The Johnson Corporation sells 1,000 bonds; each bond has a face (par) valueof $1,000. The Bonds are sold on January 1, 2010. The face interest rate of each bond is 4.5%, with interest being paid twice per year, July 1st and January 1st. The bonds are 5-year bonds.

The market interest rate (yield) for these types of bonds (securities) at the time the bonds are sold (January 1, 2010) is 4% annually.

Requirements:

a. What is the total amount of interest paid to the bondholders over the life of the bonds?

b. What is the present value of the interest payments over the life of the bonds?

c. What amount is paid the bondholders to retire the bonds at the end of 10 years?

d. What is the present value of the face amount of the bonds on January 1, 2010?

e. What is the total amount the bonds sold for on January 1,2010?

1. Use the financial information below to construct a 2010 income statement and balance sheets for both 2009 and 2010. The firm’s average tax rate is 40% and its plowback ratio is 60%. Find the firms’ cash flows (OCF, NCS, change in NWC, FCF, CFC, CFS).

	2009	2010
Sales ($ millions)	1000	1112
Cost of Goods Sold ($ millions)	500	556
Other Expenses ($ millions)	100	111
Depreciation ($ millions)	100	100
Interest Expense ($ millions)	50	55
Total Current Assets ($ millions)	600	700
Accumulated Depreciation	200	300
Net Fixed Assets ($ millions)	1800	2000
Total Current Liabilities ($ millions)	450	550
Long-term Liabilities ($ millions)	900	975
Accumulated Retained Earnings	500	This can be determined from the information given.

4.1

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Respond to this post at least 125 words

" Over the centuries, there have been many attempts by religious philosophers to prove the existence of God, and a canon of classic arguments has been developed. Not all of these arguments have their origins in Christian philosophy; Jewish and Muslim philosophers have made significant contributions to the philosophy of religion, and both Plato and Aristotle have influenced its development" (Holt,T.)(2010) The response that Augustine had was " that God will make our resurrection counterparts by reassembling precisely the pieces of matter of which we are made." (Holt,T)(2010) For the Christian theology the Christians believe "According to the Christian tradition, the dead will eventually be raised, judged, and either punished for misdeeds or declared righteous and welcomed into heaven." (Holt,T)(2010) So both of these religions have sort of the same concept of what they think will happen in the afterlife.

Q1. Discuss in your words the purpose of a bank reconciliation. (1 point)

Q2. Prepare general journal entries for the following transactions of this company for the current year: (2 points).

Apr. 25	Sold SAR 4,500 of merchandise to CBC Corp., receiving a 10%, 60-day, SAR 4,500 note receivable.
June 24	The note of CBC Corp., received on April 25 was dishonored.

Q3. A company purchased mining property containing 7,350,000 tons of ore for SAR 1,837,500. In 2009 it mined and sold 857,000 tons of ore and in 2010 it mined and sold 943,000 tons of ore. (2 points).

a. Calculate the depletion expense for 2009 and 2010.

b. What was the book value of the property at the end of 2010?

Q4. Define liabilities and explain in your words the differences between current and long-term liabilities. (2 points).

The comparative statement of financial position of Blue Spruce Corporation as at December 31, 2020, follows:

The comparative statement of financial position of Monty Inc. as at June 30, 2020, and a statement of comprehensive income for the 2020 fiscal year follow: MONTY INC. Statement of Financial Position June 30, 2020 June 30 Assets 2020 2019 Cash $ 20,000 $ 42,000 Accounts receivable 86,100 74,100 Inventory 104,000 102,000 Prepaid expenses 2,100 5,600 FV-OCI investments 47,100 45,200 Equipment 177,000 159,000 Accumulated depreciation—equipment (34,500 ) (25,000 )    Total $ 401,800 $ 402,900 Liabilities and Shareholders’ Equity Accounts payable $ 110,000 $ 102,500 Income tax payable 2,200 3,100 Dividends payable 4,300 0 Long-term notes payable 89,300 120,500 Common shares 30,400 24,600 Retained earnings 154,600 143,100 Accumulated other comprehensive income 11,000 9,100    Total $ 401,800 $ 402,900 MONTY INC. Statement of Comprehensive Income For the Year Ended June 30, 2020 Net sales $320,000 Cost of goods sold 161,000 Gross profit 159,000 Operating expenses 123,000 Income from operations 36,000 Interest expense 9,000 Income before income tax 27,000 Income tax 5,900 Net income 21,100 Other comprehensive income   Unrealized gain or loss—OCI 1,900 Comprehensive income $ 23,000 Additional information: 1. Monty follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. 2. Operating expenses include $9,500 in depreciation expense. 3. There were no disposals of equipment during the year. 4. Common shares were issued for cash. 5. During the year, Monty acquired $8,400 of equipment in exchange for long-term notes payable. (a) Prepare the statement of cash flows for Monty for the year ended June 30, 2020, using the indirect method along with any necessary note disclosure

Net income of $37,900 was reported and dividends of $12,500 were declared and paid in 2020. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11,900 and accumulated depreciation of $7,100) was sold for $8,100.

John Deere is operated as a C corporation. The company received an order for a $12,000 tractor from a customer on June 30, 2020 and delivered the tractor to the customer on July 31, 2020. The company sent the customer a bill saying they had to pay for the tractor by no later than January 31, 2021. John Deere uses a calendar year tax period. Based on phone calls with the customer in December of 2020, the customer explained that it may have to file bankruptcy proceedings but was trying to work its way out of financial hardship before taking that option. The customer said that at worst it would be able to pay at least $9,000 of the bill. On January 15, 2021, John Deere received a check from the customer for $9,000 and was informed it would receive no additional payment based on the outcome of the bankruptcy case. In addition to the transaction above, the following occurred:

• A different customer paid for the same type of tractor (at $12,000) on November 1, 2020 and scheduled delivery for January 15, 2021. John Deere included the income in its 2020 financial accounting statements.
• The company both incurred and paid expenses for the following in 2020:
  • Wages:                                                                               $3,000
  • Rental costs for a warehouse:                                            $4,000
  • Repairs:                                                                              $2,000
• The company both incurred and paid expenses for the following in 2021:
  • Wages:                                                                               $4,000
  • Rental costs for a warehouse:                                            $4,000
  • Repairs:                                                                              $3,000

1. Assuming the local John Deere’s operates on a calendar year-end under the accrual method and prefers to defer income whenever possible, what amount of net profit (loss) for tax purposes in 2020?
   
2. Assuming the local John Deere’s operates on a calendar year-end under the accrual method and prefers to defer income whenever possible, what amount of net profit (loss) for tax purposes in 2021?
   
3. Assuming the local John Deere’s operates on a calendar year-end under the cash method and prefers to defer income whenever possible, what amount of net profit (loss) for tax purposes in 2020?
   

d. Assuming the local John Deere’s operates on a calendar year-end under the cash method and prefers to defer income whenever possible, what amount of net profit (loss) for tax purposes in 2021?

Vandals Company has not yet prepared a formal statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019, and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented below.

Vandals Company
Statement of Income and Retained Earnings
For The Year Ended December 31, 2020
($000 Omitted)
Sales						$4,250,000
Expenses
Cost of goods sold					$765,000
Bad debt expense					$21,250
Salaries and benefits					510,000
Heat, light, and power					255,000
Depreciation					8,925
Property taxes					127,500
Patent amortization					1,275
Miscellaneous expenses					116,688
Interest					77,792
Total expenses						1,883,430
Income before income taxes						2,366,570
Income taxes						637,500
Net income						1,729,070
Retained earnings - January 1, 2020						318,750
						2,047,820
Cash dividend declared and issued						12,750
Retained earnings - December 31, 2020						$2,035,070
Vandals Company
Comparative Balance Sheet
December 31
($000 Omitted)
Assets					2020	2019
Current assets
Cash					$1,782,960	$118,575
U.S. Treasury notes (Available-for-sale)					17,000	85,000
Accounts receivable					221,850	136,000
Allowance for doubtful account					(12,325)	(12,750)
Inventory					23,800	29,750
Total current assets					2,033,285	356,575
Long-term assets
Land					19,125	4,250
Buildings and equipment					51,000	21,250
Accumulated depreciation					(21,675)	(12,750)
Patents (less amortization)					7,225	8,500
Total long-term assets					55,675	21,250
Total assets					$2,088,960	$377,825
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable					$20,400	$25,500
Income taxes payable					4,080	5,100
Short-term Notes payable					10,625	10,625
Total current liabilities					35,105	41,225
Long-term notes payable - due 2020					17,000	17,000
Total liabilities					52,105	58,225
Stockholders' equity
Common stock outstanding					1,785	850
Retained earnings					2,035,070	318,750
Total stockholders' equity					2,036,855	319,600
Total liabilities and stockholders' equity					$2,088,960	$377,825

Instructions:                                                                                    

Prepare a statement of cash flows using the direct method. Changes in accounts receivable and in accounts payable relate to sales and cost of sales. Do not prepare a reconciliation schedule.      

Exercise 22-14 (b) (indirect method)

Indigo Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020:

INDIGO INC. Comparative Statement of Financial Position December 31
			2020			2019
Cash			$52,795			$25,120
Accounts receivable			58,040			51,090
Inventory			39,980			60,020
Prepaid rent			5,270			4,170
Equipment			157,450			130,110
Accumulated depreciation–equipment			(35,270	)		(25,170	)
Goodwill			20,000			60,000
	Total assets		$298,265			$305,340
Accounts payable			$46,250			$40,110
Income tax payable			3,980			6,020
Salaries and wages payable			8,120			4,120
Short–term loans payable			8,040			10,090
Long–term loans payable			60,000			79,000
Common shares			130,000			130,000
Retained earnings			41,875			36,000
	Total liabilities and shareholders’ equity		$298,265			305,340

INDIGO INC. Income Statement Year Ending December 31, 2020
Sales revenue					$348,085
Cost of goods sold					165,000
Gross margin					183,085
Operating expenses					120,000
Operating income					63,085
Interest expense		$11,600
Impairment loss–goodwill		40,000
Gain on disposal of equipment		(2,300	)		49,300
Income before income tax					13,785
Income tax expense					4,110
Net income					$9,675

Additional information:

1.		Dividends on common shares in the amount of $3,800 were declared and paid during 2020.
2.		Depreciation expense is included in operating expenses, as is salaries and wages expense of $72,000.
3.		Equipment with a cost of $34,000 that was 70% depreciated was sold during 2020.

Prepare a statement of cash flows 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).)

Sweet Corporation is in the dairy business. Products go through two production departments (A first, then B). Data from those departments for October 2020 are presented below.

Complete the four steps necessary to prepare a production cost report.

Department A
Department B

Beginning work in process
Beginning work in process

Number of units
1,000
200

% complete for materials
100%

% complete for transferred-in

100%

% complete for conversion
60%
30%

Total materials cost
$24,000
-0-

Total conversion cost
$30,000
$40,000

Total transferred-in costs

$15,000

Department A
Department B

Ending work in process
Ending work in process

Number of units
600
300

% complete for materials
100%

% complete for transferred-in

100%

% complete for conversion
30%
40%

Sweet Corporation started 2,600 units of product during the month in department A. Costs incurred in department A for October 2020 totalled $64,000 for material and $132,000 for conversion. Additionally, department B incurred conversion costs in October 2020 of $600,000. Department B adds no materials to the product.
Instructions

a. Journalize the transfer of goods from department A to department B during October 2020. Sweet Corporation accounts for its costs using the weighted-average method.

$226,163

b. Prepare a production cost report for department B for October 2020.

Total cost of units completed: $833,123 (Weygandt, 12/2017, pp. 159-160) Weygandt, J. J., Kimmel, P. D., Kieso, D. E., Aly, I. M. (2017). Managerial Accounting: Tools for Business Decision-Making, Canadian Edition, 5th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9781119403999 Always check citation for accuracy before use.

Flounder Limited, which follows IFRS, has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Condensed financial data for 2020 and 2019 follow (in thousands):

FLOUNDER LIMITED Comparative Statement of Financial Position December 31
			2020			2019
Cash			$2,010			$1,150
FV-NI investments			1,300			1,420
Accounts receivable			1,845			1,350
Inventory			1,660			2,030
Plant assets			2,005			1,790
Accumulated depreciation			(1,200	)		(1,170	)
			$7,620			$6,570
Accounts payable			$1,295			$950
Accrued liabilities			290			340
Mortgage payable			1,370			1,590
Common shares			2,080			1,790
Retained earnings			2,585			1,900
			$7,620			$6,570
FLOUNDER LIMITED Income Statement Year Ended December 31, 2020
Sales						$6,885
Cost of goods sold						4,700
	Gross margin					2,185
Administrative expenses						910
Income from operations						1,275
Other expenses and gains
	Interest expense		$(20	)
	Gain on disposal of FV-NI investments		80			60
Income before tax						1,335
Income tax expense						405
Net income						$930

Additional information: During the year, $70 of common shares were issued in exchange for plant assets. No plant assets were sold in 2020. The FV-NI investments’ carrying amount and market value were the same at December 31, 2020.

Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Enter amounts in thousands.)

My question is how do you calculate : Proceeds from the the sale of FV-NI Investments ?