The following T-accounts represent September activity.

Required:

Compute the missing amounts indicated by the letters (a) through (i).

On July 1, 2017, Novak Inc. made two sales. 1. It sold land having a fair value of $905,690 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,326,027. The land is carried on Novak's books at a cost of $594,100. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $408,280 (interest payable annually). Novak Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 10% interest. Record the two journal entries that should be recorded by Novak Inc. for the sales transactions above that took place on July 1, 2017.

An assessment as to whether (or not) the behaviour of the regulator in introducing the exposure draft can be explained by public interest theory.

An outline of the views presented in the comments letters which highlights the areas of agreement and disagreement with the exposure draft.

An application of each of the theories of regulation (public interest, private interest and capture) to the comments letters and a justification as to which theory(ies) best explains the comments.

answer the following

1) The tax valuation allowance is:

2)In the calculation of pension expense, how does the expected return on plan assets affect net income and other comprehensive income?

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $46,900; total assets, $239,400; common stock, $88,000; and retained earnings, $44,140.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $449,600 Cost of goods sold 296,850 Gross profit 152,750 Operating expenses 99,500 Interest expense 4,000 Income before taxes 49,250 Income taxes 19,840 Net income $29,410 CABOT CORPORATION Balance Sheet December 31, 2017 Assets Liabilities and Equity Cash $18,000 Accounts payable $17,500 Short-term investments 8,800 Accrued wages payable 4,800 Accounts receivable, net 33,800 Income taxes payable 3,300 Notes receivable (trade)* 5,000 Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 70,400 Prepaid expenses 2,500 Common stock 88,000 Plant assets, net 149,300 Retained earnings 73,550 Total assets $257,550 Total liabilities and equity $257,550 * These are short-term notes receivable arising from customer (trade) sales. compute the following: (6)debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity

Nautical Creations is one of the largest producers of miniature ships in a bottle. An especially complex part of one of the ships needs special production equipment that is not useful for other products. The company purchased this equipment early in 2016 for $200,000. It is now early in 2020, and the manager of the Model Ships Division, Jeri Finley, is thinking about purchasing new equipment to make this part. The current equipment will last for four more years with zero disposal value at that time. It can be sold immediately for $40,000. The following are last year's total manufacturing costs, when production was 8,600 ships:

The cost of the new equipment is $140,000. It has a four year useful life with an estimated disposal value at that time of $35,000. The sales representative selling the new equipment stated, "The new equipment will allow direct labor and variable overhead combined to be reduced by a total of $2.20 per unit." Finley thinks this estimate is accurate, but also knows that a higher quality of direct material will be necessary with the new equipment, costing $0.17 more per unit. Fixed overhead costs will increase by $4,700.

Finley expects production to be 9,150 ships in each of the next four years. Assume a discount rate of 3%.

REQUIRED
1. What is the difference in net present values if Nautical Creations buys the new equipment instead of keeping their current equipment?

the following answers i have already tried and came out to be wrong:-

469551.98

433413.86

18343.7

18343

18344

Companies file for bankruptcy protection more often than not due to cash problems. We know from studying accrual accounting that profits and cash flow most often have different timing. Comment on how the income statement and the cash flow statement are connected. Do you feel both statements provide sufficient information for internal managers and external investors to make good decisions? Provide support for your response.

Your grade is calculated based on your personal response to the discussion topics AND responses to at least two classmates. Your discussion post and responses to classmates must be substantive. As a guideline, your discussion should be 3 - 4 paragraphs comprised of 5 -7 sentences per paragraph. Your responses to classmates should each be 2 -3 paragraphs with 5-7 sentences per paragraph.

Exercise 21-21 Overhead controllable and volume variances; overhead variance report LO P3 James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget: Operating Levels Overhead Budget 80% Production in units 8,000 Standard direct labor hours 30,000 Budgeted overhead Variable overhead costs Indirect materials $ 21,000 Indirect labor 30,000 Power 7,200 Maintenance 4,800 Total variable costs 63,000 Fixed overhead costs Rent of factory building 17,000 Depreciation—Machinery 11,400 Supervisory salaries 25,600 Total fixed costs 54,000 Total overhead costs $ 117,000 During May, the company operated at 90% capacity (9,000 units) and incurred the following actual overhead costs: Overhead Costs Indirect materials $ 21,000 Indirect labor 33,550 Power 8,100 Maintenance 6,210 Rent of factory building 17,000 Depreciation—Machinery 11,400 Supervisory salaries 28,500 Total actual overhead costs $ 125,760 1. Compute the overhead controllable variance. 2. Compute the overhead volume variance. 3. Prepare an overhead variance report at the actual activity level of 9,000 units.

On January 2, 2015, the S. H. Park Company (Park) installed a new $84,000 special molding machine for producing a new product. The product and the machine have an expected life of three years. The machines expected disposal value (amount machine can be sold for) at the end of three years is zero. S. H. Park Company paid cash when the equipment was delivered. Park paid for this machinery via bank transfer. On January 3, 2015, Kimiyo Lee, a salesperson for BT Machine and Tool (BT), tells Park: “I wish I had known earlier of your purchase plans. I can supply you with a technically superior machine for $99,000. Lee indicated the machine just purchased can be sold for $16,000. Lee guaranteed that there machine will save S. H. Park $35,000 per year in cash operating costs. This machine will have no disposal value at the end of three years.” Assume all costs are cost of sales. Park examines some technical data. Park is confident of Lee’s claims. However, Park contends, “I’m locked in now. My alternatives are clear: (a) disposal will result in a loss, (b) keeping and using the ‘old’ equipment avoids such a loss. I have brains enough to avoid a loss when my other alternative is recognizing a loss. We’ve got to use that equipment until we get our money out of it.” The annual operating costs of the old machine are $60,000 all paid in cash. This does not include depreciation. The new machine operating costs will be $25,000 which will be paid in cash. Sales, all in cash, are projected to be $850,000 per year. Annual cash expenses related to sales are $350,000 for material, $250,000 for labor and $150,000 for other operating expenses regardless of this decision. Assume that the equipment in question is the company’s only fixed asset. Ignore income taxes and the time value of money. Any cash payments for the machines occurred in 2015 coinciding with the purchase of the equipment. Should Park dispose of the “old-old” machine (stay the course) or should Park acquire new machine’s (New-New) from Lee? Using the template, prepare income statements as they would appear in each of the next three years under both alternatives. Assume straight-line depreciation over a three year period. What is the cumulative increase or decrease in net income for the three years for each alternative? Prepare statements of cash receipts and disbursements as they would appear in each of the next three years under both alternatives. Assume straight-line depreciation over a three year period. What is the total cumulative increase or decrease in cash for the three years for each alternative? If you were the sales person (Kimiyo Lee), how would respond to Mr. Park so as to get him to purchase your product? Using the provided information, if possible, prepare an alternative analysis which provides a similar result. Regardless of the financial analysis, what factors which effect or influence the decision to replace the equipment or stay with old (new) machine

On January 1, 2018, the general ledger of Freedom Fireworks includes the following account balances:

The following information is available on January 31, 2018.

1. Depreciation on the building for the month of January is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 10 years and a residual value of $26,000.
2. The company estimates future uncollectible accounts. The company determines $5,000 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable ending balance shown in the general ledger to start your calculations.) Record the estimated bad debt expense.
3. Unpaid salaries at the end of January are $28,100. (Recognize that salaries are owed, but have not been paid yet.)
4. Accrue income taxes at the end of January are $10,000. (Recognize that income taxes are due, but have not been paid yet.)

Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $55,900; total assets, $249,400; common stock, $87,000; and retained earnings, $40,778.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 453,600 Cost of goods sold 297,750 Gross profit 155,850 Operating expenses 99,000 Interest expense 4,900 Income before taxes 51,950 Income taxes 20,928 Net income $ 31,022 CABOT CORPORATION Balance Sheet December 31, 2017 Assets Liabilities and Equity Cash $ 14,000 Accounts payable $ 17,500 Short-term investments 9,000 Accrued wages payable 3,600 Accounts receivable, net 34,000 Income taxes payable 4,400 Notes receivable (trade)* 5,500 Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 70,400 Prepaid expenses 2,750 Common stock 87,000 Plant assets, net 149,300 Retained earnings 71,800 Total assets $ 254,700 Total liabilities and equity $ 254,700 * These are short-term notes receivable arising from customer (trade) sales. Required: Compute the following: (1) current ratio, (2) acid-test ratio, (3) days' sales uncollected, (4) inventory turnover, (5) days' sales in inventory, (6) debt-to-equity ratio, (7) times interest earned, (8) profit margin ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equity. (Do not round intermediate calculations.)

Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:

It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number.

a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E. Assume that the overall product is 10% business class and 90% economy class seats.

b. How many business class and economy class seats would be sold at the break-even point?

P company purchased a 70% interest in S company on January 1, 2015 for $2,000,000. The book value and fair value of the assets and liabilities of S company on that day were:

                                                BOOK VALUE                     FAIR VALUE

Current assets                   $700,000                              700,000

Equipment                         1,600,000                             2,000,000

Land                                      500,000                                 700,000

Deferred charge               400,000                                 400,000

Total Assets                       3,200,000                             3,800,000

Less: Liabilities                 (700,000)                             (700,000)

Net Assets:                         2,500,000                             3,100,000

The equipment had a remaining useful life of 8 years on January 1, 2015 and the deferred charge was being amortized over a period of 10 years from that date. C/S was $1,700,000 and Retained Earnings was $110,000 on that same date. P company uses partial-equity method to record its investment within S company.

Create the December 31, 2015 work paper entries that:

1. Eliminate the investment account
2. Allocate and amortize the difference between implied value and book value

1. A corporation has 71,376 shares of $24 par stock outstanding that has a current market value of $312 per share. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately

a.$17,844

b.$288

c.$78

d.$6

2. On January 1 of the current year, the Barton Corporation issued 9% bonds with a face value of $98,000. The bonds are sold for $95,060. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is

a.$2,940

b.$735

c.$9,408

d.$8,820

3. A company with working capital of $840,000 and a current ratio of 4 pays a $135,000 short-term liability. The amount of working capital immediately after payment is

a.$840,000

b.$705,000

c.$135,000

d.$975,000

4. A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 4% stock dividend on a date when the market price was $12 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

a.$19,200

b.$32,000

c.$12,800

d.$48,800

5. The balance sheets at the end of each of the first two years of operations indicate the following:

Using the balance sheets for Kellman Company, if net income is $119,551 and interest expense is $31,114 for Year 2, and the market price of common shares is $34, what is the price-earnings ratio on common stock for Year 2 (rounded to two decimal places)?

a.1.96

b.10.69

c.10.21

d.17.35

Agatha Agate Inc. began business on January 1, 2013. At December 31, 2013, it had a $6,000
balance in the deferred tax liability account related to property, plant and equipment. The
equipment, purchased in 2013, cost $1,200,000. Agatha is depreciating the equipment on a
straight-line basis over six years for financial reporting purposes. The equipment is a Class 8 -20%
asset for tax purposes. In 2013 Agatha reported depreciation expense of $100,000 and calculated
CCA as $120,000. [Note: Agatha took 50% in the year of acquisition. Both depreciation and CCA will
be calculated at the full rates in 2014]. Agatha’s before tax income in 2014 was $80,000. Agatha
follows IFRS. Information about income includes the following:
a. Total rent paid in 2014 was $75,000 of which $25,000 was expensed in 2014. The remaining $50,000
represents prepaid rent, which will be expensed equally in 2015 and 2016. The full $75,000 was
deducted for tax purposes in 2014.
b. Agatha Agate Inc. pays $12,000 per year for a membership in a local golf club for the company’s
president.
c. The company now offers a one-year warranty on all merchandise sold. Warranty expenses for 2014 were
$12,000. Cash payments for warranty expense were $6,000 in 2014.

d. Meals and entertainment expenses (only 50% of which are ever deductible for tax purposes) were
$16,000 in 2014.
e. The current tax rate is 30% and the rate has not changed since Agatha began business.
Required: [16 marks]
i. Calculate the balance in the Deferred Tax Asset or Liability account at December 31, 2014 [4 marks]
ii. Calculate income tax payable for 2014 [5 marks]
iii. Prepare the journal entries to record income taxes for 2014 [2 marks]
iv. Prepare the income tax expense section of the income statement for 2014, beginning with Income before
income tax [3 marks]
v. Prepare the liability section of the Statement of Financial Position at December 31, 2014 for deferred
income taxes. [2 marks]