The HST/GST return is due on March 31, 2019 for reporting period Dec.1, 2018 to Feb. 28, 2019.  

Required: Round all answers to the nearest DOLLAR. –COMPLETE and HAND IN the ATTACHED WORKSHEETS

Prepare the journal entries to record the payment/refund of GST/HST (see attachment 2)

Sales information: Invoice amount Includes all applicable taxes, unless otherwise stated. Assume customers are in Ontario unless otherwise noted.

Invoice Date   Invoice #        Customer Name                                                                                      Invoice Amount

Dec. 4, 2018      11100        Stephen Conway – Ski Lessons                                                                    $   1,130

Dec. 6, 2018      11200        Michigan University Ski Team (USA)                                                            3,300

Dec.19,2018      11300        Mississauga Community Centre--Clothing, net of 10% volume discount   2,260                                                      

Jan. 2, 2019        11400         High Park Ski Club—skis                                                                               3,390

Jan. 8, 2019        11500         North Toronto Ski Club - lessons                                                                     2,260

Jan. 13, 2019     11600         Haliburton WAWA tribe (Aboriginal)—snow shoes

                                                         Delivered to reservation                                                                                     5,300           

Jan. 20, 2019     11700         University of Ottawa—ski trip                                                                        6,780

Jan. 27, 2019     -                   Recovery of Bad debt--Retail sale to local customer                                      791

Feb. 2, 2019       11800        YWCA in Waterloo—helmets, ski boots                                                      3,955           

Feb. 10, 2019    11900        Sale to Neiman Markup in New York, USA                                                     8,900

Feb. 15/19                            Bad debt—retail customer sale                                                                       452          

Purchase information: Invoice amount Includes all applicable taxes, unless otherwise stated. Assume customers are in Ontario unless otherwise noted.

Invoice Date               Purchase Description                                                                                     Invoice Amount

Dec. 10, 2018              Advertising                                                                                                                        1,356.00           

Dec. 19, 2018              Courier charge for delivery                                                                                                 135.60             

Jan. 5, 2019                 Purchase various inventory                                                                                         20,340.00

Jan. 21, 2019               Purchase of packaging equipment from a local supplier                                      6,554.00

Jan. 30 , 2019               Insurance policy for fire and theft                                                                               1,700.00

Feb.2, 2019                Business Entertainment—client event (not employee reimbursement)            3,616.00

Feb.5, 2019                Birthday present to president’s daughter                                                                  840.00               

Feb.8, 2019                Reimbursement to employee (using Method 1) for expenses used                         560.00

    100% in the company’s commercial activities - inclusive of taxes                                         

Feb.16, 2019               Purchase of goods (for re-sale), from Denver Colorado, USA                               1,380.00

(Assessed Canadian Equivalent is= $1,600)

Additional information--$1,400 HST installment was paid to the CRA for this quarter (Hint—line 110)

The following table is a non-normalized table for a Rental Property Management Database.  Data is included to help you to perform the normalization.  One client may have multiple rental records.

Identify the functional dependencies and normalize the table to 1NF, 2NF, and 3NF respectively. You also need to show the steps to reach normal form and populate each relation with sample data. As a result, you can see that duplicate data will be removed through the normalization process.

CLIENT_RENTAL

ClientNo: Client Number (PK)

ClientName: Client (who rents a property) Name

PropertyNo: Property Number

PropertyAddress: Property Address (Do not need to break this attribute)

RentStart: Rent Start Date

RentEnd: Rent Ended Date

RentFee: Monthly Rental Fee

OwnerNo: Property Owner Number

OwnerName: Property Owner Name

Notes:

1. Can multiple clients rent the same property at the same time? For example, co-signers on a lease.  No
2. Can one client rent multiple properties at the same time? I.e. if he rented a home and an office.  Yes
3. Can one client rent the same property multiple consecutive times, requiring multiple records? For instance, he extends a lease for another year at a different rent.  No
4. A property cannot have multiple owners.
5. The RentFee is not fixed for each property and can change from one Client to the next.
6. A different client can rent the same property for a different time period creating another record for the same property.

A company sells medical supplies to hospitals and healthcare facilities that are mostly located in the Michiana region. The company has 150 employees, and it is about to decide whether part of them should be encouraged to work remotely, and if so, how many employees should do that. There are many aspects to be analyzed such as productivity and collaboration, but you will focus on the costs of space and IT at the company’s main office versus the costs of working remotely.

The costs of office space include building rent and maintenance, utilities, cleaning, and insurance. The company estimates that those costs could be either one of three scenarios: (A) $60,000 per month for a building where all employees can be accommodated; (B) $50,000 per month for a building that can accommodate 100 employees; or (C) $40,000 per month for a building for 50 employees.

The main costs of IT include the lease, operation and maintenance of equipment (a desktop computer for each employee, and the office’s Wi-Fi access points, cabling, routers for the LAN/MAN) and a contract with a fixed Internet service provider. The equipment cost is $7,500 per month for scenario (A), $5,500 for (B) or $3,500 for (C). The cost with the fixed Internet service provider is (A) $5,000 per month for all employees; (B) $4,000 per month for 100 employees; or (C) $2,500 per month for 50 employees.

If some of the employees no longer work frequently at the central office, then the company can operate on a smaller office (i.e. B or C instead of A). On the other hand, the company will provide a laptop, smartphone and a cellular plan for each employee working remotely. The company already has a corporate cellular contract with Cerizon for some employees. If some employees are to work remotely, then the company will add them to the same contract. The contract includes the smartphones at no extra cost, and Cerizon charges $10 per GB for employees who use less than 5GB per month, $8 per GB for employees who use 5GB or more but less than 10GB per month, and $6 per GB for employees who use 10GB or more per month. The cost of each laptop is $1,000, which the company considers that depreciates linearly over its lifetime of 2 years.

Utilizing the Working paper provided to you on the Moodle, complete the following tasks in class:

1. You have been asked to make all necessary journal entries for the month of April.
2. Post JEs for to ledger accounts provided to you.
3. Prepare necessary Adjusting entries and closing entries for the end of April.
4. Prepare an adjusted Trial balance
5. Prepare Income statement, Statement of Owner’s equity, and Balance sheet for Alex Shaman Lawnmower service.

Corporate Tax Return Project

Complete Form 1120 pages 1 and 2, Schedule D, Form 8949 and complete Schedule M-1 on page 5 of a 2018 Form 1120 for the following taxpayer using the information that follows:

• For purposes of this project only, do not attach other forms as required by certain lines of Form 1120.

Taxpayer Information:

Champion, Inc. is an accrual-basis, calendar-year corporation that operates five local “sports merchandise-stores”.  

Champion was incorporated on February 28th, 2017

Champion’s main office is located at 2346 Lake Shore Drive, Chicago, IL 60606

Champion’s employer identification number is 31-0923874.

Champion has total assets as of December 31, 2018 of $3,540,000

• Champion’s receipts for book purposes are as follows:
  • Champion’s gross receipts for the year totaled $1,700,000, which included returns and allowances of $123,000. Total Gross Receipts totaled $1,577,000.
  • Champion received $16,200 of interest income during the year, with $5,120 from City of DeKalb bonds and the balance from BMO Harris certificates of deposit.
  • Champion received dividend income of $4,000 from Disney Corporation.  Champion owns less than 5% of Disney stock.
  • In December 2018, Champion received $13,500 from a company that will lease excess space in Champion’s largest store from January 1 through October 31, 2019.
• Champion’s expenses for book purposes are as follows:
  • Cost of Goods Sold                                                                     $710,000
  • Salaries (including Officers’ Compensation of $123,000)                     230,000
  • Federal income tax                                                                         22,375
  • Depreciation                                                                                180,000
  • State & Local Taxes                                                                        92,300
  • Interest Expense                                                                              3,800
  • Repairs                                                                                         11,500
  • Rent                                                                                             36,750
  • Advertising                                                                                   20,000
  • Contribution to Gov. Rauner’s re-election campaign                               8,750
  • Property/Casualty Insurance Premiums                                               14,000
  • Business Meals                                                                                6,250
  • Business Entertainment                                                                     3,500
  • Hotel and airfare for business                                                             3,250
  • Premiums paid to key employee life insurance policy                        8,950
  • Charitable contributions paid                                                           78,750
• Champion’s total cost recovery for tax purposes was $132,500.
• Champion has a net capital loss carryforward from 2017 of $8,000
• Champion sold IBM stock on 7/4/18 for $4,100.  The shares had been purchased on 12/13/17 for $1,500.
• For its first tax year, Champion generated a $21,000 net operating loss.
• Champion made the following estimated income tax payments to the IRS for 2018:
  • Overpayment in 2017, credited to 2018                                         $1,550
  • 2^ndquarter, 3^rdquarter, 4^thquarter                                         $2,700 each

• Champion does not qualify for any other tax credits in 2018.
• Any overpayment of 2018 tax should be credited to its 2019 estimated taxes.

Black Mountain Ski Resort has been granted a 20 - year permit to develop and operate a skiing operation in a national park. After 20 years the site must be returned to its original condition. The roads may remain, as they can be used for fire prevention purposes. In the spring and summer before the ski hill opened, the following transactions and events occurred:

You must use the following Long-Lived asset accounts

Ski Lift

Ski Chalet

Land improvement

Roads

Parking lot

1. Installed three ski lifts for a total cost of $150,000,000. It is estimated that the scrap metal from the lifts could be sold for $4,000,000 at the end of 20 years.
2. Built a Ski chalet for $70,000,000
3. Removed Trees and cleared the area for ski runs at a cost of $40,000,000
4. Received $ 10,000,000 for the trees that were removed for the ski runs.
5. Put in roads for a cost of $50,000,000.
6. Paved an area at the base of the mountain for a parking lot at a cost of $10,000,000.
7. Estimated that it would cost $20,000,000 to dismantle the ski lifts in 20 years. The chalet could be removed for a cost of $15,000,000. Re-foresting the site would cost $5,000,000. Removing the parking lot will cost $3,000,000. Calculate the PV of Site Restoration using a risk rate of 6% and provide the journal entry.

8. Using Straight Line Depreciation record the depreciation for the first year of operations on the Long-Lived assets and site restoration costs. Put all the depreciation expense in one account and then create accumulated depreciation accounts for each asset that requires depreciation.

9. Allocate the interest expense on the site restoration costs for the first three years

10. Using the table below prepare the balance sheet presentation of all the accounts involved in this question for the end of the third year of operations.

    	Cost	Accumulated Depreciation	Net Carrying Amount
    Property Plant and Equipment
    Ski Lift
    Ski Chalet
    Land Improvement
    Roads
    Parking Lot
    Site Restoration Costs
    Total Property Plant and Equipment

    Long Term Liabilities

    Obligation for future restoration =

11. At the end of the project the actual cost of restoring the site is $43,000,000, as originally estimated. Prepare the journal entry to record the payment of these costs at the end of the project

    Date	Explanation/ Account	Debit	Credit

    what would be the total expenses associated with the site restoration in the first, second and 20^th year?

    Year	Depreciation of Site Restoration Costs	Interest expense accrual on obligation for future site restoration	Total Expense relating to site restoration
    1
    2
    20

    Calculations

Staci Sutter works as an analyst for Independent Investment Bank Shares (IIBS), which is a large investment banking organization. She has been evaluating an initial public offering (IPO) that IIBS is handling for a technology company named ProTech Incorporated. Staci is essentially finished with her analysis, and she is ready to estimate the price for which the stock should be offered when it is issued next week. According to her analysis, Staci has concluded that ProTech is financially strong and is expected to remain financially strong long into the future. In fact, the figures provided by ProTech suggest that the firm’s growth will exceed 30% during the next 5 years. For these reasons, Staci is considering assigning a value of $35 per share to ProTech’s stock.

Staci, however, has an uneasy feeling about the validity of the financial figures she has been evaluating. She believes that Protech’s CFO has given her what he believes are “quality financial statements”. Yesterday Staci received an email from a friend, who was an executive at ProTech until he was fired a few months ago, that suggests that the company has been artificially inflating its sales by selling products to an affiliate company and then repurchasing the same items a few months later. At the same time, Staci received a memo from her boss, Mr. Baker, who has made it clear that he thinks the ProTech IPO can be extremely profitable to top management “if it is handled correctly.” In his memo, Mr. Baker indicates that the issue price of ProTech’s stock must be at least $34 per share for the IPO to be considered successful by IIBS.

Part of Staci’s uneasiness stems from the fact that a coworker confided that she had seen the CEO of ProTech and his wife at an amusement park with Mr. Baker and his wife last month. If she discovers that ProTech’s sales figures are inflated, Staci surely would assign a different value to the company’s stock for the IPO. But it will take her at least two weeks to completely reevaluate the company using different data. Staci knows that if she stays with her current analysis and she is wrong, the consequences can destroy IIBS because reputation is important in the investment banking business.

If you were in Staci’s situation, what would you do? (Please address in your initial post the following: (1) What is the ethical dilemma? (2) Should IIBS delay the Protech’s IPO until more information can be gathered about “information” Staci received recently and (3) What action do you think Staci, IIBS, or both should take? Please be detailed in your response.

The WIZARD system at Avis

It is possible to rent cars at almost every major airport and city centre in the world, and there is

invariably intense competition to attract and keep customers. Since the hire companies all offer

similar ranges of relatively new vehicles, and the reliability of these cars is taken for granted by

most customers, competition is generally on service and/or price. The most critical service

factor is the availability of the desired category (size and specification) of car, and the speed

with which all the hire contract paperwork can be completed, so that the customer is not

unnecessarily delayed. This depends on the effectiveness of the hire company’s planning and

control system. One of the most important Avis sites in Belgium is the operation at Brussels

National Airport at Zaventem, which deals predominantly with business customers, and hires

out up to 200 cars on a busy day. Avis’s advertisement, targeted at the business market,

emphasizes its ability to process customers quickly and efficiently. The objective is to complete

the transaction in less than two minutes and this is facilitated by Avis’s well-developed

computer system, known as WIZARD, which handles all reservations, preparation of hire

contracts at the service desks, inventory management and invoicing systems. WIZARD is a

globally integrated system, with over 15,000 terminals in Avis branches worldwide, allowing

international reservations to be made with accuracy and certainty, and helping to maximize the

utilization of vehicles throughout the network.

Regular customer surveys and analyses of actual demand patterns are carried out to determine

the customers’ preferences in terms of type and category of vehicles, providing a guide to the

Belgian fleet composition, which is managed from the central ‘clearing house’ at Machelen.

Because each of the Belgian branch offices has access to a pool of cars held at Machelen, their

local buffer stock requirements can be minimized. The requirements for the movement of car

inventory between branches and between countries is centralized in this way, allowing the

branches to concentrate on the task of providing good customer service. Each regular business

customer has a unique reference number in WIZARD, allowing reservations to be made and

rental contracts to be completed quickly, with only three pieces of information: the customer’s

number, the type of car required and the duration of the hire. This type of transaction is usually

completed within two minutes, after which the customer goes directly to the car park and

collects the car.

Questions

1. What do you see as the main planning and control tasks of the Wizard system?

2. How would you evaluate the effectiveness of the planning and control activity at Avis?

Define the class HotelRoom. The class has the following private data members: the room number (an integer) and daily rate (a double). Include a default constructor as well as a constructor with two parameters to initialize the room number and the room’s daily rate. The class should have get/set functions for all its private data members [20pts]. The constructors and the get/set functions must throw an invalid_argument exception if either one of the parameter values are negative. The exception handler should display the message “Negative Parameter” [20pts]. Include a toString() function that nicely formats and returns a string that displays the information about the hotel room [10pts].

1. Write a main function to test the class HotelRoom, create a HotelRoom object. Try to set the room rate to an invalid value to generate an exception. Invoke the toSting() function to display the HotelRoom object. [20pts]
2. Derive the classes GuestRoom form the base class HotelRoom. The GuestRoom has private data fields and public functions:
   1. The private data field capacity (an Integer) that represents the maximum number of guests that can occupy the room. [5pts]
   2. The private data member status (an integer), which represents the number of guests in the room (0 if unoccupied). [5pts]
   3. An integer data field days that represents the number of days the guests occupies the room. [5pts]
   4. Add constructors and get/set functions to the GuestRoom class. The set function for the status data member must throw an out_of_range exception if it tries to set status to value greater than the capacity. [30pts]
   5. The function calculateBill() that returns the amount of guest’s bill. [10pts]
   6. Redefine the function toString() that formats and returns a string containing all pertinent information about the GuestRoom. [15pts]
3. Derive the classes MeetingRoom form the base class HotelRoom. The class has the following private data filed sand public functions:
   1. A private data field seats, which represents the number of seats in the room. [5pts]
   2. An integer data field status (1 if the room is booked and 0 otherwise). [5pts]
   3. Add constructors and get/set functions to the GuestRoom class. [10pts]
   4. Redefine the function toSting() to format and return a string containing all pertinent information about the MeetingRoom. [20pts]
   5. The function CalculateBill(), which returns the amount of the bill for renting the room for one day. The function calculates the bill as follows: the number of seats multiplied by 10.00, plus 500.00. [20pts]
4. Write a main function to test the classes GuestRoom and MeetingRoom. Invoke the calculateBills and toStirng() in each of the objects. [40pts]

Case Study 5–5 All in a Day’s Work

Sarah Goodman, senior manager of network development for Holy Managed Care Company, looked over her calendar for the day and sighed deeply. It seemed as if there would be no time at all to work on the project she’d been putting off for most of the week. Circumstances seemed to be such that she simply didn’t have any control over her own time anymore.

Well, first things first, she determined. At 9:00 she was due at a meeting of senior managers who were involved in trying to devise a strategy for counteracting a threatened unionization drive by the company’s nonexempt employees. As Sarah thought about the people working for her, she began to wonder exactly what they wanted. They had a pleasant working space, good benefits package, and secure employment. She heard the laughter and chatter drifting into her office as people came into work and thought what a pleasant and congenial group they were. What more could they want?

Then at 10:30 there was another meeting. This one could be very exciting! In six months Sarah’s office was scheduled to be moved to a new industrial park on the west side of town. The plans she’d seen so far had all kinds of great perks for employees: on-site day-care center, fitness center, ample parking, great facilities for training. The company was certainly spending a lot of money on this new site. Sarah certainly hoped it would help increase productivity; it certainly would make the employees happier
and make recruitment easier.

She’d have to hurry to her lunch meeting with the adviser for the MHA program at Saint Thomas University. Sarah had decided as a part of her New Year’s resolution that she was finally going to begin her graduate degree. She felt she was simply stagnating in her job and, after looking around at positions in her company that looked interesting, she realized she needed a graduate degree if she were going to progress. The only problem was that she wasn’t sure how enthusiastic Richard, her husband, would be about the whole idea. And her mother certainly wouldn’t be happy! The hints about grandchildren had become an outright discussion over the holidays.

Discuss the various motivation theories reflected in this case study.

These include:

Maslow's Hierarchy of Needs Theory

Alderfer's ERG Theory

Herzberg's Two-Factor Theory

Hackman and Oldham's Job Design Theory

McClelland's Three-Needs Theory