Elevate Grades: Expert Assistance for Accounting Assignments
29. Problem 5-42 (LO. 7) On June 5, 2017, Javier Sanchez purchased and placed in service a 7-year cla...
Problem 5-42 (LO. 7) On June 5, 2017, Javier Sanchez purchased and placed in service a 7-year class asset costing $560,000 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC). During 2017, his business generated a net income of $945,780 before any § 179 immediate expense election. Determine the maximum deductions (including first year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2017 and 2018. If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem. The maximum § 179 for 2017 is $510,000 and the reduction threshold is $2,030,000.
a. Javier Sanchez's total cost recovery deduction in 2017 is $_____ and $_____ in 2018 .
b. Complete Javier's Form 4562 (page 1) for 2017. If an amount is zero, enter "0". Enter amounts as positive numbers.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
30. Stow Health Centre specialises in the provision of sports/exercise and medical/dietary advice to...
Stow Health Centre
Stow Health Centre specialises in the provision of sports/exercise and medical/dietary advice to clients. The service is provided on a residential basis and clients stay for whatever number of days suits their needs.
Budgeted estimates for the year ending 30 June 20X1 are as follows.
a) The maximum capacity of the centre is 50 clients per day for 350 days in the year.
b) Clients will be invoiced at a fee per day. The budgeted occupancy level will vary with the client fee level per day and is estimated at different percentages of maximum capacity as follows.
c) Variable costs are also estimated at one of three levels per client day. The high, most likely and low levels per client day are $95, $85 and $70 respectively.
The range of cost levels reflects only the possible effect of the purchase prices of goods and services.
Required
(a) Prepare a summary which shows the budgeted contribution earned by Stow Health Centre for the year ended 30 June 20X1 for each of nine possible outcomes.
(b) State the client fee strategy for the year to 30 June 20X1 which will result from the use of each of the following decision rules.
(i) Maximax
(ii) Maximin
(iii) Minimax regret
Your answer should explain the basis of operation of each rule. Use the information from your answer to (a) as relevant and show any additional working calculations as necessary.
(c) The probabilities of variable cost levels occurring at the high, most likely and low levels provided in the question are estimated as 0.1, 0.6 and 0.3 respectively.
Using the information available, determine the client fee strategy which will be chosen where maximisation of expected value of contribution is used as the decision basis.
31. During the month of June, Danielle's Boutique had cash sales of $265,000 and credit sales of $15...
During the month of June, Danielle's Boutique had cash sales of $265,000 and credit sales of $153, 700, both of which include the 6% sales tax that must be remitted to the government by July 15. Instructions Prepare the adjusting entry that should be recorded to fairly present the June 30 financial statements.
32. Comans Corporation has two production departments, Milling and Customizing. The company uses a jo...
Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Milling Department's predetermined overhead rate is based on machine-hours and the Customizing Department's predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates: Milling Customizing Machine-hours 21,000 12,000 14,000 5,000 Direct labor-hours $63,000 Total fixed manufacturing overhead cost $24,000 Variable manufacturing overhead per machine- 2.00 hour Variable manufacturing overhead per direct 5.00 labor-hour During the current month the company started and finished Job A319. The following data were recorded for this job: Job A319 Milling Customizing Machine-hours 70 30 Direct labor-hours 20 40 590 Direct materials 200 Direct labor cost 760 600 If the company marks up its manufacturing costs by 10% then the selling price for Job A319 would be closest to:
33. E 7-23 (Petty Cash) The petty cash fund of Fonzarelli’s Auto Repair Service, a sole proprietors...
E 7-23 (Petty Cash) The petty cash fund of Fonzarelli’s Auto Repair Service, a sole proprietorship, contains
the following.
9
8
10
10
Exercises 393
The general ledger account Petty Cash has a balance of $300.
1. Coins and currency $ 15.20
2. Postage stamps 2.90
3. An I.O.U. from Richie Cunningham, an
employee, for cash advance 40.00
4. Check payable to Fonzarelli’s Auto Repair from
Pottsie Weber, an employee, marked NSF 34.00
5. Vouchers for the following:
Stamps $ 20.00
Two Rose Bowl tickets for Nick Fonzarelli 170.00
Printer cartridge 14.35 204.35
$296.45
Instructions
Prepare the journal entry to record the reimbursement of the petty cash fund.
34. Which of the following is NOT a service provided by forensic accountants? a. Business valuations b..
Which of the following is NOT a service provided by forensic accountants?
a. Business valuations
b. Fraud detection
c. Fraud examination
d. Financial statement reporting
35. The process of choosing among competing alternatives is called a. planning. b. decision making....
The process of choosing among competing alternatives is called
a. planning.
b. decision making.
c. controlling.
d. performance evaluation.
e. none of these.
36. 12.2 Discuss the key decisions that need to be made in the revenue cycle, and identify the...
12.2 Discuss the key decisions that need to be made in the revenue cycle, and identify the information needed to make those decisions.
1 Which of the decisions below is not ordinarily found as part of the revenue cycle?
A What credit terms should be offered?
B How often should accounts receivable be subjected to audit?
C How can customer payments be processed to maximize cash flows?
D What are the optimal prices for each product or service?
2 Key differences exist when an integrated Enterprise Resource Planning system (ERP replaces an existing AIS or legacy system. For example, ________ are more accurate and timely, enabling sales order entry staff to provide customers more accurate information about delivery dates.
A inventory records
B cash receipts
C credit approval decisions
D exception reports
3 Which of the following is not a key decision that needs to be made in the revenue cycle?
A How should merchandise be delivered to customers?
B Should credit be extended to customers?
C How can customer payments be processed to maximize cash flow?
D Which vendor should inventory be purchased from?
4 Regularly reviewing an accounts receivable aging report can help management do what?
A spot firms who are falling behind in their payments
B identify customers who have not purchased anything lately
C improve the speed which customers make payments
D determine whether the firm's pricing policy is effective
5 Regularly reviewing an accounts receivable aging report can help management do what?
A identify customers who have not purchased anything lately
B determine whether changes are needed in the firm's credit policies
C improve the speed which customers make payments
D determine whether the firm's pricing policy is effective
6 By using an ERP to merge the billing, sales, and marketing functions, the firm may be able to
A bill the customer right after the sale occurs.
B market products and services on bills sent to customers.
C use customer's past purchase history to send information about related products and services the customer may be interested in.
D eliminate the need for a firm to have a billing, sales, and marketing department.
7 Suppose management wanted to increase the speed of processing customer payments. One way to speed up payment transaction processing is to
A use a FEDI.
B use JEDI analysis software.
C eliminate credit sales.
D extend the amount of credit offered to customers.
8 True or False: Shipping efficiency can often be improved by replacing RFID tags with bar codes.
12.3 Identify major threats in the revenue cycle, and evaluate the adequacy of various control procedures for dealing with those threats.
1 Before a shipping notice is prepared during the revenue cycle, shipping department personnel should match the inventory received from the warehouse to the
A sales order.
B picking tickets.
C picking ticket and sales order.
D sales order and bill of lading.
2 Which is the best control to prevent invoicing customers for more than the actual quantity shipped?
A Use the information from the sales order to prepare the sales invoice.
B Use the information from the packing slip to prepare the sales invoice.
C Use the information from the bill of lading to prepare the sales invoice.
D Use the information from the picking ticket to prepare the sales invoice.
3 The cashier deposits checks for Benedek Incorporated and also prepares payments to vendors. Of the following, who is best able to reconcile the bank statement to Benedek's records on a regular basis?
A cashier
B internal audit department
C treasurer
D external auditor
4 A monthly statement sent to customers serves a control purpose by
A providing an opportunity for customers to verify the balance owed and activity on the account.
B triggering the process to record a customer payment.
C summarizing invoices and amounts due for customers.
D reminding customers of the balance due and due date.
5 Which of the following is not one of the controls when customer payments are commingled with other mail?
A preparing a remittance list as mail is opened
B restrictively endorsing checks when received
C requiring two mail room clerks to open mail together
D requiring the controller to be personally present when mail is received and opened
6 Matching customer account numbers and inventory item numbers to the numbers in the customer and inventory master files is an example of a
A completeness test.
B field check.
C reasonableness test.
D validity check.
7 During the sales order entry process, a ________ is performed to compare the quantity ordered with the standard amounts normally ordered.
A completeness test
B redundant data check
C field check
D reasonableness test