During 2020, Bad Bunny, Inc. was sued by the EPA for leaving toxic waste on the land of its former headquarters. Bad Bunny’s attorneys have indicated that they believe it is very likely that Bad Bunny will lose this dispute. They also believe that Bad Bunny will have to pay the EPA between $5 million and $10 million. No particular amount in this range is considered more likely than any other. Bad Bunny has environmental insurance that may cover up to $5 million of this possible loss.

i. Briefly explain in complete sentences the relevant accounting issues and whether they should lead to recording of journal entries and recognition in the financial statements. If any footnote disclosure is needed, just summarize what should be disclosed, don’t write actual footnotes.

ii. Prepare any relevant journal entries as of 12/31/20, the company’s fiscal year-end date. If none are required, explain why.

iii. If anything needs to be reported on the 2020 income statement and balance sheet indicate what accounts and amounts will be reported. Make it clear what is on the income statement and what is on the balance sheet.

b) Total payroll of Walnut Co. on September 18, 2020, was $3,000,000, of which $400,000 represented amounts paid in excess of $130,000 to certain employees. The F.I.C.A. tax is 7.65% on an employee’s salaries and wages up to $130,000 and 1.45% in excess of $130,000. Federal income taxes withheld were $500,000, state income taxes withheld were $100,000, and voluntary employee contributions to retirement plans withheld were $150,000. Payment for all amounts will be made on September 25. Prepare the September 18 journal entry in proper form for the expenses and liabilities.

On January 1, 2020, Shamrock Company makes the two following acquisitions.

The company has to pay 10% interest for funds from its bank.

(Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Population bottlenecks and founder effects

A.have opposite effects on population variation

B.both lead to genetic drift, which reduces variation in the population

C.both result in genetic variation due to extreme conditions

D.both result in an increased mutation rate in the population

You had to look for information regarding five recent innovations i.e. airbnb, telegram messenger, Apple, Skip the dishes and Uber.

1. Who is the founder and when did the innovation come about?
2. Why did the need arise for these innovations?

Imagine you are about to launch your own start-up (state what is the product or service you will offer), what would be your long term goal? Sell, Maintain, or Grow that business? Why, as a founder, would you choose that option?

Three former college classmates decided to open a store near campus to sell wireless equipment to students. They created a public company, The Wire, and issued stock to interested investors. They plan on creating monthly financial statements.

Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts for The Wire that are affected, whether they increase or decrease, and the amount of the increase or decrease.

When you record the dollar amounts, be sure to use a minus sign to indicate a decrease in the account.

ACCOUNT OPTIONS:

Transaction 1: On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $25,000 in exchange for shares of stock. A few of their friends also purchased stock totaling $12,000 that was deposited in The Wire account.

Transaction 2: The company quickly acquired $38,000 in inventory, 60% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.

Transaction 3: A one-year store rental lease was signed on March 1 for $12,000 for the year, and rent for the first 3 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.]

Transaction 4: The owners paid $3,000 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $5,000 for some advertising in local newspapers. [Note: Combine both transactions into one entry].

Transaction 5: Sales were $60,000. Cost of merchandise sold was 50% of its sales price. 35% of the sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]

Transaction 6: Wages and salaries in March were $11,200, of which $8,800 was actually paid to employees.

Transaction 7: Miscellaneous expenses were $2,000, all paid for with cash

Transaction 8: On March 1, fixtures and equipment were purchased for $5,000 with a downpayment of $1,000 and a $4,000 note, payable in one year. Interest of 6.5% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 11 years with no expected salvage value. [Note:Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third. Also, round all answers to the nearest cent.]

Three former college classmates decided to open a store near campus to sell wireless equipment to students. They created a public company, The Wire, and issued stock to interested investors. They plan on creating monthly financial statements.

Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts for The Wire that are affected, whether they increase or decrease, and the amount of the increase or decrease.

When you record the dollar amounts, be sure to use a minus sign to indicate a decrease in the account.

ACCOUNT OPTIONS:

Transaction 1: On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $25,000 in exchange for shares of stock. A few of their friends also purchased stock totaling $12,000 that was deposited in The Wire account.

Transaction 2: The company quickly acquired $38,000 in inventory, 60% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.

Transaction 3: A one-year store rental lease was signed on March 1 for $12,000 for the year, and rent for the first 3 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.]

Transaction 4: The owners paid $3,000 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $5,000 for some advertising in local newspapers. [Note: Combine both transactions into one entry].

Transaction 5: Sales were $60,000. Cost of merchandise sold was 50% of its sales price. 35% of the sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]

Transaction 6: Wages and salaries in March were $11,200, of which $8,800 was actually paid to employees.

Transaction 7: Miscellaneous expenses were $2,000, all paid for with cash

Transaction 8: On March 1, fixtures and equipment were purchased for $5,000 with a downpayment of $1,000 and a $4,000 note, payable in one year. Interest of 6.5% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 11 years with no expected salvage value. [Note:Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third. Also, round all answers to the nearest cent.]

During 2020, Barden Building Company constructed various assets at a total cost of $14,700,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $9,800,000. The company had the following debt outstanding at December 31, 2020:

1.   10%, 5-year note to finance construction of various assets,

      dated January 1, 2020, with interest payable annually on January 1                     $6,300,000

2.   12%, ten-year bonds issued at par on December 31, 2014, with interest

      payable annually on December 31                                                                            7,000,000

3.   9%, 3-year note payable, dated January 1, 2019, with interest payable

      annually on January 1                                                                                               3,500,000

Instructions - Compute the amounts of each of the following (show computations).

1. Avoidable interest.

2. Total interest to be capitalized during 2020.

During 2020, Barden Building Company constructed various assets at a total cost of $14,700,000. The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $9,800,000. The company had the following debt outstanding at December 31, 2020:

1.   10%, 5-year note to finance construction of various assets,

      dated January 1, 2020, with interest payable annually on January 1       $6,300,000

2.   12%, ten-year bonds issued at par on December 31, 2014, with interest

      payable annually on December 31                                                                    7,000,000

3.   9%, 3-year note payable, dated January 1, 2019, with interest payable

      annually on January 1                                                                                         3,500,000

Instructions

Compute the amounts of each of the following (show computations).

1.   Avoidable interest.

2.   Total interest to be capitalized during 2020.