Entries to Reports: Assignment Help for Accounting Students

Published: 11 months ago

Entries to Reports: Assignment Help for Accounting Students

24. Interest earned is a [A] personal account [B] real account [C] nominal account [D] Intangible real..

Interest earned is a

• [A] personal account


• [B] real account


• [C] nominal account


• [D] Intangible real account

25. solve and show your solution Problem 1-14 (AICPA Adapted) Dean Company has a P2,000,000 note payable

solve and show your solution 2021. On December 31, 2020, the entity signed an agreement to borrow up to P2,000,000 to refinance the note payablè on a long-term basis The financing agreement called for borrowing not to exceed 80% of the value of the collateral the entity was providing On December 31, 2020, the value of the collateral was P1,500,000 On December 31, 2020, what amount of the note payable should be reported as current liability? 2,000,000 1,500,000 800,000 500,000 a. b. c. d. Problem 1-15 (AICPA Adapted) Willem Company reported the following liabilities on December 31, 2020: Accounts payable Short-term borrowings Mortgage payable, current portion P100,000 Bank loan payable, due June 30, 2021 750,000 400,000 3,500,000 1,000.000 The P1,000,000 bank loan was refinanced with a 5-year loan on January 15, 2021, with the first principal payment due January 15, 2022 The financial statements were issued February 28, 2021 What total amount should be reported as current liabilities on December 31, 2020? a. 1,150,000 b. 2,250,000 c. 1,250,000 d. 850,000 23

26. Multiple-choice questions: a. Which of the following statements

Multiple-choice questions:

a. Which of the following statements is incorrect?

1. Ratios are fractions expressed in percent or times per year.

2. A ratio can be computed from any pair of numbers.

3. A very long list of meaningful ratios can be derived.

4. There is one standard list of ratios.

5. Comparison of income statement and balance sheet numbers, in the form of ratios, should not be done.

b. A figure from this year’s statement is compared with a base selected from the current year.

1. Vertical common-size statement

2. Horizontal common-size statement

3. Funds statement

4. Absolute figures

5. Balance sheet

c. Fremont Electronics has income of $1 million. Columbus Electronics has income of $2 million. Which of the following statements is a correct statement?

1. Columbus Electronics is getting a higher return on assets employed.

2. Columbus Electronics has higher profit margins than does Fremont Electronics.

3. Fremont Electronics could be more profitable than Columbus Electronics in relation to resources employed.

4. No comparison can be made between Fremont Electronics and Columbus Electronics.

5. Fremont Electronics is not making good use of its resources.

d. Industry ratios should not be considered as absolute norms for a given industry because of all but which of the following?

1. The firms have different accounting methods.

2. Many companies have varied product lines.

3. Companies within the same industry may differ in their method of operations.

4. The fiscal year-ends of the companies may differ.

5. The financial services may be private independent firms.

e. Which of the following is a publication of the federal government for manufacturing, mining, and trade corporations?

1. Annual Statement Studies

2. Standard & Poor’s Industry Surveys

3. Almanac of Business and Industrial Financial Ratios

4. Industry Norms and Key Business Ratios

5. The Department of Commerce Financial Report

f. Which service represents a compilation of corporate tax return data?

1. Annual Statement Studies

2. Standard & Poor’s Industry Surveys

3. Almanac of Business and Industrial Financial Ratios

4. Industry Norms and Key Business Ratios

5. The Department of Commerce Financial Report

g. Which service includes over 800 different lines of business?

1. Annual Statement Studies

2. Standard & Poor’s Industry Surveys

3. Almanac of Business and Industrial Financial Ratios

4. Industry Norms and Key Business Ratios

5. The Department of Commerce Financial Report

h. Which analysis compares each amount with a base amount for a selected base year?

1. Vertical common-size

2. Horizontal common-size

3. Funds statement

4. Common-size statement

5. None of these

i. Suppose you are comparing two firms in the coal industry. Which type of numbers would be most meaningful for statement analysis?

1. Relative numbers would be most meaningful for both firms, especially for inter-firm comparisons.

2. Relative numbers are not meaningful.

3. Absolute numbers would be most meaningful.

4. Absolute numbers are not relevant.

5. It is not meaningful to compare two firms.

j. Management is a user of financial analysis. Which of the following comments does not represent a fair statement as to the management perspective?

1. Management is not interested in the view of investors.

2. Management is interested in liquidity.

3. Management is interested in profitability.

4. Management is interested in the debt position.

5. Management is interested in the financial structure of the entity.

27. Acct

*Seventy-five percent of the company's building was devoted to production activities; the remaining 25 percent was used for selling and administrative functions.



Inventory data:

 

*The January 1 and December 31 finished-goods inventory consisted of 1,350 units and 1,190 units, respectively.



 

Requirement 1:

Calculate Lone Oak's manufacturing overhead for the year. (Omit the "$" sign in your response.)

 

Requirement 2:

Calculate Lone Oak's cost of goods manufactured. (Omit the "$" sign in your response.)

 

Requirement 3:

Compute the company's cost of goods sold. (Omit the "$" sign in your response.)

 

Requirement 4:

Determine net income for 20x1, assuming a 30% income tax rate. (Omit the "$" sign in your response.)

 

Requirement 5:

Determine the number of completed units manufactured during the year. (Round your final answer to the nearest whole number.)

 

28. Explain the challenges involved in new-venture development. Many entrepreneurs lack objectivity and.

Explain the challenges involved in new-venture development. Many entrepreneurs lack objectivity and have no real insight into the market. Why are these characteristics considered pitfalls of selecting new ventures? Identify and discuss two examples of financial difficulties that can cause a venture to fail. List four major types of problems that new ventures confront.

29. What is Pete's breakeven point?

Pete Corporation produces bags of peanuts. Its fixed cost is $17,280. Each bag sells for $2.99 with a unit cost of $1.55. What is Pete's breakeven point?

30. The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given

The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 7.0 millilitres $ 0.34 per millilitre $ 2.38 Direct labour 0.2 hours $ 12.00 per hour $ 2.40 During the most recent month, the following activity was recorded: a. 24,500 millilitres of material was purchased at a cost of $0.29 per millilitre. b. All of the material was used to produce 3,000 bottles of Clean-All. c. 675 hours of direct labour time was recorded at a total labour cost of $8,100. Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 2. Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

31. Diego Company manufactures one product that is sold for $80 per unit in two geograp

Diego Company manufactures one product that is sold for $80 per unit in two geographic regions"the East and West regions. The following information pertains to the companys first year of operations in which it produced 40,000 units and sold 35,000 units. Variable costs per unit: Manufacturing: Direct materials $ 24 Direct labor $ 14 Variable manufacturing overhead $ 2 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 800,000 Fixed selling and administrative expenses $ 496,000 The company sold 25,000 units in the East region and 10,000 units in the West region. It determined that $250,000 of its fixed selling and administrative expenses is traceable to the West region, $150,000 is traceable to the East region, and the remaining $96,000 is a common fixed cost. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 14. Diego is considering eliminating the West region because an internally generated report suggest the regions total gross margin in the first year of operations was $50,000 less than its traceable fixed selling and administrative expenses. Diego believes that if it drops the West region, the East regions sales will grow by 5% in Year 2. Using the contribution approach for analyzing segment profitability and assuming all else remains constant in Year 2, what would be the profit impact of dropping the West region in Year 2? 15. Assume the West region invest $30,000 in a new advertising campaign in Year 2 that increases the unit sales by 20%. If all else remains constant, what would be the profit impact of pursuing the advertising campaign?

32. Identify at least two situations in which application of

dentify at least two situations in which application of different accounting methods or accounting estimates results in difficulties in comparing companies.

33. CASE 7 BALANCING VALUES: AN INDIAN PERSPECTIVE ON CORPORATE VALUES FROM SCANDINAVIA 325 BALANCING...

CASE 7 BALANCING VALUES: AN INDIAN PERSPECTIVE ON CORPORATE VALUES FROM SCANDINAVIA 325 BALANCING VALUES: AN INDIAN PERSPECTIVE ON CORPORATE VALUES FROM SCANDINAVIA By Martine Garde! Gertsen and Mette Zolner ACT 1 Bangalore, 17 October 2016, 8.45 am. Amrita Chopra, a senior financial manager in Pharmaz India, is sitting in the back seat of one of the company cars while the driver slowly but skilfully manoeuvers the car forward through Bangalore’s dense traffic jam, using the horn diligently. This morning, Amrita is on her way to a meeting with her new immediate superior, a recently arrived expatriate, Niels Nielsen. He has told her that he wants them to discuss the alignment of local work procedures with Pharmaz’s corporate values. Pharmaz India Pharmaz India in Bangalore is a subsidiary of a multinational pharmaceutical company headquartered in Denmark. Pharmaz employs around 6 000 people; 2 500 work in Denmark, the rest in subsidiaries in more than 30 countries around the world. Pharmaz’s top management, and the Chief Executive Officer (CEO) in particular, like to characterize the company as ‘value-driven’. At Pharmaz the corporate culture is taken very seriously, not least at the headquarters. It has developed slowly as the company has grown over the years, for the first many years primarily within the borders of Denmark. But now, as the company finds itself in a process of rapid globalization, the headquarters is making very conscious efforts to disseminate the corporate culture across borders. Pharmaz is strongly focused on research, and this is reflected in its corporate culture and values. The company attempts to create a learning environment for all employees, not just those working in R&D. Pharmaz’s website and latest annual report state: “New ideas are our business and what we live from. Therefore our corporate culture strongly encourages all our employees, regardless of their position, to learn continuously and to work together creatively.” In accordance with this ideal, three corporate core values have been formulated: ¦ empowerment, implying that all employees should be able to make independent decisions within their respective areas of responsibility ¦ equal opportunities for all employees to develop their competences and advance in their careers • openness in communication between employees at all levels in order to further free exchange of knowledge and ideas. Pharmaz India has been in existence since 1983, but until 2005 it was a local sales office with 10-15 employees. The local management was allowed considerable latitude since the subsidiary’s strategic importance to the company was limited. In 2005 this situation changed when Pharmaz established an offshore financial services center in Bangalore. This location, known as the ‘Silicon Valley of India’, offers low costs and qualified, English-speaking professionals in the relevant fields. The process was initiated with two local employees, and gradually more employees were recruited to form teams responsible for registration of invoices and various accounting and controlling tasks. At first, the center only performed tasks for the headquarters in Denmark. After a couple of years, the center began expanding more rapidly, and tasks requiring collaboration with employees in other subsidiaries were gradually introduced. Today, the center employs 50 people and this number is expected to grow to more than . 130 employees in the course of the next two years as more financial activities will be transferred from other parts of Pharmaz to India. 326 CASE 7 BALANCING VALUES: AN INDIAN PERSPECTIVE ON CORPORATE VALUES FROM SCANDINAVIA In 2007, Pharmaz acquired a part of a locally owned Indian company in order to be able to establish its own production facilities, including some R&D activities, in Bangalore. The acquisition added more than 100 employees to Pharmaz India’s workforce. So today Pharmaz India comprises, in addition to various staff functions such as HR, a production unit, a R&D department, a sales department, and a financial services center. The subsidiary employs more than 200 and, according to Pharmaz’s plans, a considerable number of new people will be recruited in the years to come, not just in the services center. Thus, Pharmaz India has achieved crucial strategic importance and ha’s become a center for growth. This increased focus on Pharmaz India means that the management at headquarters is very keen that the corporate values of empowerment, equal opportunities and openness are fully implemented, or ‘lived’, as the top managers like to put it, in the subsidiary. The senior financial manager and the challenges she is facing Amrita Chopra is 45 years old and she has worked for Pharmaz for three years. One of the company drivers takes her to the office in the morning around 8 a.m. and picks her up in the evening around 6 p.m. Although she lives only 20 km away the journey takes about an hour. She prefers not driving herself on the bumpy and chaotic roads, where holes in the asphalt, motorbikes, bikes, dogs, cows, and pedestrians abound. Amrita also appreciates the opportunity to arrive home without being too stressed, especially because`she has a family to take care of; she is married and has two sons who are 12 and 15 years old. The financial services center where Amrita works is divided in two sections: one providing financial services to the headquarters and subsidiaries in Europe, and one providing services to the Pharmaz subsidiaries Asia, the USA, and Latin America. Amrita heads the first section where currently 20 people work; they are divided into four teams. As for Amrita’s background, she has a master’s degree in finance from a reputable Indian university and is a chartered accountant. She was born in Delhi, where she lived until she got married. Her husband is in the hi-tech business, and Bangalore seemed to be the best place for him to be in terms of enhanced chances for career progress, so the couple decided to move there. Until Amrita got the job as a senior financial manager with Pharmaz, she worked in the finance department of a locally owned information technology (IT) company. She achieved good results in her former job, but she often felt that she had to struggle to obtain respect in the company that was very male dominated and managed in a way she thinks of as ‘traditionally Indian’. She was the first employee ever in the company to take maternity leave and some of her male colleagues seemed genuinely surprised when she came back to work after her leave. She did not receive any training, the pay was average and her working hours were long. Still, she was not unhappy in her former job. Her work was interesting and she always felt that she had the support of the CEO, who did his best to help her when problems occurred. By comparison, Pharmaz offers more advantageous working conditions. The salary is better,though admittedly not qUite as good as in some other international companies in the area. Amrita has been on various types of training in Denmark and she appreciates that the company invests in her professional development in this way. At Pharmaz there is a lot of talk about work—life balance, especially from the headquarters. The idea is that employees should be able to have shorter working days and more flexibility in their schedules because of more efficient organization of work. As a manager, Amrita is rarely able to leav6 very early, but her working days are still shorter than they used to be, which makes it possible for her to spend more time with her family. Although Amrita likes her job, her family is her first priority. Her husband earns enough for all of them to live comfortably, and she has at times been tempted to stay at home and be a full-time housewife. But it seems to her that it would somehow be a waste, considering her education. Also, since they live with her in-laws, there is always someone at home to look after the children and the house, and they have a live-in maid who does most of the housework. Like her own family, Amrita’s in-laws are quite liberal in their attitudes to women’s roles. When they moved in, they told Amrita: “You just go ahead and look for a job; we will take care of the children.” Amrita is glad that they have given her this opportunity to continue her career. Still, life in Pharmaz is not uncomplicated. Amrita finds that the corporate values are in line with her own i lndiai sq ue the e ers fr mans enco more as th sectic as hE what their have SOME belie ? empc unco feels quail order too n ior to leave how comi way. indict and, excel finan interf In team threE has the tp appe lack result but s been the t( Lions has r the a Sava CASE 7 BALANCING VALUES: AN INDIAN PERSPECTIVE ON CORPORATE VALUES FROM SCANDINAVIA 327 own ideas of what management ought to be, at least ideally, but she finds them difficult to implement in an Indian context. As a middle manager she often feels squeezed between the headquarters’ wishes and the expectations of her employees. Visiting managers from headquarters have voiced that they find her management style a little too authoritarian and have encouraged her to “act more like a coach, delegate more, and give fewer orders”. Amrita has argued that, as the senior financial manager, the results of the section are her responsibility. Therefore, she sees it as her job to tell her subordinates what is good and what is not good enough so that they can improve their performance. The managers from headquarters have answered that of,course she should intervene if someone keeps making mistakes, but in general they believe the employees would learn more from being empowered to work independently. Amrita remains unconvinced, but as a manager in •a subsidiary she feels compelled to follow directions from the headquarters. So she delegates more and gives fewer orders. Yet, her employees complain that she expects too much of them when she tries to adjust her behavior to the headquarters’ suggestions in this way. If she leaves it up to them how to carry out their tasks and how to organize their work, some of them just keep coming back to her and asking for directions anyway. Others appear to interpret this approach as an indication that she does not find their work important and, consequently, they get very little done. There are exceptions, of course — a few of the most competent financial analysts seem to thrive without managerial interference.