[The following information applies to the questions displayed below.] Concord Corp. completed the following transactions in 2014, the first year of operation: 1. Issued 32,000 shares of $20 par common stock for $30 per share. 2. Issued 4,900 shares of $54 par, 8 percent, preferred stock at $56 per share. 3. Paid the annual cash dividend to preferred shareholders. 4. Issued a 5 percent stock dividend on the common stock. The market value at the dividend declaration date was $43 per share. 5. Later that year, issued a 2-for-1 split on the 33,600 shares of outstanding common stock. 6. Earned $250,700 of cash revenues and paid $131,000 of cash operating expenses.

Required a. Record each of these events in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA) and net change in cash (NC). Use NA to indicate that an element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign.)

Please answer question in its entirety.

Five Measures of Solvency or Profitability

The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following:

Income before income tax was $230,000, and income taxes were $33,900 for the current year. Cash dividends paid on common stock during the current year totaled $66,780. The common stock was selling for $90 per share at the end of the year.

Determine each of the following. Round answers to one decimal place, except for dollar amounts which should be rounded to the nearest whole cent. Use the rounded answers for subsequent requirements, if required.

Problem 1

Chapter 7: Your hospital has applied for certification as a level 1 stroke center. It is critical that the following project is completed before the next Joint Commission survey in 18 weeks. Project activity times are listed in the table below.

1. Draw the network diagram and identify the project paths.
2. What is the project completion time and total project costs if only normal times are used?
3. Determine the minimum cost-schedule for this project.
4. What is the difference in total project costs between the earliest completion time of the project using normal times and the minimum cost-schedule you derived in part b?

1. It has come to your attention that someone in the company has not been consistent in entering financial data – some years are missing the relative percentage change or the net profit as presented below in Table 1.  You are required to calculate the Relative Percentage Change in the company for the blanks below and the Net Profit for the other blanks.

Show all working out below including the formula used for each year and include the completed table here.

               Table 1: Net Profit ($) per financial year

2. Using Excel, create a column chartof the Net Profit calculated in part (a) for the years 2010-2019. For full marks, label the axis and provide an appropriate title.

(c) Using Excel, create a Sparkling of the Relative Percentage Change calculated in part (a) for the years 2011-2019. For full marks, use the Sparkling options to mark if there are any negative values and include a horizontal axis to easily visualise changes. The sparkline should be included here however you will also use it in the report body text.

The following information relates to the Zipo Company. Compute both basic and diluted EPS for Zipo Company. Hint: solving this problem is very similar to the steps used to solve the “comprehensive example” problem in the Appendix to the chapter. All supporting calculations are to be turned in with the solution. Student groups are encouraged to meet in the classroom during the scheduled class time to work together. Each student is to turn in his/her solution.

1. The Company’s net income for the year was $50,000.

2. The weighted-average number of common shares outstanding is 10,000 shares.

3. The income tax rate is a flat 40%.

4. Series A Options to purchase 1,000 shares of common stock at $8 per share were outstanding all year.

5. Series B Options to purchase 2,000 shares of common stock at $13 per share were outstanding all year.

6. The average market price of common stock during the year was $10.

7. The Company had two hundred 7% convertible bonds outstanding the entire year. Each $1,000 bond converts into 40 common shares. The bonds had been issued at par and no bonds were converted during the year.

8. The Company had 1,000 shares of $100 par value, 4% convertible cumulative preferred stock issued and outstanding the entire year. Each preferred share is convertible into 1.25 shares of common stock. The preferred stock was issued at par value and no shares were converted during the year.

9. The Company had 1,000 shares of $100 par value, 6% non-cumulative, nonconvertible preferred stock issued and outstanding the entire year. The preferred stock was issued at par value.

10. All required preferred dividends were declared and paid during the year as well as a $2 per share dividend to the common stock.

On January 2, 2011, Winstead & Company purchased 1,100,000 shares of the Secrest Company for $32.0 million. The investment represented 40 percent of the outstanding common shares of The Secrest Company. During 2011, Secrest reported net earnings of $1.05 per share and paid a cash dividend of $0.35 per share.

During 2012, Secrest reported net earnings of $1.5 per share and paid a cash dividend of $0.4 per share. Calculate the book value of Winstead's investment in Secrest as of December 31, 2011, and December 31, 2012.

P18-3

Eloisa corporation applies IFRS. Information about Eloisa corporation income before income tax of 633,000 for its year ended December 31 2017 includes:

1. CCA reported on the 2017 tax return exceeded depreciation reported on the income statement by 100,000$. This difference plus the 150,000 accumulated taxable temporary differences at jan 1 2017 is expected to reverse in equal amounts over the 4 year period from 2018-2021.
2. Dividends received from taxable Canadian corporation were 15,000$.
3. Rent collected in advance and included in taxable income as at December 31 2016 totalled 60,000$ for a 3 year period. OF THIS AMUNT, 40,000$ was reported as unearned for book purpose at December 31 2017. Eloisa reports unearned revenue as a current liability if it will be recognized in income within 12 months from the balance sheet date. Eloisa paid 2,880$ interest penalty for late income tax instalments. The interest penalty is not deductible for income tax purpose at any time.
4. Equipment was disposed during the year for 90,000$. The equipment had a cost of 105,00$ and accumulated depreciation to the rate of disposal of 37,000$. The total proceeds on the sale of these assets reduced the CCA class, in other words no gain or loss reported.
5. Eloisa recognized a 75,000$ loss on impairment of a long term investment whose value was considered impaired. He income tax act permits the loss to be deducted only when the investment is sold and the loss is actually realize. The investment was accounted for at amortized cost.
6. The tax rates are 30% for 2017 and 25% for 2018 and subsequent years. These rates have been enacted and known for the past 2 years.

A) calculate the balance in the deferred tax asset or deferred tax liability account at December 31 2016

A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,108.

a) Using effective-interest amortization, how much interest expense will be recognized in 2017?

b) Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2017 balance sheet?

c) Using straight-line amortization, what is the carrying value of the bonds on December 31, 2018?

d) What is interest expense for 2018, using straight-line amortization?

Six Measures of Solvency or Profitability

The following data were taken from the financial statements of Gates Inc. for the current fiscal year.

Assuming that total assets were $5,459,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.

When central banks publish data about BOP, what other analytical data do central banks present?

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2018 ($ in 000s): sales revenue, $18,300; cost of goods sold, $7,700; selling expenses, $1,450; general and administrative expenses, $950; interest revenue, $230; interest expense, $320. Income taxes have not yet been recorded. The company’s income tax rate is 20% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2018 ($ in 000s). All transactions are material in amount.

1. Investments were sold during the year at a loss of $370. Schembri also had unrealized gains of $470 for the year on investments.
2. One of the company’s factories was closed during the year. Restructuring costs incurred were $1,800.
3. During the year, Schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of $710 in 2018 prior to the sale, and its assets were sold at a gain of $1,700.
4. In 2018, the company’s accountant discovered that depreciation expense in 2017 for the office building was understated by $350.
5. Negative foreign currency translation adjustment for the year totaled $420.

Required:
1. Prepare Schembri’s single, continuous multiple-step statement of comprehensive income for 2018, including earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 200,000 shares were issued on July 1, 2018.
2. Prepare a separate statement of comprehensive income for 2018.
  

The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions): Information Provided by Pension Plan Actuary: Projected benefit obligation as of December 31, 2017 = $3,500. Prior service cost from plan amendment on January 2, 2018 = $700 (straight-line amortization for 10-year average remaining service period). Service cost for 2018 = $660. Service cost for 2019 = $710. Discount rate used by actuary on projected benefit obligation for 2018 and 2019 = 10%. Payments to retirees in 2018 = $520. Payments to retirees in 2019 = $590. No changes in actuarial assumptions or estimates. Net gain—AOCI on January 1, 2018 = $380. Net gains and losses are amortized for 10 years in 2018 and 2019. Information Provided by Pension Fund Trustee: Plan asset balance at fair value on January 1, 2018 = $2,500. 2018 contributions = $680. 2019 contributions = $730. Expected long-term rate of return on plan assets = 12%. 2018 actual return on plan assets = $230. 2019 actual return on plan assets = $280. Required: 1. Calculate pension expense for 2018 and 2019. 2. Prepare the journal entries for 2018 and 2019 to record pension expense. 3. Prepare the journal entries for 2018 and 2019 to record any gains and losses and new prior service cost. 4. Prepare the journal entries for 2018 and 2019 to record the cash contribution to plan assets and benefit payments to retirees.

The following balance sheet is for a local partnership in which the partners have become very unhappy with each other.

To avoid more conflict, the partners have decided to cease operations and sell all assets. Using this information, answer the following questions. Each question should be viewed as an independent situation related to the partnership’s liquidation.

1. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 2:3:3:2 basis, respectively, how will the $10,000 be divided?
2. The $10,000 cash that exceeds the partnership liabilities is to be disbursed immediately. If profits and losses are allocated on a 2:2:3:3 basis, respectively, how will the $10,000 be divided?
3. The building is immediately sold for $95,000 to give total cash of $145,000. The liabilities are then paid, leaving a cash balance of $105,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively? (Do not round intermediate calculations.)
4. Assume that profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:4:2 basis, respectively. How much money must the firm receive from selling the land and building to ensure that Carvil receives a portion? (Do not round intermediate calculations.)

1. Given a random list of accounts with their normal balances, prepare a trial balance for Luxury Gifts Corporation as of December 31, 2019

Common stock        $5,500                    Accounts Receivable         $2,000

Note Payable 3,500                    Service Revenue               12,000

Supplies                       500                    Insurance Expense                 700

Prepaid Insurance   1,400                    Equipment                        9,500

Salary Expense       8,000                    Accounts Payable              1,000

Dividends                2,000                    Cash                                1,000

Utilities Expense      1,000                    Retained Earnings             4,100

2. Prepare Journal Entries in good form for the following transactions for the Goodland Company

1. The owner invested cash of $14,000 and office equipment valued at $6,500 into the business and received common stock in exchange

2. Supplies were purchase on account for $1,000

3. Payment of $750 was made for one month’s rent on the store

4. A client was billed 1,500 for services rendered

5. The company declared and paid a cash dividend of $300

3. Analyze the following transactions. Indicate which accounts are affected and whether they will increase or decrease.

1. Owner investment of cash into the business
2. Payment of a utility bill
3. Purchase of inventory for cash
4. Payment of an accounts payable
5. Performing a service on account
6. Collecting cash from a customer as payment on his account

EMD Corporation manufactures two products, Product S and Product W. Product W is of fairly recent origin, having been developed as an attempt to enter a market closely related to that of Product W. Product W is the more complex of the two products, requiring 3 hours of direct labor time per unit to manufacture compared to 2 hour of direct labor time for Product S. Product W is produced on an automated production line. Overhead is currently assigned to the products on the basis of direct-labor-hours. The company estimated it would incur $1,139,421 in manufacturing overhead costs and produce 15,000 units of Product W and 75,000 units of Product S during the current year. Unit cost for materials and direct labor are: Product S Product W Direct material $ 17 $ 24 Direct labor 11 13 Required: a-1. Compute the predetermined overhead rate under the current method of allocation. a-2. Determine the unit product cost of each product for the current year. b. The company's overhead costs can be attributed to four major activities. These activities and the amount of overhead cost attributable to each for the current year are given below: Total Activity Activity Cost Pool Total Cost Product S Product W Total Machine setups required $ 643,440 1,590 2,240 3,830 Purchase orders issued 58,266 555 192 747 Machine-hours required 221,640 7,760 10,710 18,470 Maintenance requests issued 216,075 736 939 1,675 $ 1,139,421 Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year Req A1Req A2Req B Compute the predetermined overhead rate under the current method of allocation. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Determine the unit product cost of each product for the current year. (Round your answers to 2 decimal places.) Unit Product Cost Product S Product W Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Round your answer to 2 decimal places.) Unit Product Cost Product S Product W Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Round your answer to 2 decimal places.) Unit Product Cost Product S Product W

Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Round your answer to 2 decimal places.)