Ink Spill, a printing company, provides printing services to its customers. Customers normally pay for printing services in advance. In October 2020, Ink Spill received $20,000 from customers for services to be provided in November 2020. A senior accountant at Ink Spill wants to record the full amount as a liability in the company’s Balance Sheet at the end of October 2020.
Required:
Should the $20,000 be recorded as a liability in the company’s Balance Sheet at the end of October 2020? Explain, using the definition and recognition criteria of a liability in your explanation.
In: Accounting
Geddie Products purchased a machine for $60,000 on July 1, 2020. The company estimates that the useful life of the asset is 4 years, and its life in hours = 10,000 hours. The estimated salvage value is 0. During 2020, the hours used were 1,250 hours.
1) Calculate the Depreciable Base and the depreciation expense of 2020 using the Straight-line method
2) Calculate the depreciation expense of 2020 using the double-declining balance method
3) Calculate the depreciation expense of 2021 using the double-declining balance method
In: Accounting
Your company just acquired another company that manufactures and sells packaged ice. Traditionally the company has sold in bulk to industrial users. You want to sell to consumers.
-Develop a marketing strategy for your packaged ice that includes a market penetration strategy, market development strategy, and the value proposition. A picture or something showing the marketing of packaged ice.
In: Operations Management
Spritz Company owns 15% of the stock of Turner Corporation. The investment was purchased for $200,000. At the beginning of 2020, it had a fair value of $230,000. At the end of 2020, its fair value is $250,000. Turner reported net income of $100,000 for 2020, and declared and paid cash dividends of $60,000. Spritz sells products to Turner at a markup of 20% on cost. Turner’s ending inventory for 2020 included a balance of $10,800 for products purchased from Spritz.
Required
Prepare the journal entries Spritz makes in 2020 to record the above facts, assuming that Spritz treats its investment as having significant influence and uses the equity method.
In: Accounting
4. Evaluate: Income should be redistributed from the rich to the poor because the marginal utility of income is lower to the former.
In: Economics
Marques (2010) said “Organizational communication has demonstrated to be a crucial aspect in the success rate of any type of organization, whether for-profit or non-profit, business or academic based” (p. 56).
Is your current or former organization successful? Does the communication in your organization (current or former) reflect the level of success, or lack thereof? What can leadership do to ensure there is quality communication in organizations?
Reference:
Marques, J. F. (2010). Enhancing the quality of organizational communication.Journal of Communication Management, 14(1), 47-58.
In: Accounting
You are a financial Planner making over $500 an hour.
The CEO and COO of Facebook ask you to write up an employee
benefits/retirement plan for their employees. Facebook’s goal is to
attract and retain qualified, creative and driven employees.
Facebook is also interested in making money for the company and
increasing their profit margin for the benefit of the
shareholders.
In: Finance
Your CEO has decided to restructure the organisation and become more market -oriented. An announcement regarding these changes is going to occur at a meeting scheduled for next week. You have been asked to prepare a short speech outlining the reasons for the new company orientation. Provide context of market orientation and the pro's and con's of the implementation.
In: Accounting
If you were the CEO of Toys R Us: - Explain what caused Toys R Us to fail. - What would your strategy and approach be to turn the Company around? Explain. - What would you have done to change the Company’s fate, so that it would be thriving today instead of going out of business?
In: Operations Management
For the year ended December 31, 2020, Stellar Ltd. reported
income before income taxes of $100,000.
In 2020, Stellar Ltd. paid $54,000 for rent; of this amount,
$18,000 was expensed in 2020. The remaining $36,000 was treated as
a prepaid expense for accounting purposes and would be expensed
equally over the 2021-2022 period. The full $54,000 was deductible
for tax purposes in 2020.
The company paid $70,000 in 2020 for membership in a local golf
club (which was not deductible for tax purposes).
In 2020 Stellar Ltd. began offering a 1-year warranty on all
merchandise sold. Warranty expenses for 2020 were $38,000, of which
$31,000 was actual repairs for 2020 and the remaining $7,000 was
estimated repairs to be completed in 2021.
Meal and entertainment expenses totalled $17,000 in 2020, only half
of which were deductible for income tax purposes.
Depreciation expense for 2020 was $190,000. Capital Cost Allowance
(CCA) claimed for the year was $217,000.
Stellar was subject to a 20% income tax rate for 2020. Stellar
follows IFRS. At January 1, 2020, Stellar Ltd. had no balances in
deferred tax accounts.
Calculate taxable income and taxes payable for 2020.
| Taxable income, 2020 | $ | |
| Taxes payable, 2020 |
$ |
Prepare the journal entries to record 2020 income taxes (current and deferred).
|
Account Titles and Explanation |
Debit |
Credit |
|
(To record current tax expense.) |
||
|
(To record deferred tax expense.) |
In: Accounting