Samuel whales Ltd has purchased a property in Wellington New Zealand on 20 July 2020 for NZD 3,200,000 and intended to use it as a showroom. The company borrowed NZD 2,000,000 to finance the purchase. The company plans to take the opportunity of the current low interest rate to expand its property acquisitions.

2) The company applied for Wages Subsidy scheme on 4 April and was granted 70,000. On 7 August, the ToL received a letter from the government requesting the company to pay back the Wages Subsidy with interests citing the reason that the company did not qualify.

3) The company was experiencing delays in its supply chain from overseas suppliers from March to May 2020, which resulted longer lead times in filling customer orders. On 31 July, a customer filed a lawsuit against the company suing for damages of $300, 000. Because of the delay, this customer could not open business on time and suffered income loss.

REQUIRED: For each of the above subsequent event:

a) Explain the potential impact on the 2020 financial statements.

b) Discuss audit procedures that may verify the potential impact on the 2020 financial statements.

Concord Cosmetic Inc. (ACI), a cosmetic product manufacturer, is a publicly listed company. ACI is preparing earnings per share data for 2020. The following is a summary of the activity for ACI during 2020:

Required: weighted average number of shares outstanding for the year ended December 31, 2020.

Based on information given in the attached Excel document, 1. Prepare journal entries and adjusting entries for September 2019 for your company. 2. Set up T-accounts and post your journal entries and adjusting entries to T-accounts. 3. Prepare your company’s pre-closing trial balance, as of September 30, 2019. 4. Prepare an income statement, in a good format, for the month of September 2019 for your company. 5. Prepare a statement of retained earnings, in a good format, for the same period. 6. Prepare a balance sheet, in a good format, as of September 30, 2019 for your company. 7. Prepare closing entries and a post-closing trial balance, as of September 30, 2019.

Description of the Business Activity:

1. You, the owner(s), contributed $1,000 cash to the business on September 1. 2. On September 1, your company borrowed $21,000 from a local bank, on a 10% note for 5 years. The interest would be paid semi-annually on each March 1 and September 1. 3. On September 1, your company paid $900 fees to local government agencies for business licenses and permits, for a period of one year. 4. On September 1, your company acquired a mobil cart, a business sign, and some other equipment for a total of $4,200 (all paid in cash). You estimated that the lifetime of these PP&E was 2 years with a residual value of $200. 5. On September 1, your company also paid $1,500 for its annual insurance, starting September 1. 6. During September, your company acquired merchandise, totaled $35,000. At the time of purchases, 70% of the merchandise was acquired on account. Your company promised to pay the remaining balances in 20 days. 7. For merchandise purchases in Transaction 6, toward the end of September, your company also paid in cash, an additional 20% of the total merchandise prices to its suppliers. 8. During September, your company delivered merchandise and earned $50,000 sales revenue, of which 30% was on credit. Cost, to your company, of the merchandise sold, was $27,000. 9. On September 26, your company also signed a sales contract with a customer, Mini-Soda Company to deliver a total of $5,000 merchandise on October 7, 2019. Your company collected $2,000 cash in advance from this customer on September 26. 10. By the end of September, your company collected 50% of its accounts receivables from various customers from the abovementioned Transaction 8. 11. By the end of September, your company incurred and paid a total of $8,000 in cash for its other selling expenses (including advertising, marketing, payroll, cart transportation, trailer rental, etc.).

Additional Information:

12. Your company incurred monthly interest expense on its debt borrowing as described in Transaction 2. 13. At the end of September, your prepayment, from Transaction 3, on business licenses and permits expired for the month. 14. As described in Transaction 4, your company's PP&E had an estimated life of 2 years with a $200 residual value. Your company used the straight-line depreciation method. 15. At the end of September, your prepayment, from Transaction 5, on insurance expired for the month. 16. At the end of September, your company estimated 10% of its outstanding accounts receivables as possible uncollectible. 17. The income tax rate was 20% for your company, which would be paid in March 2020.

Tree Top Company is considering raising additional capital for further expansion. The company wants to finance a new business venture into guided trips down the Amazon River in South America.​ Additionally, the company wants to add another building on their land to offer more services for local customers.

Tree TopCompany plans to raise the capital by issuing $1,400,000 of 7​%,seven​-year bonds on January​ 2, 2020. The bonds pay interest semiannually on June 30 and December 31. The company receives $1,398,320 when the bonds are issued. The company also issues a mortgage payable for $400,000 on January​ 2, 2020. The proceeds from the mortgage will be used to construct the new building. The mortgage requires annual payments of $20,000 plus interest for twentyyears, payable on December 31. The mortgage interest rate is 8​%.

Requirement 1. Will the bonds issue at face​ value, a​ premium, or a​ discount?

Tree Top​'sbonds will be issued at a discount because

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Requirement 2. Record the following transactions. Include dates and round to the nearest dollar. Omit explanations. ​(Round your answers to the nearest whole dollar. Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

a. Cash received from the bond issue.

b. Cash received from the mortgage payable.

c. Semiannual bond interest payments for 2020.Amortize the premium or discount using the​ straight-line amortization method. Start by recording the semiannual bond interest payment on June​ 30,2020.

Now record the semiannual bond interest payment on December​ 31, 2020.

d. Payment on the mortgage payable for2020.

Requirement 3. Calculate the total interest expense incurred in 2020.

On December 31, 2019, Little Corporation's Assets and Liabilities were $66,000 and $15,000 respectively. On December 31, 2020, the assets and liabilities were $94,000 and $28,000 respectively. During 2020, the company issued $7,000 of additional stock, and paid $3,000 of dividends. Determine the company’s net income for 2020.

A CEO is considering buying an insurance policy to cover possible losses incurred by marketing a new product. If the product is a complete failure, a loss of $450,000 would be incurred; if it is a moderately failure, a loss of $150,000 would be incurred; if it is only minor failure, a loss of $50,000 would be incurred. Insurance actuaries have determined that the probabilities that the product will be a failure or only moderately successful are 0.005, 0.056 and 0.153, respectively.

1. Assuming that the CEO is willing to ignore all other possible losses, what premium should the insurance company charge for a policy in order to have a profit of $5,000.
2. What is the variance of the profit, if there are 10 similar cases similar to this one?

Consider Whirlybird, Inc. offers helicopter tours and transportation in major cities around the ... Consider Whirlybird, Inc. offers helicopter tours and transportation in major cities around the world. The company is considering a stock repurchase in the upcoming quarter. As the Chief Financial Officer (CFO), you understand there are several methods to reduce quarterly earnings, which could reduce stock price prior to the announcement of the proposed stock repurchase.

Discuss

What course of action do you recommend to the Chief Executive Officer (CEO) of Whirlybird?

If the CEO approached you recommending a reduction in current quarter earnings, how would you respond?

As a new senior accountant of Ferndale Rugs, Inc., an exotic rug manufacturer, you have taken on the new responsibility of variance analysis for the company. During your monthly analysis, the company’s current performance report reveals a relatively large and unusual sales volume. This is considering the past three quarters of operating in a deficit, the sales volume is favorable but the sales price variance is unfavorable. Now the CEO has asked for a recommendation on how the organization can become a lean organization and whether the theory of constraints can be implemented.

• What recommendations would you give the CEO on how to become a lean organization and how the theory of constraints could be implemented?

On January 1, 2019, Monica Company acquired 80 percent of Young Company’s outstanding common stock for $888,000. The fair value of the noncontrolling interest at the acquisition date was $222,000. Young reported stockholders’ equity accounts on that date as follows:

In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building (with a five-year remaining life) by $90,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years.

During the subsequent years, Young sold Monica inventory at a 20 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following:

In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2020, for $58,000. The equipment had originally cost Monica $94,000. Young plans to depreciate these assets over a 5-year period.

In 2021, Young earns a net income of $200,000 and declares and pays $65,000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $960,000 balance at the end of 2021.

Monica employs the equity method of accounting. Hence, it reports $154,640 investment income for 2021 with an Investment account balance of $1,062,800. Prepare the worksheet entries required for the consolidation of Monica Company and Young Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Identify the skills of the leader that are key in leading a team to move a company toward a social entrepreneurial model.

1. Investigate Hot Bread Kitchen
   1. Find Hot Bread Kitchen on the Internet (http://hotbreadkitchen.org/)
   2. What is their mission and vision?
   3. Who leads Hot Bread Kitchen and what was the motivation to start the company?
   4. What impact does Hot Bread Kitchen hope to have on stakeholders?
   5. Analyze their leadership style and qualities of Jessamyn W. Rodriguez, Founder and Chief Executive Officer
   6. What other leaders in the company hold the vision and support the social entrepreneurial model?

2. Discuss:

1. Where would you start in developing a team to move your company into a social entrepreneurial focus?
2. Who would you want on your team?
3. How would get engagement from others in the company in seeing and embracing the vision?
4. What particular leadership skills would enhance success of the move
5. What challenges do you anticipate
6. What methods would you use to address the challenges