April and Renz, sole proprietors, formed a partnership on September 1. Their books on this date showed the following: April P 15,000 540,000 Merchandise Inventory Machinery and Equipment Total Accounts Payable April, Capital Renz, Capital Total $\underline{\operatorname{Renz}}$ P 37,500 225,000 202,500 $\underline{150}, \underline{000}$ $\underline{270}, \underline{000}$ $\underline{9705}, \underline{000}$ $\underline{P 735}, \underline{000}$ P135,000 P240,000 570,000 $\underline{495}, \underline{000}$ $\underline{P 705}, \underline{000}$ $\underline{P 735}, \underline{000}$ The partners agreed that the machinery and equipment of April were under-depreciated by $P 15,000$ and those of Renz's by $P 45,000$. Allowance for Doubtful Accounts had to be set up amounting to P120,000 for April and 945,000 for Renz. The partnership agreement provides for a profit and loss ratio and capital interest of $60 \%$ to April and $40 \%$ to Renz. How much cash should April invest to bring the partner's capital balances proportionate to profit and loss ratio?

PART 1 INSTRUCTIONS: You are an attorney working for a large law firm. Anthony, Paul and Silvio retain you to represent them. With the material that you studied in the Chapters, prepare an essay explaining the issues presented. Be sure to explain the Courts (Federal or State) to which the matters could be brought and why, and the various legal issues that you studied with respect to the fact pattern, and jurisdiction for each. Take each set of facts in each paragraph, and explain the law as it applies to the facts. WRITE IN A PARAGRAPH FORM FOR EACH. Anthony , a New Jersey resident, and owner of a waste disposal company in New Jersey decided to expand his business to the five boroughs of New York City. On a particular Sunday afternoon Anthony and some of his employees drove in the company SUV across the George Washington Bridge and headed to a meeting in the Queens with a local Queens based waste disposal company in order to enter into a joint venture for the collection of commercial waste. The SUV was traveling at approximately 30 miles per hour on the side streets of the Queens as it beaded to the meeting. Tony was driving the car and had his employees, Paul and Silvio (all New Jersey residents) sitting in the back seat of the vehicle. As Tony left the Long Island Expressway at the Utopia Parkway ramp he stopped at a traffic light. A truck traveling from behind was apparently traveling over the speed limit and was unable to stop in time. Tony's SUV was "rear-ended” by the truck. The truck was owned by the a local fireworks company , a New York domestic corporation and contained fireworks for the upcoming 4th of July display in the East River. Paul and Silvio sustained injuries as a result of the car crash. They were immediately hospitalized . The SUV was "totaled" and could not be repaired due to the extensive damage . The damage to the SUV (a specially designed Porsche) was $85,000. The cost of the hospitalization to Paul and Silvio was $15,000 to each respectively. Anthony was able to keep his business appointment, despite the fact that his entourage was hospitalized. Driving the business meeting, Anthony was angered that the Queens Company was not interested in the terms of the contract. He held a gun to the head of the Queens Company Vice President and , as a result, they agreed to enter into a joint venture agreement His agreement with the Queens based company was as follows: The Queens Company could use his trucks to for waste removal . They would pay him a monthly rental for the use of his trucks . The Vice President then brought the agreement to the President of the Queens Company President for signature . The President was awoken from sleep and was presented with the agreement and was told he was signing a contract with a local vendor for truck parts . He signed the agreement without reading it as he was still groggy from being awoken . Two weeks later, Paul, who owned an appliance store, paid for an advertisement in the local Dollarsaver newspaper. The advertisement stated that the first person who entered the stort at 9:00 A.M. on Tuesday October 16, and who purchased a 19" plasmas television set, would receive a free outdoor barbeque set. Jim entered the store at 9:00 AM on the 16th, purchased the 19" plasma TV and was advised that the appliance store had no barbeque sets in stock. The same day Paul signed an agreement with Sony to purchase all of the 19" plasma TVs that Sony produces . Two weeks later, when the first shipment arrived , Paul rejects the shipment on the basis that there was no contract because the quantity was "too vague ." Three weeks later, Silvio decided to sell his home. He met with the potential buyers and advised them that the zoning for the house permitted the house to be used as a two-family dwelling and that the property size was sufficient for the town to permit the construction of an in-ground pool. The real estate broker representing Silvo concurred. The broker was Silvio's nephew. The purchasers, who wanted to convert the house to a two family dwelling in order to move their parents in, signed the agreement and relied upon the broker and Silvio's representation. Weeks later they met with the local Building Department for the town and were told that the zoning laws for the town only permitted one family dwelling for their newly purchased house. Part 2 INSTRUCTIONS: SPOT THE MANY ISSUES HERE. IDENTIFY AND EXPLAIN THE ISSUES. WRITE IN A PARAGRAPH FORM FOR EACH. Stein & his son owned a television appliance store. However they were having severe financial difficulties and decided to borrow money in order to increase their working capital for the company. Stein, was having difficulty borrowing money from conventional lenders due to poor Dunn & Bradstreet rating and his poor personal credit rating. He was introduced by a friend to a company which provided loans to companies in need of capital. Stein signed on behalf of the corporation and the interest rate for the loan was 26% annually . In addition he signed for a personal loan of 17 %. A few months later, despite this influx of capital, Stein realized that the business was failing. He was forced to sell to a national appliance chain, GP Pritchard. Pritchard's attorney prepared a sale contract which included a provision prohibiting Stein from operating an appliance store within 10 miles of the current store location and for a time period of 10 years. Stein reluctantly signed the agreement due to his financial inabilities . Pritchard opened a new appliance store and made it employees sign an employment agreement which prohibited its employees from working for Pritchard's competitors for no less than 10 years after they left Pritchard's employ . Stein in the meantime opened a new business, a health spa. Members signed contracts which relieved Stein from any liability for negligence for any reason whatsoever. Jim, a new member, slipped near the spa pool which contained puddies of water . In the meantime, Pritchard's business was booming. However, Prictchard's attomey suggested that Pritchard could further increase its business by providing installment sales agreements for its customers. The terms of the installment contract included a provision such that if the customer defaulted in the payment of any installment , the company could repossess any appliances bought, at any time from Pritchard. Prtichard's business expanded. In addition to appliances the business now sold household goods, clothing and food. One day Theodore Cleaver, a 15 year old, entered the store. He appeared old than his age but no one questioned him. He bought a flat screen TV , sneakers, and groceries such as milk and eggs. A day later he appeared at the store to return all of the items and he demanded his money back. Theodore's grandmother June had been declared an incapacitated person by the NYS courts. Theodore, who lived with his grandmother and mother (who was the court appointed guardian for his grandmother), wanted to have cable TV installed in their home. His mother refused . One aftemoon, he called the cable company and had his grandmother sign a contract to install cable TV . His mother came and was furious . She called the cable company to remove the cable system . The company refused . Stein's son is having financial problems and goes to a local bank. The bank wants a guaranty from Stein for his son's debts. Stein calls the banker by phone and advises the banker that he will “make good" on the loan if his son defaults. The banker has the son fill out the forms and he sends a form to Stein to sign. Stein leaves for Europe and advises the banker that he will sign when returns from Europe . The son is given the loan. Stein returns from Europe but never signs the guaranty. The son defaults on the loan. Stein's son meets the girl of his dreams. He agrees to marry the girl. The girl's father agrees to give him a new Jaguar auto if he does marry the girl. He marries the girl and the father-in law refuse to give him the car and states that he was merely joking when he stated that. Stein's son hires a lawyer to sue his father in law. He also asks the lawyer to prepare divorce papers for his new bride. Pritchard decides to buy the land next to its current store. Prichard's executives enter into a contract after about 6 months of negotiation. The written contract has a clause which declares that the written contract is the final and complete understanding between the parties. During the oral negotiations, Pritchard was told by the seller that the seller would remove a shed in the rear. However, the written contract did not state this fact and the seller refused to remove the shed. Pritchard commenced a new advertising campaign. It hired famous jingle writer composer and singer Harry Banilow to create and record a theme song for some TV commercials. After signing the contract Banilow, leaves for Asia on a concert tour. He calls his friend, Bob, who is a studio musician to compose and record the music for his contract with Pritchard. Bob agrees. Pritchard is furiuous.

Corporation B is Distribution Company which engaged in furniture and home appliance business. Their business process is selling furniture products to dealer which is traditional retail store and modern market supermarket. Top management of Corp. B set a policy that for sales, the provide credit sales with term of payment of 30 days with 3% of sales discount when customer paid on time. The director also gives policy that customer able to pay their payable using cash, transfer to corporation bank account, check, even post-dated check. The reason is to make it easy for customers to pay. The company opens wide opportunities for customers to pay by various payment methods or media. The other issue is that in Corporation B, selling and account receivable collection were handled by salesman, no collection department. A process like this continues to run, until someday, a case arises when a salesman run away with/steals cash receipts from customers. The stolen amount of money is quite large; it counted as several times of that salesman monthly salary. To make it even worse, this fraud was discovered after 2 weeks from the day of the incident, because the receivable account recording employee rarely confirms to the customer a. According to above case, explain your analysis regarding internal control weakness in Corporation B! b. Provide your recommendation to the future selling activity of Corporation B!

Question 25 options:Marks are indicated separately for each of the questions in thissection. There are 11 marks in total.Why is the aging method, used to calculate the allowancefor doubtful accounts, preferable to using a single percentage forall receivables? (2 marks)a. It recognizes that older accounts are less likely to becollected.b. It can provide a better estimate than aone-size-fits-all approach.c. It assumes that accounts which are current are always fullycollectable.d. It is easier to assign reasonable percentages to severalcategories than to use one percentage only for all accountsreceivable.e. It is the only method allowed by GAAP.f. only choices a and b are correctg. only choices a, b, and c are correcth. only choices a, b, and d are correcti. only choices b. c. and d are correctj. choices a, b, c, and d are all correctEnter the letter corresponding to your choice. Enter the letterwithout a period. (a b c d e f g h i j) A customer whose account receivable was previouslywritten off sent in a cheque. How might a company record thistransaction? (2 marks)a. Increase cash and a revenue accountb. Increase Cash and decrease Bad Debt Expensec. Increase Cash and decrease Accounts Receivabled. increase both Allowance for Doubtful Accounts and Accounts Receivablee. both choices c and d togetherf. Increase a revenue account and decrease Bad Debt ExpenseEnter the letter corresponding to your choice. Enter the letterwithout a period. (a b c d e f) Why might the Allowance for Doubtful Accounts benegative (i.e. have a positive balance on the accounting chart)before recording the year's bad debt expense? (2marks)a. Write-offs in the year were higher than expected.b. The previous allowance was overestimated.c. Write-offs in the year were lower than expected.d. The previous allowance was underestimated.e. Both choices a and b are correct.f. Both choices c and d are correct.g. Both choices b and c are correct.h. Both choices a and d are correct.Enter the letter corresponding to your choice. Enter the letterwithout a period. (a b c d e f g h) Which of the following transactions do NOT change thenet realizable value of accounts receivable? (2 marks)a. receiving a cheque from a customer whose account receivablewas previously written offb. cash salesc. writing off an account receivabled. a sales return, where the original sale was on accounte. recording bad debt expensef. only choices a, b, and c are correctg. only choices b and c are correcth. only choices a, b, and e are correcti. only choices a, b, c, and d are correctj. choices a, b, c, and d are all correctEnter the letter corresponding to your choice. Enter the letterwithout a period. (a b c d e f g h i j) Which of the following transactions does NOT affect baddebt expense? (3 marks)a. giving a cash refund to a customer who returned an item thathe had already paid forb. using the aging method to estimate the required Allowance forDoubtful Accountsc. receiving a cheque from a customer whose account receivablewas previously written offd. writing off an account receivablee. a sales return, where the original sale was on accountf. only choices a, b, and c are correctg. only choices a, b, and d are correcth. only choices b, c, and d are correcti. only choices c, d, and e are correctj. only choices b, d, and e are correctEnter the letter corresponding to your choice. Enter the letterwithout a period. (a b c d e f g h i j)

In 2021, Bratten Fitness Company made the following cash purchases: 1. The exclusive right to manufacture and sell the $X$-Core workout equipment from Symmetry Corporation for $\$ 216,000$. Symmetry created the unique design for the equipment. Bratten also paid an additional $\$ 10,500$ in legal and filing fees to attorneys to complete the transaction. 2. An initial fee of $\$ 325,000$ for a three-year agreement with Silver's Gym to use its name for a new facility in the local area. Silver's Gym has locations throughout the country. Bratten is required to pay an additional fee of $\$ 6,600$ for each month it operates under the Silver's Gym name, with payments beginning in March 2021. Bratten also purchased $\$ 416,000$ of exercise equipment to be placed in the new facility. 3. The exclusive right to sell Healthy Choice, a book authored by Kent Patterson, for $\$ 35,000$. The book includes healthy recipes, recommendations for dietary supplements, and natural remedies. Bratten plans to display the book at the check-in counter at its new facility, as well as make it available online. Required: Prepare a summary journal entry to record expenditures related to initial acquisitions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the expenditures related to initial acquisitions. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|} \hline Transaction & General Journal & Debit & Credit \\ \hline 1 & & & \\ \hline & & & \\ \hline & & \\ \hline & & \\ \hline & & & \\ \hline \end{tabular}

The Rink offers annual $\$ 250$ memberships that entitle members to unlimited use of ice-skating facilities and locker rooms. Each new membership also entitles the member to receive ten "30\% off a $\$ 5$ meal" coupons that are redeemable at the Rink's snack bar. The Rink estimates that approximately $80 \%$ of the coupons will be redeemed, and that, if the coupons weren't redeemed, \$5 meals still would be discounted by $5 \%$ because of ongoing promotions. Required: Prepare the journal entry to recognize the sale of a new membership. Clearly identify revenue or deferred revenue associated with each performance obligation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to $\mathbf{2}$ decimal places.)

Grocery Corporation received $\$ 330,839$ for 9.00 percent bonds issued on January 1,2018 , at a market interest rate of 6.00 percent. The bonds had a total face value of $\$ 271,000$, stated that interest would be paid each December 31 , and stated that they mature in 10 years. Required: Prepare the following table for each account by indicating $(a)$ whether it is reported on the Balance Sheet $(\mathrm{B} / \mathrm{S})$ or Income Statement (I/S); (b) the dollar amount by which the account increases, decreases, or does not change when Grocery Corporation issues the bonds; and $(c)$ the direction of change in the account [increase, decrease, or no change] when Grocery Corporation records the interest payment on December 31. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Account } & $\begin{array}{c}\text { (a) } \\ \text { Financial } \\ \text { Statement }\end{array}$ & $\begin{array}{c}\text { (b) } \\ \text { Issuance }\end{array}$ & $\begin{array}{c}\text { (c) Interest } \\ \text { Paid }\end{array}$ \\ \hline Bonds Payable & & & \\ \hline $\begin{array}{l}\text { Discount on Bonds } \\ \text { Payable }\end{array}$ & & & \\ \hline Interest Expense & & & \\ \hline $\begin{array}{l}\text { Premium on Bonds } \\ \text { Payable }\end{array}$ & & & \\ \hline \end{tabular}

E16.13 (LO3) (Issuance, Exercise, and Expiration of Share Options) On January 1, 2018, Tsang Ltd. granted 10,000 options to key executives. Each option allows the executive to purchase one share of Tsang&qpos;s HK \( \$ 5 \) par value ordinary shares at a price of HK \( \$ 20 \) per share. The options were exercisable within a 2-year period beginning January 1,2020 , if the grantee is still employed by the company at the time of the exercise. On the grant date, Tsang&qpos;s shares were trading at HK\$25 per share, and a fair value option-pricing model determines total compensation to be HK\$450,000. On May 1, 2020, 9,000 options were exercised when the market price of Tsang&qpos;s shares were HK \( \$ 30 \) per share. The remaining options lapsed in 2022 because executives decided not to exercise their options. Instructions Prepare the necessary journal entries related to the share-option plan for the years 2018 through \( 2022 . \) E16.13 (LO3) (Issuance, Exercise, and Expiration of Share Options) On January 1, 2018, Tsang Ltd. granted 10,000 options to key executives. Each option allows the executive to purchase one share of Tsang's HK\$5 par value ordinary shares at a price of HK\$20 per share. The options were exercisable within a 2-year period beginning January 1,2020, if the grantee is still employed by the company at the time of the exercise. On the grant date, Tsang's shares were trading at HK\$25 per share, and a fair value option-pricing model determines total compensation to be HK\$450,000. On May 1, 2020, 9,000 options were exercised when the market price of Tsang's shares were HK $\$ 30$ per share. The remaining options lapsed in 2022 because executives decided not to exercise their options. Instructions Prepare the necessary journal entries related to the share-option plan for the years 2018 through 2022.

A\&J Company incurred the following expenses related to patented drugs. Legal fees in successful patent defense Researcher salaries to develop drugs Acquired a new patent Research lab rent expense $\$ 20,000$ 85,000 50,000 6,000 1. Indicate costs that are reported as research and development expenses on the income statement. 2. Indicate costs that are capitalized and reported in the Patent account on the balance sheet. 1. Total research and development expenses 2. Total capitalized costs

Baine Company purchased Vera Company at a price of $\$ 500,000$. The fair value of the net assets purchased equals $\$ 420,000$. Compute the amount of goodwill that Baine records at the purchase date. Goodwil at purchase date

Chia, Kiat and Poh were in partnership sharing profits and losses equally. On 31 December 1985, the credit balances on the partners' capital accounts (current accounts were not kept) were Chia \$160 000, Kiat \$120 000 and Poh $\$ 60000$. On 1 January 1986 Kiat retired from the partnership. To ascertain the total amount due to him, goodwill was valued at $\$ 30000$ and the fixed assets were valued at \$18 000 more than the amount at which they appeared in the books. By agreement no goodwill account was raised and there was no alteration in the book amounts of the fixed assets. The total sum due to Kiat was paid over to him on 1 July 1986. Chia and Poh continued in partnership sharing profits equally. The trading profit for the year ended 31 December 1986 was \$54 000 and the partners drawings during the year were Chia $\$ 6000$ and Poh \$17 000 . On 1 July 1987 Yeo was admitted as a partner and from that date onwards profits and losses were shared in the proportions Chia two-fifths, Poh two-fifth and Yeo one-fifth. Yeo introduced $\$ 40000$ as capital and $\$ 12000$ for his share of goodwill and unrecorded appreciation in the value of fixed assets. No goodwill account was raised and the book value of fixed assets was not changed, the partners making the appropriate adjusting entries in their capital accounts. The trading profit for 1987 was $\$ 65000$ which accrued evenly over the period. Drawings for the year were Chia $\$ 23000$, Poh $\$ 33000$ and Yeo \$5000. On 2 January 1988 the partnership was dissolved, and the net assets were sold for $\$ 320000$ cash. On the same day the partners accounts were closed, and they withdrew the sums due to them. REQUIRED Partners' capital accounts for the period from 31 December 1985 to 2 January 1988 showing clearly the balances carried down on 31 December of each year.

Exercise 10-10 Calculating EVA Brewster Company manufactures elderberry wine. Last year, Brewster earned operating income of $\$ 192,000$ after income taxes. Capital employed equaled OBJECTIVE 3 $\$ 2.3$ million. Brewster is 45 percent equity and 55 percent 10 -year bonds paying 6 percent interest. Brewster's marginal tax rate is 40 percent. The company is considered a fairly risky investment and probably commands a 12-point premium above the 4 percent rate on long-term Treasury bonds. Jonathan Brewster's aunts, Abby and Martha, have just retired, and Brewster is the new CEO of Brewster Company. He would like to improve EVA for the company. Compute EVA under each of the following independent scenarios that Brewster is considering. (Use a spreadsheet to perform your calculations and round all percentage figures to four significant digits.) 1. No changes are made; calculate EVA using the original data. Answer 2. Sugar will be used to replace another natural ingredient (atomic number 33) in the elderberry wine. This should not affect costs but will begin to affect the market assessment of Brewster Company, bringing the premium above long-term Treasury bills to 10 percent the first year and 7 percent the second year. Calculate revised EVA for both years. 3. Brewster is considering expanding but needs additional capital. The company could borrow money, but it is considering selling more common stock, which would increase equity to 80 percent of total financing. Total capital employed would be $\$ 3,000,000$. The new after-tax operating income would be $\$ 375,000$. Using the original data, calculate EVA. Then, recalculate EVA assuming the materials substitution described in Requirement 2 . New after-tax income will be $\$ 375,000$, and in Year 1 , the premium will be 10 percent above the long-term Treasury rate. In Year 2, it will be 7 percent above the long-term Treasury rate. (Hint: You will calculate three EVAs for this requirement.)

Residual Income and Investment Decisions Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Year 1 Year 2 Sales $35,700,000 $37,500,000 Operating income 1,380,000 1,550,000 Average operating assets 2,030,000 2,030,000 Canned Division: Year 1 Year 2 Sales $11,800,000 $12,600,000 Operating income 670,000 510,000 Average operating assets 5,750,000 5,750,000 At the end of Year 2, the manager of the Canned Division is concerned about the division's performance. As a result, he is considering the opportunity to invest in two independent projects. The first is juice boxes for elementary school children. The second is fruit and veggie pouches for kids on the go. Without the investments, the division expects that Year 2 data will remain unchanged. The expected operating incomes and the outlay required for each investment are as follows: Juice Box Fruit Pouch Operating income $28,000 $15,400 Outlay 170,000 120,000 Allard's corporate headquarters has made available up to $550,000 of capital for this division. Any funds not invested by the division will be retained by headquarters and invested to earn the company's minimum required rate of return, 7 percent. Required: 1. Compute the residual income for each of the opportunities. (Round to the nearest dollar.) Juice Box residual income $ fill in the blank 1 Fruit Pouch residual income $ fill in the blank 2 2. Compute the divisional residual income for each of the following four alternatives: (Round to the nearest dollar.) a. The juice box is added. $ fill in the blank 3 b. The fruit pouch is added. $ fill in the blank 4 c. Both investments are added. $ fill in the blank 5 d. Neither investment is made; the status quo is maintained. $ fill in the blank 6 Assuming that divisional managers are evaluated and rewarded on the basis of residual income, which alternative do you think the divisional manager will choose? Juice BoxFruit PouchBoth projectsStatus quoBoth projects 3. Assuming that management acts as you recommend in requirement 2, compute the change in profit (loss) from the divisional manager's investment decision. ProfitLossProfit $ fill in the blank 9 Was the correct decision made? YesNoYes

Question 1 : (25 marks) You are working on the BB audit and have been asked to help your manager understand What is Blockchain?, What are the challenges associated with auditing their use of Blockchain technology. Without having a detailed understanding of how BB uses Blockchain: Educate your manager on the general issues and challenges for auditors with Blockchain technology. Show how audit and assurance might evolve with Blockchain

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Parker Plastic had the following actual results for the past year: Number of units produced and sold $1,000,000$ Number of square feet of plastie used $11,800,000$ Cost of plastic purchased and used $5,260,000$ Number of labor hours worked 245,000 Direct labor cont Variable overhead cost $2,891,000$ Fixed overhead cost 318,500 355,000 Required: Calculate Parker Plastic's variable overhead rate and efficiency variances and its over-or underapplied variable ovechead. (Do not round intermediate calculations. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) \begin{tabular}{|l|l|l|} \hline Variable overhead rate variance \\ \hline Variable overhead efficiency variance \\ \hline Variable overhead spending variance \\ \hline \end{tabular}

On January 1, 2013, Piper Company acquired an 80% interest in Sand Company for $2,276,000. At that time the capital stock and retained earnings of Sand Company were $1,800,000 and $700,000, respectively. Differences between the fair value and the book value of the identifiable assets of Sand Company were as follows: Fair Value in Excess of Book Value Inventory.....................................$45,000 Equipment (net)...............................50,000 The book values of all other assets and liabilities of Sand Company were equal to their fair values on January 1, 2013. The equipment had a remaining useful life of eight years. Inventory is accounted for on a FIFO basis. Sand Company s reported net income and declared dividends for 2013 through 2015 are shown here: Required: Prepare the eliminating/adjusting entries needed on the consolidated worksheet for the years ended 2013, 2014, and 2015. (It is not necessary to prepare the worksheet.) 1. Assume the use of the cost method. 2. Assume the use of the partial equity method. 3. Assume the use of the complete equity method.

On January 1, 2020, Leo paid $19,000 for 5 percent of the stock in BLS, an S corporation. In November, he loaned $10,000 to BLS in return for a promissory note. BLS generated a $640,000 operating loss in 2020. BLS generated $412,000 ordinary business income in 2021. Required: How much of Leo’s share of this income is included in his 2021 taxable income? Compute Leo’s basis in his BLS stock and his BLS note at the end of 2021. How would your answers to parts a and b change if BLS’s ordinary business income was only $224,000?

problem \#11 subscription of Shares Sousa Caterers, Inc. was organized on May 13, 2019 and the articles stipulated the following authorized capital: a. 4,500 shares of preference shares, $P 110$ par value b. 42,000 shares of ordinary shares, P30 par value Sousa Caterers, Inc. completed the following transactions during its first year of operations: May 8 Received subscriptions to 14,000 ordinary shares at P30 per share; collected $65 \%$ of the subscription price. June 7 Subscribers to 14,000 ordinary shares paid an additional $20 \%$ of the subscription price. July 6 Subscribers to 14,000 ordinary shares paid an additional $15 \%$ of the subscription price. Sousa Caterers, Inc. issued the 14,000 shares of stock. Sept. 14 Received subscriptions to 4,300 ordinary shares at P32 per share; collected $60 \%$ of the subscription price. Required: Prepare the journal entries.

subscription of Shares sousa Caterers, Inc. was organized on May 13, 2019 and the articles stipulated the following authorized capital: a. 4,500 shares of preference shares, $P 110$ par value b. 42,000 shares of ordinary shares, P30 par value Sousa Caterers, Inc. completed the following transactions during its first year of operations: May 8 Received subscriptions to 14,000 ordinary shares at P30 per share; collected $65 \%$ of the subscription price. June 7 Subscribers to 14,000 ordinary shares paid an additional $20 \%$ of the subscription price. July 6 Subscribers to 14,000 ordinary shares paid an additional $15 \%$ of the subscription price. Sousa Caterers, Inc. issued the 14,000 shares of stock. Sept. 14 Received subscriptions to 4,300 ordinary shares at $P 32$ per share; collected $60 \%$ of the subscription price. Required: Prepare the journal entries.

Company has chosen: KFCRequirements:- introduction /background of the research issuesPoint1-explore the functions of management accounting practices (formaland informal) on KFC company management (decision making)Point 2-explore the functions of management accounting practices (formaland informal) on KFC company management (planning performance) Point 3:-explore the functions of management accounting practices (formaland informal) on KFC company management (strategic plan)Point 4:Identified two threat/challenge/issue (s) in KFC implementingmanagement accounting. Point 5:Provide literature review/analysis of the issues(extensivereview) -Conclusion *please provide the references link

Please help with Req 6c: National Champions University has a football stadium that seats up to 80,000 fans. Details include: - Six home games each year. - Season passes are sold for $\$ 400$ each (\$100 per game). All 60,000 season passes are sold over the period January through August (prior to the season). Cash is received at the time of the sale. - The six home games consist of two in September, three in October, and one in November. Click here to open graph in separate window. The bar graphs show the total cash received from season pass sales and sales revenue recognized by the university each month. The line graph plots the balance of the Deferred Revenue account over the year. Answer the following questions. line graph plots the balance of the Deferred Revenue account over the year. Answer the following questions. Required: 1. In which month were the most season passes sold? 2. In which month were the most games played? 3. In which month was the most sales revenue recognized? 4. Based on the graph, which statement best summarizes when revenue is recognized? 5a. In July, cash collected from season pass sales was $\$ 3,200,000$ ( 8,000 passes sold $\times \$ 400$ per season pass). Record the entry for the month of July for cash collected from season pass sales. 5b. What happens to the balance of Deferred Revenue when cash is received for a season pass prior to the season? 5c. What is the total amount of Deferred Revenue by the end of August once all 60,000 season passes are sold for $\$ 400$ each? 6a. In September, two home games were played. Record the entry related to season passes for the month of September (Hint: Two home games represent one-third of the six home games for the season). 6b. What happens to the balance of Deferred Revenue when games are played? 6c. What will be the balance of Deferred Revenue after the final home game is played in November? Complete this question by entering your answers in the tabs below. \begin{tabular}{|l|l|l|l|l|l|l|l|} \hline Req 1 & Req 2 & Req 3 & Req 4 & Req $5 \mathrm{~A}$ & Req 5B & Req 5C & Req 6A \\ \hline \end{tabular} What will be the balance of Deferred Revenue after the final home game is played in November? Deferred Revenue Req 6B $\operatorname{Req} 6 \mathrm{C}$

During the year ended December 31, 2018, Kelly's Camera Shop had sales revenue of $\$ 140,000$, of which $\$ 70,000$ was on credit. At the start of 2018 , Accounts Receivable showed a $\$ 11,000$ debit balance and the Allowance for Doubtful Accounts showed a $\$ 540$ credit balance. Collections of accounts receivable during 2018 amounted to $\$ 62,000$. Data during 2018 follow: a. On December 10, a customer balance of $\$ 1,200$ from a prior year was determined to be uncollectible, so it was written off. b. On December 31, a decision was made to continue the accounting policy of basing estimated bad debt losses on 2 percent of credit sales for the year. Required: 1. Give the required journal entries for the two events in December. 2. Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the balance sheet and income statement for 2018. 3. On the basis of the data available, does the 2 percent rate appear to be reasonable? Complete this question by entering your answers in the tabs below. $\operatorname{Req} 2 B$ $\operatorname{Req} 3>$

Discuss in details health and safety policy in business and policy strategy

Information Security determines as the process of protecting information and information assets, to preserving confidentiality, integrity, and availability of information (ISO17799, 2004). It is a major issue for businesses, their clients and the public. From 1997 to 2001, U.S. organizations spent over $2.5 trillion on information technology, nearly double

Consider the following two regressions based on the US data for 1946 to 1975 (standard errors are in parentheses) Ct = 26.19 + 0.6248GNPt - 0.4398Dt Se = (2.73)   (0.0068)           (0.0736)  R^2=0.999 (C/GNP) = 25.92 1/GNPt + 0.6246 - 0.4315 D/GNPt            Se = (2.22)                (0.0068) (0.0597) R^2 = 0.875 Where C = aggregate private consumption expenditure GNP = gross national product D = national defense expenditure t = time The objective of the study was to find out the effect of defense expenditure on other expenditures in the economy. a. What might be the reason(s) for transforming the first equation into the second equation? b. Based on the objective of the transformation, what assumption has been made about the error variance? c. If there was a problem, have the authors succeeded in removing it? How can you tell? d. Does the transform regression have to be run through the origin? Why or why not? e. Can you compare the R^2 values of the two regressions? Why or why not?

Steinberg Company had the following direct materials costs for the manufacturing of product T in March: Actual purchase price per pound of direct materials $ 8.40 Standard direct materials allowed for units of product T produced 3,000 pounds Decrease in direct materials inventory 190 pounds Direct materials used in production 3,200 pounds Standard price per pound of material $ 8.15 Required: 1. What was Steinberg’s direct materials purchase-price variance and its direct materials usage variance for March? Indicate whether each variance was favorable (F) or unfavorable (U). 2. Prepare the appropriate journal entries for March. Required 1: What was Steinberg’s direct materials purchase-price variance and its direct materials usage variance for March? Indicate whether each variance was favorable (F) or unfavorable (U). (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) \begin{tabular}{|l|l|l|} \hline & & \\ \hline Direct materials purchase-price variance & & \\ \hline Direct materials usage variance & & \\ \hline \end{tabular} Required 2:Prepare the appropriate journal entries for March. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round final answers to the nearest whole dollar amount.) Journal entry worksheet $1 \quad 2$ Record the cost of purchases during the month. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|} \hline Transaction & General Journal & Debit & Credit \\ \hline 01 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Record entry Clear entry View general journal Journal entry worksheet Record the standard direct materials cost for this period's production. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|} \hline Transaction & General Journal & Debit & Credit \\ \hline 02 & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Record entry Clear entry View general journal

Taylor’s is a popular restaurant that offers customers a large dining room and comfortable bar area. Taylor Henry, the owner and manager of the restaurant, has seen the number of patrons increase steadily over the last two years and is considering whether and when she will have to expand its available capacity. The restaurant occupies a large home, and all the space in the building is now used for dining, the bar, and kitchen, but space is available on the property to expand the restaurant. The restaurant is open from 6 p.m. to 10 p.m. each night (except Monday) and, on average, has 24 customers enter the bar and 50 enter the dining room during each of those hours. Taylor has noticed the trends over the last 2 years and expects that within about 4 years, the number of bar customers will increase by 50% and the dining customers will increase by 20%. Taylor is worried that the restaurant will be not be able to handle the increase and has asked you to study its capacity. In your study, you consider four areas of capacity: the parking lot (which has 80 spaces), the bar (54 seats), the dining room (100 seats), and the kitchen. The kitchen is well-staffed and can prepare any meal on the menu in an average of 12 minutes per meal. The kitchen, when fully staffed, is able to have up to 20 meals in preparation at a time, or 100 meals per hour (60 min/12 min × 20 meals). To assess the capacity of the restaurant, you obtain the additional information: Diners typically come to the restaurant by car, with an average of 3 persons per car, while bar patrons arrive with an average of 1.5 persons per car. Diners, on average, occupy a table for an hour, while bar customers usually stay for an average of 2 hours. Due to fire regulations, all bar customers must be seated. The bar customer typically orders one drink per hour at an average of $7 per drink; the dining room customer orders a meal with an average price of $22; the restaurant’s cost per drink is $1, and the direct costs for meal preparation are $5. Required: a. Given the current number of customers per hour, what is the amount of excess capacity in the bar, dining room, parking lot, and kitchen? b. Calculate the expected total throughput margin for the restaurant per day, and month (assuming a 26-day month). a. Given the expected increase in the number of customers, determine if there is a constraint for any of the four areas of capacity. What is the amount of needed capacity for each constraint? b. If there is a constraint, reduce the demand on the constraint so that the restaurant is at full capacity (assume some customers would have to be turned away). Calculate the expected total throughput margin for the restaurant per day, and month (assuming a 26-day month). Taylor has obtained construction estimates. To increase the capacity of the bar to 80 seats, the dining room to 120 seats, and the kitchen to 25 meals at the same time would cost $250,000, which Taylor could finance for $5,000 per month for the next 4 years. There would be no change to the parking lot. Given your analysis above, prepare a brief recommendation to Taylor regarding expanding the restaurant.

As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Ayayai Company for the month of October. AYAYAI COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Sales in units 6,400 8,000 1,600 Favorable Variable expenses Sales commissions $1,920 $2,080 $160 Unfavorable Advertising expense 576 680 104 Unfavorable Travel expense 2,880 3,280 400 Unfavorable Free samples given out 1,280 1,120 160 Favorable Total variable 6,656 7,160 504 Unfavorable Fixed expenses Rent 1,200 1,200 –0– Neither Favorable nor Unfavorable Sales salaries 960 960 –0– Neither Favorable nor Unfavorable Office salaries 640 640 –0– Neither Favorable nor Unfavorable Depreciation—autos (sales staff) 400 400 –0– Neither Favorable nor Unfavorable Total fixed 3,200 3,200 –0– Neither Favorable nor Unfavorable Total expenses $9,856 $10,360 $504 Unfavorable As a result of this budget report, Joe was called into the president’s office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. Joe knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice. (a) Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses.) (b) Should Joe have been reprimanded? select an option YesNo

Cool Scoops makes ice cream in two processes, Mixing and Packaging. During April, its first month of business, the packaging department transferred 50,200 units and $\$ 145,580$ of production costs to finished goods. The company completed and sold 48,200 units at a price of $\$ 5.20$ per unit in April. a. What is the cost to produce one unit of ice cream during April? b. What is the total gross profit on ice cream sales for April? Complete this question by entering your answers in the tabs below. Required A What is the cost to produce one unit of ice cream during April? \begin{tabular}{|l|l|c|l|} \hline \multicolumn{4}{|c|}{ Cost per completed unit } \\ \hline Numerator: & & Denominator: & \\ \hline & $/$ & & Cost per completed unit \\ \hline & $/$ & & \\ \hline \end{tabular} Required B

The following errors took place in journalizing and posting transactions: a. Cash of $8,800 received on account was recorded as a debit to Fees Earned and a credit to Cash. b. A $1,760 purchase of supplies for cash was recorded as a debit to Supplies Expense and a credit to Accounts Payable. Journalize the entries to correct the errors. Omit explanations.