QUESTION FIVE

The cash balance of Bison Corporation was 14,426 as at October 31, 2020. The balance of bank statement on the same day was $9,926. Following summarizes the differences between bank and books:

1. Deposits in transit as at September 30 was $1,108.
2. Deposits recorded in the books and bank during October were 9,630 and $7,410.
3. Outstanding cheques as at October 31 amounted to $136.
4. Electronic receipts from customers totaled $814, but these receipts have not yet been recorded by Bison in October.
5. Interest revenue earned in October totaled $307 and it hasn’t been recorded by Bison.
6. The bank returned an NSF cheque in the amount of $2,211 that deposited on October 13. The cheque was a payment on a customer’s account.
7. The bank charged Bison $188 for services in October, including $158 for bank service changes and $30 for processing the NSF cheque.
8. The bank made a mistake in processing a payment of $522 as $552.

reconciliation as at October 31, 2020.

[Q1. ] Prepare any necessary journal entries for bank reconciliation as at October 31, 2020.

[Q2] What is the reconciled balance of cash as at October 31, 2020?

I already knew the answers. I want to know the solution to getting answers.

Your software company was invited to provide a proposal for a company in Australia. You currently have the cost in US dollars and need to convert the prices to the Australian dollar. Write a 2-part program using Ruby, Java®, or Python. Part 1: Write a function to gather the following costs from the user: Travel Cost: $9,800 Hotel Cost: $3,500 Rental Car Cost: $1,600 Labor Cost: $15,500 Part 2: Write a function to convert the costs from United States dollar (USD) to Australian dollar (AUD). Note: Look up the current USD to AUD exchange rate to use in your function. Test the program 3 times by providing different costs in USD. Provide the code and take a screenshot of the output, then paste the screenshot(s) into a Microsoft® Word document. Write a half-page response in the same Microsoft® Word document to address the following: Provide a manual for the user explaining how to use the program. Explain what type of user input validations you should have. What happens if the user enters a negative number? What happens if the user puts a $ in the input?

Quotes for the US dollar (US$) and Thai Baht (Bt) are as follow:

Spot contract midpoint S0Bt/US$=Bt 24.96/US$
1-year forward midpoint F0Bt/US$=Bt25.64?US$
1-year Eurodollar interest rate I$=6.125%per year

a) Your newspaper does not quote 1-year Eurocurrency interest rates on thai baht. Make your own estimate of iBt.

b) Suppose that you can trade at the prices for S0Bt/US$ , F0Bt/US$ and I$ just given and that you can also either borrow or lend at a Eurocurrency interest rate of iBt = 10% per cent. Based on a $1 million initial amount, how much profit can you generate through covered interest arbitrage ?

Deliberate Speed Corporation (DSC) was incorporated as a private company on June 1, 2017. The company’s accounts included the following at June 30, 2017:

During the month of July, the company had the following activities:

1. Issued 3,620 shares for $362,000 cash.
2. Borrowed $128,000 cash from a local bank, payable June 30, 2020.
3. Bought a factory building for $220,000; paid $101,000 in cash and signed a three-year note for the balance.
4. Paid cash for equipment that cost $238,000.
5. Purchased supplies for $35,700 on account.

Required:
1. Analyze transactions (a)–(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.)

2. Record the transaction effects determined in requirement 1 using a journal entry format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. Summarize the journal entry effects from requirement 2 using T-accounts.

4. Prepare a classified balance sheet at July 31, 2017.

5. As of July 31, 2017, has the financing for DSC’s investment in assets primarily come from liabilities or from shareholders’ equity?

• Shareholders’ equity

• Liabilities

On 1 June2020, Purchase Limited enters into a firm commitment Supply Limited to buy USD 100,000 of inventory. On 1 July 2020, the Purchase Limited enters into a hedging arrangement which meets the hedge accounting criteria stipulated by the accounting standards (Australian Accounting Standards Board (AASB) 9). Purchase Limited has designated the firm commitment hedging arrangement as a fair value hedge. On 1 August 2020, Supply Limited transfers the inventory to Purchase Limited, and on that date, the Purchase Limited makes the payment. The spot and forward rates are as follows. Date Spot rate in AUD Forward rate in AUD 1 June 2020 0.19 0.2 30 June 2020 0.2 0.25 1 August 2020 0.3 0.3 Required: a) Explain at least two determinants of determining an effectiveness of a hedge instrument against a he

ue

2. What is your subject?

dge 5 Marks b) Provide journal entries to account for the hedged item (firm commitment to buy inventory) 8 Marks i. On 1 June 2020 ii. On 30 June 2020 iii. On 1 August 2020 c) Provide journal entries to account for the hedge instrument (forward contract) 7 Marks i. On 1 June 2020 ii. On 30 June 2020 iii. On 1 August 2020

Complete the required tasks utilizing excel and label everything. All work must be shown to receive credit. A 20% late penalty will be assessed for each 24 hours submitted late. Below is the activity (purchases and Sales) for inventory held by Random Creations for the month of January, 2020: Beginning Inventory: January 1, 2020 80 Units @ $50 per unit Total $ 4,000 Purchases: January 18, 2020 40 Units @ $51 per unit Total $ 2,040 January 28, 2020 40 Units at $52 per unit Total $ 2,080 Sales: January 12, 2020 Sold 30 Units January 22, 2020 Sold 30 Units January 31, 2020 Sold 45 Units Using the information above, answer the following:

a) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses FIFO

b) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses LIFO and the Perpetual System

c) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses LIFO and the Periodic System

d) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses Average Cost and the Perpetual System REMEMBER ALL WORK MUST BE SHOWN TO RECEIVE CREDIT

Exercise 10-4 a-b (Video)

Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.

Fixed overhead costs per month are Supervision $4,100, Depreciation $2,000, and Property Taxes $500. The company believes it will normally operate in a range of 7,100–12,800 direct labor hours per month.

Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs.

(a) Prepare a flexible budget performance report, assuming that the company worked 10,900 direct labor hours during the month. (List variable costs before fixed costs.)

Hillside Furniture Company makes outdoor furniture from recycled products, including plastics and wood by-products. Its three furniture products are gliders, chairs with footstools, and tables. The products appeal primarily to cost-conscious consumers and those who value the recycling of materials. The company wholesales its products to retailers and various mass merchandisers. Because of the seasonal nature of the products, most orders are manufactured during the winter months for delivery in the early spring. Michael Cain, founder and owner, is dismayed that sales for two of the products are tracking below budget. The following chart shows pertinent year-to-date data regarding the company’s products. Certain that the shortfall was caused by a lack of effort by the sales force, Michael has suggested to Lisa Boyle, the sales manager, that the company announce two contests to correct this situation before it deteriorates. The first contest is a trip to Hawaii awarded to the top salesperson if incremental glider sales are attained to close the budget shortfall. The second contest is a golf weekend, complete with a new set of golf clubs, awarded to the top salesperson if incremental sales of chairs with footstools are attained to close the budget shortfall. The Hawaiian vacation would cost $16,500 and the golf trip would cost $12,500. Glider Chair with Footstool Table Actual Budget Actual Budget Actual Budget Number of units 2,600 4,000 6,900 8,000 3,500 3,300 Average sales price $80.00 $85.00 $61.00 $65.00 $24.00 $25.00 Variable costs Direct labor: Hours 2.50 2.25 3.25 3.00 0.60 0.50 Cost/hour $11.00 $10.00 $9.50 $9.25 $9.00 $9.00 Direct material $16.00 $15.00 $11.00 $10.00 $6.00 $5.00 Sales commission $15.00 $15.00 $10.00 $10.00 $5.00 $5.50 Promotional activity costs: Hawaiian vacation = $16,500 Golfing trip = $12,500 Explain whether either contest is desirable or not. Supplement your analysis by determining the total contribution margin for Gliders and for Table-and-Chair sets under each of the following assumptions: actual sales volume at actual selling price, actual resource usage, and actual costs,

Given your risk tolerance, and your need to diversify, explain how the Selected Realized Returns (1926–2013) page 269 and the Effects of Portfolio Risk for Average Stocks will impact your future investment decisions and why

Selected Realized Returns, 1926-2013:

                                        Average Return             Standard Deviation

Small-Company Stocks           16.9%                                32.3%

Large Company stocks             12.1                                    20.2

Long term corporate bonds        6.3                                     8.4

Long-term government bonds     5.9                                     9.8

US Treasury Bills                         3.5                                    3.1