Essay Case 11-3

The following information is provided for adjustments prior to closing the books. Lopez and Knepp ask you to enter the adjustments into the spreadsheet, in the two columns to the right of the unadjusted trial balance. (CM2 uses a perpetual inventory system.)

Sparkle Company is a Nigerian diamond mining company. Sparkle is a joint venture, 50 percent owned by Shine and 50 percent owned by Brighten. Both Shine and Brighten are U.S.-based companies with their functional currency being the American dollar. Sparkle Companies functional currency is that of Nigeria, being the Naira. During 2009, Sparkle had several transactions with its joint venture owners and outside parties. The details of Sparkle’s transactions are three loans, three expenditures, and one revenue stream. The loans the company took out were $1 million from Brighten, $1 million from Shine, and 300 million Naira from a local Nigerian bank. The expenditures

This case is talking about an executive retreat. It was introduced by John Matthews who was a executive had been selected to attend the two-and-a-half-week retreat. The retreat was more like a competition about academic and athletic. The team members should not only get know each other and cooperate with teammates but also need to compete with others. The whole participants were broken into five groups and their aim was to win the competition. There are several sessions about academic and athletic that the participants should complete. After the introduction part the case showed the experience of John. Before the group meeting John was wondering and worried about this retreat. When he was taking the first group meeting, he tried to learn

Issue: Decide how to account for the funding of the R&D and royalty payments. Identify the authoritative literature applicable to this funding arrangement and discuss the appropriate accounting for the agreement in accordance with that guidance.

Energy Inc. (Energy, or the Company), which operates in the oil industry, is a U.S. subsidiary of a U.K. entity that prepares its financial statements in accordance with IFRS and U.S. GAAP. A draft law in a country where Energy operates in, which requires a cleanup of land already contaminated, will possibly be enacted shortly after the year-end.

On a snowy January evening, the Midwestern Medical Group (MMG) management team held a retirement party for Judith Olsen, MMG president. During the evening, Olsen reflected back on the years she had worked for MMG with mixed feelings about her experience. Over the course of their eight-year integration

f) To evaluate the material misstatement in the accounts, I think both of the consolidated income statement and the three financial statements are useful. We need to use the information properly from all the financial statements. However the consolidated income statement is the most useful one. If there is a significant change in an account balance comparing with preceding two years, the auditor will examine whether there a material misstatement exists. For instance, the bad debt expense as a percent of net sales in 2011, 2010 and 2009 are 0.56%, 0.70% and 0.69%, respectively. There should

Shakespeare Inc., a private publishing company issued its F/S on March 20, 2012. There were several accruals and events that the management of Shakespeare is considering to determine if they should be recognized or disclosed in Dec 31, 2011 F/S. In my opinion, the important things to focus on subsequent events are the period they effect and if their influence is material or not, so that in conclusion, the F/S are fairly presented.

A nuclear war has been declared and the civil defense committee has been appointed by the president to make decisions on fall-out shelter occupancy. Based on computer calculations the shelter can guarantee survival of only six people. The committee must decide which six are to be included from a list of twelve to go on and rebuild a new society. The twelve individuals they have to choose from are the following: A 36-year-old female physician, known to be a racist; Army drill instructor; African-American militant, biological researcher; Biochemist; Olympic athlete, all sports; movie star; third-year medical student, homosexual; 16-year-old pregnant female; 30-year-old Catholic priest; 38-year-old male, “Mr. Fix-It,” served seven

Q1. Review the case details Exhibit 5 “Survey Questionnaire and Response Distributions” and Exhibit 6 “Buckingham’s pricing matrix worksheet.” Complete filling in the pricing matrix worksheet for Exhibit 6 as taking the role of Larry Buckingham.

Chick-fil-A is known for their famous Chick-fil-A sandwich, but also for their private, family –controlled ownership structure, philosophy on management and biblical principles. Chick-fil-A uses the differentiation strategy to set them apart from other fast-food chains. Chick-fil-A mission was “To glorify God by being faithful steward of all that is entrusted to us and to have a positive attitude influence on all who come in contact with Chick-fil-A”, and to be “America’s best quick-serve restaurant.” One of their strategies they use to set them apart was focusing on people. This strategy included interview process, golden rule, consistent

According to Statement NO.167, paragraph 14A, no more than one entity is expected to be the primary beneficiary of variable interest entity. More than one entity could have the characteristics to be the primary beneficiary, but only one has the power to direct activities of VIE that most significantly impact the economic performance of the VIE.

Inaash (a Lebanese non-profit organization that supports the Palestinian refugees) has created jobs for thousands women in camps through the production of Palestinian embroidery products. Although the organization had made significant achievements—from supporting refugees to offering medical help to elderly and sponsoring children’s education—major changes in its environment have resulted to diminishing sales and increased dependence on donations. As a result, Inaash’s

It is assumed that they will be offering both French and English classes during weekday and weekend with OILT. But without a clear understanding of the new targeted market, it is difficult to estimate a sales number. In this calculation, instead of looking at the profit based on an assumed number of sales, the profitability of the OILT programs is evaluated using the same level of sales as proposed in Scenario 3 with RELE. The comparison of the profitability can reveal the different franchise fee structure and its impact on profitability.

relationships at the firm and was developing as a consultant. Most of his time thus far had been spent