Question: The following information is from the 2016

> The following information is from the books of Towl Ball Company for the month of April. C The balance in Towl Ball’s cash account on April 30 is $16,232. Towl Ball received the following bank statement from Independence Day Bank for t

> The following information is from the books of Sun Bright Solar Company for the month of March. The balance in SunBright Solar’s cash account on March 31 is $313,850. SunBright Solar received the following bank statement from Jefferson

> On May 1, 2018, Lubin’s Heavy Equipment sold a piece of equipment to Perry Products, Inc., at a selling price of $4,850,000. Lubin’s agreed to accept a 10-month, 8% note with interest due on its maturity date, March 1, 2019. Lubin’s year-end is December

> DRB, Inc. enters into an arrangement with Genius Enterprises by which Genius will purchase $100,000 of DRB’s receivables and charge a 6% fee. As part of the agreement, Genius will hold back $9,000 as additional security. DRB sold the receivable with reco

> Using the information in BE8-13, indicate how Sycamore should allocate the transaction price to the three products using the residual approach. Data From BE8-13:

> On May 1, Onyx, Inc. factored $600,000 of accounts receivable with Cookie Finance without recourse. Cookie Finance assessed a finance charge of 6% of the total accounts receivable factored and retained an amount equal to 2% (i.e., there is a 2% holdback)

> Mac Antiques, Inc. sold $15,780,000 of its accounts receivable to Maximum Cash Capital (MCC). MCC charges a fee equal to 5% of the receivables factored and holds back an additional 2% as security. MCC will return the hold back to Mac when the receivables

> Krouse Incorporated sold $1,000,000 of its accounts receivable to Fusilli Factors. Fusilli charges a fee equal to 8% of the receivables factored and holds back an additional 4% as security. Fusilli will return the hold back to Krouse when the receivables

> IFRS. Use the same information in E9-10 and now assume that Sawyer’s Fence Company reports under IFRS. Required: a. Determine whether Sawyer’s borrowing from Hannibal would be treated as a borrowing or sale under IFRS. Prepare any journal entries neede

> Sawyer’s Fence Company borrowed $240,000 from Hannibal Capital by issuing a 3-year (36-month), 6% note payable. Sawyer’s uses $270,000 of its accounts receivable as collateral for the lending arrangement, transferring the right to the receivable payments

> Eaves Elevators Incorporated provided the following information regarding restrictions placed on its use of cash: In addition to these balances, Eaves had $595,825 of unrestricted cash at the end of the year. Prepare the relevant asset sections to be re

> ATickets.com sells discount airline tickets online. The company orders the tickets after a customer makes a purchase request. Atickets.com earns a flat fee of 25% of the total ticket price. The company sold $1,000,000 in airline tickets during the curren

> Ray’s Sporting Goods, Inc. shipped aluminum baseball bats on consignment to Martin Stores on April 6, 2019. The total cost of the bats is $31,000 with a retail value of $50,000. Martin agrees to accept the consigned merchandise and is eligible to receive

> Historically, about 8% of all the merchandise Asiago, Inc. sells is returned. On January 4, Asiago sold merchandise costing $40,000 to a customer for $62,000 on account. On January 17, Asiago refunded $3,200 for the return of some of the merchandise. On

> Webster Hall, Inc. is a major publisher of college textbooks. Webster Hall allows college bookstores to return all purchases within two months of delivery. The company shipped $700,000 in textbooks in December 2019 based on orders for the spring 2020 sem

> Using the information in BE8-13, indicate how Sycamore should allocate the transaction price to the three products using the expected-cost-plus-a-margin approach. Data From BE8-13:

> Using the information provided in E8-15, assume that Bailey uses the completed-contract method. Prepare the journal entries required in each year to record the contract (show all supporting computations). Data from E8-15:

> Bailey Builders Corporation accepted a three-year, $1,000,000 fixed fee contract to renovate a parking deck. Bailey uses the percentage-of-completion method and the cost-to-cost method of measuring progress. Information related to the construction contra

> Using the information provided in E8-13, prepare the journal entries for each year to record the contract, assuming that Gary uses the completed-contract method (show all supporting computations). Data from E8-13:

> Gary Construction Associates accepted a contract to build an office building on January 2, 2018. The company will complete the contract within two years. Gary provided the following information related to the revenue, estimated costs, progress billings,

> Shemsoft Software Technicians recently accepted a contract to develop an inventory management system for Chez and Company. Shemsoft is required to complete the installation of the new inventory management system in two years. Shemsoft provided the follow

> Far Horizons, Inc. sells mobile phones, wireless plans, and service plan packages. Far Horizons packages the following items for sale. Far Horizons has determined that each item is a separate performance obligation. A customer purchases a new phone pack

> Gundy Communications Systems signed a contract to develop and install an integrated network for Dwight Auto Dealerships, Inc. in five phases. Each phase is considered a performance obligation. The transaction price, including installation, is $2,600,000.

> Perfect Party Company contracts with a customer to provide its birthday party package including a cake, balloons, and musical entertainment. It regularly sells the following products separately at the following standalone selling prices. Perfect Party a

> Green-Up Inc. contracts with a building manager to provide goods and services to enhance the energy efficiency. It offers consulting services, including recommending ways to increase energy efficiency and monitor performance. It also provides items such

> Green-Up Inc. contracts with a building manager to provide goods and services to enhance energy efficiency. It offers consulting services, including recommending ways to increase energy efficiency and monitor performance. It also provides items such as t

> Sycamore enters into a contract with a customer to sell three products for a total transaction price of $15,000. Each product is appropriately classified as a separate performance obligation. Sycamore only sells products A and B on an individual basis, s

> Smart Cookie Learning Centers enters into a contract to customize and sell its LaLa tutoring software to the Westbro United School District. The contract price is $6,000,000 and must be paid to Smart Cookie immediately. Under the terms of the contract, S

> Tarheel Farm, Inc. (TFI) is a North Carolina corporation involved in agricultural production and has an October 31 fiscal year-end. It is not publicly traded, but it is required to prepare annual financial statements complying with U.S. GAAP for its bank

> More Toys, Inc., a toy retailer that has a calendar year-end and prepares interim financial statements quarterly. As of March 31, 20X4, More Toys has 10,000 Gabriella dolls in stock. The Gabriella dolls are from a recent movie that was showing in the the

> Companies sometimes use accounts receivable as collateral in a secured borrowing or sell them to a factor. The accounting method for these types of transactions is governed by ASC 860—Transfers and Servicing. Review all of ASC 860-10 to answer the follow

> ABC Lending signed a loan agreement with AMRO, Inc. on January 2, 2017. AMRO is borrowing $500,000 for 10 years with a stated interest rate of 7%. AMRO will make a payment of $71,188.75 at the end of each year. AMRO paid $10,000 in points to ABC Lending

> On January 2, 2018, JCR Jets, a calendar-year company, accepts a contract with a major airline to build four jets. JCR accepts a fixed fee of $300 million and must complete the project within three years. JCR Jets uses the percentage-of-completion method

> Assume the same information for Case 4. IFRS does not provide specific rules for software; the accounting for software development costs falls under the general guidance for intangible assets. Does IFRS require that software development costs be expensed

> Companies sometimes develop software for either external use (for example, to sell to customers) or for internal use. Should a company expense or capitalize software for internal use? U.S. GAAP provides specific guidance regarding software and, furthermo

> Ed’s Market Company (EMC) grows and sells fresh fruits and vegetables. EMC is an IFRS reporter. EMC experienced three different unfortunate events in the current year. 1. In February, the government acquired 20 acres from EMC in an eminent domain case.

> Ed’s Market Company (EMC) grows and sells fresh fruits and vegetables. EMC experienced three different unfortunate events in the current year. 1. In February, the government acquired 20 acres from EMC in an eminent domain case. EMC was carrying the land

> Sycamore Sidewalk Company enters into a contract with a customer to sell three products for a total transaction price of $15,000. Information related to these three products is provided in the following table. How should Sycamore Sidewalk Company alloc

> On rare occasions, a company will acquire property, plant, or equipment in a nonmonetary exchange in which two entities exchange one nonmonetary asset for another nonmonetary asset. Read sections 5, 20, and 30 of ASC 845-10. Describe the accounting treat

> Treasure Island Corporation (TIC) sells time shares in luxury oceanfront cottages. During the year ended December 31, 2017, TIC completed a project consisting of 100 cottages in a particularly scenic portion of Hawaii. The project cost TIC $110.24 millio

> Tarheel Farm, Inc. (TFI) is a North Carolina corporation involved in agricultural production and has an October 31 fiscal year-end. It is not publicly traded, but it is required to prepare annual IFRS-complying financial statements for its bank. TFI typi

> The Kroger Co. reported cash income taxes paid of $557 million for the year ended January 28, 2017 (fiscal year 2016). In addition, it reported the following: a. What is the LIFO reserve for Kroger as of January 28, 2017? January 30, 2016? b. What is th

> KR Automotives is a calendar-year car dealer that sells cars made by Hoyta. KR uses LIFO and calculates the lower of cost or market using an individual-item basis. The CFO of KR believes that KR will need to write-down its inventory of one particular car

> Wildcat Sporting Goods (WSG) sells athletic shoes and trendy sports apparel to a variety of sporting goods stores in the Northeast and, in 2011, WSG also began direct Internet sales to consumers. WSG’s common shares are publicly traded

> Absco, Inc. is a calendar-year-end clothing manufacturer that sells exclusively to retailers. It engages in a large number of contracts with its customers. Following are some specific contract issues that have arisen this year. 1. Absco signed a contrac

> Tolls R Us is a company whose primary business activity is operating toll roads. Tolls R Us receives licenses from the government to operate the toll roads that are typically expensed for a specified period of time. The company routinely projects the ant

> Bookstores International, a bookstore chain, has been quite successful over the past few decades and is now in expansion mode. It typically approaches opening a new bookstore by first determining the general geographic location for a new store and then i

> BBS is a calendar-year corporation that manufactures baseballs. BBS produced 9.5 million baseballs in 20x7 and incurred fixed production overhead costs of $2 million. In the past 5 years, it has produced the following number of baseballs: The decline i

> TGW Construction Company enters into a contract to build an office building and detached parking garage for $24 million. TGW determines that the building and parking garage represent separate performance obligations. The standalone price of similar struc

> Use the information related to Bigelow Contractors from P8-7 and P8-8 to answer the following questions. Assume that Bigelow’s total assets were $5,000,000 and its liabilities were $2,000,000 at the beginning of the year. a. Compute net

> Kellogg Company and Kraft Heinz Company, Inc. are two companies operating in the packaged food industry. You have noticed their products in numerous grocery and convenience stores and are interested in their production process. Your first step is to anal

> PROBLEM: Selected disclosures related to Foot Locker Company’s inventory follow. Use these disclosures to answer the following questions: a. What percentage of inventory at the end of 2016 is accounted for under each cost-flow assumpti

> Kimberly-Clark Corporation and Procter & Gamble Company reported the following information about inventory in their financial statements and footnotes. Use this information to answer the following questions: a. What cost-flow assumption(s) does Kimbe

> Companies sometimes use accounts receivable as collateral in a secured borrowing or sell them to a factor. The accounting method for these types of transactions is governed by ASC 860—Transfers and Servicing, the majority of which derives from SFAS No. 1

> According to ASC 606, an entity should recognize revenue when goods or services are transferred to a customer. Goods and services are transferred to a customer when the customer obtains control. Refer to the Basis for Conclusions section of ASU 2014-09 t

> What are the general rules related to the amortization of intangible assets? Read the basis for conclusions in SFAS No. 142, particularly paragraphs B49 through B53. What were the amortization rules for intangibles prior to the passage of SFAS No. 142? I

> Consider the Basis for Conclusions in IAS 16, Property, Plant, and Equipment (particularly paragraphs BC26 and BC27). What is the principle underlying component depreciation under IFRS? Although U.S. GAAP does not contain a basis for conclusions for the

> Both IFRS and U.S. GAAP require that firms report inventory at the lower of cost or market. What is the basic principle/characteristic behind this standard that results in this “lower” reporting approach (asset write-down)? Scene 2 Read the objectives

> Martin Software Developers, Inc. recently signed a contract for $1,600,000 to create a registration, grade report, and transcript system for MacFarlane State University. Each part of the system will be delivered separately and must be fully functional up

> Complete the blanks in the five criteria to identify a contract with a customer. 1. All parties agree to the _               and commit to              . 2. Each party’s rights with respect to the goods or service being transferred are              . 3.

> FIFA World Cup 2010 – A Worthwhile Proposition For South Africa? The hosting of the FIFA World Cup 2010 in South Africa was presented as an opportunity to redefine perceptions of South Africa by demonstrating that an African country could successfully

> One of the major tasks of the workshop on Crystal Palace Gold Mine is to repair winch motors, and about 1,000 motors are repaired annually. Approximately half of the repairs require the burnt out armature to be rewound. At present all armatures requiring

> Douglas Taylor, Lecturer in Management Accounting and Finance, Corporate Governance and Ethics and Head of the Finops Section at Wits Business School, Parktown, South Africa Topics covered include: decision-making under conditions of risk and uncertainty

> Springbok Limited’s budget committee, which had members drawn from all the major functions of the business was meeting to consider the projected income statement 2020/2021, which was composed of the 10 months actuals to the end of Janua

> Founded in 1923, Eskom built 78 large coal-fired plants over 60 years to become the fourth largest power utility in the world. The company generates over 90 per cent of all electricity generated in South Africa. This electricity is distributed to industr

> Kinkead has been a leading UK firm since World War II in specialty instruments for measuring electric current characteristics (voltmeters, ohmmeters, ammeters, etc.). Kinkead’s products are grouped into two main lines of business for internal reporting p

> In November 2020, a consultant was employed to review and document the planning and control systems of Integrated Technology Services (UK) Ltd (ITS-UK), to ensure that these were effectively meeting the needs of the business and to provide a basis for st

> Dave Barry, an engineer, is the general manager of the Beta Company, which manufactures a general range of animal food products. Since joining the company, the sales have been static in both volume and value terms. Now, at the start of the New Year, a po

> Alan Chadwick is the Chairman and Managing Director of Chadwick’s Department Store Ltd. This is the company that operates Chadwick’s, a large independent department store that has been family owned and run for over 100 years. It was started in 1906 by Si

> Amica Foods Ltd. produces a very wide range of food products in a highly competitive industry, almost all under the Primus brand name, which is widely recognized as representing high-quality food products with a loyal customer following. Almost all of t

> Anjo Ltd was established in 1986 by two brothers, Andrew and Jonathan Bright. They saw a market for providing accessories in the home to accommodate the new era of home entertainment, and more recently expanded their range to account for a resurgence i

> Airport Complex was founded in Northern Europe in the early 1960s, and at the time it primarily served as a domestic airport. During the 1980s, flights to foreign destinations became an ever more vital activity for the airport. Today, the airport funct

> Southern Paper Inc. is a global packaging company headquartered in the US. The company was founded in the 1880s and has three principal business sectors – forest products, packaging and papers. The forest products division supplies lumber to the constr

> Professor John Shank, The Amos Tuck School of Business Administration Dartmouth College This case was originally set in Western Europe in 1974, just after the Arab oil shocks of 1972 and 1973. National borders were still very important business barriers.

> Merrion Products Limited is a company owned by the Carroll family. The company manufactures hand-made chocolate biscuits from imported South American cocoa, which are sold to a small number of large retail outlets in the local area. When the company was

> The Managing Director of the Kiddy Toy Company (KTC) needs to decide whether a special export order should be accepted or rejected, with reasons provided, for the manufacture of Panda bears. The background Official statistics indicate that China manufact

> Hardhat Ltd.’s budget committee, which has members drawn from all the major functions in the business, is meeting to consider the projected income statement for 2020/2021, which is composed of the ten months’ actuals t

> Fosters Construction Ltd (FCL) is a privately owned company with revenue of £20 million per annum, and 200 employees. The company has been operating for 24 years and is well established in the marketplace. However, despite a national rate of 4 per cent p

> Mestral is a highly successful company manufacturing a range of quality bathroom fittings. For the past fifteen years production has been carried out at three locations: Northern town in the North East of England; at Western town on the Severn estuary;

> Fleet operates a chain of high street retail outlets selling clothing and household items. In 2019 this company was heading for a financial loss and was deemed to have lost strategic direction. The business formula that had proved successful in the 1980s

> The Board of Dumbellow Ltd are meeting on the 23rd January to discuss the draft budget for 2022/23, some two months before the start of that year. The company produces three industrial valves which are incorporated into equipment used in the Oil and Gas

> The case was prepared as the basis for discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Danfoss Drives A/S is a Danish producer of frequency converters located in Graasten in the southern part

> Company B is a manufacturer of large, complex electrical motors. It has been making them 'to order', in order quantities of, typically, one-four in a jobbing/batch production system for many years. A typical selling price may range from £3,000-£20,000

> Company A is in the chemical industry and a manufacturer of industrial paints. At one of its manufacturing sites (site 1) a new system of costing and management information is being considered to replace a traditional system, which was not meeting fully

> This is a general case relating to joint costs allocation. Although it may be difficult to determine a proper allocation basis for a common cost, the broad objectives for allocating common costs are the same as those for separate costs – cost control and

> At the beginning of September, Paul Owen, the new manager of a division of Bohemia Industries, received the August income statement. He was surprised that the profit had declined from that reported for the previous month. He was expecting an increase in

> Introduction Jack Watson, an electrical engineer, established Electronic Boards plc as a ‘one-man’ company in the late 1970s. From small beginnings, the company earned a reputation for the quality and reliability of i

> John Ford, updated by Denny Emslie, Senior Lecturer in Accounting, University of Fort Hare, 2020 Topics covered include: break-even analysis, marginal/contribution costing, gross margin, sunk costs and cost/overhead recovery Founded in 2000, the Gordon

> A Self-supporting Legacy or a Burdensome White Elephant? In the run-up to the 2010 World Cup, South Africa built new stadia according to a blueprint devised by world football’s organizing body, FIFA. The country was keen to present the event in iconic, p

> The word Kai translates to change, and the word Zen translates to better. Together they are taken as change for the better or continuous improvement. Kaizen is part of a methodology known as lean manufacturing which aims to remove waste through continu

> Freedom Products has just organized a new department in their organization to manufacture and sell specially designed tables made from indigenous South African wood. The division has imported new equipment and machinery. Due to the high level of automati

> Melanie-Jane Brown started manufacturing her own face creams some years ago, having worked for some time for one of the large international cosmetic companies. Initially, she made face creams for herself and a few friends and, in response to their encou

> Grass Cutter Mechanic (GCM) manufactures and sells four types of grass cutters, used mainly by farmers. The details of the four different products are given below and relate to June 2020. In the manufacturing of the four products, similar technology is a

> One of the fastest growing sectors in the South African economy is telecommunications and the current expansion is focused on the growth of the mobile telephone market. South Africa is the fourth fastest growing mobile communications market in the world.

> The International Ecotourism Society (TIES) defines Ecotourism as ‘responsible travel to natural areas that conserves the environment, sustains the well-being of the local people, and involves interpretation and educationâ€&#

> First National Bank is a wholly owned division of FirstRand Bank Limited and is one of South Africa’s largest banks. The bank provides a broad range of financial services to individuals and businesses. FNB’s mission is ‘To move from good to Great by buil

> The SC Company manufactures and markets specialized products for use in the air purifying industry. The company is divisionalized and their operations are structured as follows. Department AC The main focus of Department AC is Research and Development. I

> The following information relates to Socks 'n' Stockings (Pty) Ltd, a wholly owned subsidiary of a major listed group. As investment bankers to the group you have been approached by the financial director who makes the following requests: • The company i

> Potty Plants produces large clay pots at their production plant on the Rose path Acre Woods. Peter, the newly appointed general manager of Potty Plants, has just received the income statement for February 2021, presented below: Peter was shocked to see t

> NuLife Limited is an investment holding company which operates through a number of subsidiaries and employs over 20,000 people. NuLife operates private hospital, primary healthcare, emergency medical services and renal care networks in South Africa. In a