pennyroyal ltd acquired an item of plant under a lease on1 april 2019. an initial payment of N$2 000 000 is paid on 1 april 2019 and the present value of the future lease payments is N$7 092 000. pennyroyal ltd will make four further annual payments of N$2 000 000 paid in advance commencing 1 april 2020, the useful life of the plant is deemed tot be 8 years. pennyroyal ltd will obtain legal title of the plant following the final payment. the interest rate implicit lease is 5%. what is the total charge to appear in the statement of profit or loss for the year ended 31 march 2020?
In: Accounting
The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2022. The bonds yield 12%. Give entries through December 31, 2020.
Prepare all the relevant journal entries from March 1, 2019 until March 1, 2020. (The company closes its books on December 31).
In: Accounting
Use the following information on the U.S. dollar value of the euro.
Spot Rate | Forward Rate for April 30, 2021 Delivery | |
October 30, 2020 | $ 1.250 | $ 1.254 |
December 31, 2020 | 1.258 | 1.256 |
April 30, 2021 | 1.260 | 1.260 |
On October 30, 2020, a U.S. company forecasts that it will purchase
merchandise from an Italian supplier at the end of April 2021, in
the amount of €100,000, and will pay the supplier on delivery. On
October 30, the company enters a forward contract to buy €100,000
on April 30, 2021 and classifies it as a cash flow hedge of the
forecasted purchase. On April 30, 2021, the company receives the
merchandise, closes the forward contract and pays the supplier. The
company's accounting year ends December 31.
When the merchandise is sold by the company, what is the cost of
goods sold?
| A. | $125,000 | |
| B. | $126,600 | |
| C. | $125,400 | |
| D. | $126,000 |
In: Accounting
On November 16, 2019, a U.S. company makes a sale to a customer in Germany. Under the sale terms, the customer will pay the company €100,000 on March 16. On November 16, the company also enters a forward contract to sell €100,000 on March 16, 2020. On March 16, the company receives €100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31. Rates on the dates specified appear below:
Spot Rate | Forward Rate for March 16, 2020 Delivery | |
November 16, 2019 | $ 1.250 | $ 1.248 |
December 31, 2019 | 1.260 | 1.255 |
March 16, 2020 | 1.265 | 1.265 |
What is the net effect on 2019 income of exchange rate changes due
to the sale and the forward contract?
| A. | no effect | |
| B. | $1,700 net gain | |
| C. | $300 net loss | |
| D. | $300 net gain |
In: Accounting
In order to restructure its entertainment activities, Bear Valley University wanted an estimate of the amount of US dollars spent by all its undergraduate students on entertainment expenses.
To do so, it took a sample of 25 undergraduates. Students in the sample reported spending the following US dollar amounts for entertainment expenses last year:
| 741 | 754 | 771 | 773 | 680 | 682 | 728 | 775 | 708 | 700 | 714 | 731 | 756 |
| 699 | 772 | 683 | 778 | 739 | 769 | 713 | 746 | 758 | 710 | 771 | 696 | |
(Round your answers to 2 decimal places.)
Find the point estimate for the population mean, the point estimate for the population median, and the point estimate for the population mode.
In: Statistics and Probability
Inventory TableClose
The following data pertain to Company A’s inventory that was purchased on January 5, Year 1, for $40,000:
|
March 31, Year 1 |
June 30, Year 1 |
December 31, Year 1 |
||||
|
|
|
|
||||
|
Estimated selling price |
$42,000 |
$44,000 |
$41,000 |
|||
|
Cost of disposal |
2,000 |
2,000 |
2,500 |
|||
|
Normal profit margin |
1,200 |
1,400 |
1,100 |
|||
|
Cost of completion |
1,000 |
1,000 |
1,000 |
|||
|
Current replacement cost |
38,000 |
42,000 |
36,000 |
Note: Entire inventory was sold on May 1, Year 2.
EmailClose
|
To: |
Bill West |
|
From: |
Rufus Brown |
|
Date: |
June 1, Year 2 |
|
RE: |
GAAP vs. IFRS |
Hey Bill,
As you have probably already seen, there is a great newspaper article detailing the company’s plans to go global. You will notice that the biggest challenge that we face is learning the new accounting standards (IFRS). To get us started, I will need your help in calculating some of the Year 1 quarterly inventory balances under both U.S. GAAP policy and IFRS policy. I know that this is a bit of a challenge, but I have ultimate faith in you. Let me know if I can do anything to help.
Sincerely,
Rufus
P.S. Remember that Company A accounts for its inventory using the LIFO method under U.S. GAAP and the FIFO method under IFRS.
Newspaper Article Announcing Global ExpansionClose
Company Seeks to Go Global
Company A is a publicly traded company that reports interim financial statements on a quarterly basis. Until recently, that is all that Company A has ever been. Now, Company A seeks to maintain their old traditions while simultaneously traversing the unknown seas into foreign lands, in the hopes of increasing their global market share.
“We really believe that going global will not only benefit our current employees and their families, but also the lives of potential future employees and their families,” the CEO stated when asked about the decision to go global. “I am really looking forward to leading the way in the greatest project that this company has ever undertaken,” the CEO continued, beaming with pride.
When asked about the challenges that lie ahead, the CEO responded, “Our biggest challenge so far has been learning the new accounting rules and regulations that are applied overseas. For the most part they are similar to the regulations that we abide by here in the States, but there are some instances in which the two standards are wildly different.” However, despite whatever adversity might lie ahead, Company A has an attitude that cannot and will not be defeated.
Scroll down to complete all parts of this task.
Use the information provided in the exhibits to calculate the inventory amounts as they should be reported in the financial statements prepared under U.S. GAAP and IFRS. Enter the appropriate amounts in the associated cells. Enter all amounts as positive values. Round all amounts to the nearest whole number.
|
U.S. GAAP |
IFRS |
|
| 1. Inventory balance on March 31, Year 1 | ||
| 2. Inventory balance on June 30, Year 1 | ||
| 3. Inventory balance on December 31, Year 1 |
In: Finance
|
The following information relates to a company. Prepare the adjusting journal entries required on June 30, 2020 for each of the following situations: |
| A. |
The company prepaid rent for the year on June 1, 2020. Rent expired during the month of June,2020 is $4,700. |
| B. |
On June 1, 2020 supplies were purchased for $2,900. Inventory of supplies was $2,200 on June 30, 2020. Record the adjustment for the amount of the supplies that were used during the month. |
| C. |
A machine purchased on June 1, 2020, for $26,400 has an estimated useful life of 10 years with no salvage value. The company computes depreciation using the straight-line method. |
| D. |
On June 1, 2020 the company signed a 6-month contract for $3,120 of prepaid advertising. Record the adjustment for the amount of the contract that expired during June. Prepare the adjusting journal entries required on June 30, 2020 for each of the following situations: |
In: Accounting
Q16 A recent WSJ/NBC News poll was based on nationwide telephone interviews of 1000 adults. It was conducted March 23-27, 2020. Individuals were selected so that all listed landline telephone numbers had an equally likely chance to be included in the sample. The cellphone sample was selected from a list of cellphone users nationally.
Respondents to the survey were asked what they thought about social media sites like Facebook and Twitter. Specifically, they were asked if they believed that social media does more “to bring us together” or “to divide us” as a nation. 650 of the 1000 respondents said that social media does more “to bring us together” as a nation.
Answer the following questions about this survey.
a. The point estimate of the population proportion of adults who believe that social media does more “to bring us together” is _______.
A.
0.35%
B.
0.65%
C.
0.35
D.
0.65
b. Construct the 95% confidence interval estimate for the population proportion of adults who believe that social media does more “to bring us together”. That is, complete the statement:
According to the recent WJS/NBC News poll, the proportion of adults who believe that social media does more “ to bring us together” is __________ with a margin of error of _________.
A.
0.65 , 0.0004
B.
0.65% , 0.030
C.
0.65% , .004%
D.
0.65 , 0.030
c. The margin of error would _______ (increase, decrease) if the 95% confidence interval was constructed from a sample of 500 adults, rather than 1000.
A.
increase
B.
decrease
d. Given the same sample size of 1000, the margin of error would ________ (increase, decrease) if a 99% confidence interval is constructed instead of a 95% confidence interval.
A.
decrease
B.
increase
In: Statistics and Probability
38. In the first edition of An Essay on Population, Malthus based his description of the potential growth of the population on data (however tenuous) from ________.
a. New England
b. the region near the University where he taught in England
c. the parts of Africa he visited as an employee of the Royal African Company
d. China
In: Economics
If you were on the recruiting team to find a new
CEO for a company where the board mandate was to focus on embedding
innovation into the DNA of the company, what attributes would you
describe as being the "must-haves?"
In: Psychology