Accounting at MacCloud Winery free essay sample

Midterm Exam Accounting at MacCloud Winery 1. The leased building will be accounted as an asset and the agreement to pay lease rentals be recorded as a lease liability. Accordingly, the depreciation expense attributable to space used in manufacturing/processing wines will be accounted as inventory cost as it is a cost incurred in bringing the goods (wine) to its present location and condition. The leased building can be capitalized on the premise that the significant risks and rewards of ownership of the property are transferred to MacCloud. Considering the total rental cost amounting to $50,000 over a period of 10 years exceeds the estimated value of the building ($32,000), the present value (assuming an interest rate of 10%) of the lease payments for a period of 10 years amounts to substantially all of the estimated value of the leased asset. It means that MacCloud can put up a new building now at a cost even higher than the value of the leased building if he wants to; hence in sub stance, MacCloud bought a new building at a value substantially equal to the estimated value of the leased building. We will write a custom essay sample on Accounting at MacCloud Winery or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 2. First year: Cash 180,000 Loans payable-Â ­? noncurrent 180,000 To record set up of loan at the beginning of year 1 Loans payable 10,000 Interest expense 18,000 Cash 28,000 Interest (180k x 10% = 18,000) To record payment of principal and interest at end of year 1 Second year: Loans payable 10,000 Interest expense 17,000 Cash 27,000 Interest (170k x 10% = 17,000) To record payment of principal and interest at end of year 2 Third year: Loans payable 160,000 Interest expense 16,000 Cash 176,000 Interest (160k x 10% = 16,000) To record payment of principal and interest at end of year 3 3. Land will be accounted as a noncurrent asset under property, plant and equipment amounting to $250,000. Land will not be subject to depreciation but may be subject to impairment if there is an indication that the land has decreased in economic value. Generally speaking, the direct costs of the vines as well as the labor and indirect costs to plant should be capitalized and depreciated when the vines start producing grapes. Vines will be capitalized amounting to $42,500 ($10,000 per acre of planted vine -Â ­? 4 acres to be planted -Â ­? and the transportation cost amounting to $2,500). Cost incurred for planting vine will be capitalized amounting to $8,000 ($2,000 per acre -Â ­? 4 acres to be planted). Cost of fertilizing and water will also be capitalized amounting to $4,000 annually during the first five years and $6,000 annually after five years. The cost of grapevine (including transportation cost) itself plus indirect costs (cost of planting, fertilizing and water) are capitalized because they provide economic benefit to the final product -Â ­? wine. 4. The estimated cost of the reduced production due to vine diseases should be accounted for and reflected in the financial information as expense of the winery if the vines have been diagnosed with any of the disease. The amount will be estimated based on the cost of the reduced production including other costs to be incurred should there be replacements of the vineyards due to the disease. However, any cost of fumigation or treatment to prevent the diseases will be capitalized and depreciated accordingly. Such treatment is under the accrual concept of accounting based on generally accepted accounting principles. 5. The oak barrels should be accounted as noncurrent assets under property, plant and equipment to be depreciated over its economic useful life. Depreciation expense should be included as part of inventory cost because the barrels will be used in the production process which is vital in bringing the goods (wine) to its present location and condition. 6. A. ) Land -Â ­? presented as acquisition of property, plant and equipment classified as cash flows from investing activities B. ) Vines, cost of planting, fertilizing and water -Â ­? presented as an increase in inventories under changes in operating assets and liabilities classified as cash flows from operating activities C. ) Bank loans including interest -Â ­? proceeds from loan to be presented as proceeds from loans while payments (including interest paid) will be presented as payments of loans and another line item for interest paid, all classified as cash flows from financing activities Financial Performance Reporting 1. a) b) c) d) e) f) g) h) i) j) Operating under cost of sales or operating expenses – income flows column Operating under revenue – income flows column Operating under operating expenses – income flows column Operating under revenue for sales and cost of sales for impairments – income flows column Financing under fair value gains and losses – valuation adjustment column Operating under other income for gains or other expenses for losses – income flows column Operating under other income for gains or other expenses for losses – income flows column Financing under interests – income flows Operating under cost of sales of operating expenses – income flows Operating under other income or expenses – income flows 2. IASB’s Statement aims to enhance the value of the financial performance statements, by improving the presentation of accounts, which will be more helpful to the readers of the financial performance of an entity, which in my opinion increases the value of the preparers of the financials. 3. Yes, FASB’s goals are satisfied by the proposed changes in the Statements as the IASB Statements further streamline the financial information which will be more helpful to financial statement users with emphasis on the enhancement of the predictive value of the new Statement. 4. By simply looking at the other comprehensive income line item in the statement of financial performance or equity, equity investors would easily capture the information they need – whether equity investments are fairly doing good or not in the market based on the changes in value in comparative years. 5. None. The changes have been researched and analyzed by experts in accounting with broad knowledge on the Standards.

Microeconomics Essay Topics

Microeconomics Essay TopicsMicroeconomics Essay Topics and Considerations These types of essays are very different from those that you will find in a traditional writing class. In this course, you would not be required to write about real world information. You will be given assignments and related reading to help you with your own understanding of the subject matter. It is always important to be clear with your purpose in writing this type of essay.The main focus of Microeconomics Essay Topics should be to demonstrate how economics affects society as a whole. If you are trying to convince a reader of a point, you need to provide some solid evidence in support of that statement. You do not want to simply make an opinion and hope to sway people to your side. A strong argument has to be made in this case. So, it is important to know what your audience wants.You need to give the reader a reason to read your essay. Explain why you feel their opinion is correct or incorrect. Making an arg ument is only half the battle. You must have compelling language to support your point.You must also consider the style in which your Microeconomics Essay Topics is written. These types of papers have a long history. Some examples of microeconomics essay topics are: 'Renting vs. Buying,' 'Government vs. The People, '' Wages vs. Taxable Income.' There are hundreds of topics, some very complex, others being more simplistic.Your goal in writing an essay of this type is to provide clear and concise economic arguments. A good writer must be able to use language effectively and weave coherent thoughts and ideas into a coherent argument. The objective of these types of essays is to help someone learn something new.Students can also find out about topics that are required for Microeconomics Essay Topics by attending a class on this topic. You may want to check with your professor or the school you are taking this course from. This will be more helpful if they have research-based class topic s that they require students to write about. These classes typically require some basic background information as well as the research paper.Understanding Microeconomics Essay Topics from the start will make your learning experience more enjoyable. You will have more control over your own learning. With a greater understanding of the style and format of this type of class, you will not be struggling in your first few weeks of class. The more you practice what you learn, the better you will become at writing and speaking in this format.You will feel confident when you walk into a class where you are required to write about Microeconomics Essay Topics. The instructors will be more willing to go along with your style of writing, especially if you are up to speed on what is expected from you. Once you feel confident, the sky is the limit for your future career. Be prepared to express yourself as clearly as possible in order to earn a good grade.

Japanese Relocation in WWII essays

Japanese Relocation in WWII essays In December of 1941 following the attack on Pearl Harbor, the United States went into a state of panic and war preparation. Among the panic, Americans began to feat that there were Japanese spies among the population of Japanese-Americans. Loyalty was a strong custom in Japan, and many feared that this loyalty would turn Japanese-Americans against the United States. The government became concerned with national defense as the war with Japan began, so General J. L. De Witt, the head of the western defense command, urged Congress to relocate thousands of Japanese Americans living in California to detention camps. He was not concerned with whether or not the person is an American citizen, just that they were of Japanese decent. De Witt wanted to move those of Japanese decent because the Western Coast was close to the Pacific Ocean, where most battles would be fought with the Japanese. The relocation of 120,000 Japanese to detention camps directly violated the Constitution in many ways, although the Supreme Court never ruled that this removal was unconstitutional. Many historians and political analysts, however, believe that direct rights were violated (1). Article XIV. Section 1 of the Constitution declares that, No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws. (2) This right was directly violated when the Japanese-Americans were taken to the relocation camps without due process of law. Article IV of the Constitution protects the people from unreasonable searches and seizures. A warrant describing the place to be searched and the persons or things to be seized is needed to raid a home. No such warrant existed when the 120,000 people were seized from there homes. (1,2) Furthe...

Social learning theory in child psychology Essay

Social learning theory in child psychology - Essay Example All these theoretical formulations have facilitated child psychologists and therapists to understand child behavior in terms of the interaction among such factors as one’s environment, behavior and psychological processes where positive and negative reinforcements play a pivotal role in modulating the child’s behavior patterns. Bandura goes on to purport that â€Å"children learn and imitate behaviors they have observed in other people† and his social learning theory is rooted on three basic models of observational learning- live, verbal and symbolic model (Cherry). The modeling process involves four stages-attention, retention, reproduction and motivation. This understanding has been proved to be crucial in child psychology as children internalizes many of their behavior patterns and subsequent behavioral problems through observation and modeling from their immediate life environment. However, Bandura also held that external or environmental reinforcement alone does not modulate behavior; he stressed on â€Å"intrinsic reinforcement as a form of internal reward, such as pride, satisfaction, and a sense of accomplishment† through which the behavior of the person is shaped (Cherry). Thus, it is significant that the child develops a sense of intrinsic reinforcement in his behavior along with th e large amount of extrinsic reinforcements that he receives from others. It is also worthwhile to analyze how Beg and Beg regard social learning theory in connection with child psychology. For them, social learning theory, in fact, â€Å"combines reinforcement learning theory with psychoanalytic concepts and some of the insights of cultural anthropology and sociology† and as such they hold that the reinforcement aspect of social learning theory has got great relevance in modulating the child’s behavior through appropriate systems of rewards and punishments (Beg &Beg 35). One should also bear in mind that later the concept of rewards and punishments gave way

Picassos Guernica and Beckmanns Departure Art in the 19th Century Term Paper

Picassos Guernica and Beckmanns Departure Art in the 19th Century Politics - Term Paper Example Art in the 19th century had observed a series of changes and movements significant in catering new types of visual representation before a modern audience. At the turn of the mentioned century, the world had experienced two significant World Wars which inevitably led to noticeable influences in visual arts – in paintings to be exact. From two of the most famous movements during the 19th century, namely Cubism and Expressionism, artists such as Pablo Picasso and Max Beckmann had showcased the core essence of visual arts in the Modern Age. With such context laid down, this paper will focus on the Spanish Cubist painter Pablo Picasso and his famous work, Guernica and the German Expressionist painter Max Beckmann and his work, Departure.This essay will then argue that Picasso’s Guernica and Beckmann’s Departure showcase innovative feats in their respective styles and form and present significant struggle against Fascism prevalent during that period.The entirety of th is paper will tackle the analysis of historical content of both artworks. It will discuss how each piece symbolizes their respective campaigns against the Fascist regimes in Europe at that specific period. The 19th century was a moment in history when different ideologies emerged and Europe.These ideologies were used for propaganda and for an imposition of power amongst the weaker nation-states.In the time of Pablo Picasso,his homeland Spain was subjugated under civil disputes between the Revolutionary forces of the newly established government and the Fascist group led by General Franco .1 This civil struggle in Spain was an important factor which contributed to the theme that was used by Picasso in Guernica. With the civil revolution at its height in Spain, intellectuals, government officials and some of his co-artists and colleagues marched to before his house in Paris in order to seek his sympathy by a means of creating a mural.2 As what can be depicted from this piece of inform ation, Picasso at the period of the Guernica was already an influential artistic figure. The Spanish people believed that his artistic capabilities can, indeed, influence the Spanish people to advocate peace between the warring groups. However, Picasso’s sentiments were with the newly established Republic; his vision was to avoid any means of political art whatsoever.3 This seemed an unprecedented reaction from the artist. However, his views towards the political theme of the mural requested from him would come into fruition after a very devastating event that had swept his former convictions away. On April 27,1937, Guernica, a small Basque village in northern Spain, was unjustifiably bombed by the heavy war machines of Adolf Hitler. The Third Reich’s reason was defiantly for mere bombing practices only. This type of violent exercise caused Guernica to burn for three straight days and a huge loss of 600 civilians.4 The atrocities caused by the Fascist Germany had immed iately reached Paris and Picasso’s residence. The massacre created huge demonstrations upon the streets of Paris.5 This particular event moved the artist and compelled him to do the mural. His inspiration was plain and simple- Guernica. The historical sketch about testify to what Picasso’s Guernica is. The painting is highly political because it sends a definite message to its audience. The content of Guernica presents many symbolisms that cater to the historical background of what was happening in Spain at that time. In the painting, the key figures which relate the war-related disaster happening in Spain were the woman with outstretched arms, the agonized horse and the bull.6 These mentioned figures are classic and universal representations and themes in art which simply symbolize Spain.7 The resentment and the suffering attributed to these images as what is etched upon Picasso’s mural clearly present a horrifying stage in Spanish affairs.

Wine Making Essay Example for Free

Wine Making Essay Winemaking is the production of wine, starting with the selection of grapes and other produce, and ending with putting the delicious wine into bottles! Although wine is usually made from grapes, it may also be made from other fruits! Winemaking can actually be divided into 18 different categories†¦.. Harvesting, destemming, crushing, primary (alcoholic) fermentation, pressing, pigeage, cold stabilization, heat stabilization, second fermentation, bulk aging, Malolactic fermentation, laboratory tests, blending, fining, preservatives, filtration, and last but not least, bottling! Lets now find out how to make wine! Harvesting Harvesting is the picking of the grapes and the first step in wine production. The grapes are either harvested by hand or mechanically, the decision lies on the winemaker. Before harvesting, the winemaker checks the grapes for ripeness, flavor, seed color and taste, and lastly, the sugar level! Mechanical harvesters are large tractors that straddle grapevines, and with a rubber rod, strike the vine to get the grapes. Mechanical harvesters have the advantage of picking grapes in a short amount of time. The disadvantage is all the leaves and stems come with the grapes. Some smart winemakers take off the leaves with another machine before harvesting. Destemming Destemming is the process of removing the stems from the grapes. This process may take place before, or after crushing, depending on the winemaker. If you harvest by hand, you can just skip this step altogether! Crushing Crushing is when gently crushing the grapes and breaking the skin to start getting flavor. In traditional and small wineries the grapes are sometimes crushed by stomping on them. However, in large, more upscale wineries, the grapes are crushed by a large, mechanical, wine crusher. Primary (alcoholic) fermentation Have you ever wondered what the powdery coating around grapes is? So have I! Yeast is what the powder is, which is useful for alcoholic fermentation. Since this can give unpredictable results, cultural yeast is added to the mix. During fermentation, the yeast cells feed on the sugars and multiply, creating carbon dioxide gas and alcohol. The tempeture affects both the taste of the product and the speed that fermentation is over. For red wines, the temperate is typically 72-77 F, and for white wine, the normal tempeture is 59-64 F. For every gram of sugar that is converted, about half a gram of alcohol is produce, so to get a 12% alcohol concentration, the product has to contain 24% of sugar. Pressing Pressing is the act of applying pressure to grapes in order to separate wine from grapes and grape skins. Presses act by positioning the grapes or grape skins between a rigged surface and a movable surface and slowly decreasing the volume between the two surfaces. As the pressure increases, the amount of tannin extracted from the skins into the juice also increases. Pieaege Pieaege is a French winemaking term for the traditional stomping of the grapes in open fermentation tanks. To make different type of wine, grapes are put through a crusher and then poured into open fermentation tanks. Once fermentation begins, the grape skins are pushed to the surface by carbon dioxide gases, released in the fermentation process. The layer of skins at the top is called the cap. The cap needs to mix with the liquid each day for flavor Cold and Heat Stabilization Cold stabilization is a process used in winemaking to reduce tartrate crystals that’s in wine. These crystals look like grains of clear sand, and are formed by acid and potassium. The temeture of the wine is dropped close to freeing for 1-2 weeks. This will cause the crystals to separate from the wine. During heat stabilization, unstable proteins are removed by absorption, preventing them from being in the finished bottle of wine. Second Fermentation. This process takes three to six months, and is very valuable! The wine is kept under airlock, and proteins from the grapes are broken down, and the yeast cells that are still remaining and other particles are able to settle. In this process, the wine goes from being cloudy, to clear! Secondary fermentation usually takes place in large stainless steel vessels or large oak barrels. The oak gives wine a very good finished taste, but if the winemakers decide to put the wine in stainless steel, oak chips are added! Malolatic Fermentation. This process occurs when lactic acid bacteria mixes with malic acids and produces lactic acids and carbon dioxide. Malolatic fermentation can improve the taste of wine that has large amounts of malic acids. Malic acids creates an unpleasant, harsh, and bitter taste sensation. All red wines go through malolatic fermentation to lessen the amount of acid in the wine, and to remove the possibility that malic acids may be in the bottle. On the other hand, many white wines do not go through fermentation, because they don’t have a lot of acid. Laboratory Tests. Whether wine is stored in vessels or barrels, tests are done regularly. These tests are done to test sugar level, alcohol level, pH level, and many other factors. Theses tests are performed throughout the making of the wine, from the first step through the last! Blending and Fining Different wines can sometimes be mixed together to achieve the desired taste. This process is as simple as the tests the wine have, every now and then. Fining is removing the chemicals and particles that make the wine cloudy. Gelatin has actually been used in many wines for centuries, as a traditional method for wine fining! Usually, no gelatin actually remains in the wine, as it mixes with other chemicals. Also many fining agents will use milk, eggs, bone char, bulls blood, an animals bladder, honey, and a skim milk powder. Preservatives The most common preservative in winemaking is sulfur dioxide. Sulfur dioxide has one main reason, and that is that its an anti oxidant. If sulfur dioxide is added before alcoholic fermentation, it may damage the effects of oxygen, and the wine will go bad! Without the use of sulfur dioxide, wines will suffer bacterial spoilage. Some winemakers practice natural winemaking where no preservatives are added. The wine is then put in a freezer with the temperature being 5 C. Filtration Filtration in winemaking is used to accomplish two objectives: clarification and stabilization. In clarification, large particles that effect the visual appearance of the wine are removed. In stabilization, organisms that effect the stability are removed, therefore killing all possibilities of the wine going bad. The wine is then put in the refrigerator at a low temperature. Bottling. Finally, the last step in winemaking! A final does of sulfite is added to help preserve the wine and to prevent unwanted fermentation going on in the bottle. Once the wine bottles are filled,, they are traditionally sealed with a cork. The final step is adding a capsule! The wine is now ready to be shipped off, and then sold to buyers that will greatly enjoy the taste! Many people actually don’t know how much work is put into making the wine! That’s why its so expensive, nowadays! I hoped I helped you to understand the process of†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. WINEMAKING!!!!!

Essay --

1.0 Analysis on Ford Motor Company Financial Condition Based on question 1, the table in appendix 1 indicates the financial statement of Ford Motor Company from the year 2008 to 2012. According to the table, the balance sheet has shown that, there were a positive figure in Ford’s operating income from the year 2012 to 2012. Meanwhile, there were slight decrement in the balance sheet from the year 2008 to 2009, whereby has designates negative value in the operating income. A convergence in factors produced in December 2007 to June 2009, was Great Recession due to bad bank loans, improper credit ratings, lax regulatory policies and misguided government incentives that encouraged reckless borrowing and lending (Lutterell et al., 2011). Besides that, this crisis also had drastic effects towards oil price because in 2008, the oil price has increases up to 18 % from 13% per year because of the crunch. It has resulted loss of trust towards U.S government and its capitalist economic system. According to Fraser Institute Index of Economic freedom has indicated that, from the second rank of global ranking, U.S has drop to 18th in 2012 (Federal Reserve Bank of Dallas, 2012) The increasing of economic challenges and crunch in 2008 has impacted badly on the annual reports of companies, in both terms of cash flow and operating losses. In the earlier year it is predictable weak, up to 15% drop in annual operational cash flows. Following the declines in automobile sales throughout 2008 has affected the other car maker in U.S, such as, General Motors (GM) and Ford Motor Company. In this case, the automobiles industry has requested for emergency loans in order to encounter upcoming cash shortages (Brent and Glass, 2009). Finally, with the resolv... ...7 compare to Ford which is 1.01 and GM 0.985 and as the average of the year the quick ratio is in positive form which is 0.981. In the past 5 years the total average of quick ratio which is been stated in the financial statement for Toyota is 0.9726 and Ford is 0.86 where else, GM has a low average 0.821 compare to Ford and Toyota. Finally, Ford and GM managed to step away from the low quick ratio issues and went up steadily due to their dedication in maintaining their current liabilities and inventories which Toyota failed to balance which resulted the decreased growth in the year 2012. To be concluded that Ford is the leading force in the automotive industry because of the expert staff, quality products and services. This company is the perfect investment opportunity; paying close attention to the risks and regulations and protecting their investors’ interests.