Governmental and Nonprofit Accounting: Assignment Help
1. The following transactions were completed by Prairie Renaissance Inc., whose fiscal year is the...
The following transactions were completed by Prairie Renaissance Inc., whose fiscal year is the calendar year:2005July 1. Issued $8,000,000 of 5-year, 8% callable bonds dated July 1, 2005, at an effective rate of 10%, receiving cash of $7,382,236. Interest is payable semiannually on December 31 and June 30.Dec. 31. Paid the semiannual interest on the bonds.31. Recorded bond discount amortization of $61,776, which was determined by using the straight-line method.31. Closed the interest expense account.2006June 30. Paid the semiannual interest on the bonds.Dec. 31. Paid the semiannual interest on the bonds.31. Recorded bond discount amortization of $123,552, which was determined by using the straight-line method.31. Closed the interest expense account.2007June 30. Recorded the redemption of the bonds, which were called at 99. The balance in the bond discount account is $370,660 after payment of interest and amortization of discount have been recorded. (Record the redemption only.)Instructions1. Journalize the entries to record the foregoing transactions.2. Indicate the amount of the interest expense in (a) 2005 and (b) 2006.3. Determine the carrying amount of the bonds as of December 31, 2006.View Solution:
The following transactions were completed by Prairie Renaissance
2. 56) Surf Products Company uses an automated process to clean and polish its souvenir items. For...
56) Surf Products Company uses an automated process to clean and polish its souvenir items. For March, the company had the following activities:
Beginning work in process inventory | 3,000 items, 1/3 complete |
Units placed in production | 12,000 units |
Units completed | 9,000 units |
Ending work in process inventory | 6,000 items, 1/2 complete |
Cost of beginning work in process | $2,500 |
Direct material costs, current | $9,000 |
Conversion costs, current | $7,700 |
Direct materials are placed into production at the beginning of the process and conversion costs are incurred evenly throughout the process.
Required:
Prepare a production cost worksheet using the FIFO method.
57) What is the difference between a weighted-average method of process costing and a first-in, first-out method of process costing?
58) Universal Industries operates a division in Brazil, a country with very high inflation rates. Traditionally, the company has used the same costing techniques in all countries to facilitate reporting to corporate headquarters. However, the financial accounting reports from Brazil never seem to match the actual unit results of the division. Management has studied the problem and it appears that beginning inventories may be the cause of the unmatched information. The reason for this is that the inventories have a different financial base because of the severe inflation.
Required:
How can process costing assist in addressing the problem facing Universal Industries?
Answer: Probably the best way to address the problem of inflation is to use FIFO costing. This method keeps the cost of beginning inventories separate from production units started and completed in a given period. Therefore, the company may be able to track the cost of items that were actually produced in a given period, versus mixing the units and costs of multiple periods.
1) In a process-costing system when goods move from department to department, the accounting for such transfers is relatively simple under:
A) standard costing
B) FIFO costing
C) weighted-average costing
D) operations costing
3. Refer to the information presented in Note 13.10 "Review Problem 13.1"for PepsiCo, and...
Refer to the information presented in Note 13.10 "Review Problem 13.1"for PepsiCo, and perform the following:
1. Prepare a common-size analysis for PepsiCo’s income statement using the format shown in Figure 13.5 "Common-Size Income Statement Analysis for ".
2. Prepare a common-size analysis for PepsiCo’s balance sheet using the format shown in Figure 13.6 "Common-Size Balance Sheet Analysis for ".
3. Briefly describe any significant changes from 2009 to 2010 identified in parts 1 and 2.
Review Problem 13.1:
The following income statements and balance sheets are for PepsiCo, Inc.We use this information in review problems throughout the chapter.
1. Prepare a trend analysis for PepsiCo‘s income statement using the format shown in Figure 13.1 "Income Statement Trend Analysis for ".
2. Prepare a trend analysis for PepsiCo’s balance sheet using the format shown in Figure 13.2 "Balance Sheet Trend Analysis for ".
3. Compare PepsiCo’s increase in net income from 2009 to 2010 to Coca-Cola’s increase shown in Figure 13.1 "Income Statement Trend Analysis for ". Which company has the highest percentage growth in net income?
4. Compare PepsiCo’s increase in total assets from 2009 to 2010 to Coca-Cola’s increase shown in Figure 13.2 "Balance Sheet Trend Analysis for ". Which company has the highest percentage growth in total assets?
4. 31. The _____ are the activities that members of a work unit engage in to produce a given...
31. The _____ are the activities that members of a work unit engage in to produce a given output.
A. work outputs
B. work analyses
C. work inputs
D. work processes
Work processes consist of operating procedures that specify how things should be done at each stage of the development of a product.
32. Identify the exception among the following statements with regard to the benefits of team-based job design.
A. Team members can back each other up.
B. Team members can point out each other's mistakes.
C. Team members can share work in case a member is overloaded.
D. Some members lean too much on other team members.
In addition to providing a wider set of skills, team members can back each other up, share work when any member becomes overloaded, and also catch each other's errors.
33. If work is organized around teams, then:
A. highly complex work should be assigned to single individuals.
B. team bonuses need to play a major role in terms of defining rewards.
C. individual pay raises need to play a major role in terms of defining rewards.
D. decision-making power should be centralized.
For teams to be effective, it is essential that the level of task interdependence matches the level of outcome interdependence. And team bonuses play a major role in terms of defining rewards.
34. When a work group's workload lightens, then:
A. members may take on tasks that do not relate to the work unit's product in an effort to appear busy.
B. members will offload the remaining work onto other team members.
C. members will stop coming to work.
D. the work group will decrease in size by letting go of additional members.
Often, when workloads increase, a group will grow by adding positions to meet new requirements. However, when work load lightens a member may take on unrelated tasks to appear busy.
35. How much teams share a reward for task accomplishment is known as:
A. member heterogeneity.
B. potency.
C. outcome interdependence.
D. task interdependence.
For teams to be effective, it is essential that the level of task interdependence (how much they have to cooperate) matches the level of outcome interdependence (how much they share the reward for task accomplishment).
36. The final stage of a work-flow analysis is analyzing the:
A. work outputs.
B. work inputs.
C. work processes.
D. work relationships.
The final stage in work-flow analysis is to identify the work inputs. They further may be broken down into the raw materials, equipment, and human skills needed to perform the tasks.
37. The final inputs in the work flow process are the:
A. raw materials.
B. technology and machinery.
C. human skills and effort.
D. quality control measures.
Work inputs can be broken down further into the raw materials, equipment, and human skills needed to perform the tasks.
38. Assume that you are writing a report for your class. You do not possess good writing skills, and because of this deficiency, your paper receives a grade of D. In which part of the work-flow process was the deficiency?
A. Raw material inputs
B. Equipment
C. Human skills
D. Activity
Human skills and efforts are considered an input in the work-flow process and are necessary to perform tasks.
39. Creating a good fit between the skills and values of employees and _______ is a powerful determinant of organizational success.
A. the environment in which they work
B. their co-workers
C. the culture of the department
D. the tasks and mission they are assigned
A good fit between the skills and values of employees and the tasks assigned is important for organizational success and cannot be taken lightly.
40. When decision-making authority resides at the top of the organizational chart as opposed to being distributed throughout lower levels, an organization is:
A. divisional.
B. mechanistic.
C. centralized.
D. decentralized.
Centralized authority is decision-making authority residing at the top of the organizational chart. And when authority is distributed through the lower levels an organization has a decentralized authority.
5. Question Accounts Receivable Aging Analysis Richard Derick has asked you to review the accounts...
Question
Accounts Receivable Aging Analysis
Richard Derick has asked you to review the accounts receivable aging analysis and the allowance for doubtful accounts and to recommend any audit adjustments or reclassifications you consider necessary. Shelly Ross had prepared the aging analysis and the allowance for doubtful accounts document before being temporarily transferred to the Joplin Mills audit. She should be back early next week, but Derick would like to “wrap up” accounts receivable this week.
Based on the aging analysis prepared by Ross, you have decided to confirm all large accounts and a sampling of the smaller accounts, using positive confirmations.
Requirements
1. Retrieve the file labeled “20X9_ar.xlsx” (Link) Locate the following documentation in this file:
WP 3—Accounts and notes receivable—trade
WP 3.A—Accounts receivable aging analysis
WP 3.C—Allowance for uncollectible accounts
Scroll to WP 3.A, “Accounts Receivable Aging Analysis” and answer the following questions:
What proportion of the total dollar amount of accounts receivable have you included in your confirmation requests?
What procedures should you apply in the event of no reply to a request for positive confirmation?
What is the purpose of analyzing subsequent collections?
2. Based on your analysis of subsequent collections and the results of the confirmation process, are you satisfied that you have sufficient appropriate evidence to evaluate the existence and valuation assertions?
3. Draft the suggested Reclassification Entry A for the credit balances that are included on the accounts receivable sub-ledger.
4. Scroll to WP 3.C, “Allowance for Uncollectible Accounts.”
What type of correspondence would you examine to satisfy yourself as to the accounts receivable write-offs?
Draft the suggested Audit Adjustment 2 based on your review of the allowance calculation in comparison to the balance the client currently has on their books. Are you satisfied that the balance in the allowance is adequate after your recommended adjustment?
Scroll to WP 3, “Accounts and Notes Receivable—Trade” (lead schedule). Post Reclassification Entry A and Audit Adjustment 2 to the appropriate locations in the lead schedule.
WP 3 Brony's Bikes |
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Accounts and Notes Receivable-Trade |
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December 31, 20X9 |
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| 12/31/20X8 | 12/31/20X9 | Audit |
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| Audited Balance | Per Ledger | Adjustments | Reclassifications | Audited |
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Accounts Receivable-Trade | $11,700,000 | $11,920,000 |
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| $11,920,000 | 3.A |
Notes Receivable-Trade | $1,500,000 | $80,000 |
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| $80,000 | 3.B |
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Total | $13,200,000 | $12,000,000 | $0 | $0 | $12,000,000 |
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Allowance for Doubtful Accounts | ($800,000) | ($220,000) |
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| ($220,000) | 3.C |
| - | - | - | - | - |
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| $12,400,000 | $11,780,000 | $0 | $0 | $11,780,000 |
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6. Adventure land Incorporated purchased metal to build a new roller coaster on December 31, 2017....
Adventure land Incorporated purchased metal to build a new roller coaster on December 31, 2017. Adventure land provided a $500,000 down payment and agreed to pay the balance in equal installments of $200,000 every December 31 for five years. Adventure land could have received a loan from the bank for this amount at 9% interest. Adventure land prepares financial statements in accordance with IFRS. Instructions (a) Using time value of money tables, a financial calculator, and computer spreadsheet functions, prepare the journal entries that would be recorded for the purchase and for the payments and interest on December 31, 2017, 2018, 2019, 2020, 2021, and 2022. (b) From the lender s perspective, what are the advantages of an installment note compared with an interest-bearing note?
7. 56.Which of the following is not an example of a variable cost? A.Straight-line depreciation on a...
56.Which of the following is not an example of a variable cost?
A.Straight-line depreciation on a machine that has a five-year service life.
B.Wages of manufacturing workers whose pay is based on hours worked.
C.Tires used in the production of tractors.
D.Aluminum used to make patio furniture.
E.Commissions paid to sales personnel.
57.Fixed costs are costs that:
A.vary directly with changes in activity.
B.vary inversely with changes in activity.
C.remain constant on a per-unit basis.
D.remain constant as activity changes.
E.increase on a per-unit basis as activity increases.
58.The fixed cost per unit:
A.will increase as activity increases.
B.will increase as activity decreases.
C.will decrease as activity increases.
D.will remain constant.
E.will increase as activity decreases and will decrease as activity increases.
59.Which of the following is an example of a fixed cost?
A.Paper used in the manufacture of textbooks.
B.Property taxes paid by a firm to the City of Los Angeles.
C.The wages of part-time workers who are paid $8 per hour.
D.Gasoline consumed by salespersons' cars.
E.Surgical supplies used in a hospital's operating room.
60.The true statement about cost behavior is that:
A.variable costs are constant on a per-unit basis and change in total as activity changes.
B.fixed costs are constant on a per-unit basis and change in total as activity changes.
C.fixed costs are constant on a per-unit basis and constant in total as activity changes.
D.variable costs change on a per-unit basis and change in total as activity changes.
E.variable costs are constant on a per-unit basis and are constant in total as activity changes.
61.The true statement about cost behavior is that:
A.variable costs change on a per-unit basis and change in total as activity changes.
B.fixed costs are constant on a per-unit basis and change in total as activity changes.
C.fixed costs are constant on a per-unit basis and are constant in total as activity changes.
D.fixed costs change on a per-unit basis and are constant in total as activity changes.
E.variable costs are constant on a per-unit basis and are constant in total as activity changes.
62.The variable costs per unit are $6 when a company produces 12,000 units of product. What are the variable costs per unit when 14,000 units are produced?
A.$4.50.
B.$5.00.
C.$5.50.
D.$6.00.
E.None of the other answers are correct.
63.The fixed costs per unit are $10 when a company produces 10,000 units of product. What are the fixed costs per unit when 8,000 units are produced?
A.$12.50.
B.$10.00.
C.$8.00.
D.$6.50.
E.$5.50.
64.Total costs are $180,000 when 10,000 units are produced; of this amount, variable costs are $64,000. What are the total costs when 13,000 units are produced?
A.$199,200.
B.$214,800.
C.$234,000.
D.None of the other answers are correct.
E.Total costs cannot be calculated based on the information presented.
65.When 5,000 units are produced variable costs are $35 per unit and total costs are $200,000. What are the total costs when 8,000 units are produced?
A.$200,000.
B.$305,000.
C.$240,000.
D.None of the other answers are correct.
E.Total costs cannot be calculated based on the information presented.
8. Q1. For AEO the Par Value account is titled (_________________ / Contributed Capital) and is...
Q1. For AEO the Par Value account is titled (_________________ / Contributed Capital) and is ___________ per share, while the Additional Paid-in-Capital account is titled (Common Stock / _________________). Q2. On January 29, 2011 _______ thousand was reported as Common Stock (Par) and _________ thousand reported as Contributed Capital (APIC) for total contributions of $549,093 thousand for issued shares. Q3. During FYE January 28, 2012, AEO repurchased common stock, which (increased / _________________) total stockholders’ equity by _________________thousand and reissued treasury stock which (_________________/ decreased) total stockholders’ equity by _________________thousand. Upon incorporation, a company is _________________(by the state of incorporation) to _________________a designated number of shares to investors. Sometimes corporations buy back shares of stock that have been issued; these are referred to as _________________ are the total number of shares actually held by investors at a given time, equaling shares issued less shares of treasury stock. Q4. On January 29, 2011 for preferred stock there are (0 / _________________/ 600,000) thousand shares authorized, (_______ / 5,000 / 600,000) thousand shares issued, and (_________________ / 5,000 / 600,000) thousand shares outstanding. Whereas for common stock on January 29, 2011 there are (_________________/ 249,566 / 194,366) thousand shares authorized, (600,000 / _________________/ 194,366) thousand shares
9. Banner Company produces three products: A, B, and C. The selling price, variable costs, and...
Banner Company produces three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: Due to a strike in the plant of one of its competitors, demand for the company’s products far exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in filling its backlog of orders. The direct labor rate is $8 per hour, and only 3,000 hours of labor time are available each week. Required: 1. Compute the amount of contribution margin that will be obtained per hour of labor time spent on each product. 2. Which orders would you recommend that the company work on next week—the orders for product A, product B, or product C? Show computations. 3. By paying overtime wages, more than 3,000 hours of direct labor time can be made available next week. Up to how much should the company be willing to pay per hour in overtime wages as long as there is unfilled demand for the three products?Explain.