Questions
1) You are a CPA employed as an accountant for a large manufacturing company. Each month,...

1) You are a CPA employed as an accountant for a large manufacturing company. Each month, you assist in preparing the company’s actual monthly GAAP financial statements. Your boss tells you that “one way or the other, you must make the actual month’s GAAP income exceed the month’s budgeted income.” The way you are told to do this is to prepare the following journal entry in an amount which causes actual income to exceed budgeted income:   
Dr. Inventory
Cr. Cost of Goods Sold
If you go along with this, are you violating any AICPA rules? If yes, which AICPA rule are you violating? (3 Points)


2) You are in a job interview for an accounting position. The interviewer notices you took this Principles of Auditing course. The interviewer asks you to briefly respond to the following 3 questions:

A. What is an audit? (3 points)
B. How are fees set on an audit? (2 points)
C. There are a number of major challenges facing the audit profession – describe one. (3 point


In: Accounting

1. What type of study is this? 2. Based on description of the study, what is...

1. What type of study is this?

2. Based on description of the study, what is (are) the dependent variable(s)?

3. Classify the variable(s) you listed in #2 in each of the three ways.

4. What is (are) the independent variables?

5. Classify the variable(s) you listed in #4 in each of the three ways.

6. List two confounding variables that may offset the conclusions of this experiment.

7. What measures could have been taken in order to control for these confounding variable?

A sock company is considering branching off and manufacturing gloves. In order to determine the types of gloves to make and sell, they randomly selected and interviewed 500 people. In the interview, subject was asked their age and profession. Then they were given four different gloves: leather, cotton, fleece and polyester. After trying each pair on, they were told that they could take and keep whichever pair they preferred.

The researchers concluded that lawyers prefer leather gloves, teachers prefer cotton gloves, and adults between 18 and 30 prefer polyester of fleece gloves.

In: Statistics and Probability

1. Marv and Delores, married taxpayers who file a joint return, sell their personal residence on...

1. Marv and Delores, married taxpayers who file a joint return, sell their personal residence on December 1st for $180,000. They lived in the house for the past 52 years. Their adjusted basis in their home was $35,000. Calculate their recognized (taxable) gain on the sale of their personal residence.

2. The following transactions were reported on a 1099-B. The taxpayer, who files as single, had taxable income of $100,000. Calculate the tax owed on the transactions.

Description No. of Shares Date Acquired Date Sold Proceeds (less commissions) Cost (Basis)
Rust Corp 100 11/01/2016 12/20/2017 1700 3200
Rio Motors Inc. 150 07/15/2008 06/28/2017 9543 7648
Rider Corporation 65 11/29/2017 11/25/2017 7222 2549
Doors & Floors Org 55 10/01/2016 10/20/2017 5550 5600
Yours-Mine-Ours Corp 75 09/01/2007 01/03/2017 3750 4000
Bagels R Us Corp 63 08/01/2002 12/31/2017 1575 1400

In: Accounting

1. Marv and Delores, married taxpayers who file a joint return, sell their personal residence on...

1. Marv and Delores, married taxpayers who file a joint return, sell their personal residence on December 1st for $180,000. They lived in the house for the past 52 years. Their adjusted basis in their home was $35,000. Calculate their recognized (taxable) gain on the sale of their personal residence.

2. The following transactions were reported on a 1099-B. The taxpayer, who files as single, had taxable income of $100,000. Calculate the tax owed on the transactions.

Description No. of Shares Date Acquired Date Sold Proceeds (less commissions) Cost (Basis)
Rust Corp 100 11/01/2016 12/20/2017 1700 3200
Rio Motors Inc. 150 07/15/2008 06/28/2017 9543 7648
Rider Corporation 65 11/29/2017 11/25/2017 7222 2549
Doors & Floors Org 55 10/01/2016 10/20/2017 5550 5600
Yours-Mine-Ours Corp 75 09/01/2007 01/03/2017 3750 4000
Bagels R Us Corp 63 08/01/2002 12/31/2017 1575 1400

In: Accounting

Four senior executives of the world’s largest firms with extensive holdings outside the home country speak....

Four senior executives of the world’s largest firms with extensive holdings outside the home country speak. Company A: “We are a multinational firm. We distribute our products in about 100 countries. We manufacture in over 17 countries and do research and development in three countries. We look at all new investment projects both domestic and overseas- using exactly the same criteria”. The execution from Company A continuous, “of course most of the key posts in our subsidiaries are held by home-country nationals. Whenever replacements for these men are sought, it is the practise, if not the policy, to look next to you at the head office and pick someone (Usually a home country national) you know and trust”. Company B : “ We are a multinational Firm- only 1 percent of the personnel in our affiliate companies are non-national. Most of these are us executives in temporary assignments. In all major markets, the affiliates managing director is of the local nationality”. He continuous, “of course there are very few non-Americans in the key posts at headquarters. The few we have are so Americanized that we usually do not notice their nationality. Unfortunately, you cannot find good foreigners who are willing to live in the United states, were out headquarters is located –American executives are more mobile. In addition, American have the drive and initiative we like. In fact, the European nationals would prefer to report to an American rather than to some other European”. Company C: “We are a multinational Firm- Our product division executives have world wide profit responsibility. As our organizational chart shows, the United States is just one region on a par with Europe, LatinAmerica, Africa, etc., in each division”. The executives from Company C go on to explain “the World Wide product division concept is rather difficult to implement. The senior executives in charge of these divisions have little overseas experience. They have been promoted from domestic posts and tend to view foreign consumer needs as really basically the same as ours. Also, product division executives tend to focus on the domestic market because the domestic market is larger and generates more revenue than the fragmented foreign markets. The rewards are for global performance, but strategy is to focus on domestic. Most of our senior executives simply do not understand what happens overseas and really do not trust foreign executives, even those in key positions”. Company D (non-American): “We are a multinational Firm. We have at least 18 nationalities represented at our headquarters. Most senior executives speak at least two languages. About 30 percent of our staff at headquarters is foreigners. 15 He continuous by explaining that “Since the voting shareholders must by low come from the home country, the home country’s interest must be given careful consideration. But we are proud of our nationality; we should not be ashamed of it. Infact, many times we have been reluctant to use home-country ideas overseas, to our detriment, specially in air U.S. subsidiary-our country produces good executives, who tend to stay with us a long time. It is harder to keep executives from the United States.

Questions:

(a) Discuss which company is truly multinational?

(b) Outline all the attributes of a truly multinational company?

In: Economics

How do your professional and personal values affect, positively and/or negatively, your workplace team’s effectiveness? How...

How do your professional and personal values affect, positively and/or negatively, your workplace team’s effectiveness?

How would you evaluate your workplace team’s effectiveness if you were the CEO?

In: Nursing

What strategic issues confront LVMH in 2016? What market or internal circumstances should most concern CEO...

What strategic issues confront LVMH in 2016? What market or internal circumstances should most concern CEO Bernard Arnault and his company’s senior leadership team?

Cite your sources.

In: Operations Management

If you are appointed to be the CEO of Amazon Turkey, what will be your major...

If you are appointed to be the CEO of Amazon Turkey, what will be your major strategic road map in terms of market entry and customer communication especially in Covid process? (think about using digital technologies)

In: Operations Management

Pacifica Papers Inc. needed to conserve cash, so instead of a cash dividend, the board of...

Pacifica Papers Inc. needed to conserve cash, so instead of a cash dividend, the board of directors declared a 10% common share dividend on June 30, 2020, distributable on July 15, 2020. Because performance during 2020 was better than expected, the company’s board of directors declared a $1.20 per share cash dividend on November 15, 2020, payable on December 1, 2020, to shareholders of record on November 30, 2020. The equity section of Pacifica’s December 31, 2019, balance sheet showed:

Common shares, unlimited shares authorized, 600,000 shares issued and outstanding

$

5,760,000

Retained earnings

3,300,000


Required:
1.
Journalize the declaration of the share dividend. The market prices of the shares were $17.90 on June 30, 2020, and $19.80 on July 15, 2020. Assume share dividends account is used when dividends are declared.

2.Journalize the declaration of the cash dividend. Assume share dividends account is used when dividends are declared.

3. Prepare the equity section of the balance sheet at December 31, 2020, assuming profit earned during the year was $3,389,000.

In: Accounting

Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal...

Selected information about income statement accounts for the Reed Company is presented below (the company's fiscal year ends on December 31):

2021 2020
Sales revenue $ 4,600,000 $ 3,700,000
Cost of goods sold 2,900,000 2,040,000
Administrative expense 840,000 715,000
Selling expense 400,000 342,000
Interest revenue 154,000 144,000
Interest expense 208,000 208,000
Loss on sale of assets of discontinued component 64,000


On July 1, 2021, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2021, for $64,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:

1/1/2021–9/30/2021 2020
Sales revenue $ 440,000 $ 540,000
Cost of goods sold (310,000 ) (344,000 )
Administrative expense (54,000 ) (44,000 )
Selling expense (24,000 ) (24,000 )
Operating income before taxes $ 52,000 $ 128,000


In addition to the account balances above, several events occurred during 2021 that have not yet been reflected in the above accounts:

  1. A fire caused $54,000 in uninsured damages to the main office building. The fire was considered to be an unusual event.
  2. Inventory that had cost $44,000 had become obsolete because a competitor introduced a better product. The inventory was written down to its scrap value of $7,000.
  3. Income taxes have not yet been recorded.


Required:
Prepare a multiple-step income statement for the Reed Company for 2021, showing 2020 information in comparative format, including income taxes computed at 25% and EPS disclosures assuming 500,000 shares of outstanding common stock. (Amounts to be deducted should be indicated with a minus sign. Round EPS answers to 2 decimal places.)

In: Accounting