"Life Insurance in Africa" Please respond to the following:
 Explain what is driving the rise of life insurance in Kenya. Identify
and then discuss the challenges, along with the type of journal
entry an insurance company should make to account for a whole
life policy, where part of the premium goes to investment.
Career Choices" Please respond to the following:

review the requirements for each of the three certifications to
determine which you are best suited for and state why.
On December 21, 2012, Zurich Company provided you with the following information regarding its trading securities.
December 31, 2012
Investments (Trading)
Stargate Corp. stock
Cost
Fair Value
Unrealized Gain (Loss)
$21,890
$20,890
$(1,000 )
Carolina Co. stock
10,440
9,440
(1,000 )
Vectorman Co. stock
21,890
22,430
$54,220
$52,760
Total of portfolio
540
(1,460 )
Previous fair value adjustment balance
0
Fair value adjustment—Cr.
$(1,460 )
During 2013, Carolina Company stock was sold for $9,950. The fair value of the stock on December 31, 2013, was: Stargate Corp. stock—
$21,160; Vectorman Co. stock—$22,270.
(a)
Prepare the adjusting journal entry needed on December 31, 2012.
(b)
Prepare the journal entry to record the sale of the Carolina Company stock during 2013.
(c)
Prepare the adjusting journal entry needed on December 31, 2013.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation
Debit
Credit
(a)
(b)
(c)
Securities
Stargate Corp. stock
Vectorman Co. stock
Total of portfolio
Previous fair value adjustment balance—
Cr.
Fair value adjustment—Dr.
Cost
$21,890
21,890
$43,780
Fair
Value
$21,160
22,270
$43,430
Unrealized
Gain (Loss)
$(730)
380
(350)
(1,460)
$1,110
The following facts relate to Alschuler Corporation.
1.
2.
3.
4.
5.
6.
7.
8.
Deferred tax liability, January 1, 2012, $53,280.
Deferred tax asset, January 1, 2012, $0.
Taxable income for 2012, $153,180.
Pretax financial income for 2012, $222,000.
Cumulative temporary difference at December 31, 2012, giving rise to future taxable amounts, $293,040.
Cumulative temporary difference at December 31, 2012, giving rise to future deductible amounts, $46,620.
Tax rate for all years, 30%.
The company is expected to operate profitably in the future.
(a)
Compute income taxes payable for 2012.
Income taxes payable
Taxable income
Enacted tax rate
Income taxes payable
$
$153,180
30%
$45,954
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(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
Latoya Company provides the following selected information related to its defined benefit pension plan for 2012.
Pension asset/liability (January 1)
$34,860 Cr.
Accumulated benefit obligation (December 31)
402,070
Actual and expected return on plan assets
11,970
Contributions (funding) in 2012
157,550
Fair value of plan assets (December 31)
807,450
Settlement rate
Projected benefit obligation (January 1)
Service cost
10 %
733,850
80,745
(a) Compute pension expense.
Pension expense for 2012
$
Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2012. Preparation of a pension
worksheet is not required. Benefits paid in 2012 were $61,060. (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
(b) Indicate the pension-related amounts that would be reported in the company’s income statement and balance sheet for 2012.
Latoya Company
Income Statement (Partial)
For the year ended December 31, 2012.
$
Latoya Company
Balance Sheet (Partial)
December 31, 2012
$
Service cost
Interest cost ($733,850 x 10%)
Expected return on plan assets
Pension expense for 2012
Balance, Jan. 1, 2012
Service cost
Interest cost
Actual return
Amortization of PSC
Contributions
Benefits
Journal entry for 2012
$ 80,745
73,385
(11,970)
$142,160
Latoya Company
Pension Worksheet
General Journal Entries
Annual Pension
Pension Asset/
Expense
Cash
Liability
34,860Cr.
80,745Dr.
73,385Dr.
11,970Cr.
Memo Record Entries
Projected Benefit
Plan
Obligation
Assets
733,850Cr.
698,990Dr. *
80,745Cr.
73,385Cr.
11,970Dr.
157,550Cr.
61,060Dr.
142,160Dr.
157,550Cr.
Balance, Dec. 31, 2012
157,550Dr.
61,060Cr. **
15,390Dr.
19,470Cr.
826,920Cr.
807,450Dr.
Recognition of Profit, Percentage-of-Completion)
In 2012 Gurney Construction Company agreed to construct an apartment building at a price of $1,500,000. The information relating to the
costs and billings for this contract is shown below.
Cost incurred to date
Estimated costs yet to be incurred
Customer billings to date
Collection of billings to date
2012
$350,000
650,000
187,500
150,000
2013
$750,000
250,000
625,000
400,000
2014
$981,250
-01,500,000
1,175,000
(a)
Assuming that the percentage-of-completion method is used.
(1)
Compute the amount of gross profit to be recognized in 2012 and 2013.
2012
Gross profit recognized
$
2013
$
(2)
Prepare journal entries for 2013.
Description/Account
Debit
Credit
Materials, Cash, Payables, etc.
Cash
Construction Expense
(b)
For 2013, show how the details related to this construction contract would be disclosed on the balance sheet and on the income
statement.
Income Statement (2013)
$
Balance Sheet (12/31/13)
$
(a) (1)
Gross profit recognized
2012
2013
$175,000
$200,000
Gross profit recognized in 2012:
Contract price
Costs:
Costs to date
Estimated additional costs
Total estimated profit
Percentage completion to date
($350,000/$1,000,000)
Gross profit recognized in 2012
Gross profit recognized in 2013:
Contract price
Costs:
Costs to date
Estimated additional costs
Total estimated profit
Percentage completion to date
($750,000/$1,000,000)
Total Gross profit recognized
Less: Gross profit recognized in 2012
Gross profit recognized in 2013
(2)Journal entries for 2013.
Description/Account
Construction in Process ($750,000 - $350,000)
Materials, Cash, Payables, etc.
Accounts Receivable ($625,000 - $187,500)
Billings on Construction in Process
Cash ($400,000 - $150,000)
Accounts Receivable
Construction Expense
Construction in Process
Revenues from long-term Contract
$
$1,500,000
$350,000
650,000
1,000,000
500,000
35%
$175,000
$1,500,000
$750,000
250,000
1,000,000
500,000
75%
375,000
175,000
$200,000
Debit
400,000
Credit
400,000
437,500
437,500
250,000
250,000
400,000
200,000
*600,000
* 1,500,000 × [($750,000 – $350,000) ÷ $1,000,000]
Income Statement (2013)
Gross profit on long-term construction project
Balance Sheet (12/31/13)
Current assets:
Receivables- construction in process
Inventories-construction in process totaling
($1,125,000 ** less billings of $625,000)
* $225,000 = $625,000 – $400,000
**Total cost to date
$750,000
2012 Gross profit
175,000
200,000
2013 Gross profit
$1,125,000
(b)
$200,000
* $225,000
$500,000
"AICPA"
Please respond to the following:

assume that you are a practicing CPA working in a public
accounting firm. Discuss how a membership to the AICPA would
help you professionally.
 Identify other professional accounting organizations and explain
how each may help you professionally.
The board of directors of Oksana Corporation is considering whether or not it should instruct the accounting department to change from a
first-in, first-out (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is available.
Sales
21,600
units
@
$61
Inventory, January 1
6,210
units
@
24
Purchases
6,810
units
@
27
10,800
units
@
30
7,660
units
@
37
9,880
units
@
?
Inventory, December 31
Operating expenses
$243,600
Prepare a condensed income statement for the year on both bases for comparative purposes.
Oksana Corporation
Condensed Income Statement
For the year ended December 31
First-in, first-out
Last-in, first-out
$
$
:
$
$
$
Purchases
6,810
10,800
7,660
x $27
x $30
x $37
$
=
=
=
$183,870
324,000
283,420
$791,290
Computation of inventory, Dec. 31:
First-in, first-out:
7,660 units
x $37 =
$283,420
2,220 units
x $30 =
66,600
$350,020
Last-in, first-out:
6,210 units
x $24 =
$149,040
3,670 units
x $27 =
99,090
$248,130
Sedato Company follows the practice of pricing its inventory at the lower-of-cost-or-market, on an individual-item basis.
Item
No.
Quantity
Cost per
Unit
Cost to
Replace
Estimated Selling
Price
Cost of Completion and
Disposal
Normal
Profit
1320
1,700
$5.25
$4.92
$7.38
$0.57
$2.05
1333
1,400
4.43
3.77
5.58
0.82
0.82
1426
1,300
7.38
6.07
8.20
0.66
1.64
1437
1,500
5.90
5.08
5.25
0.74
1.48
1510
1,200
3.69
3.28
5.33
1.31
0.98
1522
1,000
4.92
4.43
6.40
0.66
0.82
1573
3,500
2.95
2.62
4.10
1.23
0.82
1626
1,500
7.71
8.53
9.84
0.82
1.64
From the information above, determine the amount of Sedato Company’s inventory.
The amount of Sedato Company’s
inventory
Item
No.
1320
1333
1426
1437
1510
1522
1573
1626
Cost
per
Unit
$5.25
4.43
7.38
5.90
3.69
4.92
2.95
7.71
Replacement
Cost
$4.92
3.77
6.07
5.08
3.28
4.43
2.62
8.53
$
Net Realizable
Value
Net Real. Value
Less Normal Profit
$6.81 *
4.76
7.54
4.51
4.02
5.74
2.87
9.02
$4.76**
3.94
5.90
3.03
3.04
4.92
2.05
7.38
Designated
Market
Value
$4.92
3.94
6.07
4.51
3.28
4.92
2.62
8.53
LCM
Quantity
$4.92
3.94
6.07
4.51
3.28
4.92
2.62
7.71
1,700
1,400
1,300
1,500
1,200
1,000
3,500
1,500
Final
Inventory
Value
$ 8,364
5,516
7,891
6,765
3,936
4,920
9,170
11,565
$58,127
On March 10, 2014, No Doubt Company sells equipment that it purchased for $597,600 on August 20, 2007. It was originally estimated that
the equipment would have a life of 12 years and a salvage value of $52,290 at the end of that time, and depreciation has been computed on
that basis. The company uses the straight-line method of depreciation.
Compute the depreciation charge on this equipment for 2007, for 2014, and the total charge for the period from 2008 to 2013, inclusive,
under each of the six following assumptions with respect to partial periods. (Round answers to 0 decimal places, e.g. $45,892.)
2007
2008-2013
Inclusive
2014
(1)
Depreciation is computed for the
exact period of time during
which the asset is owned. (Use
365 days for the base.)
Depreciation is computed for the
full year on the January 1
balance in the asset account.
$
$
$
$
(3)
Depreciation is computed for the
full year on the December 31
balance in the asset account.
$
$
(4)
Depreciation for one-half year is
charged on plant assets acquired
or disposed of during the year.
$
$
(5)
Depreciation is computed on
additions from the beginning of
the month following acquisition
and on disposals to the
beginning of the month following
disposal.
Depreciation is computed for a
full period on all assets in use
for over one-half year, and no
depreciation is charged on
assets in use for less than onehalf year.
(2)
(6)
(1)
(2)
(3)
(4)
(5)
4/12 of $45,443
2008–2013 Inc.
3/12 of $45,443
$
$
$
$
$
$
$
$
$
2008–2013
Incl.
2007
$597,600 –
$52,290 =
$545,310
$545,310 ÷ 12
= $45,443
per yr. ($124.50
per day)
133*/365 of
$45,443 =
2008–2013
Include. (6 x
$45,443)
68/365 of
$45,443 =
$
2014
Total
$16,559
$272,658
0
$45,443
$22,722
$15,148
(6)
$272,658
$272,658
$272,658
$8,466
$297,683
$45,443
0
$22,722
318,101
318,101
318,101
$11,361
0
299,167
272,658
$272,658
0
$272,658
Santana Company exchanged equipment used in its manufacturing operations plus $2,978 in cash for similar equipment used in the
operations of Delaware Company. The following information pertains to the exchange.
Santana Co.
Equipment (cost)
Delaware Co.
$41,692
$41,692
Accumulated depreciation
28,291
14,890
Fair value of equipment
20,102
23,080
Cash given up
2,978
(a) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial
substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation
(a)
Santana Company:
Debit
Credit
(b)
Delaware Company:
(b) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial
substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation
(a)
Santana Company
(b)
Delaware Company
Debit
Valuation of equipment
Book value of equipment given
$13,401
Cash paid
2,978
New equipment
$16,379
OR
Fair value received
$23,080
Less: Gain deferred
6,701*
New equipment
$16,379
*Fair value of old equipment
$20,102
Book value of old equipment
(13,401)
Gain on disposal of equipment
$6,701
Computation of loss:
Book value of old equipment
$26,802
Fair value of old equipment
23,080
Loss on disposal of equipment $3,722
Cost of new equipment:
Cash paid
$2,978
Fair value of old equipment
20,102
Cost of new equipment
$23,080
Computation of gain on disposal of equipment:
Fair value of old equipment
Less: Book value of old equipment ($41,692 – $28,291)
Gain on disposal of equipment
Cost of new equipment:
Fair value of equipment
$23,080
Credit
$20,102
= 13,401
$6,701
Less: Cash received
2,978
Cost of new equipment
$20,102
Computation of loss on disposal of equipment:
Book value of old equipment ($41,692 – $14,890)
Less: Fair value of equipment
Loss on disposal of equipmentbLoss on disposal of equipment
= $26,802
23,080
$3,722