Core 1 – Week 1 Immersive Case
Exhibit – Modern Design Co.
To: Asha
From: CPA
Date: January 10, 2015
Subject: Modern Design Co. (MD)
The following are explanations of the accounting issues as well as the analysis and recommendation to resolve the issue. Also included are the adjustments to the financial statements (Appendix A).
Barbor sofa order
Issue
On December 11, MD received an order for a total price of $22,100. Barbor Furniture Ltd. (Barbor) provided a deposit of $9,000 which was recorded as revenue when it was received on December 13. Barbor was not billed until January 2. The order was not shipped until after the year end on January 2. The remaining balance owing was recorded in accounts receivable and
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The accounts receivable should also be removed and sales would be reduced as well.
Impact on users
This will increase liabilities, as the deposit will be set up as deferred revenue on the balance sheet and income will decrease. This will increase inventory and decrease cost of sales. Accounts receivable and sales will decrease. The balance sheet and income statement will both be affected.
Lumber inventory
Issue
On December 31, MD purchased lumber costing $4,410 which was received that day; however, it was not included in the inventory count or in accounts payable. The issue is whether the inventory should be included in the December 31, 2014 year end or not until the lumber was put into production in January.
Analysis
According to ASPE 3031, inventories are assets:
1. Held for sale in the ordinary course of business;
The lumber was ordered, purchased and received on December 31. It is being held for a future sale as of the year end date. The terms of purchase are FOB destination.
2. In the process of production for such sale; or
The lumber was ordered and received on December 31 and was put into production on January 3.
3. In the form of materials or supplies to be consumed in the production process or in the rendering of services.
The lumber was put into production on January 3.
Recommendation
You discover that a product sale was made and recorded in December for $128,600; the product had not yet been shipped. The cost
b. What medium would you use to reach each of these parties and what would your relative resource allocation be to each?
The United States Court of appeals ruled that the suppressed evidence is purely impeaching evidence and no defense request has been made, the suppressed evidence is material only if its introduction probably would have resulted in acquittal. Given a minor role of Phillips' testimony and the limited impact that Phelps statement had on the jury's assessment of Phillips credibility, Maddox could not demonstrate that so the evidence probably would have resulted in an acquittal. Also, the evidence was immaterial under United States V.Blasco; the defendant filed a joint motion to suppress all physical evidence gathered by the officers and any statements made by the defendant. The magistrate found that the defendant did not have to raise a fourth amendment challenge and its suppression did not violate his (Maddox’s) due process right. For ongoing reasons, the district court's dismissal of Maddox's habeas petition was affirmed.
1. To begin, assume that it is now January 1, 1993, and that each bond in Table 1 matures on December 31 of the year listed. Further, assumes that each bond has $1,000 par value, each had a 30-year maturity when it was issued, and the bonds currently have a 10 percent required nominal rate or return.
b.What are the amounts and timing of the acquisition investment’s free cash flow from 2013 through 2022?
1. Write a client outcome to help Mrs. Ross resolve the symptoms (i.e., defining characteristics). Refer to Section III (beginning on p. 119) of the Ackley and Ladwig text.
Met: Cash deposit was received on December 13, 2015 and there is no indication that Barbor Furniture Ltd. will be unable to pay for the remaining balance.
Beecroft stated the transaction was made on November 7, 2015, in the amount of six hundred thirty-four dollars and ninety-four cents, at a Home Depot located at 3031 North East Pine Island Road, Cape Coral, Florida.
As mentioned in the introduction of the mini case, Hobby Horse Company, Inc. (HH) experienced a tough year in 2011. HH opened up a number of new stores but experienced a poor Christmas season. Christmas season is the biggest sale period for retail stores. As a result, bad Christmas sales performance played a big part of HH’s loss for year 2011. As we computed the financial ratios for HH, we can see the effects from new stores openings and poor sales performance.
In accordance ASC 470-50-40-21b Modifications to or exchanges of line-of-credit or revolving-debt arrangements resulting in either a new line-of-credit or revolving-debt arrangement or resulting in a traditional term-debt arrangement shall be evaluated in the following manner:“ If the borrowing capacity of the new arrangement is greater than or equal to the borrowing capacity of the old arrangement, then any unamortized deferred costs, any fees paid to the creditor, and any third-party costs incurred shall be associated with the new arrangement (that is, deferred and amortized over the term of the new arrangement.”
1. As of December 31, 2011, what amount, if any, of sales due should be recognized in eVade’s financial statements?
Giuseppe is a 14-year-10 month-old, Latino male in the 8th grade referred for counseling through AB3632 from Hollywood Senior high School under the Los Angeles Unified School District. Giuseppe’s school counselor indicates Giuseppe has difficulty controlling his anger towards peers. She also shares that Giuseppe fights with his peers leading to a suspension from school for three days due to fighting. Giuseppe’s mother reports that at home he is very oppositional especially with his father. Giuseppe’s mother has made multiple threats to call the police and have him spend time at Juvenile Hall if the behaviors persist. The counselor and mother, both report that Giuseppe has an attitude problem and frequently
Per the contractor he can provide this information within 24 – 48 hours, please note that once I receive the information I will need to prepare to send to you. The expected day to send you the itemized estimate for 1155 Seward will be on Monday, December 7, 2015.
When an account receivable is determined to be uncollectable it is no longer qualified as an asset and should be written off. A write off reduced the balance of the customers
“Inventory is one of the most expensive and important assets to many companies, representing as much as 50% of total invested capital. Managers have long recognized that good inventory control is crucial” (Render et al, 2011). Therefore, it is really no surprise that companies place such a high importance on inventory control. An analysis of the planning and forecasting process, as well as the uses of inventory control will certainly verify the significance of inventory control in the business environment. In addition, by utilizing several inventory methods: economic order