Superior Hardwood Company distributes hardwood products to small furniture manufacturers. The adjusted trial balance data given below is from the firm’s worksheet for the year ended December 31, 2019. ACCOUNTS Debit Credit Cash $ 22,700 Petty Cash Fund 600 Notes Receivable, due 2020 10,400 Accounts Receivable 83,000 Allowance for Doubtful Accounts $ 4,600 Merchandise Inventory 220,000 Warehouse Supplies 2,720 Office Supplies 1,280 Prepaid Insurance 6,000 Land 32,000 Building 164,000 Accumulated Depreciation—Building 45,600 Warehouse Equipment 30,000 Accumulated Depreciation—Warehouse Equipment 13,200 Delivery Equipment 44,000 Accumulated Depreciation—Delivery Equipment 16,800 Office Equipment 18,000 Accumulated Depreciation—Office Equipment 7,800 Notes Payable, due 2020 18,800 Accounts Payable 37,600 Interest Payable 440 Mortgage Payable 54,000 Loans Payable, Long-term 10,000 Charles Ronie, Capital (Jan. 1) 337,960 Charles Ronie, Drawing 125,600 Income Summary 230,000 220,000 Sales 1,693,000 Sales Returns and Allowances 16,800 Interest Income 1,440 Purchases 753,000 Freight In 12,400 Purchases Returns and Allowances 7,040 Purchases Discounts 9,760 Warehouse Wages Expense 185,600 Warehouse Supplies Expense 5,700 Depreciation Expense—Warehouse Equipment 4,400 Salaries Expense—Sales 255,200 Travel and Entertainment Expense 20,100 Delivery Wages Expense 58,930 Depreciation Expense—Delivery Equipment 8,400 Salaries Expense—Office 69,200 Office Supplies Expense 2,600 Insurance Expense 4,800 Utilities Expense 7,890 Telephone Expense 5,120 Payroll Taxes Expense 52,000 Property Taxes Expense 4,200 Uncollectible Accounts Expense 4,400 Depreciation Expense—Building 7,600 Depreciation Expense—Office Equipment 2,600 Interest Expense 6,800 Totals $ 2,478,040 $ 2,478,040 Required: Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses. Prepare a statement of owner’s equity for the year ended December 31, 2019. No additional investments were made during the period. Prepare a classified balance sheet as of December 31, 2019. The mortgage payable extends for more than a year. Analyze: What is the current ratio for this business?

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3
• Analyze

Prepare a classified income statement for the year ended December 31, 2019. The expense accounts represent warehouse expenses, selling expenses, and general and administrative expenses.

• Required 1
• Required 2

COOKIE CREATIONS

Natalie Koebel spent much of her childhood learning the art of cookie-making from her grandmother. They spent many happy hours mastering every type of cookie imaginable and later devised new recipes that were both healthy and delicious. Now in her second year in college, Natalie started investigating possibilities for starting her own business as part of the entrepreneurship program in which she is enrolled.

A long-time friend insisted that Natalie include cookies in her business plan. After a series of brainstorming sessions, Natalie settled on the idea of operating a cookie-making school. She plans to start on a part-time basis and offer her services in people’s homes. Now that she has started thinking about it, the possibilities seem endless. During the fall, she will concentrate on holiday cookies. She will offer group sessions (which will probably be more entertainment than education) and individual lessons. Natalie also decided to include children in her target market. The first difficult decision was coming up with the perfect name for her business. She settled on “Cookie Creations,” and then moved on to more important issues.

After investigating the different forms of business organization, Natalie Koebel decided to operate her business as a corporation, Cookie Creations Inc., and she began the process of getting her business running.

While at a trade show, Natalie was introduced to Gerry Richards, operations manager of “Biscuits,” a national food retailer. After much discussion, Gerry asked Natalie to consider being Biscuits’ major supplier of oatmeal chocolate chip cookies. He provided Natalie with the most recent copy of the financial statements of Biscuits. He expects that Natalie would need to supply Biscuits’ Watertown warehouse with approximately 1,500 dozen cookies a week. Natalie is to send Biscuits a monthly invoice, and she will be paid approximately 30 days from the date the invoice is received in Biscuits’ Chicago office.

Natalie is thrilled with the offer. However, she had recently read in the newspaper that Biscuits has a reputation for selling cookies and donuts with high amounts of sugar and fat, and as a result, consumer demand for the company’s products has decreased.

In November 2017, after having incorporated Cookie Creations Inc., Natalie began operations. She decided not to pursue the offer to supply cookies to Biscuits. Instead, she will be focusing on offering cooking classes. The following events occur:

Nov. 8

8

8 11 14

15

16

17 18 25

29 30

30 30

Natalie cashes in her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account.
NatalieopensabankaccountforCookieCreationsInc. Nataliepurchases$500ofCookieCreations’commonstock. CookieCreationspurchasespaperandotherofficesuppliesfor$95.(UseSupplies.) CookieCreationspays$125topurchasebakingsupplies,suchasflour,sugar,butter,andchocolate chips. (Use Supplies.) Nataliestartstogathersomebakingequipmenttotakewithherwhenteachingthecookieclasses.She has an excellent top-of-the-line food processor and mixer that originally cost her $550. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300, and she transfers the equipment into the business in exchange for additional common stock. Thecompanyneedsmorecashtosustainitsoperations.Natalie’sgrandmotherlendsthecompany $2,000 cash, in exchange for a two-year, 9% note payable. Interest and the principal are repayable at maturity.

CookieCreationspays$900foradditionalbakingequipment. NatalieschedulesherfirstclassforNovember29.Shewillreceive$100onthedateoftheclass. NataliebooksasecondclassforDecember5for$150.Shereceivesa$60cashdownpayment,in advance.

Natalieteachesherfirstclass,bookedonNovember18,andcollectsthe$100cash. Natalie’sbrotherdevelopsawebsiteforCookieCreationsInc.thatthecompanywilluseforadvertising. He charges the company $600 for his work, payable at the end of December. (Because the website is expected to have a useful life of two years before upgrades are needed, it should be treated as an asset called Website.)
CookieCreationspays$1,200foraone-yearinsurancepolicy.
Natalie teaches a group of elementary school students how to make Santa Claus cookies. At the end of the class, Natalie leaves an invoice for $300 with the school principal. The principal says that he will pass it along to the business office and it will be paid some time in December.

30 Nataliereceivesa$50invoiceforuseofhercellphone.SheusesthecellphoneexclusivelyforCookie Creations Inc. business. The invoice is for services provided in November, and payment is due on December 15.

Instructions for November:

(a) Prepare journal entries to record the November transactions. (b) Post the journal entries to the general ledger accounts.
(c) PrepareatrialbalanceatNovember30,2017.

Chart of Accounts

Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Accumulated Depreciation—Equipment Website
Accounts Payable
Interest Payable
Salaries and Wages Payable Unearned Service Revenue
Notes Payable
Common Stock
Dividends
Service Revenue
Utilities Expense
Salaries and Wages Expense
Supplies Expense
Depreciation Expense
Amortization Expense
Interest Expense
Insurance Expense

Can I get provided a business plan of anything you could think of from the top of your head? I was thinking a cafe/bar/entertainment however if you provide something else that is fine. DESPERATELY need a good mark for this assignment. so Im going to need all the help I can get! the requirements are below

1.Introduction

• A clear introduction of your NEWbusiness idea, make sure that first time readers can understand your business idea.
• Please also don’treuse the business idea which has already been presented in the group assessment.

2.Business Model Canvas(please make the full use of the Business Model Canvas template. Additional information/clarification can be added if necessary, but please be aware of the word limit and balance with other parts of the report)

• Customer Segments
• Value Proposition
• Customer Relationships
• Channels
• Key Activities
• Key Resources
• Key Partners
• Revenue Structure
• Cost Structure

3.Market

(where possible, please support this session with relevant research, facts and figures)

The following (but not limited to) major questions are to be addressed:

3.1. What is the size of the market? Is the market at full capacity?

3.2. What is the growth rate of the industry? How competitive is the industry? What keeps new competition from entering this market (barriers to entry)?

3.3. Is there any trend that is affecting positively or negatively firms in the industry?

3.4. How can the market be segmented?

3.5. Who and Where are the targeted customers?

3.6. Where are customers getting the product now? Who are the major competitors in the market and how strong are they?

3.7. Where is the location of the business? How many customers would potentially purchase from you?

4.Operations and Technology

(where possible, please support this session with relevant research, facts and figures)

The following (but not limited to) major questions are to be addressed:

4.1. What are the options for developing the technology (customer, off the shelf, design by yourself, or subcontract)?

4.2. What technological changes are changing or emerging that may affect the business?

4.3. What are the options for producing the product or service? (in-house, subcontract, license, joint venture or partnership, or a combination of those options).

4.4. What are the options for sales and distribution? (in-house, whole sale, distributors or sales representatives, license, joint venture or partnership, or combination)

4.5. What resources are required for development and are they available to you (skills, raw materials, components, suppliers, facilities & equipment etc)?

4.6. What are the laws and regulation relating to the business? (e.g. industry standards or regulations,  personal certifications, intellectual property (patents, trademarks, copyrights), environmental liability, etc)

4.7. Has the research discovered any moral or ethical issuesthat you might have to address? (Please also refer to the marking rubric in subject learning guide for more information about this criteria)

5.Human Resources

(where possible, please support this session with relevant research, facts and figures)

The following (but not limited to) major questions are to be addressed:

5.1. What technical and management experience is required?

5.2. Who are the owners and what are their roles? (Entrepreneur, Manager, Technical Expert etc)

5.3. What is the ownership structure?

5.4. What are the manpower requirements?

• How many employees will you need in the 1st, 2nd and 3rd years?
• How will you find the right employees?
• How will you compensate employees (pay for time, for production, for knowledge, or a combination)?
• How will you motivate employees?
• What training will they need on an ongoing basis?

5.5. What is the company’s growth strategy?

• How will quality be managed and maintained?
• How will organizational structures change with growth?
• What career paths will employees have available?

6.Finance

(where possible, please support this session with relevant research, facts and figures)

The following (but not limited to) major questions are to be addressed:

6.1. What are the projected Revenues from the sale of your product or service?

• From the market research, what is the selling price per unit?
• From the market research, what is the projected sales volume in "units sold?" and in "dollars sold"?
• What is the total expected revenue?

6.2. How much is the start-up costs and equipment/capital costs (see attached Appendix 1 for the template)?

6.3. Prepare the projected Profit and Loss statements for the first 3 years (see attached Appendix 2 for the template).

6.4. What are the possible sources of financing?

• Where is the money from?
• What are the chances of getting the money?
• What will you have to give up?

Regarding the variances, what kind of explanations or observation can I make?

The new incentive compensation plan was adopted. Under this plan, each three department heads are rewarded based on the performance of his or her responsibility center. Performance is measures against the company’s master budget and standard cost system. The plan was the result of several meetings with Janet McKinley who is employed by the Quality Products Corporation and Vice President in charge of BTC’s division of quality products and her managers. The managers argued and bargained for a plan that rewarded the managers fairly for individual contribution and achievements. McKinley’s plan was intended to promote participation and teamwork and the manages accepted the new preprogram enthusiastically. The plan provides for the followings:

David Hall, the purchasing manager, will receive a bonus equal to 20% of the net materials price if the variance is favorable

Rita Smith, the production manager, will receive a bonus equal to 10% of the excess, if any of the actual net revenues (revenues minus both variable and fixed selling expenses) over master budget net revenues.

Bill Wilford, the production manager, will receive a bonus equal to 3% of the net of several variances: the efficiency (usage or quality) variances for materials, labor, and variable overhead; the labor rate variance; and the variance and fixed overhead spending variances. He will receive no bonus if his net variance is unfavorable.

1. What is voucher and why it is useful in the recognition/bookkeeping of accounts payable?

2. What is cut-off bank statement? Why it is useful to auditor in cash audit?

3. Please identify and describe important internal controls over the cash disbursement cycle.

4. Please identify and describe important internal controls over the cash receipt process.

5. Client’s cash balance per book and cash balance per bank are often different and this difference is mostly driven by timing difference and/or errors. Please list at least 3 reconciliation items which may create timing difference.

6. When auditors audit A/R, they can send either positive confirmations or negative confirmations. Please tell me the differences between those two kinds of confirmations.

7. When auditors send two rounds of A/R confirmations and still receive no responses, audit standards allow them to use alternative audit procedures. Please tell me how to perform alternative audit procedures. Please list at least 4 useful documents.

8. Auditors often use analytical procedures when they perform substantive tests of A/R accounts, please list at least 3 ratios that are useful to auditors.

9. How to review the year-end cutoff of sales transactions? Shall an auditor rely on client’s invoices and dates on invoice document? Why or why not?

10. Please tell me the two revenue recognition criteria under the pre-2018 FASB revenue recognition standard (aka. The old FASB revenue recognition standard) and briefly explain them.

11. Under the new FASB revenue standard (aka, post-2018 revenue standard, effective after December 15, 2017, for publicly traded firms in the U.S.), when revenue could be recognized?

12. Please identify and describe important internal controls over the credit sale (NOT cash sale) process.

13. What are the key supporting documents involved in a credit sale transaction? Which department issue which document? Please list at least 4 documents.

14. When you audit manufacturing firms or retailers, why inventory is often the most vulnerable (also dangerous) account that could be subject to high risk of material misstatement?

15. Do you have to worry about inventory account when you audit a local community bank? How about an insurance firm or a hedge fund? Why?

16. How does the presence of perpetual records affect the audit? (Tip from the professor: Unless there are well-controlled perpetual records, auditing standards require the auditor to observe the physical count of inventory at year-end. If the client has well-kept perpetual inventory records, the observation can correspond to the client's periodic counts if taken during its fiscal year).

17. For manufacturing firms, their inventories should be valued based on the lower of cost or market price. Please explain how to decide the market price? If the cost is higher than the market price, what kind of accounting adjustment a firm should make?

18. Please identify and describe important internal controls over the credit purchase process.

19. What are the key supporting documents involved in a credit purchase transaction at a manufacturing firm? Which department issue which document? Who has the authority to sign the payment checks and mail them to suppliers?

20. Inventory consists of three sub-accounts. Please name all of them for a manufacturing firm.

21. What is “material requisition form”? What is its function? What is “time ticket”? Why it is useful?

Cowen’s, a large department store located in a metropolitan area, has been experiencing difficulty in estimating its bad debts. The company has decided to prepare an aging schedule for its outstanding accounts receivable and estimate bad debts by the due dates of its receivables. This analysis discloses the following information:

CHART OF ACCOUNTSCowen’sGeneral Ledger

X

Chart of Accounts

X

Analysis

1. Use the Aging analysis to compute the estimated amount of uncollectible receivables.

The estimated amount uncollectible based on the data provided is .

2. What is the net realizable value of Cowen’s accounts receivable?

Net realizable value of accounts receivable .

3a. Prepare the journal entry on June 30 to record Cowen’s estimated uncollectibles, assuming the balance in Allowance for Doubtful Accounts prior to adjustment is $0.

3b. Prepare the journal entry on June 30 to record Cowen’s estimated uncollectibles, assuming the balance in Allowance for Doubtful Accounts prior to adjustment is a $3,000 debit.

3c. Prepare the journal entry on June 30 to record Cowen’s estimated uncollectibles, assuming the balance in Allowance for Doubtful Accounts prior to adjustment is a $2,500 credit.

Section 1 – Presentation of financial statements

Prepare a statement of profit or loss and other comprehensive income for Timber Ltd for the year ended 30 June 2017 (classify expenses by functions). Cross reference all workings

URGENT PLEASE URGENT The fiscal year of Baker Street Cinema Limited ends on December 31. The business adjusts its accounts on a monthly basis. The unadjusted trial balance for the month ended August 31, 2020 is given below along with further information relating to adjustments for the month (adjusting entries for the period January 1 – July 31, 2020 have already been made).             

Additional Items

1. The expenses relating to movie rental are $10,500 per month. These have been paid in advance.
2. Depreciation rates applied to the building are 5% and the fixtures are 20%.
3. Interest on the note payable is paid on the first of the following month (interest for the month of January is paid on Feb 1st, etc.) It is a 10%, two year note issued on January 1, 2020.
4. Limited time offers are regularly offered to the public. Recently the cinema has introduced a special deal for the local care home allowing buy one get one free each Wednesday afternoon. The care home has made a $1,500 advance payment to avail this facility for its residents for the months of July, August, and September.
5. Baskin Robbins runs a kiosk in the premises and pays the cinema a share of its revenues on or before the 10th of the following month. The amount payable by Baskin Robbins for the month of August amounted to $2,250. This revenue has not yet been recorded. (Use the account Kiosk Revenue.)
6. Unrecorded but accrued salaries at August 31 amount to $1,700.
7. The August income tax expense is estimated at $4,200 (payable before November 15).
8. Utilities expense is recorded as monthly bills are received during the month. No adjusting entries for utilities expense are therefore made at month-end.
9. Cash received from Barnabus School as an advance payment for an upcoming school trip to the cinema was debited for $500, and Accounts Payable was credited for the same amount.
10. A dividend paid during the period of 1,000 was debited to Salaries and Wages Expense for 1,000 and credited to Cash for the same amount.

Instructions

Where necessary, round numbers to the nearest whole number

a. Journalize the above transactions (omit explanations)

b. Prepare the adjusted trial balance for the period ended August 31, 2020

c. Prepare the Income Statement for the period ended August 31, 2020

d. Prepare the Statement of Retained Earnings for the period ended August 31, 2020

e. Prepare a Classified Statement of Financial Position at August 31, 2020

f. Refer to the balances shown in the unadjusted trial balance at August 31. How many months of expense are included in each of the following account balances?

1.         Utilities Expense

2.         Depreciation Expense - Building

3.         Accumulated Depreciation: Building

g. Calculate the total amount of interest expense that will be charged to the income statement over the life of the Notes Payable and the interest payable balance in respect of this Notes Payable at December 31, 2021.

h. If Baker Street Cinema Limited were to close its temporary accounts on August 31, 2020, state the entries for closing the revenue and dividend accounts.

Sction 1 – Presentation of financial statements

Prepare a statement of profit or loss and other comprehensive income for Timber Ltd for the year ended 30 June 2017 (classify expenses by functions). Cross reference all workings