A review of the ledger of Cullumber Company at December 31, 2020, produces the following data pertaining to the preparation of annual adjusting entries.

Prepare the adjusting entries at December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Note: Not all sales are always collected. Remember Bad Debt Expense. So don’t worry if the problems do not add up to 100%.  

1. ABC Company has the following sales budget for the last six months of 2020:

                  July                             $9,000                       

                  August                      $8,000                       

                  September                 $11,000

                  October                      $9,000                       

Historically, the cash collection of sales has been as follows:

                                    35% of sales collected in the month of sale,

                                    45% of sales collected in the month following the sale,

                                    20% of sales collected in the second month following the sale.

What are expected cash collections for September? For October?

2. Jason D’s sales for the next five months are as follows:

February                   $175,000

March                        $160,000

April                           $145,000

May                            $135,000

June                            $130,000

Collection history for the company indicates that 50% of sales are collected in the month of the sale, 38% is collected in the following month, and 12% of sales are uncollectible.

How much are total budgeted cash receipts for April? For May? For June?

3. XYZ’s budgeted sales for the next three months are as follows:

February $130,000

March                        $170,000

April                           $200,000

Collection history for the company indicates that 60% of sales are collected in the month of the sale, 36% is collected in the following month, and 4% of sales are uncollectible. How much are budgeted cash receipts for April?

At the beginning of 2020, Dexter Company estimated that it would incur $220,000 of manufacturing overhead cost during 2020 and use 20,000 direct labor hours. On January 1, 2020, beginning balances of Materials Inventory, Work in Process Inventory, and Finished Goods Inventory were $60,000, $-0-, and $115,000, respectively.

Required:

Using the following account letters, indicate the journal entries to record the following for 2020. For example, the payment of an account payable would be: A, C. List the debit letter(s) first. Also indicate the entry amounts for 2, 3, 5, 6 and 7.

1. Purchased materials on account, $425,000.

2. Of the $425,000 total dollar value of materials used, $395,000 represented direct material.

3. Determined total factory labor, $228,000 (19,000 hrs. @$12/hr.). Of the factory labor, 16,500 were direct labor hours.

4. Incurred actual manufacturing overhead other than those items already recorded, $110,000. (Credit Accounts Payable and Accumulated Depreciation)

5. Applied manufacturing overhead based on direct labor hours to production.

6. Ending inventory of work in process was $75,000. Record the cost of goods manufactured.

7. Transferred the balance in Manufacturing Overhead to the appropriate account.

A. Accounts Payable

B. Accumulated Depreciation

C. Cash

D. Cost of Goods Sold

E. Finished Goods Inventory

F. Materials Inventory

G. Manufacturing Overhead

H. Wages Payable

I. Work in Process Inventory

Softlux Inc. is a carpet manufacturer. For June 2020, the company had the following standards for one of its product lines: decorative mats.

Units produced 2,000

Direct materials per mat (in kilograms) 3

Cost per kilograms of direct materials $22.50

Standard direct manufacturing labour cost (per hour) $20.00

Standard manufacturing labour time (hours per mat) 2

The following data were compiled regarding actual performance:

Direct materials used (in kilograms) 6,400

Direct materials purchased (in kilograms) 6,500

Cost per kilogram of direct materials $24.00

Direct manufacturing labour hours 3,900

Total direct manufacturing labour cost $87,750

Required:

(A) Compute the materials price variance and the materials usage variance, and indicate whether the variance is favourable or unfavourable.

(B) Compute the labour rate variance and the labour efficiency variance, and indicate whether the variance is favourable or unfavourable.

(C) For each variance, provide a plausible explanation of why the variance occurred.

A company produces and sells two products – A and B. During January 2020 A were sold at the
amount of $19,200 and its variable expenses were $6,336. B were sold at the amount of $32,800
and its variable expenses were $11,344. Fixed expenses were $32,280.
Compute
1. Break-even point for the company in total sales dollars. Show your calculation

2. If the sales mix shifts toward A without changes in total sales, what is the company’s break-
even point? Explain.

A . Prepare income statements for the XXX company in December 2020. Use the following information please :

B. What is the Gross Margin %?

C. What is Basic EPS? What is Diluted EPS?

***************Use below Information *********

Cost of Goods Sold. 600,000

Purchased patents 50,000

Sales Returns 30,000

Sales 1,505,000

Allowance for Doubtful Accounts 60,000

Trademarks 15,000

Sales and marketing expenses 220,000

Accounts Payable 65,000

Engineering Expenses 300,000

Contributed Capital 300,000

G&A Expenses 165,000

Goodwill 150,000

Sales Discounts 18,000

Sales Tax Payable 5,000

Interest Expense 32,000

Tax rate 35%

Loss on investments 10,000

Copyrights 30,000

Wages payable 100,000

Losses on division scheduled

for closing 100,000 before tax.

There are 500,000 average common shares outstanding and 100,000 equivalent shares.

In January 2020, the management of Oriole Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred.

At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.

a.

Journalize the transactions and post to the accounts Debt Investments and Stock Investments. (Use the T-account form.) (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
b.

Prepare the adjusting entry at December 31, 2020, to report the investment securities at fair value. All securities are considered to be trading securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
c.

Show the balance sheet presentation of investment securities at December 31 2020

d.

give the statement classification of each income statement account.

Morning Star Ltd was registered on 1 July 2020, as a company with a constitution limiting the shares that could be offered to 5 000 000 Ordinary shares (including all classes) and 2 000 000 preference shares. The company issued a prospectus dated 1 July 2020 inviting the public to apply for 3 000 000 Ordinary A class shares at $3.00 per share. The terms of the shares on issue are $1.50 on application, $1.00 on allotment and $0.50 to be called within six months of allotment before 31 December 2020.

If the issue is oversubscribed the directors will make a pro-rata issue of shares and the excess application money will be applied to allotment and calls before any refunds will be given.

On 15 July, the directors also decided to issue 500 000 non-voting Ordinary B shares as fully paid to the promoters for a payment of $2.00 per share.

On 30 July, applications for the Ordinary A class shares closed. Applications for 4 500 000 shares in total had been received with applicants for 3 000 000 shares paying the full price and 1 500 000 shares paying only the application fee.

On 1 August, the Ordinary A class shares were allotted on a pro-rata basis with all allotment money owed paid by the 30 August.

The company paid share issue costs of $10,000 for the issuing of Ordinary A shares on 1 September. The share issue costs related to legal expenses associated with the share issue and fees associated with the drafting and advertising of the prospectus and share issue.

The call on the Ordinary A shares was made on 15 Septmber and due by 30 September. All call money was received except for the call on 100 000 shares. The directors met and forfeited the shares on 15 October. On 30 October, the forfeited shares were reissued at $2.40 fully paid to $3.00. Costs associated with reissuing the forfeited shares totalled $4,000. The remaining money was refunded to the defaulting shareholders on 15 November.

On 1 January 2021, Morning Star Ltd issued via a private placement semi-annual coupon debentures (which pay interest every 6 months) with a nominal value of $700,000. The debenture term is three years and the coupon rate is 8% per year. The market requires a rate of return of 10% per year. The money came in and the debentures were allotted on the same date. The first interest payment will occur on 30 June 2021.

On the same day (1 January), Monring Star issued 50,000 options for class A shares with an exercise price of $2.5 each. It costs $0.50 per option. These options expires on 30 June 2021.

The company issued via a private placement 400,000 redeemable preference shares of $2.00 each on 30 June 2021. The shares offer a fixed dividend of 7 per cent per annum. The shares are later redeemed to non-voting Ordinary Class B shares at the choice of the shareholders on 30 June 2022.

By 30 June 2021, 40,000 options were exercised. The remaining options are lapsed.

Prepare an extract of the statement of change in equity to show the composition and movement of the ordinary shares account of Morning Star Ltd as at 30 June 2021 and 30 June 2022. Please provide the opening balance, change in share capital and closing balance of each classes of shares.

The Orange Company purchased equipment on June 1, 2020. Assuming the cost of the equipment is $70,000, the residual value is $6,000, a useful life of 4 years and the use of the diminishing balance method using 2 times the straight line rate. The company's year end is December 31. Round all answers to the nearest dollar.

1) What is depreciation expense for the year ended December 31, 2020? $ Answer

2) What is the depreciation rate (%)? Answer %

3) What is accumulated depreciation for the year ended December 31, 2022? $ Answer

4) What is the carrying value of the asset for the year ended December 31, 2024? Answer

5) What is depreciation expense for the year ended December 31, 2024? $ Answer You were asked to prepare the journal entry to record the sale of the above equipment on December 31, 2022. Is it a gain or loss if the equipment was sold for $10,000? Answer How much is the gain or loss? $ Answer

ETHICS 445

Scenario

It is 2020, and General Foryota Company opens a plant in which to build a new mass-produced hover-craft. This hover-craft will work using E-85 Ethanol, will travel up to 200 mph, and will reduce pollution worldwide at a rate of 10 percent per year. It is likely that when all automobiles in the industrial world have been changed over to hovercrafts, emission of greenhouse gasses may be so reduced that global warming may end and air quality will become completely refreshed.

However, the downside is that during the transition time, GFC's Hover-Vee (only available in red or black), will most likely put all transportation as we know it in major dissaray. Roadways will no longer be necessary, but new methods of controlling traffic will be required. Further, while the old version of cars are still being used, Hover-vee's will cause accidents, parking issues, and most likely class envy and warfare. The sticker price on the first two models will be about four times that of the average SUV (to about $200,000.) Even so, GFC's marketing futurists have let them know that they will be able to pre-sell their first three years of expected production, with a potential waiting list which will take between 15 and 20 years to fill.

The Chief Engineer (CE) of GFC commissions a study on potential liabilities for the Hover-vees. The preliminary result is that Hover-vees will likely kill or maim humans at an increased rate of double to triple over automobile travel because of collisions and crashes at high speeds -- projected annual death rates of 100,000 to 200,000. However, global warming will end, and the environment will flourish.

The U. S. Government gets wind of the plans. Congress begins to discuss the rules on who can own and operate Hover-vees. GFC's stock skyrockets. The Chief Engineer takes the results of the study to the Chief Legal Counsel (CLC), and together they agree to bury the study, going forward with the production plans. The Chief Project Manager (CPM), who has read the study and agreed to bury it, goes ahead and plans out the project for the company, with target dates and production deadlines.

Somebody sent a secret copy of the report to you at your home address. It has no information in it at all, except for the report showing the proof of the increase in accidents and deaths. The report shows, on its face, that the CE, CLC, CPM, and your Congressional Representative have seen copies of this report. On the front there are these words typed in red: They knew — they buried this. Please save the world!

As an Engineer on the GFC team, I feel a very loyal tie to my boss and my company/country. I have mortgage, and family to feed. It is likely if I blow the whistle on this report, I will lose my job and my livelihood. I'm not even sure who wrote the study in the envelope or who actually sent it to me.

Utilizing my profession's code of ethics, what should be my first step?

Who should I talk to first?

should I go to the press?

should I go to your boss?

Should I react at all?

What professional ethics codes with international scope can I use to see the guidance given for dilemmas such as this.