On the first day of the fiscal year, a company issues a $2,000,000, 9%, 5-year bond that pays semiannual interest of $90,000 ($2,000,000 × 9% × ½), receiving cash of $1,922,782.

Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

A 7 year old has experienced recurrent tonsillitis for the past year. He is scheduled for a tonsillectomy later in the day. You are assessing the child to obtain a baseline and is providing pre-operative teaching and a tour of the recovery area and day surgery area to the child and parents.

1. What health history is important to elicit from the family?

2. What content should the nurse emphasize in pre-operative teaching directed to the parents?

3. What content should the nurse emphasize in pre-operative teaching directed to the child?

4. What physical assessments of the child are indicated?

Sunshine Company is a calendar year accrual-basis taxpayer and is in its first year of operations. Sunshine Company had the following income, expense, and loss items for the current year: Sales $650,000 Corporate dividend (from 5% owned corporation) 60,000 Municipal bond interest 25,000 Long-term capital gain 0 Short-term capital loss (8,000) Cost of goods sold 320,000 Depreciation 65,000 Nondeductible fines 4,000 Advertising 7,000 Utilities 6,000 Rent 5,000 Furthermore, Sunshine’s liabilities (all recourse) increased from $0 on 1/1 to $300,000 on 12/31 of the current year. 1) Assume that Sunshine Company is owned by Alvin as a sole proprietorship. Alvin received $2,400 per month ($28,800 in total) from Sunshine Company as an owner’s draw. Additionally, Alvin took $55,000 out of Sunshine Company near the end of the year as a partial distribution of profits.

a) Calculate the net business income of Sunshine Company/Alvin that would be reported on Schedule C of Alvin’s Form 1040.

b) How much of the $2,400 per month ($28,800 total) and the $55,000 distribution would Alvin include as taxable income on his Form 1040?

c) What amount of Alvin’s income will be subject to self-employment tax?

d) Note that you do not need to complete Schedule C or other forms, but these form will be a useful guide in completing this portion of the assignment.

2) Assume that Sunshine Company is a c corporation. Alvin contributed $60,000 to purchase 60% of the stock while his wife’s best friend, Ann, contributed $40,000 to purchase the remaining 40% of the stock when the corporation was formed this year. Alvin received a $2,400 per month salary ($28,800 in total). Ann doesn’t work for the company so she received no salary. The company distributed some profits at the end of the year by paying out a $55,000 dividend.

a) Calculate Sunshine Corporation’s taxable income and income tax liability to be reported on Form 1120.

b) What amount and type of income must Alvin report on his individual Form 1040 tax return?

c) What amount of Alvin’s income will be subject to self-employment tax?

d) What is Alvin’s basis in his Sunshine stock at the end of this year?

e) Note that you do not need to complete Form 1120 but this form and related schedules will be a useful guide in completing this portion of the assignment

The basic data are presented below for the three years covered by the example: Year 1-Year 3. There were 40 units in beginning inventory at the start of Year 1. Each of these units had a cost basis of $30 per unit.

                                          Year 1                                                   Year 2                                                   Year 3

Purchases         Jan.22 120@$31                                Feb.15 210@$36                                Jun.20 280@$42

                                Mar.20 240@$32                               Apr. 20 180@$38                              Aug.30 300@$46

                                Jul.30 310@$33                                  Dec.17 100@$40

Sales                     Jan.11 20@$60                                   Jan.15 50@$70                                   Jul.16 220@$84

                                May 15 320@$60                              Jul.30 150@$90                                 Nov.20 250@$90

                                Nov.25 300@$65                               Dec.20 350@$90

Sales and purchases are the same numbers for a particular year regardless of the inventory method being used. Sales figures for Year 1-Year 3 are $39,900, $48,500 and $40,980, respectively. Purchases for the same three years, respectively, are $21,630, $18,400 and $25,560.

Ending inventories for each system and for each method will usually vary by year depending on the particular sequence of the purchases and the sales. There is one notable exception: FIFO will always produce the same result for the perpetual system as for the periodic system. [LIFO liquidation occurs during Year 2.]

Ending Inventories:

●Perpetual/Periodic FIFO Year 1                         $_____

■Perpetual LIFO Year 1                                      $_____

●Periodic LIFO Year 1                                        $_____

■Periodic Weighted Average Year 1                   $_____

●Perpetual Weighted Average Year 1                  $_____

Acme Corporation uses the calendar year as their fiscal year for reporting purposes. Acme Corporation is owned 100% by Jesse Smith. Jesse Smith is quite wealthy - he has over $3 million in a personal savings account which is currently earning 2 one hundredths of 1% interest (or .0002 rate resulting in $600 per year). He also has many other investments. Acme Corporation has $300,000 of current assets. Acme has Accounts Payable of $40,000 and various Payroll liabilities totaling $109,000. Acme also has a Note Payable in the amount of $800,000. There are no other liabilities. Interest has been paid every year when due on December 31. The Note Payable is due in $200,000 installments on June 30 of each year for the next 4 years. The current interest rate on the note is 4%. However, according to the loan terms, if Acme's current ratio falls below 2, the interest rate will automatically increase to 7%. Since the note is due in installments over the next 4 years, management is presenting the Note on the balance sheet as a long term liability.

Is Acme's management reporting their balance sheet appropriately? What recommendations do you have for management? How do these recommendations impact the current ratio?

A 2%, 3-year US Treasury is selling at 100.25 . The 5% , 3-year IBM is selling at 100.65. Both bonds pay interest semi-annually. The G-spread in basis points on the IBM bond is closest to

A 3-year floating-rate note pays 6-month Libor plus 140 bps. The floater is priced at 97 per 100 of par value. Current 6-month Libor is 1.00%. Assume a 30/360 day-count convention and evenly spaced periods. The discount margin for the floater in basis points is closest to:

Company AAA closes fiscal year 1 with a profit of €530,000. As of 12/31 in year 1, its Equity includes the following: Capital €6,000,000, Legal reserves €1,000,000, Voluntary reserves €3,500,000 and Statutory reserves €800,000. When the time comes to distribute year 1’s profits, the company decides that it does not want to distribute any dividend; rather, it wants to dedicate profits to its voluntary reserves so long as this complies with Spanish legal regulation. In the entry corresponding to the profit appropriation of year 1, how much will the company allocate to its legal reserves? Don´t use decimals or coma separator

TaxiCab held 20% of the rides last year. A random sample of 100 rides this year showed that 25 employed TaxiCab. Has the percentage of TaxiCab rides increased this year compared to last year? Formulate the hypothesis:

A. Ho: p≤.25 . Ha: p>.25

B. Ho: p≤.20 . Ha: p>.20

C. Ho: p<.25 . Ha: p>.25

D. Ho: p>.20 . Ha: p≤.20

What is the p-value?

What is your conclusion with 95% confidence?

1.      Expected inflation is

a.       The inflation rate that governments require form year to year

b.      The inflation rate that consumers and businesses expect will hold for some time in the future

c.       The inflation rate that is based on GDP growth

d.      The inflation rate minus the actual growth rate

2.      COLA provisions automatically increase wages or benefits to match

a.       Inflation

b.      Disinflation

c.       Deflation

d.      The cost of living

3.      In the United States, inflation peaked around

a.       1980

b.      1982-1984

c.       1929

d.      1973

4.      Between 2000 and 2015, which of the following experienced a negative inflation rate?

a.       Gasoline

b.      College tuition

c.       Medical care

d.      Wireless phone service

5.      A dollar-amount increase that has not been adjusted for inflation is called

a.       A real increase

b.      A normal increase

c.       A net increase

d.      An inflationary increase

6.      Which goods did NOT decrease in price between 2000 and 2015?

a.       Personal computers and peripherals

b.      Alcoholic beverages away from home

c.       Television

d.      Toys

7.      In 1973, the oil embargo sparked a wage-price spiral due to higher energy costs. In 2004, with a similar spike in oil prices, there was not a corresponding wage-price spiral because

a.       Of heavy government regulation

b.      Of alternative energy sources

c.       The jump in prices did not last very long

d.      The economy avoids unanticipated inflation

8.      In the aftermath of the Great Recession

a.       The U.S., Japan and Europe are all experiencing deflation

b.      Deflation concerns have subsided in the U.S., Japan and Europe

c.       Policymakers in the U.S., Japan and Europe are working hard to avoid deflation

d.      The deflation of the early 2000’s have been reversed

9.      Core inflation is defined as

a.       Inflation that takes energy and food into account

b.      Inflation that does not take energy and food into account

c.       Inflation that takes health care and energy into account

d.      Inflation that does not take health care and energy into account

10. Inflation is

a.       One of the key measures of GDP

b.      One of the key measures of the health of an economy

c.       Generally steady from year to year

d.      Generally beneficial to countries

11. The average price level is equivalent to

a.       The price of a single good

b.      The price of a market basket of goods

c.       The price of exports

d.      The price of imports

12. What is the cost of transactions as it relates to the harm caused by inflation?

a.       The cost associated with the time and effort of managing your spending

b.      The cost of products whose prices are rising

c.       Production costs plus profit

d.      The cost of the BLS market basket

13. Between 2000 and 2015, the average rate of inflation for all goods was 2.2 percent. Which goods experienced relative price decreases during that same period?

Any goods with negative inflation rates only

Any goods with positive inflation rates higher than 2.2 percent only

Any goods with negative inflation rates or positive inflation rates higher than 2.2 percent

Any goods with negative inflation rates or positive inflation rates lower than 2.2 percent

Smith Ltd. was in the process of preparing year-end adjusting entries for the year ended December 31, 2018. Smith Ltd. had the following balance in their books (ledger):

Additional Information:

• Total Credit Sales during 2018:     $66,000

The Company estimated the following for the year-end December 31, 2018 purposes:

Required:
a) Prepare the year-end entries for the above that are related to accounts receivable
b) Calculate the amount that would be displayed on SFP for net accounts receivable