You have been appointed as financial manager for MBA. The company manufactures one product and uses standard costing system.

Standard cost per unit

Material 5kg at R12 50 per unit

Labour 2 hours at R35 per hour

Factory overheads R45 per labour hour.

Actual data for the month:

Number of units manufactured 12500

Material used R811 250                                                        

Issue price of material R13 75 per kg

Calculate and explain the difference between the total actual and the total standard cost.

Suggest a course of action

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.

SQL Trigger problem

When attemptiing to Create or Replace a trigger I get the error "sql warning trigger created with compilation errors".

Trigger:

CREATE OR REPLACE TRIGGER Late_Fees
after UPDATE
ON InventoryItem
FOR EACH ROW

DECLARE

late_fee number;
num_days number;
BEGIN
num_days:= to_date(:old.ReturnDate)-TO_DATE(:old.DateDue);
select IntValue into late_fee from ApplicationSettings where Setting='Daily Late Fee';
:new.fee := (late_fee)*(num_days);

END;
/

commit;

Table:

create table Rental(
INVID int Primary key,
LoanDate date,
PatronID int,
DueDate date,
ReturnDate date,
constraint PatronID_FK Foreign key (PatronID) references Patrons(PatronID));

Test Input:

insert into rental
values ('1345', '2020-02-20', '000', '2020-02-27', '2020-02-22');
insert into rental
values ('1345', '2020-04-10', '000', '2020-04-17', '2020-04-17');
insert into rental
values ('1234', '2020-02-20', '000', '2020-02-27', '2020-02-22');
insert into rental
values ('1245', '2020-02-20', '000', '2020-02-27', '2020-02-22');
insert into rental
values ('1345', '2020-08-14', '0001', '2020-08-21', '2020-08-20');
insert into rental
values ('1265', '2020-09-01', '0001', '2020-09-08', '2020-09-10');

Calculate the total depreciation for these various assets - All assets are business use. Joe purchased a 5 year asset for $1,190,000 on 6/13/2020. Joe wants to take the maximum amount of Sec 179 depreciation as possible. Taxable income for 2020 was $1,125,000. Calculate the depreciation expense for 2020. Joe sold the asset in 2021. Additional first year depreciation was not taken in 2020. Calculate the depreciation for 2021. 2020: 2021:

Convert JSON TO XAML

{
    "message": {
        "affenpinscher": [],
        "african": [],
        "airedale": [],
        "akita": [],
        "appenzeller": [],
        "australian": [
            "shepherd"
        ],
        "basenji": [],
        "beagle": [],
        "bluetick": [],
        "borzoi": [],
        "bouvier": [],
        "boxer": [],
        "brabancon": [],
        "briard": [],
        "buhund": [
            "norwegian"
        ],
        "bulldog": [
            "boston",
            "english",
            "french"
        ],
        "bullterrier": [
            "staffordshire"
        ],
        "cairn": [],
        "cattledog": [
            "australian"
        ],
        "chihuahua": [],
        "chow": [],
        "clumber": [],
        "cockapoo": [],
        "collie": [
            "border"
        ],
        "coonhound": [],
        "corgi": [
            "cardigan"
        ],
        "cotondetulear": [],
        "dachshund": [],
        "dalmatian": [],
        "dane": [
            "great"
        ],
        "deerhound": [
            "scottish"
        ],
        "dhole": [],
        "dingo": [],
        "doberman": [],
        "elkhound": [
            "norwegian"
        ],
        "entlebucher": [],
        "eskimo": [],
        "finnish": [
            "lapphund"
        ],
        "frise": [
            "bichon"
        ],
        "germanshepherd": [],
        "greyhound": [
            "italian"
        ],
        "groenendael": [],
        "havanese": [],
        "hound": [
            "afghan",
            "basset",
            "blood",
            "english",
            "ibizan",
            "plott",
            "walker"
        ],
        "husky": [],
        "keeshond": [],
        "kelpie": [],
        "komondor": [],
        "kuvasz": [],
        "labrador": [],
        "leonberg": [],
        "lhasa": [],
        "malamute": [],
        "malinois": [],
        "maltese": [],
        "mastiff": [
            "bull",
            "english",
            "tibetan"
        ],
        "mexicanhairless": [],
        "mix": [],
        "mountain": [
            "bernese",
            "swiss"
        ],
        "newfoundland": [],
        "otterhound": [],
        "ovcharka": [
            "caucasian"
        ],
        "papillon": [],
        "pekinese": [],
        "pembroke": [],
        "pinscher": [
            "miniature"
        ],
        "pitbull": [],
        "pointer": [
            "german",
            "germanlonghair"
        ],
        "pomeranian": [],
        "poodle": [
            "miniature",
            "standard",
            "toy"
        ],
        "pug": [],
        "puggle": [],
        "pyrenees": [],
        "redbone": [],
        "retriever": [
            "chesapeake",
            "curly",
            "flatcoated",
            "golden"
        ],
        "ridgeback": [
            "rhodesian"
        ],
        "rottweiler": [],
        "saluki": [],
        "samoyed": [],
        "schipperke": [],
        "schnauzer": [
            "giant",
            "miniature"
        ],
        "setter": [
            "english",
            "gordon",
            "irish"
        ],
        "sheepdog": [
            "english",
            "shetland"
        ],
        "shiba": [],
        "shihtzu": [],
        "spaniel": [
            "blenheim",
            "brittany",
            "cocker",
            "irish",
            "japanese",
            "sussex",
            "welsh"
        ],
        "springer": [
            "english"
        ],
        "stbernard": [],
        "terrier": [
            "american",
            "australian",
            "bedlington",
            "border",
            "dandie",
            "fox",
            "irish",
            "kerryblue",
            "lakeland",
            "norfolk",
            "norwich",
            "patterdale",
            "russell",
            "scottish",
            "sealyham",
            "silky",
            "tibetan",
            "toy",
            "westhighland",
            "wheaten",
            "yorkshire"
        ],
        "vizsla": [],
        "waterdog": [
            "spanish"
        ],
        "weimaraner": [],
        "whippet": [],
        "wolfhound": [
            "irish"
        ]
    },
    "status": "success"
}

Pro Forma balance sheet- Peabody & Peabody has 2019 sales of 10.4 milion. it wishes to analyze expected performance and financing needs for 2021- 2 years ahead. Given the following information respond to parts a. and b.

1. the percent of sales for items that vary directly with sales are as follows: Accounts receivable 12.2%, inventory 18.2%, accounts payable, 13.6% , Net Profit margin 3.3%

2. Marketable securties and other current liabilites are expected to remain unchanged.

3. a minimum cash balance of $483,000 is desired.

4. A new machins costing $648,000 will be acquired in 2020 and equipement costing $853,00 wil be purchased in 2021. Total deprication in 2020 is forecast as $286,00 and in 2021 $392,000 of depreciation will be taken.

5. Accurals are expected to rise $502,000 by the end of 2021.

6. No sales or retirement of long-term debt is expected

7. No sale or repurchase of common stock is expected

8. the dividend payout of 50% of net profits is expected to continue.

9. Sales are expected to be $11.5 million in 2020 and $11.3 million in 2021.

10. The december 31, 2019 balance sheet is here.

a. Prepare a pro forma balance sheet dated December​ 31,2021

b. Discuss the financing changes suggested by the statement prepared in part (a​).

On February 1, 2018, Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $80 million. The bonds mature on January 31, 2022 (4 years). The market yield for bonds of similar risk and maturity was 8%. Interest is paid semiannually on July 31 and January 31. Barnwell Industries acquired $80,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. Determine the price of the bonds issued on February 1, 2018.
2-a. Prepare amortization schedules that indicate Cromley’s effective interest expense for each interest period during the term to maturity.
2-b. Prepare amortization schedules that indicate Barnwell’s effective interest revenue for each interest period during the term to maturity.
3. Prepare the journal entries to record the issuance of the bonds by Cromley and Barnwell’s investment on February 1, 2018.
4. Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2020.

NOTE: I only need required3 and 4 for BarnWell

Prepare the journal entries by both firms to record all subsequent events related to the bonds through January 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

07/31/2018 Record the receipt of interest for Barnwell Company.

12/31/2018 Record the accrued interest for Barnwell Company.

01/31/2019 Record the receipt of interest for Barnwell Company.

07/31/2019 Record the receipt of interest for Barnwell Company

12/31/2019 Record the accrued interest for Barnwell Company.

01/31/2020 Record the receipt of interest for Barnwell Company

Bogart is a listed company that reports using IFRS and has a reporting date of 30 September 2020. Bogart purchased 18% of Lupin’s 100 million $1 ordinary shares for $43 million cash on 1 October 2018, gaining significant influence. Lupin had retained earnings of $85 million and no other components of equity, on the date of purchase.

The investment in Lupin was accounted for correctly in Bogart’s individual financial statements for the year ended 30 September 2019, when Lupin had retained earnings of $150 million and no other components of equity.

Bogart acquired control over Lupin on 1 October 2019, purchasing a further 67% of its ordinary shares. Cash consideration of $160 million was correctly included in calculating goodwill. Purchase consideration included 3 million of Bogart’s own $1 ordinary shares, with a fair value of $1.40 each. No accounting entries were posted for this share consideration.

Bogart derecognised the carrying amount of the existing 18% holding in Lupin and included it in calculating the goodwill of the business combination. The carrying amount of the net assets of Lupin was also used in calculating goodwill. The fair value of the existing 18% holding was $73 million at 1 October 2019 and the fair value of the identifiable net assets of Lupin was $285 million. The excess of the fair value of net assets over the carrying amount was due to equipment with a remaining useful life of ten years. The fair value of the non-controlling interest in Lupin on 1 October 2019 was $63.8 million and was included in calculating goodwill.

On 30 September 2020, Bogart purchased an additional 5% of the ordinary shares of Lupin. Consideration transferred for these additional shares was $19 million cash, which was expensed to the consolidated statement of profit or loss. On 30 September 2020, Lupin had retained earnings of $185 million and no other components of equity.

Required:

Discuss, with calculations, how the purchase of the additional share capital in Lupin should be accounted for in the consolidated financial statements. Show the accounting entry required to correct any error.     

Bogart is a listed company that reports using IFRS and has a reporting date of 30 September 2020. Bogart purchased 18% of Lupin’s 100 million $1 ordinary shares for $43 million cash on 1 October 2018, gaining significant influence. Lupin had retained earnings of $85 million and no other components of equity, on the date of purchase.

The investment in Lupin was accounted for correctly in Bogart’s individual financial statements for the year ended 30 September 2019, when Lupin had retained earnings of $150 million and no other components of equity.

Bogart acquired control over Lupin on 1 October 2019, purchasing a further 67% of its ordinary shares. Cash consideration of $160 million was correctly included in calculating goodwill. Purchase consideration included 3 million of Bogart’s own $1 ordinary shares, with a fair value of $1.40 each. No accounting entries were posted for this share consideration.

Bogart derecognised the carrying amount of the existing 18% holding in Lupin and included it in calculating the goodwill of the business combination. The carrying amount of the net assets of Lupin was also used in calculating goodwill. The fair value of the existing 18% holding was $73 million at 1 October 2019 and the fair value of the identifiable net assets of Lupin was $285 million. The excess of the fair value of net assets over the carrying amount was due to equipment with a remaining useful life of ten years. The fair value of the non-controlling interest in Lupin on 1 October 2019 was $63.8 million and was included in calculating goodwill.

On 30 September 2020, Bogart purchased an additional 5% of the ordinary shares of Lupin. Consideration transferred for these additional shares was $19 million cash, which was expensed to the consolidated statement of profit or loss. On 30 September 2020, Lupin had retained earnings of $185 million and no other components of equity.

Required:

Discuss, with calculations, how the purchase of the additional share capital in Lupin should be accounted for in the consolidated financial statements. Show the accounting entry required to correct any error.