Jorgensen High Tech Inc. is a calendar-year, accrual-method taxpayer. At the end of year 1, Jorgensen accrued and deducted the following bonuses for certain employees for financial accounting purposes.

$45,200 for Ken.

$33,900 for Jayne.

$22,600 for Jill.

$11,300 for Justin.

How much of the accrued bonuses can Jorgensen deduct in year 1 under the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.

A)Jorgensen paid the bonuses to the employees on March 1 of year 2.

Deductible Accrued Bonuses____

B) Jorgensen paid the bonuses to the employees on April 1 of year 2.

Deductible Accrued Bonuses____

c) Jorgensen paid the bonuses to employees on March 1 of year 2, and there is a requirement that the employee remain employed with Jorgensen on the payment date to receive the bonus.

Deductible Accrued Bonuses____

D) Jorgensen paid the bonuses to employees on March 1 of year 2, and there is a requirement that the employee remain employed with Jorgensen on the payment date to receive the bonus; if not, the forfeited bonus is reallocated to the other employees.

Deductible Accrued Bonuses____

Stellar Ltd prepares accounts to 31March every year. Its latest trial balance for the year ended 31 March 2020 is provided below.

Stellar Ltd Trial Balance as at 31 March 2020

Additional information as at 31March 2020 is provided below:

1. Inventories at close of business on 31 March 2020 was valued at £17,500,000 at cost.
2. A cash dividend of £0.10 per share was paid to ordinary shareholders on 27 March 2020. No entries have been made in the accounts for this transaction.
3. Due to the contractual obligation to pay preference dividends, the company recognises and accounts for preference shares as a liability.
4. Depreciation is to be provided for the year ending 31March 2020 as follows:
   1. Property at 1% per annum on cost.
   2. Plant and equipment at 5% per annum on a reducing balance basis.
   3. The depreciation charge for the year is to be apportioned to administrative and distribution expenses as per the table below:

5. Interest on the debentures has not yet been paid and needs to be accrued for the year.
6. To be prudent, the directors wish to create an allowance for receivables equal to 1% of trade receivables. It is company policy to classify all bad debts and any allowances for receivables as distribution expenses.
7. Staff costs outstanding at the financial year end amounted to £500,000 and other expenses included £300,000 which had been paid in advance. Both these expenses are chargeable 60% to administration and 40% to distribution.
8. The amount for rent in the trial balance above relates to the period 1 April 2019 to May 2020. Rent expense is charged 30% to administration and 70% to distribution.
9. Half of the general expenses relate to administration and half to distribution.
10. The corporation tax charge is to be provided at 20% of profits after charging all expenses and interest

Prepare the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Financial Position of Stellar Ltd for the financial year end 31 March 2020. (You should show all your workings).

Stellar Ltd prepares accounts to 31March every year. Its latest trial balance for the year ended 31 March 2020 is provided below.

Stellar Ltd Trial Balance as at 31 March 2020

Additional information as at 31March 2020 is provided below:

1. Inventories at close of business on 31 March 2020 was valued at £17,500,000 at cost.
2. A cash dividend of £0.10 per share was paid to ordinary shareholders on 27 March 2020. No entries have been made in the accounts for this transaction.
3. Due to the contractual obligation to pay preference dividends, the company recognises and accounts for preference shares as a liability.
4. Depreciation is to be provided for the year ending 31March 2020 as follows:
   1. Property at 1% per annum on cost.
   2. Plant and equipment at 5% per annum on a reducing balance basis.
   3. The depreciation charge for the year is to be apportioned to administrative and distribution expenses as per the table below:

5. Interest on the debentures has not yet been paid and needs to be accrued for the year.
6. To be prudent, the directors wish to create an allowance for receivables equal to 1% of trade receivables. It is company policy to classify all bad debts and any allowances for receivables as distribution expenses.
7. Staff costs outstanding at the financial year end amounted to £500,000 and other expenses included £300,000 which had been paid in advance. Both these expenses are chargeable 60% to administration and 40% to distribution.
8. The amount for rent in the trial balance above relates to the period 1 April 2019 to May 2020. Rent expense is charged 30% to administration and 70% to distribution.
9. Half of the general expenses relate to administration and half to distribution.
10. The corporation tax charge is to be provided at 20% of profits after charging all expenses and interest

Prepare the Statement of Profit and Loss, the Statement of Changes in Equity and the Statement of Financial Position of Stellar Ltd for the financial year end 31 March 2020. (You should show all your workings).

1. You get a $13,000 loan over a five-year period at 10% per year interest. The payments are to be made monthly. What is the unrecovered balance immediately after the first payment has been made?

Create appropriate notes as year-to-year documentation for managing depreciation, supplies, and inventory

Inventory: Periodic, LIFO for both baking and merchandise

Baking supplies: $27,850 ending inventory

Equipment: Straight line method used for equipment

Assume that you make $50,000 per year. You expect your pay to increase by 2.5% year from now until you retire in 30 years. Your goal is to withdraw an amount equal to 80% of your annual income at retirement each year for 25 years (assume withdrawals are made at the end of each year in retirement). How much would you have to invest each year from now until retirement if your investment returns are 8% per year while working and 6% per year while retired.

Gerald Luna is a 45-year-old client with a 15-year history of type 2 diabetes mellitus and a 30-year history of alcoholism. His blood glucose is not well controlled on an oral hypoglycemic agent, and he drinks one six-pack of beer per day. Gerald works at a casino as a slot machine repairman. His wife of 25 years, Andrea, is also employed by the casino in the accounting department. Gerald and Andrea live on a reservation near the casino in a rural setting.

Gerald was involved in a car accident on the way to work. He was not restrained and was thrown from the car into the roadside brush. The crash was witnessed, and bystanders called 911. First responders arrived to find Gerald unconscious with labored breathing and a deformed right lower extremity. A witness stated that Mr. Luna just drove off the road and appeared to be asleep. No other vehicles were involved. The first responders established monitoring equipment, intubated Gerald at the scene, started intravenous fluids with 0.9% normal saline, and splinted his right lower extremity.

Evaluate the information in the case and determine the Top 3 Priority concerns or cues.

Consider two bonds, a 3-year bond paying an annual coupon of 7%, and a 20-year bond, also with an annual coupon of 7%. Both bonds currently sell at par value. Now suppose that interest rates rise and the yield to maturity of the two bonds increases to 10%.

a. What is the new price of the 3-year bond? (Round your answer to 2 decimal places.)

b. What is the new price of the 20-year bond? (Round your answer to 2 decimal places.)

c. Do longer or shorter maturity bonds appear to be more sensitive to changes in interest rates?

On January 1, Year 1, Shine Corporation purchased as an investment $400,000 of 10-year, 8% bonds. The bonds pay interest semi-annually on June 30 and December 31. The bonds will yield 10% on an annual basis. All amounts are rounded to the nearest dollar. Shine Corporation intends to hold the bonds to maturity and therefore uses the cost/amortized cost model. Shine Corp. follows IFRS.

Required

1. Calculate the purchase price of the bond investment.
2. Prepare a bond amortization table for the bond. Use Excel and copy the table into your assignment.
3. Assuming the fiscal year is the calendar year, give all Shine’s Journal entries related to the bonds for Year 1 and Year 2. Year end is December 31. Hint: there are six journal entries.

Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations:

Provided $84,000 of services on account.

Collected $50,400 cash from accounts receivable.

Paid $30,000 of salaries expense for the year.

Adjusted the accounts using the following information from an accounts receivable aging schedule:

Required
a. Record the above transactions in general journal form and post to T-accounts.
b. Prepare the income statement for Vulcan Service Co. for Year 1.
c. What is the net realizable value of the accounts receivable at December 31, Year 1?