Jack is the only shareholder of XYZ Corporation. At year-end, XYZ had $200 of current year earnings and profits and $600 of accumulated earnings and profits. If XYZ distributes cash of $200 to Jack, what is Jack’s tax liability on the dividend, if any? Assume Jack has a basis of $10 in XYZ shares. How does this result change if XYZ only has $50 of current earnings and profits and $100 of accumulated earnings and profits?

Clearly identify the requirements being addressed. Show all calculations within the cells of an Excel spreadsheet. This means that you must use formulas and links so that the thought process can be examined. Make effective use of comments to convey your thought process as well. No hard coding of solutions. Submit a single MS Excel file for grading.

1. In 2019, its first year of operations, Brighton Finance Corporation, based in London, UK, had the following transactions regarding its investments (currency in British pound, £):

May. 1 Purchased 600 Clifford Ltd. common shares for £60 per share. This investment is held for trading purposes.

June. 1 Purchased 1,000 bonds of Gladstone Inc. at face-value price of £100 each. These bonds bear interest at 6%, which is paid semi-annually on November 30 and May 31 each year. They were also purchased for trading purposes.

July. 1    Purchased 4,000 Waterloo Corporation common shares for £70 per share. This represents 25% of the issued common shares. Because of this investment, the directors of Waterloo have invited a Brighton’s executive to sit on their board.

Sep. 1 Received a £1-per-share cash dividend from Waterloo Corporation.

Nov. 1 Sold 200 Clifford Ltd. common shares for £63 per share.

Nov. 30 Interest on the Gladstone Inc. bonds was received.

Dec. 15 Received a £0.50-per-share cash dividend on Clifford Ltd. common shares.

Dec. 31 On this date, the fair values per share were £55 for Clifford Ltd. and £73 for Waterloo Corporation. The fair value of the Gladstone bonds was £101 each. Waterloo reported a profit for the year ended December 31, 2019, of £100,000.

Instructions:

1. Make journal entries on the above transactions up to Dec. 15.
2. Prepare the adjusting journal entries required to report the investments at their fair value and accrue any investment revenue at the end of 2019.
3. Show the partial presentation of each investment and the related investment income reflected in Brighton’s 2019 statement of financial position and income statement.

True or False? If the following statement is false, briefly explain why it is false:

Company A acquires 90% of Company B. Goodwill represents the difference between the book value of the subsidiary's net assets and the amount paid by the parent to buy ownership.

Lee Financial Services pays employees monthly. Payroll information is listed below for January 2018, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base.

Required:
Calculate the income and payroll taxes for the January 2018 pay period. Prepare the appropriate journal entries to record salaries and wages expense (not paid) and payroll tax expense for the January 2018 pay period.

Now let's have a close look over the three most important components of the pension expense. The treatment of expected and actual return on plan assets, particularly when the actual return is greater than the expected, the amortization of prior service cost and the unexpected gain/ loss. Discuss the accounting treatment of these items with suitable examples.

Webster Company produces 35,000 units of product A, 30,000 units of product B, and 14,500 units of product C from the same manufacturing process at a cost of $385,000. A and B are joint products, and C is regarded as a by-product. The unit selling prices of the products are $40 for A, $20 for B, and $2 for C. None of the products requires separable processing. Of the units produced, Webster Company sells 28,000 units of A, 29,000 units of B, and 14,500 units of C. The firm uses the net realizable value method to allocate joint costs and by-product costs. Assume no beginning inventory. Required: 1. What is the value of the ending inventory of product A? 2. What is the value of the ending inventory of product B?

• How can you apply the Bill of Rights to modern situations that the founders could not have considered?

On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Required:

!!!!!!!!!!USE PRESENT VALUE TABLES!!!!!!!!!!

1. and 2. Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles.

JOURNAL

ACCOUNTING EQUATION

JOURNAL

ACCOUNTING EQUATION

3. Determine the total interest expense for Year 1.

Amount: $ __________________

4. Compute the price of $37,282,062 received for the bonds by using the present value tables. (Round to the nearest dollar.)

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 Corporation Balance Sheet June 30 Assets Cash $ 80,000 Accounts receivable 135,000 Inventory 41,250 Plant and equipment, net of depreciation 211,000 Total assets $ 467,250 Liabilities and Stockholders’ Equity Accounts payable $ 72,000 Common stock 345,000 Retained earnings 50,250 Total liabilities and stockholders’ equity $ 467,250 Beech’s managers have made the following additional assumptions and estimates: 1.Estimated sales for July, August, September, and October will be $220,000, $240,000, $230,000, and $250,000, respectively. 2.All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% 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 25% of the cost of next month’s sales. The cost of goods sold is 75% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% 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 $40,000. Each month $6,000 of this total amount is depreciation expense and the remaining $34,000 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. 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. 3. Prepare an income statement for the quarter ended September 30. 4. Prepare a balance sheet as of September 30. Loading...

On December 31, 2017, Vernon Vacations Inc. reported the following shareholders’ equity:

• Preferred shares, unlimited authorized, $0.50 cumulative dividend, 200,000 shares

issued and outstanding, dividends have been paid up to date                       $ 400,000

• Common shares, unlimited authorized, 400,000 shares issued and

outstanding                                                                                                      1,000,000

• Contributed surplus from past retirements of common shares                             70,000
• Retained earnings                                                                                              1,500,000
• Accumulated other comprehensive income                                                           30,000

total: $3,000,000

During 2018, the company reported the following transactions and events:

• On January 1, the company reacquired and retired 1,000 preferred shares at a cost of $6 per share.
• On April 30, the company reacquired and retired 20,000 common shares at a cost of $5 per share.
• On October 31, when the common shares were trading for $7 per share, the company declared and distributed a 10% stock dividend on its common shares.
• On December 15, the company declared a dividend of $1 per common share plus the current year’s dividend on the preferred shares. Both dividends were to be paid on January 1, 2019, to shareholders of record on January 5, 2019.
• The company reported net income for the year of $850,000 and negative other comprehensive income for the year of $50,000.

Required:

1. Provide journal entries to record all the transactions set out above.
2. Prepare, in good form, the shareholder’s equity section of the company’s statement of financial position as at December 31, 2018.

The minimum word count for any assignment is 2000-2500 words unless it is mentioned otherwise in the assignment instructions or task by task. You could lose marks if you write 10% more or less than this.

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Assignments should be saved as: Programme Name _ (Candidate Full Name) _ (Candidate Code)_(Unit Abbreviation). i.e. MBA_ John Smith_00123456_ ABRM

Answer only one part from all of the questions below:

Question 2:

1. Critically discuss financial reporting and analysis. And explain the following:

* The GAAP ( Generally Accepted Accounting Principles)
* The IFRS ( International Financial Reporting Standards)

The following information is available from the accounting records of DeWitt Engineering Ltd. for the year ended June 30, 2021:

Instructions
Prepare a combined Statement of Income and Comprehensive Income for the year ended June 30, 2021. The company has a 30% income tax rate and records gains and losses on equity investments as other comprehensive income.

Fender Construction Company receives a contract to construct a building over a period of 3 years for a price of $700,000. The contract represents a single performance obligation that will be satisfied over time. Information relating to the performance of the contract is summarized as follows:

Required:

PAGE 2017

GENERAL JOURNAL

PAGE 2018

GENERAL JOURNAL

PAGE 2019

GENERAL JOURNAL

PAGE 2017

GENERAL JOURNAL

PAGE 2018

GENERAL JOURNAL

PAGE 2019

GENERAL JOURNAL

GL0701 - Based on Problem 7-1A LO P1

Perez Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).

For this question you must post to the General Journal, General Ledger, Trial Balance, Cash Rec Journal, Cash Disb Journal, Purchases Journal, and Sales Journal.

Problem 7-3A Special journals, subsidiary ledgers, and schedule of accounts payable-perpetual LO C3, P1, P2

Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).

Assume that Wiset Co. uses the perpetual inventory system.

     
Required:

1-a. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the purchases journal.
1-b. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the cash disbursements journal.
1-c. Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the general journal.
2 & 3. Enter the March 31 balances of Cash ($84,000), Inventory ($130,000), Long-Term Notes Payable ($114,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Inc.
4-a. Prepare a trial balance.
4-b. Prepare a schedule of accounts payable.

Review the April transactions of Wiset Company and enter those transactions that should be journalized in the purchases journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the cash disbursements journal. Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the general journal. Enter the March 31 balances of Cash ($84,000), Inventory ($130,000), Long-Term Notes Payable ($114,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Inc. Prepare a trial balance. Prepare a schedule of accounts payable.