Homework Help for Accounting

). How is break even point determined

Singleton Inc. uses the accrual basis of accounting and had thefollowing transactions during the year. Required: Identify andexplain why each transaction may or may not require adjustment. a.Merchandise was sold to customers on credit. will not require anadjustment/ may require an adjustment (which one is it) b.Purchased equipment to be used in the operation of its business.will not require an adjustment/ may require an adjustment (whichone is it) c. A 2-year insurance contract was purchased. will notrequire an adjustment/ may require an adjustment (which one is it)d. Received cash for services to be performed over the next year.will not require an adjustment/ may require an adjustment (whichone is it) e. Paid weekly employee salaries will not require anadjustment/ may require an adjustment (which one is it) f. Borrowedmoney from First Bank by signing a note payable due in 5 years.will not require an adjustment/ may require an adjustment (whichone is it) Thanks

SUBJECT -Accounting information systems

Question 2 (40 marks) – InternalControls:
You have recently started in a new organisation as a FinancialAccountant. Part of this role involves supervising the GeneralAccounting Team. This team is responsible for the day to dayaccounting functions and period end reporting to management. Youhave early concerns about internal controls within the existingprocess. You have decided to undertake an initial internal audit ofthe General Ledger and Reporting process, specifically focusing onreliability, completeness and validity of the process. The scope ofthe investigation is to review:

a) Master file data
b) General Ledger Postings
c) Period End Postings
d) Reporting

Provide a 1,500 word business report to your manager, theFinancial Controller, identifying potential internal control risksthat may exist in each of the areas above (a-d). You must alsorecommend appropriate internal control measures to mitigate theidentified risks.

You are a newly qualified accountant who works for the auditfirm Harrison Ford & Co. You
have been approached by a potential new client, Calista ElectronicsPty Ltd, who is looking for
an audit firm to carry out an audit on its annual financial reportprepared in accordance with the
Corporations Act. The managing director, Calista Flockhart, is notsure exactly what an audit
involves and what are the responsibilities of the auditor.

Required:
Prepare notes for a meeting with Calista Flockhart which identifiesthe responsibilities of
the auditor and the responsibilities of management.
The notes should cover the following:
 Distribution of the annual report to shareholders.
 Delivery of the audit report to the entity.
 Obtaining and evaluating evidence concerning the financialreport.
 Preparation and presentation of the financial report.
 Maintaining adequate internal controls.
 Testing internal control procedures.
 Expressing an opinion on the financial report.
 Selecting appropriate accounting policies.
 Ensuring the financial report is presented in accordance withstandards.
 Performing test of controls.

Use the following information for questions 6 and 7:

On Janury 1, 2015, Parent company sold to Subsidiary company for$60,000, a parcel of land that had cost the Parent $57,000. OnMarch 2, 2019, Subsidiary company sold the land to an outsidecompany for $62,000.

6. Working paper entries for the year ended December 31, 2017would include

a. a debit of $3,000 to Land

b. a credit of $7,000 to Land

c. a debit of $3,000 to Investment inSubsidiary

d. a debit of $3,000 to RetainedEarnings

7. Working paper entries for the year ended December 31, 2019would include

a. A credit of $3,000 to Gain on Sale of Land

b. A credit of $5,000 to Retained Earnings

c. A debit of $3,000 to Intercompany Gain on Sale of Land

d. A credit of $5,000 to Gain on Sale of Land

11. Qualitative evidence that an entity is NOT a variableinterest entity includes which one of the following?

a. The entity’s equity level is greater than that of similarentities that do not require their debt to be guaranteed by anotherparty.

b. The entity has a debt to equity ratio that is higher thanthat of its competitors.

c. The entity’s business is not focused on just a fewcustomers.

d. The entity has issued preferred and common stock, and theshareholders are guaranteed a certain return on theirinvestment.

12. Included in the working paper entry for intercompany salesof equipment was a decrease to Investment in Subsidiary. Thisdecrease indicates

a. A downstream sale made at a gain

b. An upstream sale made at a loss

c. A downstream sale mad at a loss

d. An upstream sale made at a gain

Accounting studetns understand that the accrual method ofaccounting is superior to the cash method for measuring the incomeand expenses from an ongoing business for financial reportingpurposes. Thus, CPAs advise thier clients to use the accural methodof accounting. Yet, CPA firms generally use the cash method toprepare their own tax returns. Are the CPAs being hypocritical?Explain.

I rebootted and believe me I need to get to this work tonite. Ihave to turn it in tomorrow. Please help me! I can'tdeal with this. I sent back the hard copy book. Help - this isreally really really bad for me. I have limited time andI need this to work.

Teresa, Samantha, and Melanie have operated Broken Feather LLC for the last four years using a calendar year-end. Each has a one-third interest. Since they began operating, their busy season has run from June through August, with 35% of their gross receipts coming in July and August. The members would like to change their tax year-end and have asked you to address the following: a) can they change to an August 31 year-end and if so, how do they make the change and 2) can they change to a September 30 year-end and if so, how do they make the change?

Can they make either or both of the changes they propose?

Briefly describe the principal audit work to be performed inrespect of the carrying amount of the following items in thestatement of financial position.

(i) Inventories

(ii) Cash and cash equivalents

(iii) Receivables

N.B "describe"

Daniel is the owner of a chain of shoe stores. He hires Rubya to be the manager of a new store, which is to open in Charleston, WV. By written agreement, Daniel agrees to pay Rubya a monthly salary plus 20% of the profits. Without David’s knowledge, Rubya represents himself to Classen as Daniel’s partner, showing Classen the agreement to share profits. Classen extends credit to Rybya. Reubya defaults. Discuss whether Classen can hold Daniel liable as a partner, why or why not?

Which of the following statements is (are) TRUE regarding theBalance Sheet? (Select all correct choices).

A) It is prepared for a period of time

B) It is also known as the Statement of Financial Position

C) Its layout communicates the accounting equation

1.Home Products, Inc., is planning the introduction of a new food dryer. To compete effectively, the dryer would have to be priced at no more than $40 per unit. An investment of $600,000 would have to be made in order to produce and sell the new dryer. The company requires a return on investment of at least 25% on new products. Assuming that the company expects to produce and sell 30,000 dryers per year, the target cost per dryer would be closest to:

2.Division C makes a part that it sells to customers outside of the company. Data concerning this part appear below:

Division D of the same company would like to use the part manufactured by Division C in one of its products. Division D currently purchases a similar part made by an outside company for $79 per unit and would substitute the part made by Division C. Division D requires 1,000 units of the part each period. Division C has ample excess capacity to handle all of Division D’s needs without any increase in fixed costs and without cutting into outside sales. What is the lowest acceptable transfer price from the standpoint of the selling division?

.What is the major difference between a periodic and perpetual inventory system?

Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the month.

Under the periodic inventory system, the purchase of inventory will be debited to the Purchases account.

Under the periodic inventory system, no journal entry is recorded at the time of the sale of inventory for the cost of the inventory.

All of the answers are correct.

Wagih (not in the loan business) loaned Tom $5,000 two yearsago. During the current year, Tom was declared bankrupt. How shouldWagih account for the loan on the current year's tax return?

a. Long-term capital loss.

b. Short-term capital loss.

c. Deduction from adjusted gross income.

d. Ordinary loss.

e. None of the above.

On January 1, a company issues bonds with a par value of$300,000. The bonds mature in 5 years and pay 8% annual interesteach June 30 and December 31. On the issue date, the market rate ofinterest is 6%. Compute and show how you computed the price of thebonds on their issue date. Record the entry to recognize thesale.

Need help with this accounting question! Thanks.