The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:

The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:

On page 10 of the journal:

On page 11 of the journal:

The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: Account No. Account Name Balance 211 Salaries Payable — 212 Social Security Tax Payable $9,280 213 Medicare Tax Payable 2,320 214 Employees Federal Income Tax Payable 15,460 215 Employees State Income Tax Payable 13,908 216 State Unemployment Tax Payable 1,320 217 Federal Unemployment Tax Payable 550 218 Bond Deductions Payable $3,800 219 Medical Insurance Payable 19,800 411 Operations Salaries Expense 960,000 511 Officers Salaries Expense 600,000 512 Office Salaries Expense 150,000 519 Payroll Tax Expense 137,951 The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December: On page 10 of the journal: Dec. 2 Issued Check No. 410 for $3,800 to Jay Bank to purchase U.S. savings bonds for employees. 2 Issued Check No. 411 to Jay Bank for $27,060 in payment of $9,280 of social security tax, $2,320 of Medicare tax, and $15,460 of employees’ federal income tax due. 13 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Operations $41,000 Officers 27,600 Office 6,400 $75,000 Deductions: Social security tax $ 4,500 Medicare tax 1,125 Federal income tax withheld 15,000 State income tax withheld 3,375 Savings bond deductions 1,900 Medical insurance deductions 3,300 29,200 Net amount $45,800 13 Issued Check No. 420 in payment of the net amount of the biweekly payroll. 13 Journalized the entry to record payroll taxes on employees’ earnings of December 13: social security tax, $4,500; Medicare tax, $1,125; state unemployment tax, $330; federal unemployment tax, $115. 16 Issued Check No. 424 to Jay Bank for $26,250, in payment of $9,000 of social security tax, $2,250 of Medicare tax, and $15,000 of employees’ federal income tax due. 19 Issued Check No. 429 to Sims-Walker Insurance Company for $23,100 in payment of the semiannual premium on the group medical insurance policy. On page 11 of the journal: Dec. 27 Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Salary distribution: Operations $40,600 Officers 28,400 Office 6,600 $75,600 Deductions: Social security tax $ 4,536 Medicare tax 1,134 Federal income tax withheld 14,964 State income tax withheld 3,402 Savings bond deductions 1,900 25,936 Net amount $49,664 27 Issued Check No. 541 in payment of the net amount of the biweekly payroll. 27 Journalized the entry to record payroll taxes on employees’ earnings of December 27: social security tax, $4,536; Medicare tax, $1,134; state unemployment tax, $230; federal unemployment tax, $65. 27 Issued Check No. 543 for $20,685 to State Department of Revenue in payment of employees’ state income tax due on December 31. 31 Issued Check No. 545 to Jay Bank for $3,800 to purchase U.S. savings bonds for employees. 31 Paid $51,000 to the employee pension plan. The annual pension cost is $68,000. (Record both the payment and unfunded pension liability.) Required: 1. Journalize the transactions on pages 10 and 11 of the journal. Refer to the Chart of Accounts for exact wording of account titles. 2. On page 12 of the journal, journalize the following adjusting entries on December 31 (refer to the Chart of Accounts for exact wording of account titles): A. Salaries accrued: operations salaries, $8,540; officers salaries, $5,640; office salaries, $1,390. The payroll taxes are immaterial and are not accrued. B. Vacation pay, $14,700.

The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:

The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:

On page 10 of the journal:

On page 11 of the journal:

The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:

The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:

On page 10 of the journal:

On page 11 of the journal:

The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year:

The following transactions relating to payroll, payroll deductions, and payroll taxes occurred during December:

On page 10 of the journal:

On page 11 of the journal:

1) Syarikat Sabah prepares lumber for companies who manufacture furniture

(a) The main product is finished lumber with a byproduct of wood shavings. The byproduct is sold to plywood manufacturers. For July, the manufacturing process incurred RM332,000 in total costs. 80,000 board feet of lumber were produced and sold along with 6,800 kg of shavings. The finished lumber sold for RM6.00 per board foot and the shavings sold for RM0.60 a kg. There were no beginning or ending inventories.

Required:

Prepare two statements of financial position as at 31 December 2019 showing the byproduct as a cost reduction during production, and as a revenue item when sold each

(b) Distinguish and briefly discuss the merits [or demerits] between the two principal methods of accounting for byproducts: the production byproduct method and the sale byproduct method.

(c) Identify the revenue or expense amounts necessary to make a sell-or-process-further decision and the reasons behind them

(d) Identify the four methods of allocating joint costs to individual products and the most preferred method among accountants.

An airline regularly running a flight between Chicago and Zurich has 100 business travelers who are willing to pay $1000 for a ticket and 50 tourist travelers who are willing to pay only $500 for a ticket. There is a $20,000 fixed associated with running the flight, which is fixed regardless of the number of passengers on the plane. a.Suppose the airline must set a single ticket price. What is the optimal ticket price? How much revenue does the airline earn and how much profit does it make?b.Now suppose that the airline can price discriminate by charging different prices to business travelers and to tourists. What are the airline’s revenue and profit now?c.The airline attempts to price discriminate in the following way. It initially sets the ticket price at $1000, so that business travelers will buy tickets immediately. A few days before the flight, it lowers the price to $500, hoping that tourists will buy a ticket. What problem would the airline would run into if it applied this strategy repeatedly?

Management discovers that a supervisor at one of their restaurant locations removes excess cash and resets sales totals throughout the day on the point of sale (POS) system. At closing the supervisor deposits cash equal to the recorded sales on the POS system and keeps the rest. The supervisor forwards the close-of-day POS reports from the POS system along with a copy of the bank deposit slip to the company’s revenue accounting department. The revenue accounting department records the sales and the cash for the location in the general ledger and verifies the deposit slip to the bank statement. Any differences between sales and deposits are recorded in an over/short account and, if necessary, followed up with the location supervisor. The customer food order checks are serially numbered, and it is the supervisor’s responsibility to see that they are accounted for at the end of each day. Customer checks and the transaction journal tapes from the POS system are kept by the supervisor for one week at the location and then destroyed.

1. What control procedures in the above case allowed the fraud to occur?

2. What audit procedures would have detected the fraud?

Writing Wellman Company acquired 30% of the outstanding common stock of Grinwold Inc. on January 1, 2022, by paying $1,800,000 for 60,000 shares. Grinwold declared and paid a $0.50 per share cash dividend on June 30 and again on December 31, 2022. Grinwold reported a net income of $800,000 for the year. a. Total dividend revenue for 2022 $60,000 b. Revenue from stock investments $240,000 Instructions a. Prepare the journal entries for Wellman Company for 2022, assuming Wellman cannot exercise significant influence over Grinwold. (Use the cost method.) b. Prepare the journal entries for Wellman Company for 2022, assuming Wellman can exercise significant influence over Grinwold. (Use the equity method.) c. The board of directors of Wellman Company is confused about the differences between the cost and equity methods. Prepare a memorandum for the board that explains each method and shows in tabular form the account balances under each method at December 31, 2022.