Sandhill Growth Company is testing a number of new agricultural seeds that it has recently harvested. To stimulate interest, it has decided to grant five of its largest customers the unconditional right to return these products if not fully satisfied. The right of return extends for four months. Sandhill Growth sells these seeds on account for $1,700,000 (cost $600,000) on April 2, 2020. Customers are required to pay the full amount due by June 15, 2020. The company follows IFRS.

a)Prepare the journal entry for Sandhill Growth at April 2, 2020, assuming Sandhill Growth estimates returns of 20% based on prior experience

b)Assume that one customer returns the seeds on July 1, 2020. Prepare the journal entry to record this transaction, assuming this customer purchased $110,000 of seeds from Sandhill Growth.

c)Prepare the journal entry for Sandhill Growth at April 2, 2020, assuming Sandhill Growth estimates returns of 20% based on prior experience. Sandhill follows ASPE.

d)Assume that one customer returns the seeds on July 1, 2020.

Prepare the journal entry to record this transaction, assuming this customer purchased $110,000 of seeds from Sandhill Growth. Sandhill follows ASPE.

c)

Amortization and Impairment Testing of Identifiable Intangible Assets

During the year ended July 30, 2016, Cisco Systems, Inc. acquired the following identifiable intangible assets through its purchase of two companies (in thousands):

Cisco acquired Lancope, Inc. in December 2015, and Jasper Technologies, Inc. in March 2016. Cisco separately tests identifiable intangibles acquired from each company for impairment, and collects the following information to conduct impairment tests at the end of fiscal 2016 (in thousands):

Required

a. Calculate amortization expense for the above identifiable intangibles for fiscal 2016. Intangibles are amortized on a straight-line basis starting in the month following acquisition.

• Round answers to the nearest whole number.
• Enter answers in thousands.

b. Calculate impairment losses for fiscal 2016.

• Round answers to the nearest whole number.
• Enter answers in thousands.

c. Determine the amounts reported on Cisco’s fiscal 2016 balance sheet for technology, customer relationships, and in-process R&D.

• Round answers to the nearest whole number.
• Enter answers in thousands.

Amortization and Impairment Testing of Identifiable Intangible Assets

During the year ended July 30, 2016, Cisco Systems, Inc. acquired the following identifiable intangible assets through its purchase of two companies (in thousands):

Cisco acquired Lancope, Inc. in December 2015, and Jasper Technologies, Inc. in March 2016. Cisco separately tests identifiable intangibles acquired from each company for impairment, and collects the following information to conduct impairment tests at the end of fiscal 2016 (in thousands):

Required

a. Calculate amortization expense for the above identifiable intangibles for fiscal 2016. Intangibles are amortized on a straight-line basis starting in the month following acquisition.

• Round answers to the nearest whole number.
• Enter answers in thousands.

b. Calculate impairment losses for fiscal 2016.

• Round answers to the nearest whole number.
• Enter answers in thousands.

c. Determine the amounts reported on Cisco’s fiscal 2016 balance sheet for technology, customer relationships, and in-process R&D.

• Round answers to the nearest whole number.
• Enter answers in thousands.

1. In 2017, GREEN CORPORATION acquired a silver mine in Benguet. Because the mine is located deep in the Benguet mountains, Green was able to acquire the mine for the low price of P50,000.

In 2018, Green constructed a road to the silver mine costing P5,000,000. Improvements to the mine made in 2018 cost P750,000. Because of the improvements to the mine and the surrounding land, it is estimated that the mine can be sold for P600,000 when the mining activities are complete.

During 2019, five buildings were constructed near the mine site to house the mine workers and their families. The total cost of the five buildings was P1,500,000. Estimated residual value is P250,000. In 2017, geologists estimated 4 million tons of silver ore could be removed from the mine for refining.

During 2020, the first year of operations, only 5,000 tons of silver ore were removed from the mine. However, in 2021, workers mined 1 million tons of silver. During that same year, geologists discovered that the mine contained 3 million tons of silver ore in addition to the original 4 million tons. Improvements of P275,000 were made to the mine early in 2021 to facilitate the removal of the additional silver.

Early in 2022, an additional building was constructed at a cost of P225,000 to house the additional workers needed to excavate the added silver. This building is not expected to have any residual value.

In 2022, 2.5 million tons of silver were mined and costs of P1,100,000 were incurred at the beginning of the year for improvements to the mine.

Requirements:

1. Depletion from 2020 to 2022.
2. Depreciation from 2020 to 2022.

The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux's accounting records is provided also.

Additional information from the accounting records:

1. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.
2. The common stock of Byrd Corporation was purchased for $4,000 as a long-term investment.
3. Property was acquired by issuing a 14%, seven-year, $20,000 note payable to the seller.
4. New equipment was purchased for $37,000 cash.
5. On January 1, 2021, bonds were sold at their $25,000 face value.
6. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.
7. Cash dividends of $11,000 were paid to shareholders.
8. On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $8,000.

Required:
Prepare the statement of cash flows of Dux Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux’s accounting records is provided also.

Additional information from the accounting records:

1. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.
2. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment.
3. Property was acquired by issuing a 13%, seven-year, $30,000 note payable to the seller.
4. New equipment was purchased for $15,000 cash.
5. On January 1, 2021, bonds were sold at their $25,000 face value.
6. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.
7. Cash dividends of $13,000 were paid to shareholders.
8. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000.

Required:
Prepare the statement of cash flows of Dux Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method. (Do not round your intermediate calculations. Enter your answers in thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux's accounting records is provided also.

Additional information from the accounting records:

1. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.
2. The common stock of Byrd Corporation was purchased for $4,000 as a long-term investment.
3. Property was acquired by issuing a 14%, seven-year, $20,000 note payable to the seller.
4. New equipment was purchased for $37,000 cash.
5. On January 1, 2021, bonds were sold at their $25,000 face value.
6. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.
7. Cash dividends of $11,000 were paid to shareholders.
8. On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $8,000.

Required:
Prepare the statement of cash flows of Dux Company for the year ended December 31, 2021. Present cash flows from operating activities by the direct method.

The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company Additional information from Dux's accounting records is provided also. DUX COMPANY ,   COMPARATIVE BALANCE SHEETS DECEMBER 31, 2021 AND 2020   ($ IN THOUSANDS) ASSETS    2021 -- 2020 CASH CASH $ 39.0 --$21.0 ACCOUNTS RECEIVABLE, $49.0 - $51.0 LESS: ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS (3.0) -- (2.0) DIVIDENDS RECEIVABLE, 4.0 -- 3.0 INVENTORY,56.0 - 51.0 LONG-TERM INVESTMENT 16.0-11.0, LAND 71.0 -----40.0 BUILDINGS AND EQUIPMENT 221.0-251.0 LESS: ACCUMULATED DEPRECIATION(26.0) --- (55.0) $427.0-371.0 LIABILITIES ACCOUNTS- PAYABLE ACCOUNTS PAYABLE $ 14.0 - $ 21.0 SALARIES PAYABLE 3.0- 6.0 INTEREST PAYABLE 5.0 -- 3.0 INCOME TAX PAYABLE 8.0 - 9.0 NOTES PAYABLE 31.0-0  BONDS PAYABLE 96.0-70.0 LESS:DISCOUNT ON BONDS (2.0) = (3.0) SHAREHOLDERS' EQUITY COMMON STOCK  210.0 -------- 200.0 PAID-IN CAPITAL-EXCESS OF PAR 24.0-20.0 RETAINED EARNING 46.0--------- 45.0 LESS: TREASURY STOCK (8.0)-0        427.0 ---------- 371.0

DUX COMPANY , INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 ($ IN THOUSANDS) REVENUES SALES REVENUES  $ 215.0 DIVIDEND REVENUE 4.0 = $219.0 EXPENSES COST OF GOODS SOLD- 122 SALARIES EXPENSE 27, DEPRECIATION EXPENSE 7, BAD DEBT EXPENSE 1.0 INTEREST EXPENSE 10.0 LOSS ON SALE OF BUIIDING 5.0 INCOME TAX EXPENSE 18.0 ------ 199.0 NET INCOME    $29 Additional information from the accounting records: a.    A building that originally cost $48,000, and which was three-fourths depreciated, was sold for $7,000. b.    The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment. c.    Property was acquired by issuing a 13%, seven-year, $31,000 note payable to the seller. d.    New equipment was purchased for $18,000 cash. e.    On January 1, 2021, bonds were sold at their $26,000 face value. f.      On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time. g.    Cash dividends of $14,000 were paid to share at that time . h.    On November 12, 12,500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Required: Prepare the statement of cash flows for Dux Company for the year ended December 31,2021. Present cash flows from operating activities by the indirect method. (Do not round your intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

STANDARDS

IPSAS vs IAS

Identify/find the corresponding IAS/IFRSs’ for the IPSASs’ listed in the table above, then
write on at least 3 similarities and 3 differences between the respective standards

JOURNAL ENTRIES

Cash vs Accrual Accounting Entries

Company X is located in the commercial sector of Trinidad and Tobago and has been operating from 1992. The company purchased office supplies from Florida Distributors Co. Ltd on May 12, 2016 that valued US$50,000.00. Company X pays US$20,000.00 by cash on May 31, 2016, US$25,000.00 by cheque on June 2, 2016, and then settled its bill by transferring the balance from its bank account directly into the bank account of the supplier on June 3, 2016.

 Record the transactions in the books of Company X using the cash basis?
 Record the transactions in the books of Company X using the accrual basis?

Note that all transactions are to be recorded in the home currency of Company X

with a card.

Required :

1.In a tabular format give at least 5 internal control weakness in Buck Phyz, the impact of these weaknesses in the organization, and associated control to mitigate the weakness.

2. A detailed review of the benefits and potential risk with the introduction of the corporate credit card.