Woody and Ruby are married and filing a joint return. They have combined wages of $135,000 in 2020. The couple's 2020 stock transactions are detailed in the following table. In addition, they have $6,200 of qualifying dividends.

Which of the following statements is true?

Which of the following statements is true?

Imagine a company is evaluating taking a 20,000,000 loan at a 10% interest rate, with 2% principal mandatory amortization and a maturity of 10 years on January 1, 2020. Create the necessary schedule(s) for the company so that they can make a proper evaluation.

For this scenario consider the organization that you are currently employed with. You are responsible for developing training programs to address training needs. At the completion of every program, you conduct an evaluation to determine if the training was effective in terms of changes in attitudes and improvements in job performance. The company has experienced financial difficulties in the last three years. Thus, to save money the CEO decides that evaluation of the training process is no longer a priority. From the CEO's perspective, no one really cares about training evaluation and in most cases, there is nothing to evaluate. As the trainer, you know that the CEO is not correct. Therefore, you decide to challenge the CEO's misconceptions. What counterarguments would you present to support your premise that training evaluation is a necessary component of an effective training program and what the data is used for does matter? If the CEO's position remains the same, how might failure to evaluate training processes cause problems with the organization in the long-term?

The unadjusted trial balance of Vancouver Trucking Inc., at December 31, 2020, is as follows:DebitCreditCash$17,310Accounts Receivable102,500Allowance for Doubtful Accounts$3,390Inventory61,000Prepaid Insurance4,559Bond Investment at Amortized Cost57,120Land31,800Buildings154,000Accumulated Depreciation—Buildings12,560Equipment32,400Accumulated Depreciation—Equipment5,400Goodwill17,000Accounts Payable100,400Bonds Payable (20-year, 7%)162,000Common Shares120,100Retained Earnings61,139Sales Revenue197,000Rent Revenue10,350Advertising Expense23,400Supplies Expense10,300Purchases97,100Purchase Discounts950Salaries and wages expense52,800Interest Expense12,000$673,289$673,289

Preparethe followingadjusting and correcting entries for December 31, 2020, using the information given, for the scenarios below (#1 -#9):

1.Actual advertising costs amounted to $1,580 per month. The company has already paid for advertisements for the first quarter of 2021.

2.The building was purchased and occupied on January 1, 2017, with an estimated useful life of 10 years, and residual value of $38,400. (The company uses straight-line depreciation.)

3.Prepaid insurance contains the premium costs of several policies, including Policy A, cost of $2,807, one-year term, taken out on April 1, 2020; and Policy B, cost of $1,962, three-year term, taken out on September 1, 2020.

4.A portion of Vancouver’s Trucking Inc. building has been converted into a snack bar that has been rented to the Blue Spruce Corp. since July 1, 2018, at a rate of $8,900 per year payable each July 1 in advance.

5.One of the company’s customers declared bankruptcy on December 30, 2020. It is now certain that the $2,680 the customer owes will never be collected. This fact has not been recorded. In addition, the Companyestimates that 3% of the Accounts Receivable balance on December 31, 2020, willbecome uncollectible.

6.An advance of $610 to a salesperson on December 31, 2020, was charged to Salaries and Wages Expense.

7.On November 1, 2015, Vancouver Truckingissued 162 $1,000 bonds at par value. Interest is paid semi-annually on April 30 and October 31.

8.The equipment was purchased on January 1, 2015, with an estimated useful life of 10 years, and no residual value. (The company uses straight-line depreciation.)

9.On August 1, 2020, Vancouver Truckingpurchased at par value 42 $1,860, 8% bonds maturing on July 31, 2019. Interest is paid on July 31 and January

Financial Accounting Research Assignment

Acorn Limited is a listed company based in Vermont. On January 1, 2018, the company granted 1,000 share units to its CFO. Each share unit has a contractual service period of three years and a vesting condition based on the details below. At the end of 2020, each share unit is convertible into 100 common shares of Acorn Limited if both of the following criteria are met:

2018-2020 Accumulated company net income is greater than $5 million.

2018-2020 Stock price increase is greater than 25%.

On the grant date, the company’s common shares had a fair value of $6 per share and the company was expected to meet both of the criteria above.

During 2018 and 2019, the company was expected to meet both of the criteria above. However, during 2020 the company’s stock price decreased and the company did not meet the stock price increase criteria at the end of the year.

The company’s accountant has asked for your help to check the compensation costs recorded for these share units during 2018-2019 and record the appropriate journal entry at the end of 2020.

Ignore the effects of taxes.

The answer should have these parts:

1.The first part of your report is the Question. In this section, you must identify the accounting problem. Be brief and precise. Try to write your question in one sentence. This section should not exceed two sentences.

2. The second part of your report is the Solution. In this section, you must clearly communicate your proposed solution to the accounting problem you identified in section one. Explain and lay out all of the steps involved in your solution. This will usually involve calculations and journal entries. Be sure to adequately answer the question from part one, including calculations and working. Your solution should be clear and understandable such that the reader does not have to read the authoritative literature for himself/herself. Please use in-text citations!

3. The third part of your report is the Authoritative Citation(s). In this section, you must list the titles of the citation(s) from the professional accounting literature upon which you based your solution.

ABC Company acquired 20% (25,000 shares) of outstanding common stock of XYZ Company for $600,000 on January 1, 2022. XYZ Company declared and paid$.20 per share cash dividends on June 30 and on December 31, 2022. XYZ Company reported net income of $$300,000 for 2022. The Fair value of XYZ Company stock was$26 per share at December 31, 2022.

1. Prepare journal entries for ABC Company for 2022, assuming that ABC can’t exercise significant influence over XYZ.
2. Prepare journal entries for ABC Company for 2022, Assuming that ABC can exercise significant influence over XYZ.

• Determine the fundamental reasons why Financial Accounting Standards Board (FASB) requires a company to use the equity method of accounting for investments. Next, propose two (2) theoretical problems of recognizing equity income that the opponents of the equity method would consider. Provide a rationale for your response.
• Analyze the potential impact of eliminating the retrospective application of the equity method to increases in previously held ownership interests that result in significant influence and which qualify for use of the equity method. In the role of chief executive officer (CEO) for a midsized company, propose the type of managerial incentives that could influence the company’s percentage ownership in another company. Provide a rationale for your response.

During 2020, Cheyenne Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Cheyenne for a lump sum of $83,790 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.

During 2020, Cheyenne sells 280 lounge chairs, 140 armchairs, and 168 straight chairs.

What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

On January 1, 2020, the Ivanhoe Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2020. Sales units: First quarter 5,800; second quarter 6,600; third quarter 7,600. Ending raw materials inventory: 40% of the next quarter’s production requirements. Ending finished goods inventory: 25% of the next quarter’s expected sales units. Third-quarter production: 7,780 units. The ending raw materials and finished goods inventories at December 31, 2019, follow the same percentage relationships to production and sales that occur in 2020. 4 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound.

Prepare a production budget by quarters for the 6-month period ended June 30, 2020.

Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2020.

You Beaut Ltd is an Australian company which has a functional currency that is A$. It has reporting periods ending on 31 December and 30 June. On 22 November 2020 You Beaut Ltd sold some inventories to a Chinese customer for the agreed price of 400,000 Yuan. The original purchase cost of the inventories was A$75,000. On 19 January 2021, the customer pays the amount owing on the sales invoice to You Beaut Ltd.

The applicable exchange rates were:

                                    1 July 2020                  1 Yuan = A$0.24

                                    22 November 2020     1 Yuan = A$0.28

                                    31 December 2020     1 Yuan             = A$0.21         

                                    19 January 2021          1 Yuan = A$0.24

                                    30 June 2021               1 Yuan = A$0.22

Required:

In accordance with AASB 121/IAS 21, prepare the necessary journal entries for You Beaut Ltd to account for the above transactions for the half year to 31 December 2020 and the full year to 30 June 2021