What are the three factors of the fraud pyramid?
What are the three factors of the fraud pyramid?
Presented here are the components in Pedersen Company's income statement. Determine the missing amounts.
of Goods Sold
Prior Company buys merchandise on account from Wood Company. The selling price of the goods is $900 and the cost of goods is $630. Both companies use perpetual inventory systems. Journalize the transactions on the books of both companies.
In its first month of operation, Maze Company purchased 100 units of inventory for $6, then 200 units for $7, and finally 150 units for $8. At the end of the month, 180 units remained. Compute the amount of phantom profit that would result if the company used FIFO rather than LIFO. The company uses the periodic method.
Phantom Profit $
O'Connor Video Center accumulates the following cost and market data at December 31.
Compute the lower of cost or market valuation for O'Connor's inventory.
Beaty Company has the following internal control procedures over cash receipts. Match the internal control principle that is applicable to each procedure.
Presented below are data for Higgins Industries.
Common stock values in the above table represent an increase in Common stock within the individual year. What was Higgins’ net income/loss in 2017? A :
$162 loss. B :
$488 loss. C :
$162 income. D :
$488 income. 2017 2016 $4,560 Assets, January 1 Liabilities, January 1 Stockholders' Equity, Jan. 1 Dividends Common Stock Stockholders' Equity, Dec. 31 Net Income 570 $2,7361 2,750 6461 650 2,266 684
If the market rate is lower than the stated rate, bonds will be issued at a. Premium b. Discount c. Par Value d. Yield
“A work sheet is a permanent accounting record, and its use is required in the accounting cycle.” Do you agree? Explain.View Solution:
A work sheet is a permanent accounting record and its
During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $61 per unit) $ 1,098,000 $ 1,708,000 Cost of goods sold (@ $40 per unit) 720,000 1,120,000 Gross margin 378,000 588,000 Selling and administrative expenses* 299,000 329,000 Net operating income $ 79,000 $ 259,000
* $3 per unit variable; $245,000 fixed each year.
The company’s $40 unit product cost is computed as follows: Direct materials $ 9 Direct labor 12 Variable manufacturing overhead 4 Fixed manufacturing overhead ($345,000 ÷ 23,000 units) 15 Absorption costing unit product cost $ 40
Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.
Production and cost data for the first two years of operatons are: Year 1 Year 2 Units produced 23,000 23,000 Units sold 18,000 28,000
1. Using variable costing, what is the unit product cost for both years?
2. What is the variable costing net operating income in Year 1 and in Year 2?
3. Reconcile the absorption costing and the variable costing net operating income figures for each year.
What measurement focus is used in government-wide financial statements, and what system is applied to determine the timing of revenue and expense recognition?View Solution:
What measurement focus is used in government wide financial statements and
Problem 17-12 Determine pension expense; journal entries; two years [LO17-3, 17-4, 17-5, 17-6, 17-7, 17-8]
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions):
Information Provided by Pension Plan Actuary:
Projected benefit obligation as of December 31, 2017 = $2,900.
Prior service cost from plan amendment on January 2, 2018 = $500 (straight-line amortization for 10-year average remaining service period).
Service cost for 2018 = $620.
Service cost for 2019 = $670.
Discount rate used by actuary on projected benefit obligation for 2018 and 2019 = 10%.
Payments to retirees in 2018 = $480.
Payments to retirees in 2019 = $550.
No changes in actuarial assumptions or estimates.
Net gain—AOCI on January 1, 2018 = $360.
Net gains and losses are amortized for 10 years in 2018 and 2019.
Information Provided by Pension Fund Trustee:
Plan asset balance at fair value on January 1, 2018 = $2,100.
2018 contributions = $640.
2019 contributions = $690.
Expected long-term rate of return on plan assets = 12%.
2018 actual return on plan assets = $190.
2019 actual return on plan assets = $240.
1. Calculate pension expense for 2018 and 2019.
2. Prepare the journal entries for 2018 and 2019 to record pension expense.
3. Prepare the journal entries for 2018 and 2019 to record any gains and losses and new prior service cost.
4. Prepare the journal entries for 2018 and 2019 to record the cash contribution to plan assets and benefit payments to retirees.
Seville’s current ratio at the end of 20X3 is:
Suppose you are starting a business, Wholly Shirts, Inc., to imprint logos on T-shirts. In organizing the business and setting up its accounting records, you take your information to a CPA to prepare financial statements for the bank. You state to the CPA, ?oI really need to get this loan, so be sure you make my financial statements look great.??
1. Name the organization that governs the majority of the guidelines that the CPA will use to prepare financial statements for Wholly Shirts, Inc.