Top Quality Food Ltd. (TQF) is a medium-sized private food-processing company founded more than twenty years ago by Ray Smith. TQF is located in Newmarket and mainly provides frozen chicken, pork, and beef products to grocery stores and restaurants in the greater Toronto area and its surroundings. Ray is the CEO and sole common shareholder of the company. In recent decades, consumers pursue healthy lifestyle and tend to eat less meat but more fruits and vegetables. In noticing this market trend, Ray decided to add a new product line to produce frozen fruits. Ray approached Meridian Credit Union in early 2020 for a long-term loan to finance its planned new product line. After carefully reviewing TQF’s business plan, Meridian agreed to finance the purchase of new equipments for the new product line in processing and packaging frozen fruits, and the new equipment will be used as the loan collateral. Meridian also imposes a debt to equity ratio of not more than 1 to 1 for the loan, and requires audited financial statements from TQF every year. Ray agreed to satisfy all of Meridian’s requests, and in the fall of 2020, he hired Sherman LLP as the auditor for TQF. As a staff accountant of Sherman, your supervisor asked you to take care of the TQF account. December 31, 2020 will be the first year end which TQF will be audited. TQF’s earnings in recent years have averaged $ 300,000. In a recent meeting with Ray, he asked you to comment on the relevant accounting policies regarding the transactions which you have noted below:

1. Ray used the money from issuing preferred share (as stated in 6b above) to help finance a $ 120,000 acquisition of common shares in Spring Farm (SF) that produces blueberry, strawberry, peach and cherry. TQF will now own 25% of SF. SF will be a primary supplier of those fruits mentioned above for TQF’s new product line. Ray explained: “this vertical integration is critical for the growth of our business! Otherwise I will have to pay about $ 10,000 more if I buy from other suppliers. This deal is a big help with cash flow, and it also helps us to secure the supply which can be volatile depending on the weather.”

The following facts relate to Headland Corporation.

Compute income taxes payable for 2020.

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.”

On December 1, 2015, ABC Company acquired a new delivery truck in exchange for an old delivery truck that it had acquired in 2012. The old truck was purchased for $35,000 and had a book value of $13,300. On the date of the exchange, the old truck had a market value of $14,000. In addition, ABC paid $2000 cash for the new truck. The exchange lacked commercial substance. At what amount should ABC record the new truck for financial accounting purposes?

Wright Corporation had the following permanent accounts and ending balances on December 31, 2020 (before adjusting entries):

There have been no transactions recorded in Allowance for Doubtful Accounts over the year. The company should recognize bad debt expenses for $5,000 at the end of 2020. The company prepaid $20,000 for one-year insurance becoming effective on October 1, 2020. The company purchased the equipment on July 1, 2018, and estimated that the useful life of the equipment is 20 years and there is no residual value of the equipment. The company adopted straight-line method to account for depreciation. On December 31, 2020, the fair values of FV-NI investment and FV-OCI investments were $200,000 and $520,000, respectively. The company used the perpetual inventory system. There were no accrued interest and discount/premium on bonds, and other accrual items. Please do not consider the income tax effect.

Required:

Prepare a statement of financial position as at December 31, 2020, presenting assets and liabilities in order of liquidity.

The directors of Elite Ltd are due to consider the authorization of the company’s financial statements for issue for the year ended 31 December 2017 and the following events are revealed. As you are the financial controller of Elite Ltd, discuss how you would account for the following items in accordance with HKAS 37 Provisions, Contingent Liabilities and Contingent Assets. Justify your answers

a Bills receivable of $2 million were discounted during the year and are due for maturity on 15 February 2017. The bill is discounted with recourse, that is, Elite Ltd has to repay the amount to the bank if the bill is unpaid by the customer on the maturity date.

b A former employee, who was dismissed from the company’s service, has lodged a claim of $500,000 against the company for unfair dismissal. The company’s legal advisers do not think he will succeed in any claim, and have been negotiating with the former employee who has reduced his claim to $300,000. A provision of $200,000 has been made.

c Elite Ltd has guaranteed the bank overdraft of one of the directors of Elite Ltd to the extent of $10 million as at 31 December 2017.

During 2019 (its first year of operations) and 2020, Fieri Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2021, Fieri decided to change to the average method for both financial reporting and tax purposes.

Income components before income tax for 2019, 2020, and 2021 were as follows:

Dividends of $39 million were paid each year. Fieri’s fiscal year ends December 31.

Required:
1. Prepare the journal entry at the beginning of 2021 to record the change in accounting principle. (Ignore income taxes.)
2. Prepare the 2021–2020 comparative income statements.
3. & 4. Determine the balance in retained earnings at January 1, 2020 as Fieri reported using FIFO method and determine the adjustment of balance in retained earnings as on January 1, 2020 using average method instead of FIFO method.

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,800,000. Its useful life was estimated to be six years with a $220,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:

   
Required:
2. Prepare any 2021 journal entry related to the change. (Enter your answers in dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

summarize article , and include a few sentences of your reaction or questions that the article has created for you. in three or four paragraphs

Chinese Drone Maker Plows Into Agriculture; DJI to launch crop-spraying drone in effort to expand into farming sector

China's SZ DJI Technology Co., the world's top consumer-drone maker, is setting its sights on the agriculture industry with the launch of a crop sprayer that will test whether farming is fertile ground for drone technology.

DJI, which helped kick-start the global craze for drones with its $1,000 easy-to-fly devices, has unveiled an eight-rotor drone priced at roughly $15,000 that is designed to spray pesticides on crops, a spokesman said. DJI said the drone, which has a 2.6-gallon spray tank and a typical takeoff weight of about 49 pounds, can fly for about 12 minutes.

It can spray pesticides on seven to 10 acres of farmland an hour, depending on how much it needs to climb, descend or turn to follow the terrain.

The battery-powered DJI Agras MG-1 will be available first in China and South Korea, though the company didn't specify exactly when it would go on sale. In China, DJI was taking preorders Friday. The drone is expected to be available in other markets later, the company said.

Shenzhen-based DJI has found success selling drones to consumers and filmmakers since 2013, with revenue expected to exceed $1 billion this year.

The company, which is valued at roughly $8 billion based on its latest funding round, is now betting it can parlay that success into farming. Its push into the sector could open the way for other drone makers--or prove that agriculture isn't the cornucopia for unmanned aircraft that some had hoped.

The Association of Unmanned Vehicle Systems International, the largest drone trade group, has touted farming as the biggest potential market for drones, by far. In a 2013 report, the Arlington, Va.-based group forecast that agriculture would account for 92% of an estimated $82 billion economic impact from commercial drones in the U.S. between 2015 and 2025.

But even as the commercial use of drones has taken off world-wide, agriculture is far from capturing such a large share of the market. Fewer companies are applying for U.S. Federal Aviation Administration approvals to use drones on farms than for activities such as filmmaking, mapping and industrial inspection, according to recent studies.

The FAA began regularly approving drones for commercial use in September 2014. Just 90 of the FAA's first 1,355 approvals were for agriculture, according to Piper Jaffray Investment Research--well behind the 670 approvals for aerial filming. The FAA has approved most applications it receives.

Much of the promise for agricultural drones has been in their ability to collect large-scale aerial data on crops. The information helps farmers more precisely tend to their fields, adding or reducing irrigation or pesticides where necessary. So far, agricultural drones have failed to live up to their promise because giving farmers actionable data on their crops is far more complex than making a map or filming a movie, analysts said.

Commercial-drone maker Kespry Inc., based in Menlo Park, Calif., said it originally considered targeting agriculture as its top initial market, but ultimately decided on construction.

"To serve that market we need real expertise--agronomists who can combine the data with information on weather and local pests, and provide real recommendations," said Kespry founder and Chief Executive Paul Doersch. "For us to scale it didn't make sense."

Despite the complexities, DJI isn't the only drone maker betting on farming to diversify its revenue stream. Henri Seydoux, CEO of Paris-based Parrot SA, which has quickly captured the lower end of the consumer-drone market , said his company will collect data on 200,000 acres for farmers in France this year. Still, commercial drones earned Parrot just [euro]5.6 million ($6 million) in the third quarter, compared with [euro]44.4 million on consumer drones.

Agricultural drones "are at an early phase," Mr. Seydoux said. "It's true for all the commercial spaces. There is a lot of expectation but still not a big result."

DJI is making a different bet on agriculture: spraying crops instead of inspecting them. In China, chemicals are often administered on foot by backpack-wielding workers. Drones would improve pesticide application on hilly or wet land that is difficult to access and would limit farmworkers' exposure to chemicals, said Even Pay, a Beijing-based agriculture consultant who has studied Chinese farming methods. Japanese farmers have used large gasoline-powered unmanned helicopters made by Yamaha Motor Co. since the early 1990s to spray their fields. Yamaha began selling the drones to South Korean farmers in 2005. The FAA in May approved the drone for limited use in the U.S., and the company is considering whether to introduce it in the country. Analysts said DJI's crop-spraying drone will likely struggle to win over Western farmers who generally tend to larger areas. Large U.S. farms have for decades used small planes that can carry hundreds of gallons of pesticide to spray their fields. The planes are efficient at covering large areas and relatively inexpensive to hire.

Robert Blair, an Idaho farmer and vice president of agriculture for commercial-drone company Measure LLC, said he is bullish on drones that collect data on crops but skeptical about crop-spraying drones like DJI's that can carry only a few gallons of pesticide. "It's a niche market," he said

You are the CEO of a major US apparel company that contracts work to garment manufacturers abroad. Employees of one contractor report 20-hour workdays, pay below the minimum wage, overcrowded living conditions, physically abusive supervisors, and confiscation of their passports so they cannot quit. Local officials say labor laws are adhered to and enforced, though abuses appear widespread. You send inspectors to the offending factory abroad, but they uncover no labor violations. A labor-advocacy group claims that supervisors coached workers to lie to your inspectors about conditions and threatened workers with time in makeshift jails without food if they talked. Questions to be answered: 1-5. Should you implement a monitoring system to learn the truth about what is happening? 1-6. Do you help the factory improve conditions, withdraw your business from the country, or simply do nothing? 1-7. How might your actions affect relations with the factory owner and your ability to do business in the country?