Questions
Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2016...

Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2016 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 40% in all years. Any tax effects should be adjusted through the deferred tax liability account.
a.

Fleming Home Products introduced a new line of commercial awnings in 2015 that carry a one-year warranty against manufacturer’s defects. Based on industry experience, warranty costs were expected to approximate 3% of sales. Sales of the awnings in 2015 were $4,400,000. Accordingly, warranty expense and a warranty liability of $132,000 were recorded in 2015. In late 2016, the company’s claims experience was evaluated and it was determined that claims were far fewer than expected: 2% of sales rather than 3%. Sales of the awnings in 2016 were $4,900,000 and warranty expenditures in 2016 totaled $111,475.
b.

On December 30, 2012, Rival Industries acquired its office building at a cost of $1,180,000. It was depreciated on a straight-line basis assuming a useful life of 40 years and no salvage value. However, plans were finalized in 2016 to relocate the company headquarters at the end of 2020. The vacated office building will have a salvage value at that time of $790,000.
c.

Hobbs-Barto Merchandising, Inc., changed inventory cost methods to LIFO from FIFO at the end of 2016 for both financial statement and income tax purposes. Under FIFO, the inventory at January 1, 2016, is $780,000.
d.

At the beginning of 2013, the Hoffman Group purchased office equipment at a cost of $429,000. Its useful life was estimated to be 10 years with no salvage value. The equipment was depreciated by the sum-of-the-years’-digits method. On January 1, 2016, the company changed to the straight-line method.
e.

In November 2014, the State of Minnesota filed suit against Huggins Manufacturing Company, seeking penalties for violations of clean air laws. When the financial statements were issued in 2015, Huggins had not reached a settlement with state authorities, but legal counsel advised Huggins that it was probable the company would have to pay $290,000 in penalties. Accordingly, the following entry was recorded:


  Loss—litigation 290,000
       Liability—litigation 290,000


     Late in 2016, a settlement was reached with state authorities to pay a total of $449,000 in penalties.
f.

At the beginning of 2016, Jantzen Specialties, which uses the sum-of-the-years’-digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net earnings by $544,000.

Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2016 related to the situation described. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1

Record journal entry as a direct result of the change.

2

Record adjusting entry for change in warranty.

3

Record journal entry as a direct result of the change.

4

Record adjusting entry for depreciation.

5

Record journal entry as a direct result of the change.

6

Record the adjusting entry for change in inventory cost method.

7

Record journal entry as a direct result of the change.

8

Record adjusting entry for depreciation.

9

Record journal entry as a direct result of the change.

10

Record the adjusting entry for revision of liability.

11

Record journal entry as a direct result of the change.

12

Record the adjusting entry for change in depreciation method from sum-of-the-years’-digits method to straight-line method.

In: Accounting

Imagine that you are a system analyst of a software development company and you have been...

Imagine that you are a system analyst of a software development company and you have been assigned to a team that will be developing the information systems for the clients. For now as a team leader for the data design team, you have been asked to the read and understand the following case studies and prepare the data design as specified.

Creating an Entity Relationship Diagram, Creating a Context Level Data Flow Diagram.

Create the ER diagram for library management on a University Library

In: Computer Science

An excerpt from the statement of financial position of Twilight Limited follows: TWILIGHT LIMITED Selected Statement...

An excerpt from the statement of financial position of Twilight Limited follows:
TWILIGHT LIMITED
Selected Statement of Financial Position Information
At December 31, 2020
Long-term debt
Notes payable, 10% $5,000,000
4% convertible bonds payable 2,000,000
6% convertible bonds payable

3,000,000
Total long-term debt

$10,000,000
Shareholders' equity
$0.68 cumulative, no par value, convertible preferred shares
(unlimited number of shares authorized, 600,000 shares
issued and outstanding)		 $3,000,000
Common shares, no par value (8,000,000 shares authorized,
3,000,000 shares issued and outstanding)		 25,000,000
Contributed surplus 200,000
Retained earnings

7,000,000
Total shareholders’ equity

$35,200,000

Notes and Assumptions
December 31, 2020
1. Options were granted/written in 2019 that give the holder the right to purchase 100,000 common shares at $8 per share. The average market price of the company’s common shares during 2020 was $14 per share. The options expire in 2028 and no options were exercised in 2020.
2. The 4% bonds were issued in 2019 at face value. The 6% bonds were issued on June 1, 2020, at face value. Each bond has a face value of $1,000 and is convertible into 100 common shares.
3. The convertible preferred shares were issued at the beginning of 2020. Each share of preferred is convertible into one common share.
4. The average income tax rate is 25%.
5. The common shares were outstanding during the entire year.
6. Preferred dividends were not declared in 2020.
7. Net income was $2,500,000 in 2020.
8. No bonds or preferred shares were converted during 2020.
Calculate the income effect of the dividends on preferred shares.
Dividends on preferred shares $
Calculate basic earnings per share for 2020. (Round answer to 2 decimal places, e.g. 15.25.)
Basic EPS $
Determine an incremental per share effect for $0.68 preferred shares. (Round answer to 2 decimal places, e.g. 15.25.)
Potentially dilutive security Incremental
Numerator Effect		 Incremental
Denominator Effect		 EPS
$0.68 Preferred shares $ $
Calculate the proceeds from assumed exercise of 100,000 options.
Proceeds from exercise of options $

Calculate the incremental shares oustanding upon the exercise of options.
The incremental shares oustanding upon the exercise of options
Calculate the after-tax interest paid on the 4% bonds.
After-tax interest on 4% bonds converted $

In: Accounting

On January 1, 2020, Novak Corp. had Accounts Receivable $140,800, Notes Receivable $24,000, and Allowance for...

On January 1, 2020, Novak Corp. had Accounts Receivable $140,800, Notes Receivable $24,000, and Allowance for Doubtful Accounts $12,300. The note receivable is from Willingham Company. It is a 4-month, 9% note dated December 31, 2019. Novak Corp. prepares financial statements annually at December 31. During the year, the following selected transactions occurred.

Jan. 5 Sold $18,200 of merchandise to Sheldon Company, terms n/15.
20 Accepted Sheldon Company’s $18,200, 3-month, 8% note for balance due.
Feb. 18 Sold $6,400 of merchandise to Patwary Company and accepted Patwary’s $6,400, 6-month, 9% note for the amount due.
Apr. 20 Collected Sheldon Company note in full.
30 Received payment in full from Willingham Company on the amount due.
May 25 Accepted Potter Inc.’s $4,400, 3-month, 7% note in settlement of a past-due balance on account.
Aug. 18 Received payment in full from Patwary Company on note due.
25 The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated.
Sept. 1 Sold $10,400 of merchandise to Stanbrough Company and accepted a $10,400, 6-month, 10% note for the amount due.

Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year life and no salvage value. The equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement

In: Accounting

Suppose I need to model a bank which provides loans to different companies. Further suppose that...

Suppose I need to model a bank which provides loans to different companies. Further suppose that the only companies in my data model are those to whom I am providing loans or have provided loans in the past.

What is the appropriate minimum cardinality for the relationship between LOAN and COMPANY?

Suppose I need to model a credit card company where each customer can receive up to one credit card and each card can be sent to only one address.

What is the appropriate maximum cardinality for the relationship between CUSTOMER and CARD?

Suppose I need to model a university where students can, but do not have to, participate in extra-curricular activities. Each such activity can have zero or more participants.

What is the appropriate minimum cardinality for the relationship between STUDENT and ACTIVITY?

Suppose I need to model a university where students can have up to three majors (i.e., can be part of three departments).

What is the appropriate maximum cardinality for the relationship between STUDENT and DEPARTMENT?

Suppose I need to model a hardware store with varying inventory. That is, not all products will be sold at any given time.

What is the appropriate minimum cardinality for the relationship between STORE and PRODUCT?

In: Accounting

Answer in true or false; please and thank you An ethical advocate is assigned the specific...

Answer in true or false; please and thank you

  1. An ethical advocate is assigned the specific role of critical questioner, and may also be asked to sit in on top-management decision deliberations.
  2. An ethnocentric German CEO would insist that German be spoken in all the firm's worldwide offices.
  3. "Honesty is the best policy" is an instrumental value, because it is an enduring belief in a certain way of behaving.
  4. In polychronic cultures, everyone is assumed to be on the same clock and time is treated as money.
  5. There is a growing concern about the prospect of immense "stateless" transnational companies because of unresolved political, economic, and tax implications.
  6. Amoral managers are neither moral nor immoral, but indifferent to the ethical implications of their actions.
  7. According to research, the most effective way of getting managers to behave ethically is to simply tell them to be good and act professionally.
  8. Spoken and written words convey comparatively little meaning in low-context countries.
  9. According to research, detailed ethics codes actually hinder managers from dealing swiftly and effectively with employee misconduct.
  10. A major ethical problem for managers is pressure from below.
  11. A transnational company, by definition, is a multinational venture centrally managed from a specific country.
  12. If an organization is competing successfully in a dynamic global economy, its managers do not need cross-cultural awareness.
  13. Managers who believe in enlightened self-interest think that ultimately the best way to help themselves is to help create better society.
  14. The general ethical principle of "self-interests" states that we should not take any action in which the least fortunate among us are harmed in some way.
  15. According to Adam Smith, the public interest was served by individuals pursuing their own self-interests.
  16. Licensing agreements in foreign countries provide companies with the necessary authorization to produce and/or market a given product within a specified territory in return for a fee.
  17. Societal culture acts as a social glue which is made up of norms, values, attitudes, role expectations, taboos, symbols, heroes, beliefs, morals, customs, and rituals.
  18. Opponents of social responsibility argue that a better society means a better environment for doing business.
  19. International managers who are in doubt about which leadership style to use in a foreign country are advised to use an authoritarian style.

In: Economics

Using HTML/Javascript (if needed) I want to create a table for a website that pulls data...

Using HTML/Javascript (if needed) I want to create a table for a website that pulls data from another website where the data is being updated on. Example: https://investors.coca-colacompany.com/stock-information/historical-data

I cannot just put in the numbers to a table as they will be getting updated daily. So it needs to link the the website elements.

DATE OPEN HIGH LOW CLOSE VWAP VOLUME % CHG CHANGE TRADE VAL TOTAL TRADES
2020-10-13 -- -- -- 51.09 -- -- 0.00% -- -- --
2020-10-12 50.84 51.525 50.83 51.09 51.155 11.39m 0.55% 0.28 582,437,982.00 70,341
2020-10-09 50.67 51.23 50.60 50.81 50.874 11.41m 0.69% 0.35 580,070,644.00 80,826

Table from:

https://investors.coca-colacompany.com/stock-information/historical-data

In: Computer Science

Huxley (60) and Elise (45) started the process on adopting Elwood (15) on May 1, 2020....

Huxley (60) and Elise (45) started the process on adopting Elwood (15) on May 1, 2020. On July 6, 2020, Huxley took a $5,000 distribution from his 401(k). On September 24, 2020, Elise took a $5,000 distribution from her IRA. What is the tax treatment of each distribution?

Huxley's distribution is taxable and not subject to the early distribution penalty. Elise's distribution is taxable and subject to the early distribution penalty.

Huxley's distribution is not taxable or subject to the early distribution penalty. Elise's distribution is taxable and subject to the early distribution penalty.

Huxley's distribution is taxable and not subject to the early distribution penalty. Elise's distribution is taxable and not subject to the early distribution penalty.

Huxley's distribution is taxable and subject to the early distribution penalty. Elise's distribution is taxable and not subject to the early distribution penalty.

In: Accounting

Pelzer Company reconciled its bank and book statement balances of Cash on August 31 and showed...

Pelzer Company reconciled its bank and book statement balances of Cash on August 31 and showed two cheques outstanding at that time, #5888 for $6,390 and #5893 for $1,528.00. The following information was available for the September 30, 2020, reconciliation:

From the September 30, 2020, bank statement:

Balance of previous statement on Aug. 31/20 10,979.00
6 deposits and other credits totalling 23,509.00
9 cheques and other debits totalling 27,498.00
Current balance as of Sept. 30/20 6,990.00
Chequing Account Transactions
Date Amount Transaction
Description		 Date Amount Transaction
Description
Sept. 05 5,804.00 + Deposit Sept. 25 4,348.00 + Deposit
12 2,637.00 + Deposit 30 54.00 + Interest
17 495.45 − NSF cheque 30 3,518.00 + Credit memo
21 6,621.00 + Deposit
Date Cheque No. Amount Date Cheque No. Amount
Sept. 03 5904 9,340.55 Sept. 22 5888 6,390.00
07 5901 1,459.00 24 5909 2,589.00
08 5905 410.00 28 5907 4,024.00
10 5903 1,598.00 29 5902 1,192.00


From Pelzer Company’s accounting records:

Cash Acct. No. 101
Date Explanation PR Debit Credit Balance
2020
Aug. 31 Balance 3,588.00
Sept. 30 CR12 24,178.00 27,766.00
30 CD23 17,116.55 10,649.45
Deposits Made
Sept. 5 $ 5,804.00
12 2,637.00
21 6,621.00
25 4,348.00
30 4,768.00
Total Sept. Cash Receipts $ 24,178.00
Cheques Written
No. 5901 $ 1,459.00
5902 1,192.00
5903 1,598.00
5904 3,940.55
5905 410.00
5906 868.00
5907 4,024.00
5908 1,036.00
5909 2,589.00
Total Sept. Cash Disbursements $ 17,116.55
  • Cheque #5904 was correctly written for $9,340.55 to pay for computer equipment; however, the bookkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash as though it were for $3,940.55. The NSF cheque was originally received from a customer, Lisa Willis, in payment of her account. Its return was not recorded when the bank first notified the company.
  • The credit memo resulted from an electronic fund transfer of $3,568 for a customer payment. The bank had deducted a $50.00 bank service charge. The collection has not been recorded.


Required:
1. Prepare a September 30 bank reconciliation for the company. (Round your answers to 2 decimal places.)



2. Prepare the General Journal entries needed to adjust the book balance of cash to the reconciled balance. (Round your answers to 2 decimal places.)

In: Accounting

1. Suppose that the random variable X is normally distributed with mean μ = 30 and...

1. Suppose that the random variable X is normally distributed with mean μ = 30 and standard deviation σ = 4. Find a) P(x < 40) b) P(x > 21) c) P(30 < x < 35) 2. A radar unit is used to measure speeds of cars on a motorway. The speeds are normally distributed with a mean of 90 km/hr and a standard deviation of 10 km/hr. What is the probability that a car picked at random is travelling at more than 100 km/hr? 3. For a certain type of computers, the length of time between charges of the battery is normally distributed with a mean of 50 hours and a standard deviation of 15 hours. Find the probability that the length of time will be between 50 and 70 hours. 4. Entry to a certain University is determined by a national test. The scores on this test are normally distributed with a mean of 500 and a standard deviation of 100. Tom wants to be admitted to this university and he knows that he must score better than at least 70% of the students who took the test. Tom takes the test and scores 585. Will he be admitted to this university? 5. The annual salaries of employees in a large company are approximately normally distributed with a mean of $50,000 and a standard deviation of $20,000. a) What percent of people earn less than $40,000? b) What percent of people earn between $45,000 and $65,000? c) What percent of people earn more than $70,000?

In: Statistics and Probability