Section 1: Chapter 7 – (required, 20%) MMG Global features 4…
Section 1: Chapter 7 – (required, 20%) MMG Global features 4 departments: Travel Trade Media (TTM), Tourism Marketing Services (TMS), Human Resources (HR), and Accounting. HR & Accounting are support departments, while TTM and TMS are operating departments. Number of personnel per department provides a reasonable allocation basis for HR, while accounting is allocated based on accountant hours used by each department. Budgeted costs and basis-usage is reported below: Accounting HR TMS TTM budgeted costs 2,000,000 1,500,000 20,000,000 12,000,000 # of personnel 20 40 140 100 accounting hours used 5,000 5,000 18,000 12,000 Please allocate MMG’s total costs to the 4 departments, using: Question 1) The direct method Question 2) The step down method, removing Accounting first Question 3) What 2 formulas would be used in the reciprocal method?
Read DetailsJane (52 year old female) presents to her primary physician…
Jane (52 year old female) presents to her primary physician after a 6-month history of unexplained weight loss (approximately 12 lbs), increased appetite, and fatigue. She describes episodes of palpitations, heat intolerance, and excessive sweating. She denies significant changes in bowel habits or vision problems. Past Medical History: Hypertension (controlled with lisinopril). No prior thyroid issues. Family History:Mother had a history of goiter, no known thyroid malignancies. Medications: Lisinopril 10 mg daily. Occasional ibuprofen for headaches. Social History:Non-smoker, moderate alcohol use. Works as an elementary school teacher. Physical Examination General: Thin, anxious-appearing woman. Vital Signs: BP: 140/85 mmHg HR: 105 bpm (irregular) Temp: 99.5°F RR: 18/min Neck: Palpable multinodular goiter, non-tender. Cardiovascular: Irregularly irregular rhythm, no murmurs. Neurological: Fine tremor in both hands. Dermatologic: Warm, moist skin. Eyes: No proptosis, no lid lag. Laboratory Findings Test Result Reference Range TSH
Read DetailsSection 7: Leases (14%) On 1/1/2012, Gerrit, Inc. enters int…
Section 7: Leases (14%) On 1/1/2012, Gerrit, Inc. enters into a 12-year non-cancellable lease for a piece of machinery owned by Verlander, Inc. The lease calls for annual payments of $20,000, payable at the end of each year of the lease (i.e. first payment is due on 12/31/12). At the end of the lease, the right to use the machine transfers back to Verlander. Gerrit, Inc. declined the opportunity to purchase the machine outright for $250,000, and the economic life of the machine is believed to be 20 years. There is also a bargain renewal option to extend the lease another 4 years for $10,000 per year. Gerrit uses a 4% discount rate to calculate present values, and generally uses straight-line depreciation for machinery assuming no salvage value. In addition, Gerrit Inc spends $51,000 to customize the machinery for use in their factory. They believe that this customization has a useful life of 15 years. Question 15) What type of lease is this, from Gerrit’s perspective, and why? Question 16) What (if any) journal entries should Gerrit record on 1/1/2012? Question 17) What (if any) journal entries should Gerrit record on 12/31/2013 (the end of year 2)? Question 18) Could this lease qualify for sale and leaseback accounting treatment, if it had been sold to Verlander by Gerrit immediately before entering into the lease described above?
Read DetailsSection 9: Debt Investment Donnie, Inc. purchases 15-year bo…
Section 9: Debt Investment Donnie, Inc. purchases 15-year bonds from Lebowski, Inc. on 1/1/24. The bonds have a $250,000 face value and a stated annual interest rate of 8%. The bonds pay interest every 6 months, starting on 6/30/24. Given Lebowski’s credit rating (risk profile), Donnie requires an effective yield of 4%. At the time of the first interest payment (immediately following it), the fair market value of the bonds is $345,000. Donnie classifies the bonds as a trading security. Question 21) Prepare the entry necessary by Donnie on 1/1/24 at bond issuance. Question 22) Prepare the entry or entries necessary on 6/30/24, when the first interest payment is made and Donnie prepares financial statements. Question 23) On Donnie’s income statement for the period covering January 1 2024 through June 30 2024, how much income will Donnie report related to these bonds?
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