparing the budget-to-actual reports. Your analysis should include an evaluation of the basis of accounting used for the budget and financial statements.
4. Analyze the sources of revenue for the selected local government. Your analysis should include information on both governmental and business-type activities of the government. In your report, be sure to examine the following:
   1. Property taxes and how they are accounted for;
   2. Other sources identified as primary revenue for the entity;
   3. Deferred revenue;
   4. Year-to-year variations in the tax levels of income;
   5. Various management discussion and analysis items of note; and
   6. Information about the general fund.

Indicate which financial Statement will include each account listed, along with their normal balance.

Choices for Financial Statement :

Balance Sheet

Income Statement

Shareholders Equity

Comprehensive Income

Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8 $25 Variable cost per unit 4 15 Total fixed cost is $93,330. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $15 and a variable cost per unit of $9. Total fixed cost must be increased by $31,110 (making total fixed cost $124,440). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same. 2. Compute the break-even quantity of each product. Break-even DVDs units? Break-even equipment sets units? Break-even yoga mats units? 3a. Prepare an income statement for Cherry Blossom Products for the coming year. 3b. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note: Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.) Overall contribution margin ratio % Overall break-even sales revenue $ 4. Compute the margin of safety for the coming year in sales dollars.