PUBLIC SECTOR ACCOUNTING ASSIGNMENT

CASH vs ACCRUAL ACCOUNTING IN PUBLIC SERVICES

Transition from cash based accounting to modified accrual accounting has imperatively been slow but a gradually evolving global movement across the nation which is being undertaken by majority state and local governments over past two decades. This migration from cash to modified accrual accounting was being called from increased demand for accountability and transparency in the public sector which only the use of cash accounting was not able to suffice. Therefore, the Public Service Committee [PSC] of International Federation of Accountants [IFAC] has been continually putting forward words of encouragement to adopt the International Public Sector Accounting Standards [IPSAS] to all developing nations.

Many countries has made several attempts to achieve this on two previous occasions back in the years 1994 and 1998, however the project of migration was put aside on both occasions. Besides that, in the year 2005 a similar attempt was made, yet public service ended up adopting a different approach which was used in the previous unsuccessful attempts. Despite of many years of attempts, many countries are still in the process of this migration. It was noted that overall unstable government and regular coups created hindrance in the progress of fast migration towards modified accrual accounting.

Therefore, modified accrual accounting is yet to be effectively blended into the accounting systems of one countries public service. IFAC has signified that there may have been certain “factors” that has influenced the migration of cash based accounting to modified accrual accounting and made it a slow progress.

DISCUSSION POINT 1: From your viewpoint what could have been these factors that IFAC is placing emphasis on?

Required: Students must include a reference list [Mandatory] – APA referencing style AND in writing the report, the emphasis should be placed on the above mentioned discussion point [content/body of the assignment]

NOTE THAT

((This should be done by R studio !))

Q: Upload your data as a CSV in R studio, then do any
cleaning or convert needed for example convert the date in your table
from character to date and NA identifiers . After do all these, run a summary statistics

R ONLY !!

Badlands, Inc. manufactures a household fan that sells for $40 per unit. All sales are on account, with 35 percent of sales collected in the month of sale and 65 percent collected in the following month. The data that follow were extracted from the company’s accounting records. •Badlands maintains a minimum cash balance of $21,000. Total payments in January 20x1 are budgeted at $225,000. •A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:

Badlands maintains a minimum cash balance of $21,000. Total payments in January 20x1 are budgeted at $225,000.

A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:

March 20x1 sales are expected to total 6,000 units.

Finished-goods inventories are maintained at 20 percent of the following month’s sales.

The December 31, 20x0, balance sheet revealed the following selected figures: cash, $23,700; accounts receivable, $130,000; and finished goods, $24,150.

Required:

Determine the number of units that Badlands sold in December 20x0.

Compute the sales revenue for March 20x1.

Compute the total sales revenue to be reported on Badlands’ budgeted income statement for the first quarter of 20x1.

Determine the accounts receivable balance to be reported on the March 31, 20x1, budgeted balance sheet.

Calculate the number of units in the December 31, 20x0, finished-goods inventory.

Calculate the number of units of finished goods to be manufactured in January 20x1.

Calculate the financing required in January, if any, to maintain the firm’s minimum cash balance.

Badlands maintains a minimum cash balance of $21,000. Total payments in January 20x1 are budgeted at $225,000.

A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:

March 20x1 sales are expected to total 6,000 units.

Finished-goods inventories are maintained at 20 percent of the following month’s sales.

The December 31, 20x0, balance sheet revealed the following selected figures: cash, $23,700; accounts receivable, $130,000; and finished goods, $24,150.

Required:

Determine the number of units that Badlands sold in December 20x0.

Compute the sales revenue for March 20x1.

Compute the total sales revenue to be reported on Badlands’ budgeted income statement for the first quarter of 20x1.

Determine the accounts receivable balance to be reported on the March 31, 20x1, budgeted balance sheet.

Calculate the number of units in the December 31, 20x0, finished-goods inventory.

Calculate the number of units of finished goods to be manufactured in January 20x1.

Calculate the financing required in January, if any, to maintain the firm’s minimum cash balance.

Badlands maintains a minimum cash balance of $21,000. Total payments in January 20x1 are budgeted at $225,000.

A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:

March 20x1 sales are expected to total 6,000 units.

Finished-goods inventories are maintained at 20 percent of the following month’s sales.

The December 31, 20x0, balance sheet revealed the following selected figures: cash, $23,700; accounts receivable, $130,000; and finished goods, $24,150.

Required:

Determine the number of units that Badlands sold in December 20x0.

Compute the sales revenue for March 20x1.

Compute the total sales revenue to be reported on Badlands’ budgeted income statement for the first quarter of 20x1.

Determine the accounts receivable balance to be reported on the March 31, 20x1, budgeted balance sheet.

Calculate the number of units in the December 31, 20x0, finished-goods inventory.

Calculate the number of units of finished goods to be manufactured in January 20x1.

Calculate the financing required in January, if any, to maintain the firm’s minimum cash balance.

. manufactures ONE PRODUCT. The company prepared a master budget for 2016 which included the following pro-forma income statement, which is based on an expected production and sales volume of 15,000 units.

Mississippi Corporation
Budgeted Income Statement
For the Year Ending December 31, 2019

The actual income statement for the year was as follows, based on 18,000 units were actually produced and sold:

Mississippi Corporation
Budgeted Income Statement
For the Year Ending December 31, 2019

1) Prepare a comprehensice and meaningful performance report for the year. Your report should show a) the static budget variance, b) the volume variance and c) the flexible budget variance.

2) Provide a summary of your findings regarding the Company's results for the period. Which of these variances are considered "controllable" and which are not?

3) Assuming that the company manufactures ONE PRODUCT, explain the company’s SALES performance.

4) If, instead, the company manufactured MULTIPLE PRODUCTS, what might have accounted for the variances noted in #3 above?

NOW ASSUME that the following standards have been established for the produciton of one unit:

Direct materials                    5 lbs @ $13 per lb.
Direct Labor                          1 hour @ $15 per hr.

The actual results shown above reflect actual materials usage of 118,500 pounds and actual labor of 22,240 hours.

5) What is meant by a standard, as used above? WHY are these important?

6) Further break down the Flexible Budget Variance (Standard Cost Variance) by computing and analyzing the direct materials price and usage (quantity) variances AND the direct labor rate and efficiency variances. Explain TWO possible causes for each.

7) NOW ASSUME that the company uses a standard costing system for recording product costs. The company recognizes direct materials variances at the time of usage. Journalize the following, assuming that the company uses normal costing AND standard costing:

a) Direct materials purchases, on account
b) Direct materials payments to vendors
c) Direct materials usage in production
d) Direct materials variances
e) Direct labor incurrence in production
f) Payments to direct labor employees

8) Provide the journal entries required to dispose of the variances computed in #8(d) and #8(g) above, assuming that these amounts are considered immaterial.

9) NOW ASSUME that the variances computed above are considered material. Would this change the entry? How would this be handled? What additional information would be needed?

Expert Answer

QUESTION 1

1. If Z is a standard normal random variable, then P(Z > 0) =  

   		0
   		1
   		0.4579
   		0.5

1 points   

QUESTION 2

1. Company A claims that 20% of people in Sydney prefer its product (Brand A). Company B disputes the 20% but has no idea whether a higher or lower proportion is appropriate.  Company B randomly samples 400 people and 88 of them prefer Company A's product (Brand A).
   Assuming a 5% significance level, which one of the following statements is correct?

   		This is a one-tailed test. Accept the null hypothesis because the test statistic value of 1.0 is less than the critical value of 1.96.
   		Do not reject the null hypothesis that Company A's claim is correct.
   		This is a two-tailed test. Reject the null hypothesis because the test statistic exceeds the critical value.
   		Reject the null hypothesis. This is a one-tail test with a test statistic value of 1.75 and a critical value of 1.645

1 points   

QUESTION 3

1. The owner of a local nightclub has recently surveyed a random sample of n = 250 customers of the club. She would now like to determine whether or not the mean age of her customers is over 30. If so, she plans to alter the entertainment to appeal to an older crowd. If not, no entertainment changes will be made.

   Suppose she found that the sample mean was 30.45 years and the sample standard deviation was 5 years.

   The calculated value (to three decimal places) of the test statistic is

1 points   

QUESTION 4

1. In a recent survey of 600 adults, 16.4% indicated that they had fallen asleep in front of the television in the past month.  Which of the following intervals represents a 98% confidence interval?

   		0.129 to 0.199
   		0.117 to 0.211
   		0.161 to 0.167
   		0.145 to 0.183

1 points   

QUESTION 5

1. In an upper-tail hypothesis test the calculated test statistic is z = 1.08. The p-value is closest to:

   		0.1401
   		0.2802
   		0.3431
   		0.3599

1 points   

QUESTION 6

1. The average amount of time a random sample of 25 teenagers spent on the internet per week was 9.5 hours with a standard deviation of 2.0 hours

   Assume that the distribution of the amount of time spent weekly on the internet by teenagers is normal.

   The upper limit (to three decimal places) of a 95% confidence interval for the average amount of time spent weekly on the internet by teenagers is

1 points   

QUESTION 7

1. To locate the rejection region:

   		the level of α must be specified.
   		the level of β must be specified.
   		both  α and β must be specified.
   		neither α nor β need be specified.

1 points   

QUESTION 8

1. A bank manager would like to determine whether the average monthly balance of credit card holders is equal to $750.

   An auditor selects a random sample of 100 accounts and finds that the average owed is $830.40 with a sample standard deviation of $236.50. This sample is used to perform an appropriate hypothesis test to test whether the average balance is not $750

   At a 5% level of significance the positive critical value of this hypothesis test is

1 points   

QUESTION 9

1. If a random sample of size n is drawn from a normal population, then the sampling distribution of the sample mean will be:

   		normal for all values of n.
   		normal only for n > 30.
   		approximately normal for all values of n.
   		approximately normal only for n > 30.

1 points   

QUESTION 10

1. The 99% confidence interval estimate of a population mean is to be calculated. A random sample of six observations from a normal population is to be used on which to base the estimate. If the population variance is unknown the tabulated numerical value that must be used to find the upper limit of the confidence interval is:

   		z = 2.576
   		t = 3.707
   		t = 4.032
   		z = 3.291

Type or paste question here

A Major League baseball team wants to reach out to fans in their stadium to offer them seat upgrades. Which technology would you suggest they use?

Multiple Choice

• Facebook

• Twitter

• Beacon

• Network

• Interconnected

If Katy Perry tweets a closeup of her eyelashes, lengthened using her favorite CoverGirl mascara, CoverGirl will have instantly reached all her millions of followers. This is an example of the

Multiple Choice

• network effect.

• connected effect.

• information effect.

• dynamic effect.

• timeliness effect.

What is the third step involved in developing and implementing a digital marketing campaign?

Multiple Choice

• develop the budget

• identify the target audience

• develop the campaign

• identify a strategy and goals

• analyze digital marketing analytics

It is important to determine the amount of traffic using a particular site, visits to the blogs, or tweets about the site. A measure used for this purpose is the number of

Multiple Choice

• hits.

• clicks.

• page views.

• click paths.

• conversions.

The company that you work for, Gem Jewelry, wants to analyze data that come from other sites, such as measuring where people have come from to get to Gem’s site. What would you recommend that your company use to determine how people searched the Internet to find its products?

Multiple Choice

• showrooming

• keyword analysis

• bounce rate

• conversion rate

• click path

Jose’s company recently launched a campaign to promote a new product. It is Jose’s job to monitor customer feedback from various social media sources to see whether or not the new product is garnering favorable reviews. The technique for measuring this type of data is called ______ analysis.

Multiple Choice

• customer review

• situation

• sentiment

• product

• user feedback

A person who has downloaded the Flipboard app on his or her smartphone to get full-screen magazines, multiple news and entertainment sources, entertainment, local news, and business news is attempting to fulfill which motivation for using a mobile application?

Multiple Choice

• preparation

• discovery

• accomplishing

• self-expression

• socializing

Which of the seven critical elements of online marketing is best addressed by thought-sharing sites?

Multiple Choice

• context

• core plans

• community

• content

• connection

How does a microblog differ from a personal blog?

Multiple Choice

• A microblog contains professional content, whereas a personal blog contains only personal content.

• Microblogs allow people to share their thoughts, opinions, and feelings with the entire world, while personal blogs are created by and usually for individuals.

• A microblog is categorized as a media-sharing site, whereas a personal blog is characterized as a thought-sharing site.

• A microblog is utilized by corporations to disseminate product information, whereas a personal blog is utilized by individuals for social purposes.

• A microblog can be evaluated by social media marketers while a personal blog cannot.

What type of blogs are central to their digital marketing efforts?

Multiple Choice

• professional blogs

• personal blogs

• microblogs

• personal blogs

• corporate blogs

The second element of website design involves the traditional contextual elements. What do these contextual elements needed to be aligned with?

Multiple Choice

• search criteria

• target market(s)

• corporate blogs

• online marketing activities

• digital communities

To get customers excited about a digital offer, the offer must be

Multiple Choice

• innovative and substantial.

• timely and aimed at a broad-based audience.

• relevant and aimed at a target audience.

• isolated and trendy.

• general and unique.

Red Letter Days encourages Facebook and Twitter followers to post pictures with their mother and tell why she deserves a day off and a chance to win a free lunch at a top London restaurant. In doing so, the restaurant is focusing on which aspect of the 4E framework?

Multiple Choice

• educating

• enlightening

• experiencing

• employing

• exciting

Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. Following is the company's unadjusted trial balance as of December 31, 2019.

The following information in a through h applies to the company at the end of the current year.

1. The bank reconciliation as of December 31, 2019, includes the following facts.

Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.)

2. An examination of customers’ accounts shows that accounts totaling $687 should be written off as uncollectible. Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $740.
3. A truck is purchased and placed in service on January 1, 2019. Its cost is being depreciated with the straight-line method using the following facts and estimates.

4. Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2017. They are being depreciated with the straight-line method using these facts and estimates.

5. On September 1, 2019, the company is paid $12,300 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in September. When the cash was received, the full amount was credited to the Extermination Services Revenue account.
6. The company offers a warranty for the services it sells. The expected cost of providing warranty service is 2.5% of the extermination services revenue of $67,800 for 2019. No warranty expense has been recorded for 2019. All costs of servicing warranties in 2019 were properly debited to the Estimated Warranty Liability account.
7. The $19,000 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2019.
8. The ending inventory of merchandise is counted and determined to have a cost of $13,300. Bug-Off uses a perpetual inventory system.

Required:
1. Determine amounts for the following items:

1. Correct (reconciled) ending balance of Cash; and the amount of the omitted check.
2. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts.
3. Depreciation expense for the truck used during year 2019.
4. Depreciation expense for the two items of equipment used during year 2019.
5. The adjusted 2019 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts.
6. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability.
7. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable.

On January 1, Orange Crates had assets of P30,000 and owner’s equity of P20,000. During the year, the company had cash revenue or income of P10,000, cash expenses of P8,000, paid 3,000 to its creditors, and its owner withdrew P1,000. What are the assets, liabilities, and owner’s equity at the end of the year?

Port Moody Inc. is looking to invest in some machinery to replace its current malfunctioning one. The new machine, which costs $ 1,000,000, would increase annual revenue by $ 500,000 and yearly expense by $ 150,000. The machine is estimated to have a useful life of 5 years. Calculate the accounting rate of return.

The Federal Trade Commission has the responsibility of investigating and regulating unfair advertising practices. The Commission has issued strong new guidelines for the funeral industry.

If a mortician was aware of the relationship between elasticity of demand and total revenue, how might he or she take advantage of this information? (Details and explanation, please).