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Fall Accounting Research Paper Help
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18. Prepare the entries to record the following independent transactions with explanations. 1. On...Prepare the entries to record the following independent transactions with explanations.
1. On January 4, 2016, received Php 20,000 from a customer in payment for services rendered.
2. Payment to X Supplier amounting to Php 4,000 for office supplies purchased on January 3,2016.
3. Maria invested Php 60,000 on January 18,2016 to start a barbershop in Naga City.
4. On January 5, 2016, Peter Pan withdrew Php 30,000 from his business to pay for the tuition of his son.
5. On January 7, 2016 paid Php 10,000 rental amount for the month of January 2016.
6. Collected Php 20,000 of the accounts receivable from Master Company on January 17, 2016.
7. Paid the salary of the office secretary amounting to Php 20,000 on January 18, 2016.
8. Purchased office equipment worth Php 25,000 by paying 40% down payment and the balance on account.
9. Paid Php 5,000 of the accounts payable on January 28,2016.
10. Rendered services to clients on January 5, 2016 amounting to Php 20,700.
19. Problem 16 Brown and Smith are partners. The Partnership deed provides inter alia : (i) That the...
Problem 16
Brown and Smith are partners. The Partnership deed provides inter alia:
(i) That the accounts be balanced on 31st December each year. (ii) That the
profits be divided as follows: Brown one-half, Smith one-third, and carried to
a Reserve Account one-sixth. (iii) That in the event of death of a partner, his
executors will be entitled to be paid out: (a) The capital to his credit at date
of death; (b) His proportion of reserve at date of the last Balance Sheet; (c)
his proportion of profits to death based on the average profits of the last three
completed years; (d) By way of goodwill, his proportion of total profits for the
preceding three years.
On 31st December, 2004, the ledger balances were:
Rs . Rs.
Brown’s Capital 90,000
Smith’s Capital 60,000
Reserve 30,000
Bills Receivable 20,000
Investments 50,000
Cash 1,40,000
Creditors 30,000
2,10,000 2,10,000
The profits for the three years were: 2002–Rs. 42,000; 2003–Rs. 39,000; 2004–
Rs. 45,000. Smith died on 1st May, 2005, show the workings of Smith’s: (i) Share of
reserve; (ii) Share of profits; (iii) Share of goodwill and draw up Smith’s Executor’s
Account as would appear in the firm’s ledger transferring the amount of his Loan
Account.
20. (Objective 12-2)Identify risks for accounting systems that rely heavily on IT functions....
(Objective 12-2)Identify risks for accounting systems that rely heavily on IT functions.
(Objective 12-2)
ASSESSING RISKS OF INFORMATION TECHNOLOGY
Although IT can improve a company’s internal control, it can also affect the company’s overall control risk. Many risks in manual systems are reduced and in some cases eliminated. However, there are risks specific to IT systems that can lead to substantial losses if ignored. If IT systems fail, organizations can be paralyzed by the inability to retrieve information or by the use of unreliable information caused by processing errors. These risks increase the likelihood of material misstatements in financial statements. Specific risks to IT systems include:
1. Risks to hardware and data
2. Reduced audit trail 3. Need for IT experience and separation of IT duties Although IT provides significant processing benefits, it also creates unique risks in protecting hardware and data, as well as introducing potential for new types of errors. Specific risks include the following:
• Reliance on the functioning capabilities of hardware and software. Without proper physical protection, hardware or software may not function or may function improperly. Therefore, it is critical to physically protect hardware, software, and related data from physical damage that might result from inappropriate use, sabotage, or environmental damage (such as fire, heat, humidity, or water).
• Systematic versus random errors. When organizations replace manual procedures with technology-based procedures, the risk of random error from human involve ment decreases. However, the risk of systematic error increases because once procedures are programmed into computer software, the computer processes information consistently for all transactions until the programmed procedures are changed. Unfortunately, flaws in software programming and changes to that software affect the reliability of computer processing, often resulting in many significant misstatements. This risk is increased if the system is not programmed to recognize and flag unusual transactions or when trans action audit trails are inadequate.
• Unauthorized access. IT-based accounting systems often allow online access to electronic data in master files, software, and other records. Because online access can occur from remote access points, including by external parties with remote access through the Internet, there is potential for illegitimate access. Without proper online restrictions such as passwords and user IDs, unauthorized activity may be initiated through the computer, resulting in improper changes in software programs and master files.
• Loss of data. Much of the data in an IT system are stored in centralized electronic files. This increases the risk of loss or destruction of entire data files. This has severe ramifications, with the potential for misstated financial statements and, in certain cases, serious interruptions of the entity’s operations. Misstatements may not be detected with the increased use of IT due to the loss of a visible audit trail, as well as reduced human involvement. In addition, the computer replaces traditional types of authorizations in many IT systems.
• Visibility of audit trail. Because much of the information is entered directly into the computer, the use of IT often reduces or even eliminates source documents and records that allow the organization to trace accounting information. These docu ments and records are called the audit trail. Because of the loss of the audit trail, other controls must be put into place to replace the traditional ability to compare output information with hard-copy data.
• Reduced human involvement. In many IT systems, employees who deal with the initial processing of transactions never see the final results. Therefore, they are less able to identify processing misstatements. Even if they see the final output, it is often diffi - cult to recognize misstatements because underlying calculations are not visible and the results are often highly summarized. Also, employees tend to regard output generated through the use of technology as “correct” because a computer produced it.
• Lack of traditional authorization. Advanced IT systems can often initiate trans - actions automatically, such as calculating interest on savings accounts and ordering inventory when pre-specified order levels are reached. Therefore, proper authori zation depends on software procedures and accurate master files used to make the authorization decision. IT systems reduce the traditional separation of duties (authorization, record keeping, and custody) and create a need for additional IT experience.
• Reduced separation of duties. Computers do many duties that were traditionally segregated, such as authorization and record keeping. Combining activities from different parts of the organization into one IT function centralizes responsi - bilities that were traditionally divided. IT personnel with access to software and master files may be able to steal assets unless key duties are segregated within the IT function.
• Need for IT experience. Even when companies purchase simple off-the-shelf accounting software packages, it is important to have personnel with knowledge and experience to install, maintain, and use the system. As the use of IT systems increases, the need for qualified IT specialists increases. Many companies create an entire function of IT personnel, while other companies outsource the manage - ment of IT operations. The reliability of an IT system and the informa tion it generates often depends on the ability of the organization to employ personnel or hire consultants with appropriate technology knowledge and experience.
21. P and S are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at ~ 20,000.
P and S are partners sharing profits in the ratio of 3 : 2. Their books showed goodwill at ~ 20,000. R is admitted with 1/5th share which he acquires equally from P and S. R brings in ~ 20,000 as his capital and ~ 10,000 as his share of goodwill. You are required to give journal entries to carry out the above arrangement.
22. 150) ABC tends to increase the unit cost of low-volume products and decrease the unit cost of...
150) ABC tends to increase the unit cost of low-volume products and decrease the unit cost of high-volume products.
151) Traditional cost systems with a single-allocation base tend to overcost high-volume products and undercost low-volume products as compared to activity-based costing systems.
152) There will be little benefit to using an activity-based costing system when products are vastly different from each other and consume different amounts of resources.
153) Paulo Company has reengineered its production process and should now review and potentially revise its activity-based costing system.
154) Activity-based management refers to using activity-based cost information to make decisions that may increase profits while satisfying customers' needs.
155) Managers often reap benefits by using ABC data in ABM to pinpoint opportunities to cut costs.
156) ABC can be used in routine planning and control decisions as well as pricing, product mix and cost cutting decisions.
157) The benefits of adopting ABC/ABM are higher for companies in more competitive markets.
158) The goal of value-engineering is to eliminate all waste in the system by making the company's processes as effective and efficient as possible.
159) Value-engineering is accomplished by eliminating, reducing, or simplifying all non-value added activities, and examining whether value-added activities could be improved.
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23. The account balances and select financial statements of Wilson Towing Service at June 30, 2018, f...
Not Sure whats wrong
The account balances and select financial statements of Wilson Towing Service at June 30, 2018, follow: Requirements 1. Prepare the balance sheet for Wilson Towing Service as of June 30, 2016. 2. What does the balance sheet report? Requirement 1. Prepare the balance sheet for Wilson Towing Service as of June 30, 2018 (If a box is not used in the table
24. 85) List and describe three main capabilities or tools of a DBMS. 86) Describe the ways in which...
85) List and describe three main capabilities or tools of a DBMS.
86) Describe the ways in which database technologies could be used by an office stationery supply company to achieve low-cost leadership.
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25. 84. When using the product cost concept of applying the cost-plus approach to product pricing,...
84. When using the product cost concept of applying the cost-plus approach to product pricing, what is included in the markup?
A. Desired profit
B. Total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit
C. Total costs plus desired profit
D. Total selling and administrative expenses plus desired profit
85. When using the variable cost concept of applying the cost-plus approach to product pricing, what is included in the markup?
A. Total costs plus desired profit
B. Desired profit
C. Total selling and administrative expenses plus desired profit
D. Total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit
86. What cost concept used in applying the cost-plus approach to product pricing covers selling expenses, administrative expenses, and desired profit in the "markup"?
A. Total cost concept
B. Product cost concept
C. Variable cost concept
D. Sunk cost concept
87. What cost concept used in applying the cost-plus approach to product pricing includes only desired profit in the "markup"?
A. Product cost concept
B. Variable cost concept
C. Sunk cost concept
D. Total cost concept
88. What cost concept used in applying the cost-plus approach to product pricing includes only total manufacturing costs in the "cost" amount to which the markup is added?
A. Variable cost concept
B. Total cost concept
C. Product cost concept
D. Opportunity cost concept
89. Contractors who sell to government agencies would be most likely to use which of the following cost concepts in pricing their products?
A. Variable cost
B. Product cost
C. Total cost
D. Fixed cost
90. The target cost approach assumes that:
A. markup is added to total cost
B. the selling price is set by the marketplace
C. markup is added to variable cost
D. markup is added to product cost
91. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000.
Fixed factory overhead cost $38,700
Fixed selling and administrative costs 7,500
Variable direct materials cost per unit 4.60
Variable direct labor cost per unit 1.88
Variable factory overhead cost per unit 1.13
Variable selling and administrative cost per unit 4.50
The dollar amount of desired profit from the production and sale of the company's product is:
A. $175,000
B. $67,200
C. $73,500
D. $96,000
92. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000.
Fixed factory overhead cost $38,700
Fixed selling and administrative costs 7,500
Variable direct materials cost per unit 4.60
Variable direct labor cost per unit 1.88
Variable factory overhead cost per unit 1.13
Variable selling and administrative cost per unit 4.50
The cost per unit for the production and sale of the company's product is:
A. $12.11
B. $12.88
C. $15
D. $13.50
93. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000.
Fixed factory overhead cost $38,700
Fixed selling and administrative costs 7,500
Variable direct materials cost per unit 4.60
Variable direct labor cost per unit 1.88
Variable factory overhead cost per unit 1.13
Variable selling and administrative cost per unit 4.50
The markup percentage on total cost for the company's product is:
A. 21.0%
B. 22.7%
C. 15.8%
D. 24.0%
26. 111. Which of the following entries records the receipt of a utility bill from the water...
111. Which of the following entries records the receipt of a utility bill from the water company?
A. debit Utilities Expense; credit Accounts Payable
B. debit Utilities Payable; credit Accounts Receivable
C. debit Accounts Payable; credit Cash
D. debit Accounts Payable; credit Utilities Payable
112. Which of the following entries records the cash payment by Joe’s Care, Inc.?
A. debit Capital Stock; credit Cash
B. debit Dividends; credit Cash
C. debit Salaries Expense; credit Cash
D. debit Salaries Expense; credit Salaries Payable
113. Office supplies were sold by J's Appliance Repair at cost to another repair shop, with cash received. Which of the following entries for J's Appliance Repair records this transaction?
A. Office Supplies, debit; Cash, credit
B. Office Supplies, debit; Accounts Payable, credit
C. Cash, debit; Office Supplies, credit
D. Accounts Payable, debit; Office Supplies, credit
114. Office supplies purchased by J's Appliance Repair on account were returned. Which of the following entries for J's Appliance Repair records this transaction?
A. Cash, debit; Office Supplies, credit
B. Office Supplies, debit; Accounts Receivable, credit
C. Accounts Payable, debit; Office Supplies, credit
D. Office Supplies, debit; Accounts Payable, credit
115. Cash was paid by J's Appliance Repair to creditors on account. Which of the following entries for J's records this transaction?
A. Cash, debit; Capital Stock, credit
B. Accounts Payable, debit; Cash, credit
C. Accounts Receivable, debit; Cash, credit
D. Accounts Payable, debit; Account Receivable, credit
116. The process of initially recording a business transaction is called
A. trial balancing
B. posting
C. journalizing
D. balancing
117. Which of the following entries records the acquisition of office supplies on account?
A. Office Supplies, debit; Cash, credit
B. Cash, debit; Office Supplies, credit
C. Office Supplies, debit; Accounts Payable, credit
D. Accounts Receivable, debit; Office Supplies, credit
118. Which of the following entries records the acquisition of equipment on account?
A. Equipment, debit; Accounts Payable, credit
B. Equipment, debit; Cash, credit
C. Accounts Payable, debit; Equipment, credit
D. Accounts Payable, debit; Notes Payable, credit
119. Which of the following entries records the payment of rent for the current month?
A. Cash, debit; Rent Expense, credit
B. Rent Expense, debit; Cash, credit
C. Rent Expense, debit; Accounts Receivable, credit
D. Accounts Payable, debit; Rent Expense, credit
120. Which of the following entries records the receipt of cash from patients on account?
A. Accounts Payable, debit; Fees Earned, credit
B. Accounts Receivable, debit; Fees Earned, credit
C. Accounts Receivable, debit; Cash, credit
D. Cash, debit; Accounts Receivable, credit
