Rolt Company began 2016 with a $120,000 balance in retained earnings. During the year, the following events occurred:

1. The company earned net income of $80,000.
2. A material error in net income from a previous period was corrected. This error correction increased retained earnings by $9,800 after related income taxes of $4,200.
3. Cash dividends totaling $13,000 and stock dividends totaling $17,000 were declared.
4. One thousand shares of callable preferred stock that originally had been issued at $110 per share were recalled and retired at the beginning of 2016 for the call price of $120 per share.
5. Treasury stock (common) was acquired at a cost of $20,000. State law requires a restriction of retained earnings in an equal amount. The company reports its retained earnings restrictions in a note to the financial statements.

Required:

1. Prepare a statement of retained earnings for the year ended December 31, 2016.

Wendy O"neil (SSN 412-34-5670), who is single, work full time as the director at a local charity. She resides at 1501 Front St Highland, AZ 85711 for the year. she had the following on her w2

wages 46200

federal withholding 6930

social security wages 46200

social security withholding 2864

medicare withholding 670

state withholding 2310

other information

1099-int 300

1099 div ordinary 400

qualified 400

itemized

state income 2310

state income tax paid with the 2016 return 100

real estate tax 2600

mortgage interest 8060

Wendy inherited a beach house in north carolina (rental only) on 1/02/2017 from her father, The FMV at the father death was 850000. He had purchase the house 20years earlier for 100000.

summer rental income 450000

repairs 25000

real estate taxes 6500

utilities 2400

depreciation ????

on december 29,2017 wendy properly conducted a like kind exchange for rent real estate located at 128 lake blvd hot town, AZ/

she receive rental property with an FMV of 950000 and 20000 cash in exchange for the north carolina beach house. The arizona property did not produce any income until 2018. Prepare form 1040 schedule D, Schedule E form 4562, and 8824.

For each item, select the appropriate fundamental principle. Some principles will be used more than once, but each item has only one principle as its answer.

Which of the following is considered to be an advantage of using both nonfinancial and financial information in the balanced scorecard?

On January 1, 2017, the first day of its fiscal year, Carter City received notification that a federal grant in the amount of $580,000 was approved. The grant was restricted for the payment of wages to teenagers for summer employment. The terms of the grant permitted reimbursement only after qualified expenditures have been made; the grant could be used over a two-year period. The following data pertain to operations of the SUMMER EMPLOYMENT GRANT FUND, a special revenue fund of Carter City, during the year ended December 31, 2017.

1. The budget was recorded. It provided for Estimated Revenues for the year in the amount of $290,000, and for Appropriations in the amount of $290,000.
2. A temporary loan of $290,000 was received from the General Fund.
3. During the year, teenagers earned and were paid $278,200 under terms of the Summer Employment program. An additional $9,000 is accrued as payable on December 31. Recognize the receivable and revenue (include the $9,000 of wages payable).
4. Each month a properly documented request for reimbursement was sent to the federal government; checks for $283,000 were received.
5. $256,200 was repaid to the General Fund.
6. Necessary closing entries were made.

Prepare the journal entry for the year ended December 31 of the Summer Employment Grant Fund.

Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $700,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $800,000, which includes interest revenue of $21,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%. Prepare the journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

La Femme Accessories Inc. produces women's handbags. The cost of producing 1,240 handbags is as follows: Direct materials $14,300 Direct labor 8,500 Factory overhead 6,000 Total manufacturing cost $28,800 The selling and administrative expenses are $28,900. The management desires a profit equal to 14% of invested assets of $496,000. If required, round your answers to nearest whole number. a. Determine the amount of desired profit from the production and sale of 1,240 handbags. $ b. Determine the product cost per unit for the production of 1,240 handbags. $ per unit c. Determine the product cost markup percentage for handbags. % d. Determine the selling price of handbags. Round your answers to nearest whole value. Cost $ per unit Markup $ per unit Selling price $ per unit

When are consolidation targets inappropriate as they give those involved in business nothing to aim for? Discuss in 80 to 100 words.

Comment on whether or not ‘Grow the business as much as possible’ is an appropriate budget target. If not, redraft it so it would be suitable to enable ongoing monitoring of financial performance.

Which of the following procedures is the auditor least likely to perform when an auditor decides to use the work of an auditor's specialist as audit evidence?

a. Obtain knowledge of the specialist's qualifications.
b. Refer to the auditor's specialist in the audit report to indicate a division of responsibility.
c. Review the working papers of the auditor's specialist.
d. Inquire of the entity and the auditor's specialist about any known interests that the entity has with the auditor's external specialist that may affect that specialist's objectivity.

Boxcom Company had a total bi-weekly payroll of $ 90,000. The entire payroll was subject to CPP (4.95%), EI (1.66%), and income tax withholdings of $ 11,880. Union dues of $ 1,125 and Health insurance premiums of $ 2,850 were also withheld. Boxcom will match employee CPP and 1.4 times employees EI

Instructions                                            

1. Prepare the journal entries to record the employee wages/salaries and payroll deductions
2. Prepare the journal entries to record the employer payroll contributions   
3. Prepare the journal entries to record the remittance to the Receiver General (Canada Revenue Agency)

On January 1, 2017 Pioneer Co. issued $550,000 of 5 year 12% bonds for $592,468 yielding a market rate of 10%. Interest is payable semiannually on June 30 and December 31.

a) Confirm the bond issuance price and show your work.

b) Why are two different present value tables used to price the bond?

c) Is this bond issuing at a discount, premium or par? Explain your answer.

d) Create your own amortization table. The table should show the carrying value at January 1 as the first row. Include 2 full years of interest payments. Refer to the videos and text for amortization table examples.

e) Record the following entries on the included Financial Statement Impact Template. a. Jan 1, 2017 bond issuance b. June 30, 2017 interest payment c. Dec 31, 2017 interest payment

f) This company chose to issue a bond as means to raise capital. Identify two reasons a company may choose this type of financing.

Headquartered in Montreal, Canada, Valeant Pharmaceuticals International is a multinational company that develops and markets prescription and non-prescription products in dermatology and neurology. The company is listed both on the NYSE and Toronto Stock Exchange. Its 2015 Income Statement reported the following line item.

$Millions 2015 2014 2013

Loss of Extinguishment debt------------------ $20.0 $129.6 $65.0

a) What is a ‘Loss of extinguishment of debt’? When does such a loss occur?

b) How is this loss calculated?

c) How does this loss impact the financial statements?

d) Why might management want to retire this debt early, even if it was at a loss?

A Belgium subsidiary's beginning and ending trial balances appear below:

Exchange rates ($/€) are:

The subsidiary was acquired at the beginning of the year. Its sales, inventory purchases, and out-of-pocket selling and administrative expenses occurred evenly during the year. Equipment was purchased for €10,000 when the exchange rate was $1.23. Depreciation for the year includes €200 related to the equipment purchased during the year. The ending inventory was purchased at the end of the year, and the beginning inventory was purchased at the end of the previous year.

If the subsidiary's functional currency is the U.S. dollar, what is the remeasurement gain or loss for the year?

Mosaic’s Company balance sheet at December 31, 2018, reported the following:

Accounts receivable...........................................$2,500,000

Allowance for uncollectible accounts...................$66,600

The following are the transactions to be taken into consideration for 2019:

a. Total credit sales for 2019 were $3,600,000.

b. 2% of sales were estimated to be uncollectible.

c. The company received cash payments on account during 2019 for $1,000,000

d. Accounts receivable identified to be uncollectible totaled $94,000.

e. December 31, 2019, aging of receivables indicates that $75,000 of the receivables is uncollectible.

Requirements:

1. What was the net realizable value of the receivables as at December 31, 2018?

2. Prepare the journal entries for the company’s 2019 transactions.

3. Prepare the Accounts receivable and the Allowance for uncollectible Accounts T-accounts based on the information presented above. (Note: The opening balances and the transactions from the journal entries must be recorded in their respective accounts)

4. What is the net realizable value of receivables as at December 31, 2019? (Show workings)