By now you should have started thinking about who you would like to interview for the Company Report Project. Any questions about the report or how to find the information for your company? Any advice on what questions worked well for you or might help your classmates find information that they need to complete the project? What are your thoughts about the information found in the Company Report? Any surprises?

At the end of 2016, its first year of operations, Swelland Company reported a pretax operating loss of $32,000 for both financial reporting and income tax purposes. At that time, Swelland had no positive verifiable evidence that it would earn future taxable income. However, due to successful management, the company reported pretax operating income (and taxable income) of $70,000 in 2017. During both years, the income tax rate was 30%, and no change had been enacted for future years.

Required:

Prepare Swelland’s income tax journal entries on December 31, 2016.

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GENERAL JOURNAL

Prepare Swelland’s income tax journal entry on December 31, 2017. Additional Instruction

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GENERAL JOURNAL

Prepare the lower portion of Swelland’s 2017 income statement. Additional Instructions

Use ILAC Format to answer please.

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Susan and Henry began carrying on a restaurant business in partnership in June 2016. In July 2016 they employed Isabella to manage the restaurant during the day. Susan and Henry work together in the evenings. Isabella made a great success of her part in the business and, as from September 2016, Susan and Henry decided she should be a salaried partner.

Susan and Henry went for a week’s holiday in the quiet time during January 2017 and during that time Isabella purchased an additional coffee machine for $7,000. Upon questioning, Isabella told Susan and Henry that she had ordered the coffee machine from Donald, one of their authorised suppliers, in order to keep up with customer demand when she was managing the restaurant. Susan and Henry then reminded Isabella that her authority to purchase items on behalf of the firm is limited to $1,000. Susan and Henry informed Donald that they are not responsible for the account. Donald is still disputing this, maintaining that Isabella informed him when placing the order that she was a partner in the firm and that she was purchasing the machine on behalf of the firm.

Susan resigned from the partnership in March 2018 when she discovered Henry was spending a lot of time with Isabella. Since her resignation, Susan has received a claim for payment for $12,532 from Frank. Frank is a long-term supplier of fruit and vegetables to the firm. His claim for payment relates to supplies made during the period 30 May 2018 to 31 July 2018.

YOU ARE REQUIRED to advise Susan of her legal position with respect to the issues arising from the above situation

Burberry current metrics trend analysis? current stock price per share.

compare the trends between burberry and LVMH.

look for strength and weaknesses.

dividend policy - what is the dividend in terms of dollar/ cents? if it does not issue dividend state it. and is it strength or weakness?

beta analysis - measure of volatilaty in the market.

analyze any strengths or weaknesses of Burberry beta. Good or bad for growth?

The manager of a small hotel resort is considering expansion. He would like to issue bonds but do not quite understand why he may or may not receive what amount of money is stated on the face of the bond but he has to repay what is on the face of the face bond. Write a report to the manager explaining the market forces that determine how much money will be collected. Also explain how the interest payment on bonds are calculated and paid. write a report with 800 words explaining the market forces that determine how much money will be collected and how the interest payment on bonds are calculated and paid.

The monthly budget amounts in the report were based on an expected production of 60,000 units per month or 720,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 58,000 units were produced.

Instructions

a)  

Prepare a budget report for August using flexible budget data.

(b)  

In September, 64,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August.

On January 1, 2018 Vulcan Company purchased 400 of the 1000 shares of Star Trek company stock for $60,000.                                                                                                                  

At this time, Star Trek had a truck with a book value of $40,000 and a fair market value of $80,000. The truck has a life of 5 years with no salvage value and Star Trek uses straight line depreciation                                                                                                                              

On July 1, 2018 Star Trek paid a dividend of $1 per share                                                                                                                              

On December 31, 2018 Star Trek reported a profit of $11,000 and its stock was selling $151 per share                                                                                                                      

On July 1, 2019 Star Trek paid a dividend of $2 per share                                                                                                                               

On December 31, Star Trek reported a loss of $5000 and its stock was selling for $148 per share                                                                                                                 

On July 1, 2020 Star Trek announced that it wasn't paying any dividends in 2020.                                                                                                                              

On December 31, 2020 Star Trek reported a profit of $3000 and its stock was selling for $155 per share                                                                                                                  

On January 31, 2021 Vulcan sold its entire investment in Star Trek at $150 per share                                                                                                                      

REQUIRED                                                                                                                          

A) MAKE ALL THE JOURNAL ENTRIES CONNECTED WITH VULCAN'S INVESTEMENT IN STAR TREK IN                           2018                                                                                                      

                2019                                                                                                      

                2020                                                                                                      

                2021                                                                                                      

                B) FILL IN THE FOLLOWING TABLE                                                                                                                           

                                2018       2019       2020                                                      

INVESTMENT IN STAR TREK                                                                                                                        

INVESTMENT INCOME                                                                                                                  

When bondholders decide to exercise their convertible bonds, the company values the common stock at the ____________.

A. par value of the stock

B market value of the stock

C. carrying value of the bonds

D. par value of the bonds

Berry Ltd (“BEL”) carried on trading business in Hong Kong. Its provisional income statement for the year ended 31 March 2019 shows a net profit before taxation of $3,000,000, inter alia, after crediting the following income and charging the following expenses:

Explanatory Notes

1. BEL purchased goods from Hong Kong suppliers and sold to overseas customers. Over 100 overseas agents solicited customers for BEL. The agents would receive orders for BEL in overseas and forward the same to BEL for final confirmation.

2

3 During the year 2009, BEL bought the proprietary interest of a registered product design for use by its suppliers to produce BEL’s products at a price of $1 million. During the year 2018/19, BEL sold the proprietary interest of the product design at a price of $1.3 million and hence made a profit of $300,000. Also BEL bought a registered trademark during the year 2019/20 at a price of $2 million, which was not reflected in the above income statement. The trademark has a protection period of 4 years starting from 2018/19.

4 The product research expense included $150,000 for new research equipment.

5

*The bank loan was used to buy trading stock.

6 The repairs expense of $100,000 was for initial repairs to a second-hand packing machine which was acquired during the year. The expense was for the purpose to put the machine back to operable condition for obtaining the relevant license from the government.    

7

Write-off of a staff loan* (5% interest and 95% principal) 20,000

Bad debts recovered (trade debts written off in the year 2018/19) (8,000)

Provision - 5 % on total trade debtors’ balance 10,000

                - on specified trade debtors 53,000

Total per accounts 75,000

The loan was provided to the staff’s bank account in Hong Kong.

8 Depreciation allowance agreed by the Inland Revenue Department for the year was $200,000

Required

1. Calculate the profits tax payable by BEL for the year of assessment 2018/19, ignore provisional tax.

1. 2. Explain your profits tax treatments for the following items:
1. Sales through overseas agents $5,000,000
2. Interest from fixed term bank deposit interest $300,000
3. Sales proceeds of the registered product design $1,300,000
4. Registered trademark acquisition cost $2,000,000
5. Interest on bank loan $140,000
6. Write-off of staff loan $20,000
7. Initial repairs expense of the second-hand packing machine $100,000

1. Taxpayer (“T”) a 59 year-old calendar year individual taxpayer purchased an annuity from an insurance company for $100,000 in 2019. The terms of the annuity were that the company would pay T $5,000 a year to T for the rest of T’s life. How much income will T include in T’s personal income tax return as a result of receiving the $5,000 payment

in 2020?   _____________

In 2050? ______________

Required information

Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products.

Prepare the appropriate journal entries for Macy Co. to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system, and purchases these units for resale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Please identify and describe Financial Controller occupations researched

Refer to the following article: Trentmann, Nina, "Danish Insulin Maker Novo Nordisk Cuts Jobs, Shifts R&D Spending; CFO says R&D savings will be reinvested in artificial intelligence, cloud services and automation technologies," Wall Street Journal, 01 Nov 2018 (Online). Drawing from what you have learned in this course as well as any other sources, provide a well labeled and clearly articulated answer -- with explanation and proper references -- to the following:

• • Using the accounting terminology used to date in this course, what kind (or classification) of costs are research and development costs, and where do they usually fit in a profit and loss (or income) statement?
  • Are research and development costs ever included in costs of goods manufactured? If not, why not? If so, to what extent and under what circumstances?
  • Why would it make sense to avoid the complete automation of cash management and accounts receivable tasks (i.e. to continue to use humans for some tasks(? Explain.
• Where appropriate, properly cite any readings, specific pages from any secondary source, or other sources that contributed to or that support your explanation.

E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO LO7-2, 7-3 Skip to question [The following information applies to the questions displayed below.] Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2: Units Unit Cost Inventory, December 31, prior year 2,800 $ 13 For the current year: Purchase, April 11 8,960 14 Purchase, June 1 7,850 19 Sales ($52 each) 10,960 Operating expenses (excluding income tax expense) $ 189,000 Required: 1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO.

Nordbock Inc. reports the following outstanding bond issue on its December 31, 20Y1, balance sheet:

1,000,000, 7%, 10-year bonds that pay interest semiannually.

The bonds have been outstanding for five years and were originally issued at face amount. The company is considering redeeming these bonds on January 1, 20Y2, at 103 and issuing new $1,000,000, 5%, five-year bonds at their face amount. These bonds would pay interest semiannually on June 30 and December 31.

Write a brief memo to Liz Nolan, the chief financial officer, discussing the costs of redeeming the existing bonds, the proceeds from issuing the new bonds, and whether this is a good financial decision.