You have been engaged to review the financial statements of tamarisk corporation. in the course of your examination, you conclude that the bookkeeper hired during the current year is not doing a good job. you notice a number of irregularities as follows.1. year-end wages payable of $3,590 were not recorded because the bookkeeper thought that "they were immaterial."2. accrued vacation pay for the year of $33,400 was not recorded because the bookkeeper "never heard that you had to do it."3. insurance for a 12-month period purchased on november 1 of this year was charged to insurance expense in the amount of $2,436 because "the amount of the check is about the same every year."4. reported sales revenue for the year is $2,297,020. this includes all sales taxes collected for the year. the sales tax rate is 6%. because the sales tax is forwarded to the state’s department of revenue, the sales tax expense account is debited. the bookkeeper thought that "the sales tax is a selling expense." at the end of the current year, the balance in the sales tax expense account is $114,320.prepare the necessary correcting entries, assuming that tamarisk uses a calendar-year basis. the books for the current year have not been closed.

Blue computers, a major pc manufacturer in the united states, currently has plants in kentucky and pennsylvania. the kentucky plant has a capacity of 1 million units a year and the pennsylvania plant has a capacity of 1.5 million units a year. the firm divides the united states into five markets: northeast, southeast, midwest, south, and west. each pc sells for $1,000. the firm anticipates a 50 perc~nt growth in demand (in each region) this year (after which demand will stabilize) and wants to build a plant with a capacity of 1.5 million units per year to accommodate the growth. potential sites being considered are in north carolina and california. currently the firm pays federal, state, and local taxes on the income from each plant. federal taxes are 20 percent of income, and all state and local taxes are 7 percent of income in each state. north carolina has offered to reduce taxes for the next 10 years from 7 percent to 2 percent. blue computers would like to take the tax break into consideration when planning its network. consider income over the next 10 years in your analysis. assume that all costs remain unchanged over the 10 years. use a discount factor of 0.1 for your analysis. annual fixed costs, production and shipping costs per unit, and current regional demand (before the 50 percent growth) are shown in table 5-13. (a) if blue computers sets an objective of minimizing total fixed and variable costs, where should they build the new plant? how should the network be structured? (b) if blue computers sets an objective of maximizing after-tax profits, where should they build the new plant? how should the network be structured? variable production and shipping cost ($/unit) annual fixed cost northeast southeast midwest south west (million$) kentucky 185 180 175 175 200 150 pennsylvania 170 190 180 200 220 200 n. carolina 180 180 185 185 215 150 california 220 220 195 195 175 150 demand ('000 units/month) 700 400 400 300 600