JY investment Ltd holds a well-diversified portfolio of shares that has a market value of

$1.5 million on 30 June 2019. JY is concerned about possible downturns in the share market and on 1 March 2020 decides to take out a sell position in eleven “September 2020 SPI 200 Futures” units when the SPI 200 is 5500. The SPI 200 Futures contract unit value is the value of SPI 200 multiplied by $25. To enter the contract, JY pays an initial cash deposit (margin) of $150,000 to a broker.

On 30 June 2020, the reporting date of JY investment Ltd, the unit price of the September SPI futures contracts has fallen to 5300 and the market value of the firm’s portfolio of shares is $1 435 000. Assume broker allows a $50,000 drop before making a margin call to allow for minor fluctuations in the market.

The shares are sold on 31 August 2020 when the market value of the shares is $1 290 000 and the September SPI 200 futures contract closed out at 5250 on 31 August 2020. Assume the futures contracts qualify as a hedge, the shares are marked to market.

QUESTION

Prepare journal entries to account for the above events from 1 March 2020 to 31 August 2020. Show all calculations and round them to the nearest dollar amount. No narration is required.

Complete the chart, showing manufacturing cost at various levels of production for Company X

Volume (unit) 10,000 20,000 30,000 40,000

Cost A $25,000 $25,000 $25000

Cost B $25,000 $50,000 $100,000

Cost C $33,000 $48,000 $78,000

I know Cost A under Volume(unit) is $25,000, needs help on how to calculate Cost B and A.

Cash flow from assets. Use the data from the following financial statements in the popup​ window, LOADING.... The company paid interest expense of $ 17 comma 300 for 2017 and had an overall tax rate of 40 % for 2017. Find the cash flow from assets for 2017​, and break it into its three​ parts: operating cash​ flow, capital​ spending, and change in net working capital.

Prepare the financing section of the statement of cash flows for the year ended December 31, 2018.

13) Dakota Telescopes Company uses the indirect method to prepare the statement of cash flows. Refer to the following income statement:

                                   Dakota Telescopes Company

                                             Income Statement

                                 Year Ended December 31, 2019

Sales Revenue                                                   $275,000

Interest Revenue                                                     2,600

Total Revenues                                                                                   $277,600

Cost of Goods Sold                                             135,000

Salary Expense                                                      66,500

Depreciation Expense                                          32,000

Other Operating Expenses                                 35,900

Interest Expense                                                      2,400

Income Tax Expense                                              6,500

Loss on Sale of Plant Assets                                 2,000

Total Expenses and Losses                                                                280,300

Net Loss                                                                                                ($2,700)

Additional information provided by the company includes the following:

Current assets other than cash decreased by $25,000.

Current liabilities increased by $3,000.

Prepare the operating activities section of the statement of cash flows.

Dividends on preferred stock.

In each of the following independent cases, it is assumed that the corporation has $800,000 of 6% preferred stock and $3,200,000 of common stock outstanding, each having a par value of $10. No dividends have been declared for 2013 and 2014.

(a) As of 12/31/15, it is desired to distribute $250,000 in dividends. How much will the preferred stockholders receive if their stock is cumulative and nonparticipating?

(b) As of 12/31/15, it is desired to distribute $800,000 in dividends. How much will the preferred stockholders receive if their stock is cumulative and participating up to 11% in total?

(c) On 12/31/15, the preferred stockholders received a $240,000 dividend on their stock which is cumulative and fully participating. How much money was distributed in total for dividends during 2015?

Explain the distinction between a direct-financing lease and a sales-type lease for a lessor.

Alphabet Company, which uses the periodic inventory method, purchases different letters for resale. Alphabet had no beginning inventory. It purchased A thru G in January at $4 per letter. In February, it purchased H thru L at $6 per letter. It purchased M thru R in March at $7 per letter. It sold A, D, E, H, J and N in October. There were no additional purchases or sales during the remainder of the year.

If Alphabet Company uses the specific identification method, what is the cost of its ending inventory?

Multiple Choice

• $31

• $69

• $76

• $100

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

12) Nashville Records Company uses the indirect method to prepare its statement of cash flows. Refer to the following sections of the comparative balance sheet:

                                                                   Nashville Records Company

                                                                    Comparative Balance Sheet

                                                                   December 31, 2018 and 2017

                                                                                              2018                      2017    Increase (Decrease)

Accounts Payable                                                         $ 6,000                   $ 9,000                    $(3,000)

Accrued Liabilities                                                          3,000                      1,500                        1,500

Long-term Notes Payable                                         126,000                  135,000                      (9,000)

Total Liabilities                                                         $135,000                $145,500                  $(10,500)

Common Stock                                                              45,000                      3,000                       42,000

Retained Earnings                                                       169,500                  111,000                       58,500

Treasury Stock                                                            (12,000)                   (7,500)                        (4,500)

Total Equity                                                                  202,500                  106,500                       96,000

Total Liabilities and Stockholders' Equity          $337,500                $252,000                     $85,500

Additional information for 2018:

•    No stock was retired.

•    No treasury stock was sold.

•    The company repaid $60,000 of long-term notes payable.

•    The company borrowed $51,000 on a new long-term note payable.

•    Net income for the year was $68,000.

QUESTION 22

Colin and Jane form a partnership on 1 July 2016.

Colin’s contribution is $20,000 cash and $80,000 inventory. Jane’s contribution is $16,000 cash and land that cost $125,000 but has a market value of $200,000.

Required:

1. Prepare the necessary journal entries to set up the partnership on 1 July 2016.

The partnership of Colin and Jane has been in operation for one month and they have made a net profit of $23,000.

The partnership agreement provides for the following:

• An interest allowance of 5% of their capital balances.

(There has been no change in the partners’ capital balance since the partnership was set up).

• Salaries of $2,300 for Colin and $1,900 for Jane.
• Residual profits are to be divided equally.

Required:

2. Calculate the amount of profit allocated to each partner showing all workings.

3. Prepare the general journal entries to allocate the profit for the month to each of the partners.

Ajax Company bought equipment for $2,500. The company estimates that the equipment’s period of useful life will be 5 years. After 5 years the residual value is $500. Calculate depreciation expense and complete a depreciation schedule

A company had the following purchases during its first year of operations:
  

On December 31, there were 45 units remaining in ending inventory. These 45 units consisted of 6 from January, 7 from February, 11 from May, 5 from September, and 16 from November. Using the specific identification method, what is the cost of the ending inventory?

Multiple Choice

• $5,434.

• $5,440.

• $6,160.

• $6,316.

• $6,472.

Select one of these provisions of Sarbanes Oxley Act: 302; 401; 402; 806; and 906. Write a brief description of the requirements of that section of the Act and briefly describe processes that a company would put in place to meet the requirements.