1. You have completed the Cash Flow statement. Pleased with your work so far, Barry asks you to work on an assignment for Steve Fox, relating to a different Regal subsidiary, Phrygian Equipment Capital. Phrygian has two business segments that are reported separately in its financial statements. The segments are “machinery” and “investment and Insurance.” In its management accounts, the company reports four different divisional results. The four divisions are machinery leasing, machinery sales, investments, and insurance. The results of the segments and the divisions follow:

Steve has asked you for a technical analysis on how Phrygian should report its segment information, under IAS 14, as of its year-end of December 31, 2017

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,300 $ 0.05 Maintenance $ 0.10 Wages and salaries $ 4,400 $ 0.20 Depreciation $ 8,000 Rent $ 2,000 Administrative expenses $ 1,500 $ 0.05 For example, electricity costs are $1,300 per month plus $0.05 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.30 per car washed. The actual operating results for August appear below.

Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,200 Revenue $ 53,130 Expenses: Cleaning supplies 4,550 Electricity 1,675 Maintenance 1,050 Wages and salaries 6,380 Depreciation 8,000 Rent 2,200 Administrative expenses 1,805 Total expense 25,660 Net operating income $ 27,470 Required: Prepare a flexible budget performance report that shows the company’s revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Oct 1 Tom invested cash in the business, $40,000 2 Prepaid 6 months rent in advance, $4,800 3 Purchased Stage Equipment for $3,000. Paid $1,500 immediately but put the rest on account. 5 Purchased supplies for cash, $1,500 7 Purchased a one year insurance policy for $1,200 31 Paid the part-time worker, $450 Nov 2 Tom withdrew $180 so he could relax at the health spa 3 Tuition revenue for the month was, $3,500. Received $1,000 immediately from students the rest is due in 20 days. 8 Paid the telephone bill, $95 11 Paid the electric bill, $320 21 Received payment for tuition from students billed on November 3 23 Received the newspaper advertising bill, $160, it is due in 30 days. 27 Paid the part-time worker, $450 Dec 3 Tuition revenue for the month was, $5,500. Received $2,500 immediately from students, the rest is due in 20 days. 21 Paid the advertising bill which was received last month, $160 22 Received payment for tuition from students billed on December 3 24 Paid an additional $500 on the stage equipment purchased earlier in the year. 29 Purchased additional supplies on account, $300

Problem 2-2A Julia Dumars is a licensed CPA. During the first month of operations of her business, Julia Dumars, Inc., the following events and transactions occurred. May 1 Stockholders invested $22,700 cash in exchange for common stock. 2 Hired a secretary-receptionist at a salary of $1,200 per month. 3 Purchased $2,560 of supplies on account from Vincent Supply Company. 7 Paid office rent of $760 cash for the month. 11 Completed a tax assignment and billed client $2,400 for services performed. 12 Received $3,120 advance on a management consulting engagement. 17 Received cash of $1,310 for services performed for Orville Co. 31 Paid secretary-receptionist $1,200 salary for the month. 31 Paid 48% of balance due Vincent Supply Company. Julia uses the following chart of accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 201 Accounts Payable, No. 209 Unearned Service Revenue, No. 311 Common Stock, No. 400 Service Revenue, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

1. Journalize the transactions. 2. Post to the ledger accounts. 3. Prepare a trial balance on May 31, 2015. JULIA DUMARS, INC. Trial Balance May 31, 2015

      Partner revenue$4,492,000 7,900hoursStaff revenue$4,315,000 33,000hours

[P1](15pts) IE Department at WSU admits Undergraduate (UG), Masters (MS), and Doctoral (PhD) students to its programs every year. In order to have a smooth admission period, the department head wants to know how many employees to hire. Each UG, MS, PhD student requires 3, 4, and 5 hours of employee time to complete the admission process, respectively. In order to sustain the three programs, the department head decided to admit at least 15 UG, 50 MS, and 10 PhD students. Moreover, there are 55 UG, 180 MS, and 40 PhD applicants this year. Let x1, x2, and x3 represent the number of UG, MS, and PhD students admitted to the programs and let y represent the employee hiring decision: y is an integer valued variable indicating the number of employees. Every employee increases labor capacity by 160 hours. Salary for the additional employees is $60,000. Department makes a revenue of $4,000 for each UG, $5,000 for every MS student, and $400 for each PhD student. If the department wants to maximize its profit (revenue from students – salary of additional employees), how many students of each category would be admitted, and how many employees would be hired?

CHAPTER 15(13.)

On January 1, 2018, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $15,500 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by ComputerWorld at a cost of $101,000 and were expected to have a useful life of Five years with no residual value. Both firms record amortization and depreciation semi-annually. (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:
Prepare the appropriate entries for both the lessee and the lessor from the beginning of the lease through the end of 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations to the nearest whole dollar amount.)

• Record the lease revenue received by ComputerWorld Leasing.
• Record the Depreciation expense for ComputerWorld Leasing.
• Record the lease revenue received by ComputerWorld Leasing.
• Record the Depreciation expense for ComputerWorld Leasing.

16.The expenditures control account of a governmental unit is debited when:

The invoice is paid.

The budget is recorded.

Supplies are ordered.

Supplies previously encumbered are received.

17.The special revenue fund of a governmental unit is an example of what type of fund?

Governmental.

Proprietary.

Fiduciary.

Internal service.

18.The account "interfund transfers in" would be classified in a general fund statement of revenues, expenditures, and changes in fund balance as a (an):

Revenue.

Current liability.

Fund balance addition.

Other financing source.

19.When equipment that is to be used by an activity accounted for by the general fund of a governmental unit is received, it should be recorded in the general fund as a (an):

Disbursement.

Appropriation.

Encumbrance.

Expenditure.

20.In an interim balance sheet of a government fund, the fund equity section would not include:

Encumbrances outstanding.

Contributed capital.

Available appropriations.

Reserve for inventory.

21. An interfund transfer should be reported in a governmental fund operating statement as a (an):

Change in fund balance.

Other financing source or use.

Revenue or expenditure.

Due from or to other funds.

22.Which of the following accounts appears on both the interim and year-end balance sheets of the general fund?

Appropriations.

Encumbrances.

Revenues.

Encumbrances outstanding.

23.The fund balance of the general fund will be increased by the closing entry when:

Appropriations are more than expenditures and vouchers payable.

Appropriations are more than expenditures and encumbrances.

Appropriations are less than expenditures and encumbrances.

Appropriations are less than estimated revenues.

24.The general fund received $200,000 in lieu of taxes from the city owned water utility, an enterprise fund. This is an example of a (an):

Reimbursement.

Interfund loan.

Interfund transfer.

Internal exchange or quasi-internal exchange.

25.What would be the effect on the general fund fund balance in the current fiscal year of recording a $5,000 expenditure for a new computer, for which a $4,900 encumbrance had been recorded in the general fund in the previous fiscal year?

Reduce the general fund fund balance by $5,000.

Reduce the general fund fund balance by $4,900.

Reduce the general fund fund balance by $100.

Have no effect on the general fund fund balance.

1. Examine the table below showing the price elasticities of demand for tobacco products.

Source: Onder and Yureki, 2006

Let’s first understand how to use the table by looking at the price elasticity of demand overall for tobacco users, the last row of the table entitled “Total.” The total price elasticity coefficient is -0.87. The coefficient is negative since higher tobacco prices result in less quantity demanded, ceteris paribus. So for example, a 10 % increase in tobacco taxes would reduce the quantity demanded by 8.7% overall. Within this 8.7% reduction in quantity demanded, 4% would quit altogether (Elasticity of Smoking Participation coefficient) while the quantity demanded would fall by 4.7% among those who keep smoking (Conditional Demand Elasticity).

Health advocacy groups during the last session of the Montana Legislature proposed raising the state’s tax on cigarettes by $1.50 per pack to boost it to $3.20 a pack. The purpose of the tax was two-fold; to reduce tobacco use and to raise badly needed tax revenue for programs suffering budget cuts and administered by the Montana Department of Health and Human Services. Also, the price elasticity of demand for tobacco products by youth is -1.2 (not shown).

1. Identify the demographic groups who will most respond to higher tobacco prices and offer an explanation why they respond the way they do.
2. If the primary purpose is to raise badly needed revenue for other programs cut by the Montana Legislature, what demographic will raise the most revenue for the government?
3. If you want to encourage smokers to drop the habit altogether, which demographic group would likely respond the most to the higher price of tobacco products by quitting the habit entirely?
4. How would all elasticities likely change in the long-run? Why?

Above is an Unadjusted Trial Balance of Jasa Tading Bhd at 31 December 2019.

Additional information:
⦁   An unpaid salaries and wages as at 31 December 2019 is RM18,000.
⦁   A tenant of an office space has not yet pay a rental for December 2019 amounting RM3,000.
⦁   The company returned defect merchandise bought from supplier and was refunded RM3,500 in cash. The company use perpetual inventory system and this transaction has not yet been recorded.
⦁   The company received RM35,000 in cash from a customer on 30 December 2019 and recorded as sales revenue. However the company only managed to supply the merchandise on 3 January 2020.
⦁   Payment for a one-year insurance coverage was made on 1 July 2019.
⦁   Annual depreciation for building and equipment are based on straight line depreciation basis over a period of 50 years and 10 years respectively with no scrap value.
⦁   30% of the notes payable is due next year. The note payable interest rate is 8% per annum.

REQUIRED : ⦁   Prepare a Statement of Profit or Loss and Other Comprehensive Income for Jasa Tading Bhd for the year ended 31 December 2019 according to MFRS 101 Presentation of Financial Statement.