1.Most of the independent auditor’s work in formulating an opinion on financial statements consists of
a.Considering internal control.
b.Obtaining and examining evidential matter.
c.Examining cash transactions.
d.Comparing recorded accountability with assets.
1: Mortgage Loan Analysis: Mr. Davidson plans to buy a house at Sugar Land in May 2017. The sale price is $580,000. He is going to pay 20% down payments and borrow additional 80% from Bank of America with a 15-year, 3.8% fixed-rate mortgage loan. He is expected to pay an equal MONTHLY payment starting from June 2017 for a total of 15 years.
(1) Calculate the required monthly mortgage payment for Mr. Davidson.
(2) Construct the 2017~2025 amortization table for Mr. Davidson.
(1) When Mr. Davidson prepares his 2017 tax filing, what is the total mortgage interest payment that he can consider for deduction?
1. Most companies, when computing or estimating costs for a job, will add in an overhead cost, often tying that cost to some direct cost, such as direct labor. What costs are usually included in this overhead cost?
2. In lean manufacturing system designs (aka the Toyota production system), the quality control is integrated into the design of the lean shop. How is quality controlled in the job shop?
1. Modify the code in Section 4.7 to apply an exponential time-decay factor.
2. Consider you have applied meta-labels to events determined by a trend-following model. Suppose that two thirds of the labels are 0 and one third of the labels are 1.
(a) What happens if you fit a classifier without balancing class weights?
(b) A label 1 means a true positive, and a label 0 means a false positive. By applying balanced class weights, we are forcing the classifier to pay more attention to the true positives, and less attention to the false positives. Why does that make sense?
(c) What is the distribution of the predicted labels, before and after applying balanced class weights?
1. Minneapolis Manufacturing Inc.’s CEO has asked you to provide the relevant journal entries using the following acquisition information.
Note: The CEO has not decided whether they will purchase Bloomington Re-Bar Company using the “Asset Acquisition Method” or the “Stock Acquisition Method.”
Required:
A. Prepare the journal entryassuming Minneapolis Manufacturing Inc. decided to purchase Bloomington Re-Bar Company for $13,000,000 in an Asset Acquisition.
B. Prepare the journal entryassuming Minneapolis Manufacturing Inc. decided to purchase 100%of Bloomington Re-Bar Company for $13,000,000 in a Stock Acquisition.
C. Prepare the journal entryassuming Minneapolis Manufacturing Inc. decided to purchase 75%of Bloomington Re-Bar Company for $9,000,000 in a Stock Acquisition.
D. For scenario C.(75% Stock Acquisition – above) prepare a CAD. In addition, prepare the necessaryworkpaper elimination entriesnecessary to complete a consolidated financial statement workpaper.
2. St. Paul Sewer Inc. purchased 70%of Pipestone Pipe Inc. in a Stock Acquisition.The CEO of St. Paul Sewer Inc. mentioned that there is an accounts receivable due from Pipestone Pipe Inc. in the amount of $12,000. How should St. Paul Sewer Inc. account for this inter-company (affiliated company) receivable?Provide the journal entrywith your explanation.
3. The Difference between Implied and Book Value account is:
a) an account necessary for the preparation of consolidated working papers.
b) the excess implied value assigned to goodwill.
c) the unamortized excess that cannot be assigned to any related balance sheet accounts
d) used in allocating the amounts paid for recorded balance sheet accounts that are different than their fair values.
Quiz continues on page 2è
Ethics Scenario:
You have just joined a company as a new staff accountant. Your company is in an acquisition mode (acquiring 5 to 10 smaller companies each of the last 4 years). You are excited to hear that you are going with an acquisition team to facilitate another acquisition (Company X). You have been instructed to sit down with Company X’s controller and explain some pre-acquisition (before the acquisition is finalized) accounting expectations.
Expectations for Company X before the acquisition is finalized.
1. Company X is expected to accelerate the payment of liabilities
2. Company X is expected to delay recording the collections of revenue
3. Company X is expected to increase the estimated amounts in reserve accounts
As you are driving to the Company X headquarters, your gut is telling you something is not right? You pull your car over and call your old classmate who is now an auditor for Ernst and Young. You explain the “expectations” and your old classmate provides the following feedback…
(Old Classmate) There are ways that the three expectations could be managedwithin the rules provided by GAAP, but would be regarded by many as pushing the limitsof GAAP.
Not satisfied with your old classmates answer you call your old accounting professor. Your accounting professor reminds you what he used to say in class,
(Old Professor) “There are gray areas in accounting that many accountants will be influenced to step into. Often, this results in unethical behavior (at a minimum) and in many cases results in illegal acts.” “It’s a dangerous path and I recommend that you stay away from gray.”
1. What effect does each of the three items have on the reported net income of the acquired company before the acquisition and on the reported net income of the combined company in the first year of the acquisition and future years?
2. What effect does each of the three items have on the cash from operations of the acquired company before the acquisition and on the cash from operations of the combined company in the first year of the acquisition and future years?
3. If you are the controller of Company X, how would you respond to these suggestions?
1. Prepare a risk management plan for a family of five (mother, father, and children ages 5, 8, and 12) both parents work (annual salaries $65,000 and $110,000). They own a home that was purchased 3 years ago for $275,000. It is located in bucks county, PA. they own two vehicles; a 2015 Honda sedan and a 2013 Dodge van. Each adult drives 8 to 10 miles each way to work daily (M-F) they also own a small two-bedroom summer home near the jersey shore valued at $150,000. Make sure you justify all parts of the plan.
1. One government intervention in health care is compulsory vaccinations for children against various infectious diseases. Can you explain why governments might enact such policies? (Hint: are there any externalities involved?)
2. In some countries and some regions, there are shortages of doctors. Why is this problem not quickly resolved by the normal workings of supply and demand in the labor market?
1. potential cultural factors in US firm needs to be aware of before entering the ASIAN market.
1. On January 2, 2017, DavidCorporation paid $1,200,000 for Buster Company in a transactionproperly accounting for as an asset acquisition. The book valuesand fair values of Buster Company’s net assets on January 2, 2017were as follows:
BookValue Fair Value
AccountReceivable 400,000 350,000
Inventory 50,000 65,000
Plant andEquipment 250,000 450,000
AccountsPayable 40,000 50,000
MortgagePayable 150,000 150,000
510,000 665,000
A. What will be the goodwill recorded from the abovetransaction? Show your calculation.
B. If David Corporation’s Accounts Receivable balanceimmediately prior to the acquisition was $500,000. What will DavidCorporation’s Accounts Receivable balance be immediately after theabove acquisition? Show your calculation.
2. To determine whether goodwill impairment exists, U.S. GAAPrequires a two-step process (complete the statements):
Step 1 – Compares F.V. (fair value) ofthe Reporting Unit to _____________________________.
Step 2 – If necessary, first comparesthe F.V. of the Reporting Unit to _____________________.
3. If goodwill impairment is determined to exist, the entry torecord the impairment is as follows:
Debit Credit
Goodwill $xxx
Impairment Loss -Goodwill $xxx
A. True
B. False
Explain your answer:
1. Please view the following tutorials on scholarly versus non-scholarly sources and how to access scholarly sources using the Post University Online Library databases in Unit 2. They can be found under “Unit 2: Scholarly Source Assignment”.• Tutorial: Academic Journals, Trade Journals and Popular Magazines: How are they Different?• Tutorial: Accessing Scholarly Journal Articles Through the Post University Library2. Write a minimum one-page essay following these guidelines:• Summarize the characteristics of each type of article.• Compare and contrast a scholarly journal article with a popular magazine article by including three ways they are similar and three ways they are different.• Choose a scholarly article related to your course paper topic and a non-scholarly article directly related to your topic and explain how they are similar and different. Please use specific examples from each article. Remember that you can find a list of course paper topics in the course paper instructions under Course Information. • Make sure to include citations references to your articles.
Hi there! Click one of our representatives below and we will get back to you as soon as possible.