TipTop Flight School offers flying lessons at a small municipal airport. The school’s owner and manager has been attempting to evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recent variance report appears below:

After several months of using such variance reports, the owner has become frustrated. For example, she is quite confident that instructor wages were very tightly controlled in July, but the report shows an unfavorable variance.

The planning budget was developed using the following formulas, where q is the number of lessons sold:

  
Required:

2. Complete the flexible budget performance report for the school for July. (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.)

Gansac Publishing Company signed a contract with an author to publish her book. The signing took place on January 1, 2016, and a payment of $20,000 was made to obtain a copyright. Gansac expects to sell 200,000 books evenly between 2016 and 2020 at a price of $10 per book.

Required:

Prepare journal entries to record the events related to the copyright and sales of the book during 2016 and 2017, assuming that sales were as projected. Additional Instructions

PAGE 1

GENERAL JOURNAL

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How would your answer change if Gansac expected sales of the book to be 100,000 copies in 2016, 70,000 copies in 2017, and 30,000 copies over the remainder of the copyright’s useful life?

Gansac would use an activity method of amortization and record  of amortization in 2016 and  of amortization in 2017.

Bloomington Publishers is considering publishing five different textbooks. The maximum number of copies of each textbook that can be sold, the variable cost of producing each textbook, the sales price of each textbook, and the fixed cost of a production run for each textbook are given in the file Prob3. For example, producing and selling 2000 copies of book 1 yields a revenue of $80(2000) = $160,000 but costs $80,000 + $44(2000) = $168,000. This company can produce at most 20,000 copies in total. Furthermore, it can publish no more than three different types of textbooks. Also, it knows that it cannot publish book 1 if it chooses to publish book 2. Finally, if this company publishes book 4 it must also publish book 5. Bloomington Publishers wants to find a production plan that maximizes total profit. Formulate and solve an integer programming model in Prob3 to help this publisher identify the best production plan.

Scenario 1: Hockeyzine Inc. (4.5 marks) Every August, Hockeyzine Inc. publishes a fantasy hockey league magazine which is sent to various magazine retailers in Canada for sale. The standard sales contract allows these retailers to return any unsold magazines at the end of November each year. At the end of November, the retailers are responsible for submitting a report indicating how many magazines were sold. At this time, they will return the unsold goods and remit a cheque for payment to Hockeyzine for $3.50 per magazine sold. Hockeyzine records revenue on the magazines when they are shipped to the retailers in August at which point the magazines are removed from Hockeyzine’s inventory records. The company applies ASPE. Scenario 2: Cozy Cabin Co. (6.0 marks) Cozy Cabin Co. (“Cozy”) manufactures and sells prefabricated ski chalets to ski resorts across Canada. Slippery Slopes (“Slopes”) placed an order for 50 ski chalets to take advantage of a volume discount. Slopes is currently in the process of preparing one of their mountains to allow for construction of the ski chalets. They do not have storage space on site to store the chalets while they prepare the mountain; therefore, they requested that Cozy store the chalets and provide them a delivery schedule. Slopes provided Cozy with insurance coverage for the chalets and acknowledged that they were taking legal title of the chalets immediately. Cozy stores the chalets in a separate part of the warehouse and specifically identifies them as belonging to Slopes. The chalets are customized and cannot be sold to other customers. Cozy invoiced Slopes once the chalets were complete and ready for shipment and required payment within the customary 30-day term. Cozy recognized revenue on this transaction once the invoicing process was complete. The company reports under IFRS. Required: Start this question on a new page. Show all analysis to get full marks. a) Clearly state if you think the company’s current revenue recognition policy is appropriate or not appropriate. Support your answer by referencing to relevant handbook principles and applying case facts. b) If you believe the company’s current policy is not appropriate, state what changes the company should make to their policy.

ollowing is the Unadjusted Trial Balance of Dawes Delivery - a proprietorship.

This trial balance was prepared at the close of business on December 31, 2019,

the company's year-end:

Dawes Delivery

Unadjusted Trial Balance

December 31, 2019

Account

Debits

Credits

Cash

9,590

Prepaid Insurance

1,500

Office Supplies

250

Office Equipment

5,000

Accumulated Depreciation - Office Equipment

2,000

Building

50,000

Accumulated Depreciation - Building

10,000

Vehicle-Truck

30,000

Accumulated Depreciation - Truck

6,000

Accounts Payable

2,105

Unearned Revenue

2,400

D. Dawes, Capital

70,935

D. Dawes, Withdrawals

7,000

Service Revenue

42,530

Administration Expense

1,620

Building Rent Expense

8,400

Utilities Expense

960

Wages Expense

21,650

135,970

135,970

Additional Information:

a)

The Prepaid insurance is for a policy that was purchased on July 1 2019, and is

for one year.

b)

Office supplies still on hand at December 31, 2019, amounted to $60.

c)

Office Equipment & Truck have an estimated useful life of 5 years with no

expected salvage value. Take a full year of depreciation.

d)

The Building has an estimated useful life of 20 years with no expected salvage

value. Take a full year of depreciation

e)

The Unearned revenue is for 12 monthly deliveries to a local restaurant ($200

per delivery) beginning on October 1, 2019 and paid in advance on that date.

f)

Dawes performed a delivery job on December 30 2019, for $300. The bill did

not make it into the accounting records for year end.

g)

The bookkeeper had paid the owner's household utility bills, amounting to

$135, through the company by charging these bills to utility expense.

h)

Accrued, but unpaid, wages to December 31, 2019 amounted to $750.

i)

The company leased its unused space in the building and signed a contract on

December 15, 2019, with Terrace Agencies. The monthly rent of $150 was

payable by Terrace in advance on the 15th of each month. The 1st payment

was owed by Terrace Agencies on January 15, 2020

Prepare the adjusting journal entries for the company’s year end. . If no journal

entry is required, write the date and “No entry”

The City of Windsor is getting frustrated with AEMI's proposed project. Nothing seems to be happening because stakeholders cannot agree on anything, and AEMI's managers in New York are not responding to the City's questions. The City's engineers and planners suggest that a benefit cost analysis for Windsor can show which project (wind or solar) will be the best from a public perspective Effects Photovoltaic Production Facilit Oil Storage/Transfer Facility Number of displaced families 2 households 35 households Annual tax revenue to the city $100,000 per year from AEMI $200,000 per year Annual tax revenue to the city 98 X $3000 per year from residents 65 X $3000 per year Additional employment at AEMI (total pay for an employee is shown) 10 jobs @$50,000 ech now;20 jobs @$55,000 each now; 5 more jobs @$25,000 in 3 years from now 10 more jobs @$35,000 in 3 years from now Additional tax revenue to the 15 X $1000 per year city because of additional employment 30 X $1100 per year $850,000 now City payout to AEMI as an incentive to build in Windsor (proportional to cost of the project) $800,000 now Additional, estimated companies attracted to Windsor because of AEMI 12 more companies in 2 years 20 more companies in 4 years from now from now Estimated 'financial credit to $300,000 paid by province in 3 $100,000 paid by province in 3 city from Green Energy Act initiatives years from now years from now, conditional if there are no reported incidences of spills or violations in emissions Assume that the life span of either project is 20 years. The discount rate, i, is 5%. You may need the following formulas. You will need a basic understanding of engineering economics Based on a benefit cost analysis, which of these two alternatives do you think the City of Windsor would like AEMI to pursue

Problem 3-8 (Algo) Balance sheet; errors; missing amounts [LO3-2, 3-3]

The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company’s controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet.

Additional information ($ in 000s):

1. Certain records that included the account balances for the patent and shareholders’ equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.1. That is, total liabilities are 110% of total shareholders’ equity. Retained earnings at the beginning of the year was $7,400. Net income for 2021 was $2,400 and $800 in cash dividends were declared and paid to shareholders.
2. Management intends to sell the investments in the next six months.
3. Interest on both the notes and the bonds is payable annually.
4. The notes payable are due in annual installments of $1,850 each.
5. Deferred revenue will be recognized as revenue equally over the next two fiscal years.
6. The common stock represents 600,000 shares of no par stock authorized, 420,000 shares issued and outstanding.
   

Required:
Prepare a complete, corrected, classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

rev: 01_30_2020_QC_CS-195439, 02_13_2020_QC_CS-200385

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