The charter service offered by the company includes two pilots, two flight attendants and the use of a state of the art jet for a predetermined rate. The company started operations with four jet two years ago and were catering for a niche market. The growth in the first 12 months was above expectation and the company's fleet quickly expanded to 12 jets. The market has stabilized in the last year, however, as more charter operators have entered the market. As as result , the company only need to purchase two jets during the current year in order to meet increase demands. The airplane used in the charter business are expensive and require a significant investment of capital by the company to purchase them. Execu Jet typically acquires new aircraft by obtaining new bank loan facilities. In not less than seven sentences, answer the following questions below: 1. As an auditor, what do you think would be the most appropriate sample selection method in performing the additions of PPE? Explain why you select that method. 2. What would be the relevant assertions of the test of details (test of fixed asset additions)?
Q: Prepare Statement of Comprehensive Income and Statement of Financial Position as at 31 Dec 2021.
A: We are given the trial balance of Zombie Berhad as on 31st Dec 2021 along with some additional infor...
Q: Krueger Corporation manufactures a single product whose selling price is $134 per unit and whose var...
A: Formula: Units to be sold to get a target profit = ( Fixed cost + Target profit ) / Unit contributio...
Q: Olive Company makes silver belt buckles. The company's master budget appears in the first column of ...
A: Fixed costs: Fixed costs means cost that are not dependent on the level of production of goods or se...
Q: Diana acquires, for $65,000, and places in service a 5-year class asset on December 19, 2021. It is ...
A: Cost recovery refers to the deduction of cost of an asset, used in business or for production to gen...
Q: Proposed Pricing for two models under consideration Selling Price $299.00 Base $399.00 Deluxe Variab...
A: Lets understand the basics. Break even point is a point at which no profit/no loss condition arise. ...
Q: Landis Co. purchased P500,000 of 8%, 5-year bonds (DI@FVTOCI) from Ritter, Inc. on January 1, 2022, ...
A: Profits on readily available-for-sale securities with easily determined fair values should be record...
Q: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,800 $19,900 Inventory 72,000 72,700 Accounts pay...
A: Cash flow from operating activities records inflow or outflow of cash in the regular day to day acti...
Q: iny Tots Daycare Centre provides daycare for children Mondays through Fridays. The business had $140...
A: The question is related to Marginal Costing. The Basic equation is as under Sales = Variable Cost +...
Q: What is the approximate yield to maturity for a $1,000 par value bond selling for $1,120 that mature...
A: Yield to Maturity: The yield to maturity (YTM) of a bond is the overall rate of return that the bond...
Q: Any adjustment to the carrying amount of a noncurrent asset that ceases to be classified as held for...
A: As per IFRS 5 As per IFRS 5 "Accounting for Non-Current assets held for sale and the presentation an...
Q: on Clinic uses client-visits as its measure of activity. During July, the clinic budgeted for 2,000 ...
A: In this question, we have to find out the activity variance for personnel expense by subtracting the...
Q: Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The Fixed costs of t...
A: Answer A) Calculation of Degree of operating Leverage if 20,000 bags are sold Amount Sa...
Q: On January 1, 2020, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial informatio...
A: Calculation of income tax expense and income tax payable in case: if Abbey and Benjamin file a con...
Q: On January 1, 2015, Mac Inc. issued 3,000,000 bonds with a coupon rate of 8% maturing in 4 years. Th...
A: Issue Price of Bond (Present Value) = PV of Coupon Payments + PV of Redemption Value PV of Coupon Pa...
Q: Calculate retum on net operating assets and net borrowing costs for 2021.
A: The formula as follows:- Return on Net operating asset= Net ProfitCurrent asset-Current Liabilities ...
Q: A sole proprietor may use both cash basis and accrual basis accounting, but only when the business a...
A: Cash Method of accounting: It is a very easy to use accounting method, where the incomes are recogn...
Q: Capital Expenditure Expenses a.) Acquired building for a down payment plus a mortgage payable. b.) P...
A: Introduction: Capital expenditure: Capital expenditure is a non recurring nature. Expenditure spent ...
Q: A partially owned subsidiary sold a non-depreciable assets to its parent at a loss. In the year subs...
A: Solution Depreciation is used to lower the value of an asset during a period of time. It depreciates...
Q: Dec. 6 Paid $1,800 for salaries and w 8 Received $1,900 cash from cu: 10 Sold merchandise for cash $...
A: These are the accounting transactions that are having a monetary impact on the financial statement o...
Q: a. In each of the 3 months, what amount of overhead was applied to the production? b. For each of th...
A: Solution:- Given, Britannica Motor Vehicle Accessories applies overhead utilizing a combined rate fo...
Q: A record of employment must be issued when an employee with a regular work schedule is expecled to I...
A: In the Given case scenario, This statement is false: A record of employment must be issued when an ...
Q: Based on the following information, which of the following is closest to days' sales outstanding? •R...
A: Days' sales outstanding- In accountancy, days’ sales outstanding are a computation used by a corpora...
Q: Dec. 31, 20Y2 Dec. 31, 20Y1 Accounts receivable $20,800 $19,900 Inventory 72,000 72,700 Accounts pay...
A: Introduction: Statement of cash flows: All cash in and out flows are shown in cash flow statements. ...
Q: The prepaid insurance account had a beginning balance of $11,500 and was debited for $18,000 of prem...
A: Formula: Insurance expense = Beginning balance + purchases during the year - Ending balance
Q: The NiceWay Corporation's statement of financial position shows the total stockholders' equity of P5...
A: Stockholder's equity: Stockholder's equity refers to the net asset of the company available to the s...
Q: The following information is available for Fuller Manufacturing Company for the month ending October...
A: Cost of goods manufactured = Beginning Work in process inventory + Total manufacturing costs - Endin...
Q: Use the percentage method to compute the federal income taxes to withhold from the wages or salaries...
A: In absence of any information regarding year , 2019 withholding rates have been used here .
Q: Mr. Arish opened Arish's Carpet Cleaners on March 1, 2021. During March, the following transactions ...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: The company has a maximum production capacity of 100,000 units per year. Operating at normal capacit...
A: Solution Note- In that question nothing is mention what to calculate . I solve the same question bef...
Q: Conrad Company reported the following balances at June 30, 2015: $16,200 Sales Revenue Sales Returns...
A: Gross sales = $16200 Sales return = $600 Sales discount = $300
Q: Company cell phone bill received, but not paid, $80 what will be the general entry?
A: Under generally accepted principals, expenses and losses are debited. Liabilities and revenues were ...
Q: Educational expenses incurred to qualify to get a new job are 50% deductible by the employer who rei...
A: To qualify, claim must need to be under the education credit income limits. That means having a modi...
Q: Bonnie saved $1300 to spend on an amazing trip. She is using the Quantitative Reasoning Process to d...
A: Bonnie Saved $ 1300 to be spend on amazing the trip Quantitative reasoning process to be flow to...
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 60,000 games las...
A: The net income is the difference between sales revenue and total expenses. The contribution margin i...
Q: On January 1, 2022, Estrime Company purchases an investment property at a cost of P50,000,000 includ...
A: Solution Investment property is the property which is purchase by a person with the intention to ear...
Q: On July 1, 2021, Dreeben Company acquired P600,000 (face value), 10%, P1,000 bonds at 99 plus accrue...
A: As Given in the question Dreeben Company purchased P 600,000 (face value) at 10%, P 1,000 bonds at ...
Q: On January 1, 2021, Grana Inc. purchased 13%, P,500,000 face value bonds of Maldi Inc. at a price to...
A: Grana Inc. purchased 13% bond P 500,000 Yield = 10% Duration = 5 years Lets suppose par value bond...
Q: You have the followinginformation for Oriole inc. Oriole inc.uses the periodic method of accounting ...
A: Income Statement Specific Id. FIFO LIFO a. Sales Revenue (2300x1.05 + 5000x1.25) $8,665 $8,66...
Q: Accounts Debit Credit (OMR) (OMR) Cash 120,000 Capital 100,000 Prepaid insurance 5600 Salary expense...
A: Lets understand the basics. Income statement is prepared by the management to know the net result of...
Q: Materials used in research and development projects $4,500 Equi
A: In this question, we have to compute the R&D cost that can help in determining the net income
Q: Accounting for Income Taxes Dunkin, Inc. reported revenues of $150,000 and expenses of $70,000 in ea...
A: Lets understand the basics. When there is difference between the tax expense as per accounts and as ...
Q: The allowance for doubtful accounts of Beta Care Limited had a credit balance of $1,500 at December...
A: Allowance for doubtful account had a $1,500 debit balance is to be added to Bad debt expense account...
Q: A Swiss Interior Company produces and sells lamps that are sold usually all year round. The company ...
A: Answer 1) Calculation of Normal Capacity Operating Profit = Contribution margin – Fixed Costs Operat...
Q: Included in the December 31, 2018, Jacobi Comapany balance sheet was the following share holders’ eq...
A: Common stock- Common stock is a type of investment that represents ownership in a company. A board o...
Q: 6. The record of employment is filed with: Multiple Choice Canada Pension Plan Revenue Quebec The Ca...
A: Record of Employment (ROE) is a form that your employer fills in with information like how long you'...
Q: Financial information is presented below: Operating Expenses $ 90,000 Sales Returns and 26,000 Allow...
A: The gross profit margin is calculated as gross profit divided by net sales revenue. Gross profit = S...
Q: ing the following data, apply the high-low method of cost analysis to the three cost data groups: ...
A: The correct option with proper explanation are as follows.
Q: A number of issues are faced in the area of financial reporting. Select four issues that you conside...
A: Solution Financial reporting is used to disclose the financial information and performance of a comp...
Q: Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases t...
A: Solution:- Given, New delivery purchased = $58,000 Sales tax = $4,900 Paid cash on van = $14,000 Due...
Q: Required: Briefly explain whether the $7,000 and the $180,000 receipts constitutes ordinary income' ...
A: The answer for the question on ordinary income is discussed hereunder: What is ordinary income? Inc...
Step by step
Solved in 2 steps
- Smartlink Computer Services Co. specializes in customized software development for the broadcast and telecommunications industries. The company was started by three people to develop software primarily for a national network to be used in broadcasting national election results. After sustained and manageable growth for many years, the company has grown very fast over the last three years, doubling in size. This growth has placed the company in a challenging financial position. Within thirty days, Smartlink will need to renew its P300,000 loan with Philippine National Bank. This loan is classified as a current liability on Smartlink’s balance sheet. Steve Heart, president of Smartlink, is concerned about renewing the loan. The bank has requested Smartlink's most recent financial statements which appear below, including balance sheets for this year and last year. The bank has also requested four ratios relating to operating performance and liquidity. Required: Discuss (at least 4)…Smartlink Computer Services Co. specializes in customized software development for the broadcast and telecommunications industries. The company was started by three people to develop software primarily for a national network to be used in broadcasting national election results. After sustained and manageable growth for many years, the company has grown very fast over the last three years, doubling in size. This growth has placed the company in a challenging financial position. Within thirty days, Smartlink will need to renew its P300,000 loan with Philippine National Bank. This loan is classified as a current liability on Smartlink’s balance sheet. Steve Heart, president of Smartlink, is concerned about renewing the loan. The bank has requested Smartlink's most recent financial statements which appear below, including balance sheets for this year and last year. The bank has also requested four ratios relating to operating performance and liquidity. Required: Explain why the Philippine…Smartlink Computer Services Co. specializes in customized software development for the broadcast and telecommunications industries. The company was started by three people to develop software primarily for a national network to be used in broadcasting national election results. After sustained and manageable growth for many years, the company has grown very fast over the last three years, doubling in size. This growth has placed the company in a challenging financial position. Within thirty days, Smartlink will need to renew its P300,000 loan with Philippine National Bank. This loan is classified as a current liability on Smartlink’s balance sheet. Steve Heart, president of Smartlink, is concerned about renewing the loan. The bank has requested Smartlink's most recent financial statements which appear below, including balance sheets for this year and last year. The bank has also requested four ratios relating to operating performance and liquidity. Required: Give your analysis based on…
- You have been hired to help Q&A Aviation to evaluate their current financial position and make recommendations to help them move forward. They have been in business for 10 years, and manufacture and sell light airplanes, mostly to individuals who own and fly their own planes. These planes have been praised for safety and reliability by industry analysts, and sales have been steadily growing. Q&A sells two models: the Eagle for $78,000 and the Kingfisher for $55,000. The company generally builds planes to order using prefabricated parts, which means that they can complete an order in about five weeks. They require a deposit at the time of the order, and get another partial payment around week three. Their competitors can take up to a year and a half to complete a plane once it is ordered. The founders are considering making some planes without orders that they would keep on hand and sell at a premium to someone who wanted one even faster than five weeks. They have…Without calculations, determine the contribution margin at the break-even point. Break-even point $Charle's Furniture Store has been In business for several years. The firm's owners have described the store as a "high-price, high- service" operatlon that provides lots of assistance to Its customers. Margin has averaged a relatively high 29% per year for several years, but turnover has been a relatively low 0.6 based on average total assets of $800,000. A discount furniture Store is about to open in the area served by Charlie's, and management Is considering lowering prices to compete effectively. Required: a. Calculate current sales and ROI for Charlie's Furniture Store. b. Assuming that the new strategy would reduce margin to 20%, and assuming that average total assets would stay the same, calculate the sales that would be required to have the same ROl as Charlie's currently earns. c. Suppose you presented the results of your analysis in parts a and b of this problem to Charle, and he replied, "What are you telling me? If I reduce my prices as planned, then I have to Increase my…
- This excerpt is based on a case study reated to Southwest Airlines company limited, one of the world's largest transport companies. The vision of the business is to connect people to what's important in their lives through friendly, reliabke, and low-cost air travel. In 2000' a finance expert was appointed as CFO of Southwest Airlines. In the first yearof his engagement, his advice helped the company doubled their EBIT by 20%. Recently, you have been appointed by Ghana Cocoa Board as the CFO. You've just received an email from the head of Public Relations department, referencing a statement posted on a popular social media site on what the CFO of Southwest Airlines accomplished: "In carly 2001, when oil prices were close to $20 per barrel, a hedging strategy was developed to protect the airline from a surge in oil prices. By the time oil prices soared above $30 per barrel later that year, Southwest had signed contracts guaranteeing a price for its fuel equivalent to $23 per barrel.…Bodow is an entertainment complex located in Trinidad & Tobago. It offers various activitiessuch as music, rides, slides, and souvenir shopping, and customers pay a fixed fee to enter.The complex has been in operation for the past seven years and remains open throughout theyear. However, weather-related issues often lead to a significant decrease in customerattendance, usually by 50%, on approximately 30 days each year.Bodow has experienced substantial success, with customer numbers increasing byapproximately 15% annually. Sales at Bodow are categorized as cash sales and credit cardsales. All ticket sales are recorded on a computer, including the amount of each sale and thenumber of tickets issued. This information is electronically transferred to the accounts office.Cash collected from each ticket office is counted by two accounts clerks and two securityguards before being banked daily. The total cash from each ticket office is reconciled with thesales information transferred from…Bodow is an entertainment complex located in Trinidad & Tobago. It offers various activitiessuch as music, rides, slides, and souvenir shopping, and customers pay a fixed fee to enter.The complex has been in operation for the past seven years and remains open throughout theyear. However, weather-related issues often lead to a significant decrease in customerattendance, usually by 50%, on approximately 30 days each year.Bodow has experienced substantial success, with customer numbers increasing byapproximately 15% annually. Sales at Bodow are categorized as cash sales and credit cardsales. All ticket sales are recorded on a computer, including the amount of each sale and thenumber of tickets issued. This information is electronically transferred to the accounts office.Cash collected from each ticket office is counted by two accounts clerks and two securityguards before being banked daily. The total cash from each ticket office is reconciled with thesales information transferred from…
- Background: Meredith and James Kennedy own a business, Office Products, Inc. (OPI), which is a wholesale distributor of office equipment. Sales have grown about 5% per year over the past 5 years and are expected to grow at the same rate in the future. This past year, sales reached $800,000. A computer manufacturer recently approached OPI about becoming the exclusive distributor for one of its laptop computers. Sales are projected to be $400,000 from this product in the 1st year and to grow at 20% for 2 years before settling down to a 5% growth rate over the longer run. It is possible, however, that sales from this product could be as high as $800,000 in the 1st year. OPI has been earning a before-tax profit of 6% of sales. Variable operating costs are expected to remain the same percentage of sales, even with the added laptop sales. Fixed operating costs would be unchanged. Meredith and James are aware that increased sales will mean they need to maintain additional inventory and…Bodow is an entertainment complex located in Trinidad & Tobago. It offers various activitiessuch as music, rides, slides, and souvenir shopping, and customers pay a fixed fee to enter.The complex has been in operation for the past seven years and remains open throughout theyear. However, weather-related issues often lead to a significant decrease in customerattendance, usually by 50%, on approximately 30 days each year.Bodow has experienced substantial success, with customer numbers increasing byapproximately 15% annually. Sales at Bodow are categorized as cash sales and credit cardsales. All ticket sales are recorded on a computer, including the amount of each sale and thenumber of tickets issued. This information is electronically transferred to the accounts office.Cash collected from each ticket office is counted by two accounts clerks and two securityguards before being banked daily. The total cash from each ticket office is reconciled with thesales information transferred from…Bodow is an entertainment complex located in Trinidad & Tobago. It offers various activitiessuch as music, rides, slides, and souvenir shopping, and customers pay a fixed fee to enter.The complex has been in operation for the past seven years and remains open throughout theyear. However, weather-related issues often lead to a significant decrease in customerattendance, usually by 50%, on approximately 30 days each year.Bodow has experienced substantial success, with customer numbers increasing byapproximately 15% annually. Sales at Bodow are categorized as cash sales and credit cardsales. All ticket sales are recorded on a computer, including the amount of each sale and thenumber of tickets issued. This information is electronically transferred to the accounts office.Cash collected from each ticket office is counted by two accounts clerks and two securityguards before being banked daily. The total cash from each ticket office is reconciled with thesales information transferred from…