Achieve Distinction:Excel with Premier Accounting Assistance

Published: 11 months ago

Achieve Distinction:Excel with Premier Accounting Assistance

. Case: Managing the Move to the Cloud – Analyzing the Risks and Opportunities of Cloud-based...

Case: Managing the Move to the Cloud – Analyzing the Risks and Opportunities of Cloud-based Accounting Information Systems

Questions:

Which Cloud-based accounting information systems should Pia select and why?

Should Pia be worried about possible lock-in with either accountant or system provider?

How should Pia mitigate the possible data security risks?

Is price an important factor when choosing the system?

What is the optimal division of work between Pia and the accountant? Should Pia outsource all the accounting task, use selective outsourcing, or keep all tasks to herself?

Evaluate each accounting task on their suitability to outsourcing in the cloud context. Use Table 3 provided in Appendix 1 and discuss the implications of your choice.

How to ensure a goof fit between the selected system and the work arrangement?

What are the transaction costs incurred by the decision?

What about long term strategy? Reflect on the implications of your choice in the future.

References on Cloud Computing

www.ibm.com/cloud-computing/?S_PKG=&cm_mmc=Search_Google-_-9.1+MO+Mktg+Plan+Unknown_2017+CA+Cloud-_-NA_US-_-+cloud++computing_Broad_&cm_mmca1=000016ON&cm_mmca2=10004048&cm_mmca7=9060029&cm_mmca8=kwd-295301429726&cm_mmca9=b5f7dabf-12f6-41f3-aaa3-21b5e400ee87&cm_mmca10=226289361484&cm_mmca11=b&mkwid=b5f7dabf-12f6-41f3-aaa3-21b5e400ee87|447|121660&cvosrc=ppc.google.%2Bcloud%20%2Bcomputing&cvo_campaign=000016ON&cvo_crid=226289361484&Matchtype=b

https://azure.microsoft.com/en-us/overview/what-is-cloud-computing/

https://cloudacademy.com/blog/how-does-cloud-computing-work/

2. Analyzing manufacturing cost accounts Fire Rock Company manufactures designer paddle boards in a...

Analyzing manufacturing cost accounts

Fire Rock Company manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June:

Materials

(A)

Work in Process

Finished Goods

Wages Payable

Factory Overhead

In addition, the following information is   available:

a.     Materials and direct labor were applied to six jobs in June:

b.     Factory overhead is applied to each job at a rate of 140% of direct labor cost.

c.     The June 1 Work in Process balance consisted of two jobs, as follows:

Work in Process,

d.     Customer jobs completed and units sold in June were as follows:

Instructions

1.     Determine the missing amounts associated with each letter. Provide supporting calcu­ lations by completing a table with the following headings:

2.     Determine the June 30 balances for each of the inventory accounts and factory overhead.

3. CVP analysis, service firm Lifetime Escapes generates average re

CVP analysis, service firm Lifetime Escapes generates average revenue of $5,000 per person on its five-day package tours to wildlife parks in Kenya. The variable costs per person are as follows:

Airfare $1,400

Hotel accommodations 1,100

Meals 300

Ground transportation 100

Park tickets and other costs 800

Total $3,700

Annual fixed costs total $520,000.

Required

1. Calculate the number of package tours that must be sold to break even.

2. Calculate the revenue needed to earn a target operating income of $91,000.

3. If fixed costs increase by $32,000, what decrease in variable cost per person must be achieved to maintain the breakeven point calculated in requirement 1?

4. "Bell Company acquires 80% of Demers Company for $500,000 on

"Bell Company acquires 80% of Demers Company for $500,000 on January 1, 2009. Demers reported common stock of $300,000 and retained earnings of $200,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired. Demers earns income and pays dividends as follows:



2009 net income $100000 dividends 40000

2010 net income $120000 dividends 50000

2011 net income $130000 dividends 60000



Assume the equity method is applied.

(a) Compute Bell's investment in Demers at December 31, 2011.

(b) Compute Bell's income from Demers for the year ended December 31, 2011.

(c) Compute the non-controlling interest in the net income of Demers at December 31, 2011.

(d) Compute the non-controlling interest of Demers at December 31, 2011.

5. The Machinery Account of a big rubber factory showed balance of ~ 1,90,000 on 1st January 2016 : Its

The Machinery Account of a big rubber factory showed balance of ~ 1,90,000 on 1st January 2016 : Its accounts were made up on 31st December each year and depreciation is written at 10% p.a. under the Diminishing Balance Method. On 1st June 2016, new machinery was acquired at a cost of Rs 28,000 and installation charges incurred in erecting the machine worked out to Rs 892 on the same date. On 1st June 2016 a machine which had cost Rs 6,000 on

1st January 2014 was sold for Rs 750, another machine which had cost Rs 600 on 1st January 2015, was scrapped on the same date and it realised nothing. Write up Plant and Machinery Account for the year 2016, allowing the same rate of Depreciation as in the past calculating depreciation to the nearest multiple of a Rupee.

6. Which of the following production operations would be most likely to employ a job order system of...

Which of the following production operations would be most likely to employ a job order system of

cost accounting?

A. Printing business cards

B. Crude oil refining

C. Candy manufacturing

D. Flour milling

7. From the following particulars, prepare the monthly Cash Budget of the Sunclear Ltd for October,...

From the following particulars, prepare the monthly Cash Budget of the Sunclear Ltd for October, November and December of 1996:

It is expected that 50% of sales will be in cash and 25% of the purchases can be made on credit.

Debtors are allowed a 2-months credit, but will receive a cash discount of 5% if they will pay off their dues within the month next to the month of sale. About 80% of the Debtors normally clear their dues at the end of that period to avail the cash discount. But the remaining 20% of the Debtors pay on the due date only.

About 4/5th of the credit purchase is paid after 1 month of that purchase and next to that month, the balance 1/5th is paid.

Wages are paid within fifth of the following month.

Expenses include Selling and Distribution Expenses which are 10% of the sales.

Any deficiency in cash at the end of a month will be met by taking a short-term loan for 2 months from the bank.

At the end of September 1996, the Sunclear Ltd had Rs. 40,000 cash in hand.

8. Exercise 6-9 Income statement under absorption costing and variable costing LO P1, P2 The followi...

Exercise 6-9 Income statement under absorption costing and variable costing LO P1, P2 The following information apples to the questions displayed below) Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit 60 Direct labor per unit 22 Variable overhead per unit Fixed overhead for the year $528,000 Selling and administrative cost Variable selling and administrative cost per unit 10 115,000 Fixed selling and administrative cost per year

9. Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory re...

Manufacturing Company employs a job order cost accounting system and keeps perpetual inventory records. The following transactions occurred in the first month of operations perpetual Direct materials requisitioned during the month Job 101 $20,000 Job 102 16,000 Job 103 24,000 $60,000 2. Direct labor incurred and charged to jobs during the month was Job 101 $30,000 Job 102 28,000 Job 103 20,000 $78,000 3. Manufacturing overhead was applied to jobs worked on using a predetermined overhead rate based on 75% of direct labor costs 4. Actual manufacturing overhead costs incurred during the month amounted to $66,000. 5. Job 101 consisting of 1,000 units and Job 103 consisting of 200 units were completed during the month Your answer is partially correct. Try again Prepare journal entries to record the above transactions (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit 60000 Work in Process Inventory T Raw Materials Inventor 60000

10. Use all the attached information: 1. Completed and Reviewed Year 1 Financial Statements of...

Use all the attached information:1. Completed and Reviewed Year 1 Financial Statements of Aguamaint Inc.2. Journal Entries and Financial Statements for Year 2 (needs to be reviewed - Not on compliance with GAAP Rules)3. Reviewed Questions and Answers (you are to use these answers to prepare adjusting entries in Year 2)4. Excel Work Sheet

a. Use the Journal Entries in the "Financial Statements and Journal Entries" file to prepare the Unadjusted Trial Balance (see tab on the "Excel Work Sheet" file).b. Using the answers in the "Reviewed Questions and Answers" file, prepare adjusting entries to confirm with GAAP Rules and prepare an Adjusted Trial Balance (see tab on the "Excel Work Sheet" file).c. From the Adjusted Trial Balance and Information from the "Completed Financial Statement for Year 1" file, prepare a new Income Statement, Balance Sheet, Statement of Cashflow using the Indirect Method, Statement of Comprehensive Income and Notes for Year 2 (see tabs on the "Excel Work Sheet" file).

Please contact me if you need any other information and clarification Thank you.

Document Preview:

Independent Accountant’s Review Report Board of Directors Aguamaint, Inc. 740 W. Union Street St. Louis, MO 63110 To the Board of Directors: We have reviewed the accompanying balance sheet of Aguamaint, Inc. as of December 31, 20X1, and the related statements of comprehensive income, stockholders’ equity, and cash flows for the year then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management’s financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion. Management’s Responsibility for the Financial Statements The management of Aguamaint, Inc. is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America. This includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement whether due to fraud or error. Accountant’s Responsibility Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the American Institute of Certified Public Accountants. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion. Accountant’s Conclusion Based on our review, we are not aware of...

11. Additional information for the month of March 2005

Items 1 through 3 are based on the following information pertaining to Arp Co.’s manufacturing operations:

Additional information for the month of March 2005:

For the month of March 2005, prime cost was

1. $ 90,000


2. $120,000


3. $144,000


4. $150,000

For the month of March 2005, conversion cost was

1. $ 90,000


2. $140,000


3. $144,000


4. $170,000

For the month of March 2005, cost of goods manufactured was

1. $218,000


2. $224,000


3. $230,000


4. $236,000

12. (Multiple Choice) 1. All of the following are objectives of internal control except a. To safeguard.

(Multiple Choice) 1. All of the following are objectives of internal control except a. To safeguard assets b. To maximize net income c. To ensure accurate and reliable accounting records d. To comply with legal requirements 2. All of the following are internal control procedures except a. Electronic devices b. Assignment of responsibilities c. Internal and external audits d. Sarbanes-Oxley reforms 3. Requiring that an employee with no access to cash do the accounting is an example of which characteristic of internal control? a. Monitoring of controls b. Competent and reliable personnel c. Assignment of responsibility d. Separation of duties 4. All of the following are controls for cash received over the counter except a. The customer should be able to see the amounts entered into the cash register. b. The cash drawer should open only when the sales clerk enters an amount on the keys. c. The sales clerk must have access to the cash register tape. d. A printed receipt must be given to the customer. 5. In a bank reconciliation, an outstanding check is a. deducted from the bank balance. b. deducted from the book balance. c. added to the bank balance. d. added to the book balance. 6. In a bank reconciliation, a bank collection of a note receivable is a. deducted from the book balance. b. deducted from the bank balance. c. added to the bank balance. d. added to the book balance.

13. We-Sell Realty Co. pays weekly salaries of $11,800 on Friday for a five-day workweek ending on...

We-Sell Realty Co. pays weekly salaries of $11,800 on Friday for  a  five-day  workweek ending  on  that  day.  Journalize  the  necessary  adjusting  entry  at  the  end  of  the accounting

period, assuming that the period ends on Wednesday.

Q8

a.       Prospect Realty Co. pays weekly salaries of $27,600 on Monday for a six-day workweek ending  the  preceding  Saturday.  Journalize  the  necessary  adjusting  entry  at  the  end  of the

accounting period, assuming that the period ends on Friday.

b.       The estimated amount of depreciation on equipment for the current year is $7,700. Journalize the adjusting entry to record the depreciation.

14. Assume Nortel Networks contracted to provide a customer with Internet infrastructure for...

Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,000,000. The project began in 2016 and was completed in 2017. Data relating to the contract are summarized below: See attachment

15. indicate whether the information item would be an output of a traditional AIS or MIS system.

List some AIS and MIS information from which salespeople may benefit. Clearly indicate whether the information item would be an output of a traditional AIS or MIS system. Finally, discuss the benefits of integrating this information.