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Cerner Company has two fringe benefit plans for its employees:
1. It grants employees 2 days' vacation for each month worked. Ten employees worked the entire month of March at an average daily wage of $120 per employee.
2. In its pension plan the company recognizes 10% of gross earnings as a pension expense. Gross earnings in March were $40,000. No contribution has been made to the pension fund.
Instructions
Prepare the adjusting entries at March 31.
Do you believe one method is preferable to the other? Why? Would you change the accounting standard to require one or the other method? Consider the perspectives of both the user and the preparer of the financial statements.
evaluate the methodology for assessing the execution of a balanced scorecard system. Describe the techniques you would employ to determine the effectiveness of a balanced scorecard in your organization.
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Last month when Harrison Creations, Inc., sold 40,000 units, total sales were $300,000, total variable expenses were $240,000, and fixed expenses were $45,000.
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Discuss the information needs of users in terms of the qualitative characteristics of financial information.
Create a Balance Sheet with this Trial Balance
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