The following information is available for Ivanhoe Company. 1. Purchased a copyright on January 1, 2020 for $62,400. It is estimated to have a 10-year life. 2. On July 1, 2020, legal fees for successful defense of the copyright purchased on January 1, 2020, were $17,784.

Prepare the journal entries to record all the events related to the copyright during 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Jan 1st 2020, July 1st, 2020, Dec 31st, 2020

At December 31, 2021, an impairment test is performed on the copyright purchased in 2020.

It is estimated that the net cash flows to be received from the copyright will be $62,400, and its fair value is $59,280. The accumulated amortization at the end of 2021 was $15,288. Compute the amount of impairment, if any, to be recorded on December 31, 2021. (If there is a loss on impairment, then enter amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

On March 1, 2020, Reed hired a contractor to construct a new office building. The construction work commenced on April 1, 2020, and it is expected to continue through July 31, 2022, the estimated completion date. Reed made progress payments to the contractor in 2020 as follows:

As stated in A5 above, Reed took a 1-year, 9%, $225,000 construction loan to help fund the work on this project. The company also has a 6-year, 5%, $559,165 loan that is not related to the construction project. Give the adjusting entry needed at December 31, 2020 to record the capitalization of interest for this project.

(A5)The Notes Payable balance of $784,165 results from two loans the company has taken. On September 1, 2019, Reed took a 6-year, 5%, $559,165 loan. The interest on this loan is payable annually, on each August 31. Also, on April 1, 2020, Reed took a 1-year, 9%, $225,000 construction loan (see A7 below). The interest on the construction loan is payable on the loan’s maturity date, March 31, 2021. (Note – Reed already recorded the interest paid on these loans in 2020. For this adjustment, consider any accrued interest on the loans at the December 31, 2020 reporting date.)

. What are the advantages of Unit dose packaging over Multiple dose packaging and what further improvement in former is needed to help patient-compliance?

describe the actuve location (S) of hemoglobin and myoglobin. How does the former function to transport 0₂ from the lungs to the cells where it is used?

Analyzing Foreign Currency Hedges

The Arizona Company, a U.S.-based manufacturer, ordered a piece of equipment from Sonora Inc., a Mexico-based supplier, agreeing to pay 300,000 Mexican pesos upon delivery of the equipment in three months time. At the time of the contract signing, the exchange rate between the U.S. dollar and the Mexican peso was 10P:$1.

With concerns about a weakening U.S. dollar, The Arizona Company decided to hedge its currency exposure by purchasing a forward foreign exchange contract from a local bank.

The forward contract committed The Arizona Company to pay $30,300 in three months in exchange for 300,000 pesos.

What was the forward foreign exchange rate implicit in the contract (assuming no transaction costs)?

Round to two decimal places. Hint - provide the number of Pesos to each US$.

1.) __________________

If the foreign exchange rate in three months was 9.8P:$1, how much did The Arizona Company save by purchasing the currency hedge?

Round to the nearest dollar.

2.) ________________

If the foreign exchange rate in three months was 9.0P:$1?, how much did the company save by purchasing the currency hedge?

Round answer to the nearest dollar.

3.) __________________

PharmaNiaga Bhd (PNB) is considering its intangible assets on how the matters below should be treated in its financial statements for the year ended 31 March 2020.

a). On 1 October 2019, PNB acquired Halia Bhd, a small company that specializes in pharmaceutical drug research and development on the usage of local source, halia hitam, for skin care products. The purchase consideration was by a share exchange and valued at RM35 million. The fair value of Halia Bhd’s net assets was RM15 million (excluding any items referred to below). Halia Bhd owns a patent for an established successful product that had a remaining life of 8 years. A firm specialist advisor, HebatBrand, has estimated the current value of this patent to be RM10 million, however the company is awaiting the outcome of clinical trials where the product has been tested to treat a different skin problem. If the trials are successful, the value of the product is estimated to be RM15 million. Also included in the company’s statement of financial position is RM2 million for medical research that has been conducted on behalf of a client.

b). PNB has developed and patented a new drug which has been approved for clinical use. The costs of developing the drug were RM12 million. Based on early assessments on its sales success, HebatBrand, has estimated its market value at RM20 million.

c).PNB’s manufacturing facilities have recently received a favorable inspection by government medical scientists. Consequently, the company has been granted an exclusive five-year license to manufacture and distribute a new vaccine. Although the license had no direct cost PNB, its directors feel its granting is a reflection of the company’s standing and have asked HebatBrand to value the license. Accordingly, they have placed a value of RM10 million on it.                                                                             

d) In the current accounting period, PNB has spent RM3 million sending its staff PNB’s on specialist training courses. Whilst these courses have been expensive, they have led to a marked improvement in production quality and staff now needs less supervision. This in turn led to an increase in revenue and cost reductions. The directors of PNB believe these benefits will continue at least three years and wish to treat the training costs as an asset.

e). In December 2019, PNB paid RM5 million for a television advertising campaign for its products that will run for 6 months from 1 January 2020 to 30 June 2020. The directors believe that increased sales as a result of the publicity will continue for two years from the start of the advertisements.

Required:

Explain with reasons and justifications how the directors of PNB should treat the above items in the financial statements for the year ended 31 March 2020.

Note: The values given by Hebatbrand can be taken as being reliable measurements. Ignore depreciation.

For the publicly traded U.S. company Apple (AAPL), analyze the economic implications of operating in different market and industry structures.

Three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless.

There are several transactions occurred in March. For each transaction, indicate the accounts that are affected, whether they increase or decrease, and the amount of the increase or decrease.

Possible account type: Cash, Accounts Receivable, Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings

Transaction 1: On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $23,000 in exchange for shares of stock. A few of their friends also purchased stock for $13,000 that was deposited in The Wire account.

Transaction 2: The company quickly acquired $43,000 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 $1,200 per month, and rent for the first 4 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 $2,000 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 $6,000 for some advertising in local newspapers. (Note: Combine both transactions into one entry.)

Transaction 5: Sales were $60,000. Cost of merchandise sold was 70% of sales. 25% of 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 $10,300, of which $8,000 was actually paid to employees.

Transaction 7: Miscellaneous expenses were $1,000, all paid for with cash.

Transaction 8: On March 1, fixtures and equipment were purchased for $4,000 with a downpayment of $1,000 and a $3,000 note, payable in one year. Interest of 5% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 9 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.)

Transaction 9: Cash dividends totaling $3,400 were paid to stockholders on March 31.

Windsor Construction Company began work on a $404,000 construction contract in 2020. During 2020, Windsor incurred costs of $273,000, billed its customer for $232,000, and collected $182,000. At December 31, 2020, the estimated additional costs to complete the project total $163,660.

Prepare Windsor’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)