Shelly Eckert has prepared the following list of statements about internal control. Identify each statement as true or false. If false, indicate how to correct the statement. a. One of the objectives of internal control is to safeguard assets from employee theft, robbery, and unauthorized use. Select an option b. One of the objectives of internal control is to enhance the accuracy and reliability of the accounting records. Select an option c. No laws require U.S. corporations to maintain an adequate system of internal control. Select an option

Answer:

a. One of the objectives of internal control is to safeguard assets from employee theft, robbery, and unauthorized use. = True

b. One of the objectives of internal control is to enhance the accuracy and reliability of the accounting records. =True

c. No laws require U.S. corporations to maintain an adequate system of internal control. = False

Explanation:

Internal control refers to the rules, methods of operation, principles, and standards that are meant to be strictly adhered to by an organization in order to maintain a high degree of financial integrity. From the options provided;

a. One of the objectives of internal control is to safeguard assets from employee theft, robbery, and unauthorized use: This statement is true because when the approved standards are met, assets can be protected and easily traced in the event of a theft. It would also ensure that restrictions to unauthorized records and tools are maintained.

b. One of the objectives of internal control is to enhance the accuracy and reliability of the accounting records: This statement is also true because when good internal controls are followed accounting records are kept up to date and so they can be relied upon.

c. No laws require U.S. corporations to maintain an adequate system of internal control: This statement is false because the U.S is very keen on the maintenance of internal controls by organizations. Defaulters are prosecuted by law enforcement agencies. The Sarbanes-Oxley Act of 2002 makes defaulters culpable.

The employees at your job have been asked to attend a mandatory training meeting. Your co-worker, Mike, doesn't want to go and has asked that you sign his name to the attendance sheet for him. Mike's request shows he does not demonstrate which workplace attitude?


honesty

dependability

punctuality

self-confidence

Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $65,000 bill from her accountant for consulting services related to her small business. Reese can pay the $65,000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and 35 percent next year, and that she can earn an after-tax rate of return of 12 percent on her investments.

Required:
a. What is the after-tax cost if she pays the $65,000 bill in December?
b. What is the after-tax cost if she pays the $65,000 bill in January?

Kacy Spade, owner, invested $14,000 cash in the company in exchange for common stock.

The company purchased office supplies for $406 cash.

The company purchased $7,742 of office equipment on credit.

The company received $1,652 cash as fees for services provided to a customer.

The company paid $7,742 cash to settle the payable for the office equipment purchased in transaction c.

The company billed a customer $2,968 as fees for services provided.

The company paid $535 cash for the monthly rent.

The company collected $1,247 cash as partial payment for the account receivable created in transaction f.

The company paid $1,000 cash in dividends to the owner (sole shareholder).

Required:

1. Prepare general journal entries to record the transactions above for Spade Company by using the following accounts: Cash; Accounts Receivable; Office Supplies; Office Equipment; Accounts Payable; Common Stock; Dividends; Fees Earned; and Rent Expense. Use the letters beside each transaction to identify entries.
2. Post the above journal entries to T-accounts, which serve as the general ledger for this assignment

.

Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding and trimming, before they are ready for packaging. Expected costs and activities for the molding department and for the trimming department for 2017 follow.

Molding Trimming
Direct labor hours 52,000 DLH 48,000 DLH
Machine hours 30,500 MH 3,600 MH
Overhead costs $730,000 $590,000

Data for two special order parts to be manufactured by the company in 2017 follow.

Part A27C Part X82B
Number of units 9,800 units 54,500 units
Machine hours Molding 5,100 MH 1,020 MH
Trimming 2,600 MH 650 MH
Direct labor hours Molding 5,500 DLH 2,150 DLH
Trimming 700 DLH 3,500 DLH

Required:
a. Compute the plantwide overhead rate using direct labor hours as the base.
b. Determine the overhead cost assigned to each product line using the plantwide rate computed in requirement a.

Suppose France produces only trucks and cars. The resources that are used in the production of these two goods are not specialized—that is, the same set of resources is equally useful in producing both cars and trucks. The shape of France's production possibilities frontier (PPF) should reflect the fact that as France produces more cars and fewer trucks, the opportunity cost of producing each additional car_________ .

You have been pricing an MP3 player in several stores. Three stores have the identical price of $500. Each store charges 24 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C uses the previous balance method. Assume you purchased the MP3 player on May 5 and made a $100 payment on June 15.

John Riley, A certified public accountant, has worked for the past eight years as a payroll clerk for Southeast industries, a small furniture manufacturing firm in the Northeast. john recently experienced unfortunate circumstances. his teenage son required major surgery and the medical bills not covered by John's insurance have financially strained John's family.

John works hard and is a model employee. Although he received regular performance raises during his first few years with Southeast. John's wages have not increased in three years. John asked his supervisor, Bill Jameson, for a raise. Bill agreed that John deserved a raise, but told him he could not currently approve one because of sluggish sales. A disappointed John returned to his duties while the financial pressures in his life continued. Two weeks later, Larry Tyler, an assembly worker at Southwest, quit over a dispute with management. John conceived an idea. John's duties included not only processing employee terminations but also approving time cards before paychecks were issued and then distributing the paychecks to firm personnel. John decided to delay processing Mr. Tyler's termination, to forge timecards for Larry Tyler for the next few weeks, and to cash the checks himself. Since he distributed paychecks, no one would find out, and John reasoned that he was really entitled to the extra money anyway. In fact, no one did discover his maneuver and John stopped the practice after three weeks.

Required:
a. Does John's scheme affect Southeast's balance sheet? Explain your answer.
b. Review the AICPA's Articles of Professional Conduct and comment on any of the standards that have been violated.
c. Identify the three elements of unethical and criminal conduct recognized in the fraud triangle.

Accepting the kind of criticism that can help you grows a trait of people with _____

Tyler has itemized deductions greater than $12,400 for 2020, which is enough to itemize. His effective tax rate is 16% and his marginal tax rate is 24%. If Tyler accelerates an anticipated charitable contribution of $3,000 by paying it December 31, 2020, rather than February 1, 2021, he will be able to claim the standard deduction in 2021 because his other itemized deductions in 2021 are estimated to be $10,000.
1. Is this a good idea?
2. What is Larry's after-tax gain by doing this? Explain. Calculations are appreciated.

Robert wants to get serious about saving for a new car. Which account would you recommend? Why?

Cindy has been working for 8 years, and she’s built up a huge emergency fund -- $45,000, which would be 6 months of her salary. She’s hoping to earn a bit more interest than she currently is with that $45,000 just sitting in her traditional bank’s savings account. Which account would you recommend? Why?

Janelle likes to keep all her savings goals separate, so she has an account for each one, including an account to save for her college textbooks every semester. She buys books about every 6 months, with roughly $550 due each time. She likes to save the money up in installments, with auto-deposits from each of her twice monthly paychecks. She’s wondering if her online savings account, earning 0.75%, is still her best option for monthly deposits toward her textbooks. Which account would you recommend? Why?​

Britany farms 80 acres of soybeans. Her total expenses are $45,000, and she generates $48,000 from
the sale of soybeans. Calculate Britany's profit per acre.

A department begins the month with 100 units at a cost of $7,500 and 25% complete in work in process. An additional 1,000 units are started during the month and additional costs incurred are $12,500. At the end of the month, there are 200 units still in process which are 50% complete. Using FIFO, the ending balance in Work in Process Inventory is _______________ $ (rounded to nearest dollar).

For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); Common Stock (307); Dividends (319); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696).

On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $89,000 in cash along with equipment having a $49,000 value in exchange for common stock.
On May 21, Elegant Lawns purchases office supplies on credit for $660.
On May 25, Elegant Lawns receives $9,700 cash for performing landscaping services.
On May 30, Elegant Lawns receives $2,900 cash in advance of providing landscaping services to a customer.

Complete this question by entering your answers in the tabs below

Assests Liabilities Equity
a.
b.
c.
d.

Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s records show the following selected accounts and amounts for the month of August.


Cash $25,200
Dividends $5,830
Accounts receivable 22,240
Consulting fees earned 26,880
Office supplies 5,080
Rent expense 9,390
Land 43,890
Salaries expense 5,450
Office equipment 19,860
Telephone expense 690
Accounts payable 10,840
Miscellaneous expenses 390
Common stock 100,300

Required:
Prepare an income statement.

Janet and Megan are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Janet takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Megan takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza.
Janet's opportunity cost of making a pizza is ______ of root beer, and Megan's opportunity cost of making a pizza is _______ of root beer.
______ has an absolute advantage in making pizza, and _______ has a comparative advantage in making pizza.
If Janet and Megan trade foods with each other, ______ will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is ______ of root beer, and the lowest price that makes both roommates better off is ______ of root beer per pizza.

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:______.
Activity Cost Pool Activity Measure
Caring for lawn Square feet of lawn
Caring for garden beds–low maintenance Square feet of low maintenance beds
Caring for garden beds–high maintenance Square feet of high maintenance beds
Travel to jobs Miles
Customer billing and service Number of customers
The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:______.
Activity Cost Pool Estimated Overhead Cost Expected Activity
Caring for lawn $ 84,200 190,000 square feet of lawn
Caring for garden
beds–low maintenance $ 36,800 30,000 square feet of low maintenance beds
Caring for garden
beds–high maintenance $ 66,960 24,000 square feet of high maintenance beds
Travel to jobs $ 4,600 21,000 miles
Customer billing and
service $ 9,500 24 customers
Required:
Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)
Activity Cost Pool Activity Rate
Caring for lawn per square foot of lawn
Caring for garden per square foot of low maintenance beds
Caring for garden
beds-high maintenance per square foot of high maintenance beds
Travel to jobs per mile
Customer billing and service per customer

In its first year of operations, Roma Company reports the following:

• Earned revenues of $45,000 ($37,000 cash received from customers).

• Incurred expenses of $25,500 ($20,250 cash paid toward them).

• Prepaid $6,750 cash for costs that will not be expensed until next year.

Compute the company’s first-year net income under both the cash basis and the accrual basis of accounting.

Quick Cleaners, Inc. (QCI), has been in business for several years. It specializes in cleaning houses but has some small business clients as well. Issued $22,000 of QCI stock for cash. Incurred $815 of utilities costs this month and will pay them next month. Incurred and paid wages for the current month, totaling $3,150. Performed cleaning services on account worth $4,350. Some of Quick Cleaners’s equipment was repaired at a total cost of $248. The company paid the full amount at the time the repair work was done.

Required:
Prepare journal entries for the above transactions, which occurred during a recent month.

Department B had 3,000 units in Work in Process that were 25% completed at the beginning of the period at a cost of $12,500. 13,700 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 1,700 units were 95% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710.The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was:
a. 12,000
b. 13,615
c. 14,365
d. 15,865

A bookkeeper's first task is to

You are an entrepreneur who has developed a new kind of electric beard trimmer that trims beards more closely and more quickly than other trimmers on the market. SuperShaver, Inc. is an experienced manufacturer of facial shaving products and learns about your new invention from a trade show. SuperShaver is interested in contracting for the intellectual property rights to your shaver. A representative of SuperShaver wants to offer you a percentage of the profits and is willing to agree to a deal right now with an oral agreement. Assuming the terms are reasonably fair, evaluate the positive and negative contractual implications of accepting SuperShaver's oral offer.

The cumulative feature of preferred stock
A) limits the amount of cumulative dividends to the par value of the preferred stock.
B) requires that dividends not paid in any year must be made up in a later year before dividends are distributed to common shareholders.
C) means that the shareholder can accumulate preferred stock until it is equal to the par value of common stock at which time it can be converted into common stock.
D) enables a preferred stockholder to accumulate dividends until they equal the par value of the stock and receive the stock in place of the cash dividends.

On December 1, 2021, Wolverine receives $2,400 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue.
Wolverine purchases a one-year property insurance policy on July 1, 2021, for $11,280. The payment is debited to Prepaid Insurance for the entire amount.
Employee salaries of $1,400 for the month of December will be paid in early January 2022.
On November 1, 2021, the company borrows $7,000 from a bank. The loan requires principal and interest at 12% to be paid on October 30, 2022.
Office supplies at the beginning of 2021 total $840. On August 15, Wolverine purchases an additional $1,800 of office supplies, debiting the Supplies account. By the end of the year, $340 of office supplies remains.
Required:
Record the necessary adjusting entries at December 31, 2021, for Wolverine Company. You do not need to record transactions made during the year.

Experience is one way an aptitude can be learned ?
True or false ?

Felicia Robinson is running for school board in a large eastern city. Her opponent is conducting what Felicia regards as a highly unethical cam- paign. In addition to twisting the facts about school taxes, the opponent is pandering to racial prejudice by raising resentment against African Ameri- cans and recently arrived immigrants. Five days before the election, Felicia, who is slightly behind in the polls, learns that the district attorney is preparing to indict her opponent for shady business practices. But the indictment will not be formally issued until after the election. Nor can it be taken as evidence that her opponent is guilty—like all citizens, he has the right to be presumed innocent until proven otherwise. Still, news of the indictment could be enough to throw the election Felicia’s way, and her advisers urge her to make it an issue in her remain- ing campaign speeches. Should Felicia follow their advice?
Explain what whould be the most ethlial course of action in her case, and why?

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March - Job P and Job Q.
The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March)
Molding Fabrication Total
Estimated total machine-hours used 2,500 1,500 4,000
Estimated total fixed manufacturing overhead $12,000 $16,200 $28,200
Estimated variable manufacturing overhead per machine-hour $2.20 $3.00
Job P Job Q
Direct materials $21,000 $12,000
Direct labor cost $27,400 $10,700
Actual machine-hours used:
Molding 2,500 1,600
Fabrication 1,400 1,700
Total 3,900 3,300
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required:
For questions 1 and 2, assume that Sweeten Company uses a plant-wide predetermined overhead rate with machine-hours as the allocation base.
For questions 3-9, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.
1) Assume that Sweeten Company uses cost-plus pricing ( and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q?
2) What was Sweeten Company's cost of goods sold for March?
3) What were the company's predetermined overhead rates in the Molding Department and the Fabrication Department?
4) How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?
5) How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?
6) If Job P included 20 units, what was its unit product cost?
7) If Job Q included 30 units, what was its unit product cost?
8) Assume that Sweeten Company used cost-plus pricing ( and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for job P and 30 units were produced for job Q?
9) What was Sweeten Company's cost of goods sold for March?

On November 14, the Milling Department accepted Job 111407A for 1,000 pounds of cereal mix. Materials: Standard Qty. Standard Cost Oats 525 pounds $1.25 per pound Wheat 450 pounds $1.15 per pound Barley 85 pounds $1.45 per pound Malt 65 pounds $2.15 per pound Honey 25 quarts $1.20 per quart Water 25 gallons $0.45 per gallon Time: Miller 4 1/2 hours $22.75 per hour Loader 1 1/2 hours $11.50 per hour Manufacturing overhead is applied at $5.75 per pound completed, and $75.75 of materials are returned to Raw Materials Inventory. The recipe produced 1,025 pounds of cereal mix.
(a) Write the journal entry to transfer raw materials to Job 111407A.
(b) Write the journal entry to provide labor to Job 111407A.
(c) Write the journal entry to return 50 pounds oats, 5 pounds of barley, and 5 quarts of honey back to raw materials inventory.
(d) Write the journal entry to apply manufacturing overhead to Job 111407A.
(e) Write the journal entry to transfer Job 111407A to finished goods on November 14th.

What are the two components needed for successful lobbying?

For each of the following separate situations, prepare the necessary accounting adjustments using the financial statement effects template.

a. Unrecorded depreciation on equipment is $720.
b. The supplies account has a balance of $3,870. Supplies still available at the end of the period total $1,100.
c. On the date for preparing financial statements, an estimated utilities expense of $430 has been in- curred, but no utility bill has yet been received or paid.
d. On the first day of the current period, rent for four periods was paid and recorded as a $3,200 increase (debit) to prepaid rent and a $3,200 decrease (credit) to cash.
e. Nine months ago, a one-year service policy was sold to a customer and the seller recorded the cash received by crediting unearned revenue for $1,872. No accounting adjustments have been prepared during the nine-month period. The seller is now preparing annual financial statement.
f. At the end of the period, employee wages of $965 have been incurred but not paid or recorded.
g. At the end of the period, $300 of interest has been earned but not yet received or recorded.

Following are the transactions of Sustain Company.
June 1 T. James, owner, invested $18,500 cash in Sustain Company in exchange for common stock.
2 The company purchased $11,500 of furniture made from reclaimed wood on credit.
3 The company paid $2,100 cash for a 12-month insurance policy on the reclaimed furniture.
4 The company billed a customer $10,500 in fees earned from preparing a sustainability report.
12 The company paid $11,500 cash toward the payable from the June 2 furniture purchase.
20 The company collected $10,500 cash for fees billed on June 4.
21 T.James invested an additional $17,500 cash in Sustain Company in exchange for common stock.
30 The company received $12,500 cash from a client for sustainability services for the next 3 months.
Prepare general journal entries for the above transactions
View transaction list
Journal entry worksheet
1 2 3 4 5 6 7 8
T. James, owner, invested $14,500 cash in Sustain Co. in exchange for its common stock.
Note: Enter debits before credits.
Date General Journal Debit Credit
June 01