Phoenix city workers earned $500,000 in salary during the year. General government accounted for $200,000 public safety accounted for $200,000, park and recreation accounted for 100,000. At the end of the year the salaries payable balance was $15,000. Show the impact of each transaction on the fundamental equation of account
Roman Co., in preparation of its December 31, 2010, financial statements, is attempting to determine the proper accounting treatment for each of the following situations. 1) As a result of uninsured accidents during the year, personal injury suits for $350,000 and $60,000 have been filed against the company. It is the judgement of Roman Co's legal counsel that an unfavorable outcome is unlikely in the $60,000 case but that an unfavorable verdict approximating $250,000 will probably result in the $350,000 case. 2) Roman Co. owns a subsidiary in a foreign country that has a book value of $5,725,000 and an estimated fair value of $9,500,000. The foreign government has communicated to Roman Co. , it's intention to expropriate the assets and business of all foreign investors. On the basis of settlements, other firms have received from this same country, Roman Co. expects to receive 40% of the fair value of it's properties as final settlement. 3) Roman Co.'s chemical product division consisting of five plants is uninsurable because of the special risk of injury to employees and losses due to fire and explosion. The year 2010 is considered on of the safest in the division's history because no loss due to injury or casualty was suffered. Having suffered an average of three casualties a year during the rest of the past decade (ranging from $60,000 to $700,000), management is certain that next year the company will probably not be so fortunate. a) Prepare the journal entries that should be recorded as of December 31, 2010, to recognize each of the situations above. b) Indicate what should be reported relative to each situation in the financial statements and accompanying notes. Explain why.
Roman Co., in preparation of its December 31, 2010, financial statements, is attempting to determine the proper accounting treatment for each of the following situations. 1) As a result of uninsured accidents during the year, personal injury suits for $350,000 and $60,000 have been filed against the company. It is the judgeme
Emily and Richard are majority shareholders and President and Vice President respectively of Leeds Holding Company Incorporated. A holding company is set up to own other companies and provide management and expertise. Recently, Emily and Richard have invested in Faster Distribution Company Incorporated, a small publicly trade
Suppose you have two job offers to consider. They are pretty much the same, though one (e.g., from a state government) offers a
Suppose you have two job offers to consider. They are pretty much the same, though one (e.g., from a state government) offers a "defined benefit" pension plan whose payoff reflects your salary and years of service when you retire or otherwise leave the company. The other company offers a 401K plan. Which do you prefer, and why?
The new employees will be doing their first audits of the 2008 financial statements. In 2008, many businesses lost asset value as a result of a decline in market activity and asset value. A discussion arose in the financial and accounting community regarding mark to market or fair value accounting. The auditors need to have an understanding of what this means and how they should evaluate the assets of a business. Discuss the following: Define and explain fair value accounting and historical accounting. Compare fair value accounting and historical accounting to each other as well as their impact on the balance sheet. Give your opinion about using fair value accounting in a down market. Part II In the fall of 2008, the United States suffered massive corporate failures causing a financial meltdown. These corporate failures had a shock-wave effect on the banking industry, U.S. financial giants, and U.S. corporations that quickly spread around the globe. The banking, financial, and, eventually, U.S. automotive industry asked the government for help. The United States responded to the financial and banking industries very quickly with the Troubled Asset Relief Program (TARP). The use of the resulting bailout money was amazing. The questions and blame surrounding 2008 economic failure, as well as the congressional relief, will be discussed for years. Consider the history of regulations in the United States and the probability of new regulations on the financial markets resulting from the 2008 economic collapse. Answer the following questions: What do you think are the 2 main causes of the 2008 economic collapse and why? Support your opinion with facts. What might some new regulations be, and what would be the purpose of the regulations? Do you think new regulations are needed? Why or why not?
Part I The new employees will be doing their first audits of the 2008 financial statements. In 2008, many businesses lost asset value as a result of a decline in market activity and asset value. A discussion arose in the financial and accounting community regarding mark to market or fair value accounting. The auditors need to
Please list and discuss the three main categories that private insurance in the U.S. is classified into.
Many professionals believe it is impossible to regulate ethics. Yet the SEC and other federal agencies provide rules, regulations, and laws surrounding corporate governance. How effective are the legal processes in regulating corporate governance? Provide an example. Several laws, most recently Sarbanes-Oxley, have provided p
You are going from fund basis to government-wide. The government wide statements are separated into governmental activities and business-type activities. So, list type of fund statement for this one, summarize what must be adjusted to â??changeâ? it into government wide statement. *Proprietary Funds Need citations
1. Name and describe the many types of revenue nonprofits and governments generate. 2. Talk about the use of modified accrual accounting in governments - why? How is revenue recognized under modified accrual accounting? 3. One of your problems deals with property taxes - what are the specific requirements for property tax
Most of your average governmental entities engage in three broad categories of activities/funds: 1. Governmental activities - stuff financed mostly with taxes and intergovernmental grants; these correlate with governmental funds. There are five types of these: a. General fund - resources not restricted. b. Special revenu
Should CEO pay be regulated by the government? Why or why not. If so, how?
The new hires will be involved in gathering corporate information for audits. They will need to make decisions on corporate responsibility based on regulations. As the manager, you feel corporations don't need to be regulated. You believe the market will take care of itself because poor management is what causes companies to eve
Problem 9-10 Contingent Liabilities Several independent items are listed for which the outcome of events is unknown at year end. a. A company offers a two year warranty on sales of new computers. It believes that 4% of the computers will require repairs. b. A company is involved in a trademark infringement suit. The company's legal experts believe that an award of $500,000 in the company's favor will be made. c. A company is involved in an environmental cleanup lawsuit. The company's legal counsel believes that the outcome may be unfavorable but has not been able to estimate the costs of the possible loss. d. A soap manufacturer has included a coupon offer in the Sunday newspaper supplements. The manufacturer estimates that 25% of the 50c coupons will be redeemed. e. A company has been sued by the federal government for price fixing. The company's legal counsel believes that there will be an unfavorable verdict and has made an estimate of the probable loss. Required: 1. Identify which of the items (a) through (e) should be recorded at year-end 2. Identify which of the items (a) through (e) should not be recorded but should be disclosed in the year-end financial statements.
Problem 9-10 Contingent Liabilities Several independent items are listed for which the outcome of events is unknown at year end. a. A company offers a two year warranty on sales of new computers. It believes that 4% of the computers will require repairs. b. A company is involved in a trademark infringement suit. The
1. The Legal System and the Medical Environment Create two to three paragraphs for each following, in your own words: o Provide a description of the two fundamental principles on which the U.S. system of government was founded: federalism and checks and balances. o Provide a description of each of the sources of law in th
See attached file. * It is often said that money markets are not used to get rich, but to avoid being poor. Do you agree or disagree with this statement? Provide support for your opinion. Which markets do you prefer? Explain why. * Why are junk bonds perceived as offering high returns with high risk? Which of the numerou
One of the major purposes of SEC regulation, FASB, GAAP, and the attest (public company audit) business is to represent financial situations "fairly". With all this regulation and mandated reporting, WHAT HAPPENED OVER THE PAST FOUR YEARS? Have we seen echoes of the Shenanigans cases in more recent horror stories?
Stacy Cummins, the newly hired controller at Merced Home Products, Inc., was disturbed by what she discovered about the standard costs at the Home Security Division, she noticed that the first-quarter profits were always poor, the second-quarter profits were slightly better, the third quarter profits were again slightly better,
Determine the correct category for the following items a to d and explain your rationale (Unrestricted, Temporarily Restricted, and Permanently Restricted Net Assets): a) Revenue from gift shop sales b) Donor gives cash to the organization, specifying it cannot be used until the following year c) Donor makes a pledge f
Many consultants are advising diversified companies in emerging markets such as India, South Korea, Mexico, and Turkey to adopt corporate strategies proven to be of value in advanced economies like the U.S. and the U.K. What are the pros and cons of this advice?
Please help answer the following questions regarding bonds. Capital market is mainly for raising of long-term finance, products traded are normally government bond, corporate bonds etc. 1. What is the difference between corporate and government bond? 2. Explain why do municipalities and state-owned enterprise issue bon
This posting looks in specific at a selected government organization and how it manages it planning and control functions.
Select a government organization and discuss how they manage the planning and control function on an annual basis. Discuss how they allocate costs between operating units and why the methodology is important
Many people blame financial deregulation for the downfall of the financial sector. Do you agree or disagree? Please be specific, especially about the nature of the relevant deregulation.
White paper outlining the evolution of banking regulation in the United States. Beginning at reforms in the 30's (Glass-Steagall Act) enacting in response to the banking crisis' portion of the Great Depression, the paper makes a case for why financial deregulation of 1999 (Gramm-Leach-Bliley Act) was not directly to blame fo
The increased availability of readily accessible information has provided professional accountants with news of changes in the industry that can impact their roles. Fortunately, immediate access to changes in laws, regulations, and standards is available through the websites of both federal and state governments, as well as asso
Prepare ledgers for all journal entries, include trial balance and statement of revenue a estimated Revenue- property taxes 275000 estimated Revenues - licence Fees 35,000 Appropriations - salaries 205,000 Appropriations - Supplies 40,000
Wage rates in the United States are higher than similarly skilled workers in other countries such as China, Mexico and India. Consequently, many U.S. businesses have outsourced their manufacturing and production needs to take advantage of these lower wage rates. Discuss how, working collaboratively, the federal government and U.S. businesses can modify employee compensation packages to become more globally competitive. My text says, "The components of a compensation package vary significantly among different regions of the world and even country by country. Two major factors that influence the design of compensation packages are (1) major differences in tax rates and tax deductions from country to country, and (2) government-provided or -directed social security and welfare systems" (p.34). It seems simple enough - but I am still coming up blank on how they can modify these packages to become more globally competitive??
Wage rates in the United States are higher than similarly skilled workers in other countries such as China, Mexico and India. Consequently, many U.S. businesses have outsourced their manufacturing and production needs to take advantage of these lower wage rates. Discuss how, working collaboratively, the federal government and U.
21-24 Operational auditing; 21-26 Government auditing standards See attached for detailed requirements Modern Auditing 8e 21-24 Operational auditing Required a and b 21-26 Government auditing standards 15 questions See questions and requirements attached
Case analysis: Registration of stock issue for Langley Brothers in Kansas with SEC. It discusses the exempt securities pursuant to the Securities and Exchange Act and regulation A.
Langley Brothers, Inc., a corporation incorporated and doing business in Kansas, decides to sell no par common stock worth $1 million to the public. The stock will be sold only within the state of Kansas. Joseph Langley, the chairman of the board, says the offering need not be registered with the Securities and Exchange Commi
The following information was drawn from a county's general fund budgets and account for a particular year (in millions). Amended Budget Original Budget Actual Results (Budget Basis) Revenues Property Taxes $46.6 $42.5
In an essay, describe your chose industry's receptivity to unionization. What are the factors that lead you to your determinations? Perform a labor market analysis to support your conclusions. In your analysis, be sure to include any data you can find on the labor and capital tradeoff for your industry. Also include: Regu
1. What form of partnership allows some of the investors to limit their liability? Explain by giving examples. 2. When does insider trading occur? What government agency is responsible for protecting against the unethical practice of insider trading? Explain by giving examples. 3. Explain how the tax code allows