In 2019, Bonita Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Bonita had revenues of $20,500 and expenses other than interest and taxes of $6,700 for 2020. (Assume that the tax rate is 20%.) Throughout 2020, 2,200 shares of common stock were outstanding; none of the bonds was converted or redeemed.

(a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)

(b) Assume the same facts as those assumed for part (a), except that the 60 bonds were issued on September 1, 2020 (rather than in 2019), and none have been converted or redeemed. Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)

(c) Assume the same facts as assumed for part (a), except that 20 of the 60 bonds were actually converted on July 1, 2020. Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)

Required information

[The following information applies to the questions displayed below.]

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Beech’s managers have made the following additional assumptions and estimates:

1. Estimated sales for July, August, September, and October will be $370,000, $390,000, $380,000, and $400,000, respectively.

2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 45% in the month of sale and 55% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

3. Each month’s ending inventory must equal 20% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

4. Monthly selling and administrative expenses are always $50,000. Each month $7,000 of this total amount is depreciation expense and the remaining $43,000 relates to expenses that are paid in the month they are incurred.

5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30.

3. Prepare an income statement for the quarter ended September 30.

4. Prepare a balance sheet as of September 30.

Describe the Sarbanes-Oxley Act. Why was the act enacted? What is the impact? Do you think it will stop accounting corruption? Why or why not?

Writing assignment 500 words (NO PLAGIARIZE). Please help I know nothing about this topic.

Latestech Equipment Ltd operates an equipment rental business. The equipment has an internal computer that enables remote monitoring of usage:

Casual equipment hire at a rate of $25 per machine hour, with a minimum charge of $200 per day, e.g., if a customer hires a machine on Monday, collecting it at 5.00 p.m. and returns it by 5.00 p.m. Tuesday, after using it for 10 machine hours, the customer will be charged $250, but if the customer used the machine for only 4 hours, the charge would be $200, being the minimum daily charge.

 Extended equipment hire agreement for a fixed fee of $12,000 payable in advance, which entitles the customer to the following:

o possession of the equipment for one year

o use of the equipment for up to 500 machine hours

o additional machine hours are charged at $25 per hour.

The equipment has a useful life of five years.Big Plans Ltd is a customer of Latestech Equipment Ltd. Big Plans Ltd entered into an extended equipment hire agreement on 1 March 20X3. The initial payment of $12,000 was debited to Prepayments. The equipment was used for 200 machine hours in the first four months of the extended hire agreement. Big Plans Ltd’s reporting date is 30 June.

a) Identify the relevant facts in relation to the transaction with Latestech Ltd.

b) What is the major accounting policy issue from the perspective of Big Plans Ltd in relation to the extended equipment hire agreement in preparing the financial statements for the year ended 30 June 20X3?

c) List the accounting standards, interpretations and other pronouncements (such as the Conceptual Framework) that are relevant to the accounting problem described in part b). Identify and describe two principles from these pronouncements.

d) The trainee bookkeeper suggests that $12,000 payment should be treated as an expense in the current period. Propose an alternative accounting policy that differs in terms of definition, recognition or measurement from that suggested by the trainee bookkeeper. In this question you are required to describe the policy only. You are not required to evaluate or justify it (save that for part e)

e) Based on the principles you identified in part c) evaluate

i) the policy suggested by the trainee bookkeeper and

ii) the policy that you suggested in part d) f) Recommend a policy.

g) Prepare a note to describe how the extended hire agreement has been accounted for, and disclosing the amount, if any, included in profit or loss in the current period.

Waterway Industries has equipment with a carrying amount of $2510000. The expected future net cash flows from the equipment are $2545000, and its fair value is $2043000. The equipment is expected to be used in operations in the future. What amount (if any) should Waterway report as an impairment to its equipment? No impairment should be reported. $502000. $467000. $35000.

The following is a partial trial balance for General Lighting Corporation as of December 31, 2021:

There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%.

Required:

1. Prepare a single-step income statement for 2021, including EPS disclosures.

2. Prepare a multiple-step income statement for 2021, including EPS disclosures.

Presented below is Oxford Ltd.’s income statement for 20x5:

How many units must Oxford Ltd. sell in order to generate net income equal to $266223?

(2) On one day a man who claimed to be Dr. Bun, of NoTrue WallPaper Ltd., the expert wallpaper, persuaded Harry to buy the wallpaper for interior decoration. Harry bought 100 rolls wallpaper for HK$50,000 for Susan's apartment. He signed a written contract without bothering to read it. The contract said that NoTrue WallPaper Ltd. would have no liability for any defect in the wallpaper. When Harry used the wallpaper, they are wet and cannot put onto the wall. Harry goes back to NoTrue WallPaper Ltd., but it is already shut down. Harry immediately reported to the police and Consumer Council, but he was told that the man who had sold wallpaper to Harry was a rogue pretending to be Dr. Bun. Advice Harry of his legal position.

(3) Harry completes the first stage of the contracted design work. In reliance on the agreed design, Susan is planning to purchase a European L-shaped sofa made in Spain from iFurniture, a furniture company, for HK$25,000. Susan just see the sofa set from iFurniture's catalogue, she says that she would very much like to view the real sofa but that she is out of town on a five-day business trip and will not be able to view it until she returns. The boss of iFurniture, Lucas says that if another buyer comes forward, he will have to sell the sofa to that buyer. Susan says she will pay HK$2,500 if iFurniture promises not to sell the sofa to another buyer for the next five days. Lucas agrees to this. Analyse whether any contract has been made between the parties and, if so, what are its terms? Refer to the relevant case law to support your answer.

(4) Harry completes the contracted design work, but Susan only pays HKS300,000, instead of the HKS500,000 originally agreed. Advise Harry of his legal position.

2. Income statement

The income statement, also known as the profit and loss (P&L) statement, provides a snapshot of the financial performance of a company during a specified period of time. It reports a firm’s gross income, expenses, net income, and the income that is available for distribution to its preferred and common shareholders.

The income statement is prepared using the generally accepted accounting principles (GAAP) that match the firm’s revenues and expenses to the period in which they were incurred, not necessarily when cash was received or paid. Investors and analysts use the information given in the income statement and other financial statements and reports to evaluate the company’s financial performance and condition.

Consider the following scenario:

Green Caterpillar Garden Supplies Inc.’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year.

Complete the Year 2 income statement data for Green Caterpillar, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar.

Given the results of the previous income statement calculations, complete the following statements:

16-3

Fast Co. produces its product through a single processing department. Direct materials are added at the start of production, and conversion costs are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process costing system. The Work in Process Inventory account has a balance of $102,300 as of October 1, which consists of $22,500 of direct materials and $79,800 of conversion costs.

During the month the company incurred the following costs:

During October, the company started 158,000 units and transferred 168,000 units to finished goods. At the end of the month, the work in process inventory consisted of 29,000 units that were 80% complete with respect to conversion costs.

Required:
1. Prepare the company’s process cost summary for October using the weighted-average method.
2. Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory.

A company issues $5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid on June 30 and December 31. The proceeds from the bonds are $4,901,036. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2010 balance sheet?

A. $5,000,000

B. $4,902,077

C. $4,906,281

D. $4,903,160

What are the various ways you can analyze financial statements? Hint: Vertical and common-sized are the same thing. Which method do you believe is used most often internally? Why? Which method do you believe is used most often by external stakeholders? Why? Of the different general types of ratios, liquidity, solvency, profitability, etc., which do you think are the most useful by the various stakeholders? Why?

Simon Company’s year-end balance sheets follow.

The company’s income statements for the Current Year and 1 Year Ago, follow.

Additional information about the company follows.

For both the Current Year and 1 Year Ago, compute the following ratios:

1. Return on common stockholders' equity.
2. Price-earnings ratio on December 31.
2a. Assuming Simon's competitor has a price-earnings ratio of 8, which company has higher market expectations for future growth?
3. Dividend yield.

Nguyen, Tran and Le are partners sharing profits and losses equally and with capital balances of $225, $675 and $450 respectively. Before Tran leaves the partnership the assets are revalued. An independent valuer assesses the equipment to be worth $12 less than the carrying amount (book value), and property $147 more than the carrying amount.

a) Prepare the journal entries to record the revaluation of property and equipment.

b) Prepare the journal entries to record the revaluation of property and equipment if the partnership agreement specifies profits and losses are allocated on the basis of the capital balances.

c) Prepare the journal entries to record the retirement of Tran (after revaluation and profits and losses are allocated on the basis of capital balances as in (b) above) if she is allowed to take $842.50 in cash (record to the nearest cent)

1. Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets

   The budget director of Royal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for February is summarized as follows:

   a. Estimated sales of King and Prince chairs for February by sales territory:

   Northern Domestic:
   King	610 units at $780 per unit
   Prince	750 units at $550 per unit
   Southern Domestic:
   King	340 units at $780 per unit
   Prince	440 units at $550 per unit
   International:
   King	360 units at $850 per unit
   Prince	290 units at $600 per unit

   b. Estimated inventories at February 1:

   Direct materials:
   Fabric	420 sq. yds.
   Wood	580 linear ft.
   Filler	250 cu. ft.
   Springs	660 units
   Finished products:
   King	90 units
   Prince	25 units

   c. Desired inventories at February 28:

   Direct materials:
   Fabric	390 sq. yds.
   Wood	650 linear ft.
   Filler	300 cu. ft.
   Springs	540 units
   Finished products:
   King	80 units
   Prince	35 units

   d. Direct materials used in production:

   In manufacture of King:
   Fabric	6.0 sq. yds. per unit of product
   Wood	38 linear ft. per unit of product
   Filler	4.2 cu. ft. per unit of product
   Springs	16 units per unit of product
   In manufacture of Prince:
   Fabric	4.0 sq. yds. per unit of product
   Wood	26 linear ft. per unit of product
   Filler	3.4 cu. ft. per unit of product
   Springs	12 units per unit of product

   e. Anticipated purchase price for direct materials:

   Fabric	$12.00	per sq. yd.
   Wood	7.00	per linear ft.
   Filler	$3.00	per cu. ft.
   Springs	4.50	per unit

   f. Direct labor requirements:

   King:
   Framing Department	1.2 hrs. at $12 per hr.
   Cutting Department	0.5 hr. at $14 per hr.
   Upholstery Department	0.8 hr. at $15 per hr.
   Prince:
   Framing Department	1.0 hr. at $12 per hr.
   Cutting Department	0.4 hr. at $14 per hr.
   Upholstery Department	0.6 hr. at $15 per hr.

   Required:

   1. Prepare a sales budget for February.

   Royal Furniture Company Sales Budget For the Month Ending February 28
   Product and Area		Unit Sales Volume	Unit Selling Price	Total Sales
   King:
   	Northern Domestic
   	Southern Domestic
   	International
   	Total
   Prince:
   	Northern Domestic
   	Southern Domestic
   	International
   	Total
   Total revenue from sales

   2. Prepare a production budget for February. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

   Royal Furniture Company Production Budget For the Month Ending February 28
   	Units
   	King	Prince

   3. Prepare a direct materials purchases budget for February. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

   Royal Furniture Company Direct Materials Purchases Budget For the Month Ending February 28
   	Direct Materials
   		Fabric (sq. yds.)		Wood (linear ft.)		Filler (cu. ft.)		Springs (units)	Total
   Required units for production:
   King
   Prince
   Desired inventory, February 28
   Total
   Estimated inventory, February 1
   Total units to be purchased
   Unit price
   Total direct materials to be purchased

   4. Prepare a direct labor cost budget for February.

   Royal Furniture Company Direct Labor Cost Budget For the Month Ending February 28
   			Framing Department		Cutting Department		Upholstery Department	Total
   Hours required for production:
   	King
   	Prince
   	Total
   Hourly rate
   Total direct labor cost

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