LazyDaz, Inc. reported the following for its 2020 financial statements.
Balance Sheet

Income Statement
For the Year Ending Dec 31, 2020

The financial notes of LazyDaz disclose the following 2020 information:
(1) Property, plant and equipment was sold for cash. The PP&E had an original cost of $400
and accumulated depreciation of $100.
(2) Stock was issued for $120 cash.
(3) Bonds of $30 were retired.
(4) Land with a cost of $140 was sold.
(5) There were two major noncash transactions. PP&E was acquired by issuing a $75 long-term
note. Later in the year, PP&E was acquired by issuing $100 in common stock.
(6) All other transactions were cash transactions.

Can you prepare a Statement of Cash Flows for this information

Question 5

Quality Ltd, a US soap manufacturing corporation, plans to export its products (manufactured in the US) to Hong Kong. It plans to establish a subsidiary company (Fresh Ltd) in Hong Kong, which will operate retail shops in Hong Kong. Fresh Ltd will purchase the products from Quality Ltd and sell them to Hong Kong customers. The purchase contracts will be determined and concluded in US.

Required:

Advise Quality Ltd on the Hong Kong profits tax implications of its plan. Consider the tax positions of Quality Ltd and Fresh Ltd independently. For each company, consider:

• Is it carrying on business in Hong Kong?

• Does it earn Hong Kong sourced profits? Disregard re-invoicing and any overseas tax implications.

Quality Ltd, a US soap manufacturing corporation, plans to export its products (manufactured in the US) to Hong Kong. It plans to establish a subsidiary company (Fresh Ltd) in Hong Kong, which will operate retail shops in Hong Kong. Fresh Ltd will purchase the products from Quality Ltd and sell them to Hong Kong customers. The purchase contracts will be determined and concluded in US. Required: Advise Quality Ltd on the Hong Kong profits tax implications of its plan. Consider the tax positions of Quality Ltd and Fresh Ltd independently. For each company, consider: • Is it carrying on business in Hong Kong?

• Does it earn Hong Kong sourced profits? Disregard re-invoicing and any overseas tax implications.  

The following information was taken from the accounting
records of JBD Company as of December 31, 2020:

Inventory .................   $17,000
Accounts Payable ..........   $36,000
Common Stock ..............   $78,000
Accounts Receivable .......   $11,000
Retained Earnings .........   $24,000 (at January 1, 2020)
Copyright .................   $20,000
Salaries Expense ..........   $28,000
Supplies ..................   $12,000
Mortgage payable ..........   $80,000 (due March 1, 2040)
Land ......................   $93,000
Notes Payable .............   $17,000 (due November 1, 2022) 
Trademark .................   $37,000
Sales Revenue .............   $97,000
Equipment .................   $85,000
Income Tax Expense ........   $10,000
Cost of Goods Sold ........   $45,000
Salaries Payable ..........      ?
Cash ......................      ?
Accumulated Depreciation ..      ?
Dividends .................      ?
Interest revenue ..........      ?

Additional information:
1)  Total current assets at December 31, 2020 are equal to
    30% of the total assets at December 31, 2020.

2)  20% of JBD’s 2020 net income was paid to stockholders
    as dividends.

3)  Total long-term liabilities at December 31, 2020 are
    equal to total current liabilities at December 31, 2020.

4)  Total equity at December 31, 2020 is equal to 35% of the
    total liabilities at December 31, 2020.

Calculate the balance in the accumulated depreciation account
at December 31, 2020.

BOB just sold $4 million face value of 4.75% US Treasury Notes that mature on May 15, 2030, and has a yield to maturity of 5%. SHOW YOUR WORK STEP BY STEP FOR CREDIT!

a.  What is the flat price of the bond today (4/1/2020)?    

b.  What is the invoice price of the bond?

Should business schools actively promote the enrollment of women into their full-time MBA programs? If so, how should they do it? Explain

Whiskey Industries Ltd., a Nanaimo, British Columbia–based company, has a December 31 year end. The company’s comparative statement of financial position and its statement of income for the most recent fiscal year are presented here, along with some additional information:

(a)

Using the information above, prepare the statement of cash flows for Whiskey Industries Ltd. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Non-cash investing and financing activities:

During the year, land with a value of $  was acquired by signing a mortgage payable for the full amount.

CP 7–4
Koss Co. Ltd. began operations on January 1, 2018. It had the following
transactions during 2018, 2020, and 2021.
2018 Dec. 31 Estimated uncollectible accounts as $5,000 (calculated
as 2% of sales)
2020 Apr. 15 Wrote off the balance of N. Lang, $700
Aug. 8 Wrote off $3,000 of miscellaneous customer accounts
as uncollectible
Dec. 31 Estimated uncollectible accounts as $4,000 (1½% of
sales)
2021 Mar. 6 Recovered $200 from N. Lang, whose account was
written off in 2020; no further recoveries are expected
Sept. 4 Wrote off as uncollectible $4,000 of miscellaneous
customer accounts
Dec. 31 Estimated uncollectible accounts as $4,500 (1½% of
sales).
CHAPTER SEVEN / Cash and Receivables First US Edition
Required:
1. Prepare journal entries to record the above transactions.
2. Assume that management is considering a switch to the balance
sheet method of calculating the allowance for doubtful accounts.
Under this method, the allowance at the end of 2021 is estimated
to be $2,000. Comment on the discrepancy between the two
methods of estimating allowance for doubtful accounts.

Assume that GMMC has investments in a Building Replacement Fund with the following balances as of 4/30/20 listed by category. The Investment Committee of the Board has approved a recommendation to reallocate these funds, and to include for the first time common stocks from non-US companies. Assume that the portfolio will be rebalanced on June 1, 2020 to equal the Board's targeted desired allocation percentages.

GMMC
Recommended Asset Allocation for Building Replacement Fund
Rebalancing of Investment Portfolio as of June 1, 2020

Balance on Current Future Desired Re-balanced
Investment Description 4/30/2020 Allocation % Allocation Amounts

Cash and Cash Equivalents $ 6,000,000 4.7% 4.0% ?

Fixed Income - Domestic Bonds $42,000,000 32.8% 33.0% ?

Fixed Income - International Bonds $15,000,000 11.7% 10.0% ?

Equities - Large Cap Value $28,000,000 21.9% 22.0% ?

Equities - Large Cap Growth $17,000,000 13.3% 18.0% ?

Equities - Mid/Small Cap Value $12,000,000 9.4% 4.0% ?

Equities - Mid/Small Cap Growth $8,000,000 6.3% 4.0% ?

Equities - International - ----- 0.0% 5.0% ?

Total $ 128,000,000 100.0% 100.0% $ 128,000,000