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Top Grades in Accounting: Winter Research Paper Assistance
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1. On July 1, 2013, Eastern Printers purchased a printing machine from HMT Ltd. on hire purchase basis,On July 1, 2013, Eastern Printers purchased a printing machine from HMT Ltd. on hire purchase basis, payments to be made ~ 10,000 on the said date and the balance in three half yearly instalments of ~ 8,200, ~ 7,440 and ~ 6,300 commencing from December, 2013. The vendor charged interest at 10% p.a. calculated on half yearly basis.
Eastern Printers close their books annually on December 31 and provide depreciation at 10% per annum on diminishing balances in each year.
Determine the cash price of the machine and show the necessary Ledger Accounts in the books of Eastern Printers.
2. Balanced scorecard. Lee Corporation manufactures various types
Balanced scorecard. Lee Corporation manufactures various types of color laser printers in a highly automated facility with high fixed costs. The market for laser printers is competitive. The various color laser printers on the market are comparable in terms of features and price. Lee believes that satisfying customers with products of high quality at low costs is key to achieving its target profitability. For 2009, Lee plans to achieve higher quality and lower costs by improving yields and reducing defects in its manufacturing operations. Lee will train workers and encourage and empower them to take the necessary actions. Currently a significant amount of Lee’s capacity is used to produce products that are defective and cannot be sold. Lee expects that higher yields will reduce the capacity that Lee needs to manufacture products. Lee does not anticipate that improving manufacturing will automatically lead to lower costs because Lee has high fixed costs. To reduce fixed costs per unit, Lee could lay off employees and sell equipment, or it could use capacity to produce and sell more of its current products or improved models of its current products. Lee’s balanced scorecard (initiatives omitted) for the just-completed fiscal year 2009 follows:
1. Was Lee successful in implementing its strategy in 2009? Explain.
2. Is Lee’s balanced scorecard useful in helping the company understand why it did not reach its target market share in 2009? If it is, explain why. If it is not, explain what other measures you might want to add under the customer perspective and why.
3. Would you have included some measure of employee satisfaction in the learning-and-growth perspective and new-product development in the internal-business-process perspective? That is, do you think employee satisfaction and development of new products are critical for Lee to implement its strategy? Why or why not? Explain briefly.
4. What problems, if any, do you see in Lee improving quality and significantly downsizing to eliminate unusedcapacity?
3. 5-1 Final Project Milestone Two: Accounting Workbook (Steps 1–7) Question In this second miles...
5-1 Final Project Milestone Two: Accounting Workbook (Steps 1–7)
Assignment
In this second milestone of your final project, you will move through the next phase of the accounting cycle by creating the trial balance, adjusted entries, and adjusted trial balance.
To complete this assignment, review the Milestone Two Guidelines and Rubric document.
4. Cruises, Inc. has budgeted sales revenues as follows: June July August Credit sales $135,000 $125...
Cruises, Inc. has budgeted sales revenues as follows: June July August Credit sales $135,000 $125,000 90,000 Cash sales 90,000 255,000 195,000 Total sales $225,000 $380,000 $285,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted inventory purchases are: June $300,000 July 240,000 August 105,000 Other cash disbursements budgeted: (a) selling and administrative expenses of $48,000 each month, (b) dividends of $103,000 will be paid in July, and (c) purchase of equipment in August for $30,000 cash. The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on July 1 was $50,000. Assume that borrowed money in this case is for one month.
5. Your client, Edgartown Corporation, prepared the following schedule of land, buildings, and...
Your client, Edgartown Corporation, prepared the following schedule of land, buildings, and equipment for the audit of financial statements for the year ended December 31, 2013:
Required
a. What type of evidence would you examine to support the beginning balances in the accounts?
b. What types of evidence would you use to support the additions to each account? How might the sources of evidence differ for additions to the building account and the equipment accounts?
c. What types of evidence would you examine to support equipment disposals?
d. What procedures would you perform related to the ending balances in the accounts?
e. In the audit of property, plant, and equipment accounts, auditors should consider whether there are any implications to other accounts in the audit.
(1) What other accounts might be impacted by the additions of buildings and equipment?
(2) What other accounts might be impacted by disposals of equipment?
6. CASE 9–27 Master Budget with Supporting Schedules [LO2] Knockoffs Unlimited, a nationwide...
CASE 9–27 Master Budget with Supporting Schedules [LO2]
Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces, has an exclusive franchise on the distribution of the necklaces, and sales have grown so rapidly over the past few years that it has become necessary to add new members to the management team. To date, the company’s budgeting practices have been inferior, and, at times, the company has experienced a cash shortage. You have been given responsibility for all planning and budgeting. Your first assignment is to prepare a master budget for the next three months, starting April 1. You are anx- ious to make a favourable impression on the president and have assembled the information below.
The necklaces are sold to retailers for $10 each. Recent and forecasted sales in units are as follows:
January (actual) . . . . . . . . . . . . . . 20,000 June . . . . . . . . . . . . . . . . . . . . . 50,000
February (actual) . . . . . . . . . . . . . 26,000 July . . . . . . . . . . . . . . . . . . . . . . 30,000
March (actual). . . . . . . . . . . . . . . . 40,000 August. . . . . . . . . . . . . . . . . . . . 28,000
April . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000 September . . . . . . . . . . . . . . . 25,000
May . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
The large buildup in sales before and during May is due to Mother’s Day. Ending inventories should be equal to 40% of the next month’s sales in units.
The necklaces cost the company $4 each. Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no dis- count, and payable within 15 days. The company has found, however, that only 20% of a month’s sales are collected by month-end. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible.
The company’s monthly selling and administrative expenses are given below:
Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $200,000
Rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000
Wages and salaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106,000
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000
Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000
All selling and administrative expenses are paid during the month, in cash, with the exception of depreciation and insurance. Insurance is paid on an annual basis, in November of each year. The company plans to purchase $16,000 in new equipment during May and $40,000 in new equipment during June; both purchases will be paid in cash. The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter. The company’s balance sheet at March 31 is given below:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 74,000
Accounts receivable ($26,000 February sales;
$320,000 March sales) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,000
Prepaid insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000
Fixed assets, net of depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 950,000
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,495,000
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000
Dividends payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Common shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000
Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 580,000
Total liabilities and shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . $1,495,000
The company wants a minimum ending cash balance each month of $50,000. All borrow- ing is done at the beginning of the month, with any repayments made at the end of the month. The interest rate on these loans is 1% per month and must be paid at the end of each month based on the outstanding loan balance for that month.
Required:
Prepare a master budget for the three-month period ending June 30. Include the following detailed budgets:
1. a. A sales budget by month and in total.
b. A schedule of expected cash collections from sales, by month and in total.
c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.
d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.
2. A cash budget. Show the budget by month and in total.
3. A budgeted income statement for the three-month period ending June 30. Use the variable costing approach.
4. A budgeted balance sheet as of June 30.
7. You have been asked by the Payroll Manager, Linda Laporte, to create a short job aid to assist...
You have been asked by the Payroll Manager, Linda Laporte, to create a short job aid to assist the payroll practitioners with reconciling the Revenu Québec (RQ) account. Your organization is a monthly remitter. In your own words, outline suggested reconciliation methods including the forms, tools and reports that would be used in the process.
8. For this scenario, indicate what would be the relevant population and the most appropriate sampling.
For this scenario, indicate what would be the relevant population and the
most appropriate sampling design. Be sure to give the reasons for your answers.
Scenario 3
The McArthur Company produces special vacuum cleaners for conveniently cleaning the inside
of cars. About a thousand of these, with stamped serial numbers, are produced every month
and stored serially in a stockroom. Once a month an inspector does a quality control check on
50 of these. When he certifies them as to quality, all 1000 units are released from the stockroom
for sale. The production and sales managers, however, are not satisfied with the quality control
check since, quite often, many of the units sold are returned by customers because of various
types of defects. State the relevant population and the most appropriate sampling design for
selecting the 50 units. Be sure to discuss the reasons for your answers.
9. 1. Which of the following is characteristic of a general partnership? a. The partners have...
1. Which of the following is characteristic of a general partnership?
a. The partners have co-ownership of partnership property.
b. The partnership is subject to federal income tax.
c. The partnership has an unlimited life.
d. The partners have limited liability.
2. Which of the following is not a charac...
10. Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawai
Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs:
Variable Cost per Hula Skirt
Direct materials $ 9.85
Direct labor 3.65
Variable manufacturing overhead 1.3
Variable selling and administrative expenses 0.65
Fixed Cost per Month
Fixed manufacturing overhead $ 16,125
Fixed selling and administrative expenses 5,200
Dance Creations charges $32 for each skirt that it sells. During the first month of operation, it made 1,500 skirts and sold 1,425.
Required :
1. Assuming Dance Creations uses variable costing, calculate the variable manufacturing cost per unit for last month. (Round your answer to 2 decimal places.)
2. Complete a variable costing income statement for last month. (Round your answers to 2 decimal places.)
3. Assuming Dance Creations uses full absorption costing, calculate the full manufacturing cost per unit for last month. (Round your answer to 2 decimal places.)
4. Complete a full absorption costing income statement. (Round your answers to 2 decimal places.)
6. Suppose next month Dance Creations expects to produce 1,200 hula skirts and sell 1,300. Without any calculations, decide whether variable or full absorption costing will show a higher profit.
Variable Costing
Full Absorption Costing
11. The following monthly data are available for Seasons Company which produces only on
The following monthly data are available for Seasons Company which produces only one product: Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $70,000; Actual sales for the month of June, 3,000 units. How much is the margin of safety for the company for June?
