Sheetbend & Halyard Case
Jack Tar, CFO of Sheetbend & Halyard, Inc., opened the company’s confidential envelope. It contained a draft of a competitive bid for a contract to supply duffel canvas to the US Navy. The cover memo from the Sheetbend’s CEO asked Mr. Tar to review the bid before it was submitted.
The bid and its supporting documents had been prepared by Sheetbend’s sales staff. It called for Sheetbend to supply 100,000 yards of duffel canvas per year for five years. The proposed selling price was fixed at $30 per yard.
Mr. Tar was not usually involved in sales, but this bid was unusual in at least two respects. First, if accepted by the navy, the bid would commit Sheetbend to a fixed-price, long-term contract. Second, producing the duffel canvas would require and investment of $1.5 million to purchase machinery to refurbish Sheetbend’s plant in Pleasantboro, Maine.
Mr. Tar set to work and by the end of the week he had collected the following facts and assum
Sheetbend & Halyard Case
Jack Tar, CFO of Sheetbend & Halyard, Inc., opened the company’s confidential envelope. It contained a draft of a competitive bid for a contract to supply duffel canvas to the US Navy. The cover memo from the Sheetbend’s CEO asked Mr. Tar to review the bid before it was submitted.
The bid and its supporting documents had been prepared by Sheetbend’s sales staff. It called for Sheetbend to supply 100,000 yards of duffel canvas per year for five years. The proposed selling price was fixed at $30 per yard.
Mr. Tar was not usually involved in sales, but this bid was unusual in at least two respects. First, if accepted by the navy, the bid would commit Sheetbend to a fixed-price, long-term contract. Second, producing the duffel canvas would require and investment of $1.5 million to purchase machinery to refurbish Sheetbend’s plant in Pleasantboro, Maine.
Mr. Tar set to work and by the end of the week he had collected the following facts and assum
Create a diagram comparing accrual and cash accounting. Also include a 350- to 700-word summary of the differentiation and uses of the two.
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Public finance- cost and benefitsWeek 8-Discussion
Suppose you are a CPA, and you have a corporate client that has been operating for several years. The company is considering expansion through reorganizations. The company currently has two (2) subsidiaries acquired through Type B reorganizations. The client has asked you for tax advice on the benefit of a Type A, C, or D reorganization over a Type B reorganization. Additional facts regarding the issues are reflected below.
- The company currently files a consolidated income tax return with the two (2) subsidiaries acquired through a Type B reorganization.
- ABC Corporation, a subsidiary targeted by the client for takeover, has substantial net operating losses.
- XYZ Corporation and BB Corporation will be acquired as subsidiaries in the next six (6) months.
Use the Internet and Strayer databases to research the rules and income tax laws regarding Types A, B, C, and D reorganizations and consolidated tax returns. Be sure to use the six (6) step tax
Write a 700- to 1,050-word summary of the team's discussion about IFRS versus GAAP, based on your team collaborative discussions. The summary should be structured in a subject-by-subject format. An introduction and a conclusion are needed. Your essay should include the answers to the following:
- IFRS 8-1: What are some steps taken by both the FASB and IASB to move to fair value measurement for financial instruments? In what ways have some of the approaches differed?
- IFRS 9-1: What is component depreciation, and when must it be used?
- IFRS 9-2: What is revaluation of plant assets? When should revaluation be applied?
- IFRS 9-3: Some product development expenditures are recorded as development expenses and others as development costs. Explain the difference between these accounts and how a company decides which classification is appropriate.
- IFRS 10-2: Explain how IFRS defines a continge
Write a 700- to 1,050-word summary of your team's discussion regarding IFRS versus. GAAP. The summary should be structured in a subject-by-subject format. Include an introduction and a conclusion. Your discussion should include the answers to the following:
IFRS 2-1: In what ways does the format of a statement of financial or position under IFRS often differ from a balance sheet presented under GAAP?
IFRS 2-2: Do the IFRS and GAAP conceptual frameworks differ in terms of the objective of financial reporting? Explain.
IFRS 2-3: What terms commonly used under IFRS are synonymous with common stock and balance sheet?
IFRS 3-1: Describe some of the issues the SEC must consider in deciding whether the United States should adopt IFRS.
IFRS 4-1: Compare and contrast the rules regarding revenue recognition under IFRS versus GAAP.
IFRS 4-2: Under IFRS, do the definitions of revenues and expenses include gains and losses? Explain.
IFRS 7-1: Some people argue that the internal control requi
Finlon Upholstery Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 2001, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date.
Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours multiplied by the budgeted direct-labor rate.) Budgeted totals for 2002 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year are as follows:
| Actual Results |
| Direct Materials Used |
$5,600,000.00 |
| Direct Labor |
Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2011. The units have a list price of $500 each, but Thomas was given a 30% trade discount. The terms of the sale were 2/10, n/30. Thomas uses a periodic inventory system.
Required:
- Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2011, using the gross method of accounting for purchase discounts.
- Prepare the journal entry to record the payment on December 15, 2011, using the gross method of accounting for purchase discounts.
- Repeat requirements 1 and 2 using the net method of accounting for purchase discounts
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