i. Examine the fiscal policies in place at the start of your specific time period in relation to their effects on macroeconomic issues. For instance, consider level of government spending, taxation, subsidies, unemployment benefits, and so on from 2000-2010.

The following accounts, among others, appeared on ZZ Company's balance
sheet at January 1, 2020 and December 31, 2020:

                  January 1, 2020       December 31, 2020

Accounts receivable    48,000                63,000
Utilities payable      20,000                26,000
Notes payable          71,000                80,000
Common stock           30,000                90,000
Retained earnings      22,000                78,000

The following information was taken from ZZ Company's 2020 income
statement:

Sales revenue                   $500,000
Cost of goods sold               280,000
Other expenses                   120,000
Net income                      $100,000

Calculate the amount of cash collected from customers during 2020.

The following accounts, among others, appeared on ZZ Company's balance
sheet at January 1, 2020 and December 31, 2020:

                  January 1, 2020       December 31, 2020

Accounts receivable    48,000                63,000
Utilities payable      20,000                26,000
Notes payable          71,000                80,000
Common stock           30,000                90,000
Retained earnings      22,000                78,000

The following information was taken from ZZ Company's 2020 income
statement:

Sales revenue                   $500,000
Cost of goods sold               280,000
Other expenses                   120,000
Net income                      $100,000

Calculate the amount of cash collected from customers during 2020.

Provided below is the incomplete income statement (for 2020) and balance sheet (Dec 31 2019 and Dec 31 2020) for SCOTTY Inc. SCOTTY Inc. Income Statement For the year ended Dec. 21, 2020 Net sales $8,953 Cost of goods sold $5,865 Depreciation $? EBIT $? Interest paid $675 Earnings before taxes $? Taxes $400 Net income $705 Dividends paid $? Addition to retained earnings $450 SCOTTY Inc. Balance Sheet as at December 31, 2019 and 2020 2019 2020 2019 2020 Cash $725 $1,135 Accounts payable $859 $1,031 Accounts rec. $2,330 $? Notes payable $? $4,020 Inventory $3,240 $5,202 Current liabilities $? $? Current assets $? $? Long-term debt $9,250 $9,750 Net fixed assets $? $9,211 Common stock $250 $? Retained earnings $? $2,797 Total assets $16,083 $17,848 Total liabilities & equity $? $? a) Fill in the missing values for entries in the income statement and balance sheet in the table provided below. MISSING ENTERIES VALUES Depreciation EBIT Earnings before taxes Dividends paid Current assets (2019) Net fixed assets (2019) Notes payable (2019) Current Liabilities (2019) Retained earnings (2019) Total liabilities & equity (2019) Accounts receivables (2020) Current assets (2020) Current Liabilities (2020) Common stock (2020) Total liabilities & equity (2020) b) What is the company’s net working capital at the end of 2019 and at the end of 2020?

Carla Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.

Prepare a 2020 pension worksheet. (Enter all amounts as positive.)

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List of Accounts

Prepare the journal entries at December 31, 2020, to record pension expense and related pension transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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Copyright 2012 Deloitte Development LLC All Rights Re served. Case 13- 08 Accounting for a Loss Contingency for a Verdict Overturned on Appeal M International (“M”) and W Inc. ( “W,” a competitor of M) have been engaged in long- standing litigation over a specific patent infringement matter . Below is a summary timeline of specific events that have taken place related to this matter : • In May 2007, W filed a claim against M for patent infringement . • For the year ended December 31, 2007, management of M determined th at a loss for this matter was probable and represented t hat the estimate of loss was in the range of $1 5 million to $20 million , with $17 million being the most likely amount of loss within the range. • A jury trial took place in September 2009. • The jury reached a verdict on September 24, 2009, and a judgment was ordered in favor of W . The judgment required M to pay W $18.5 million . • In November 2009, M filed a Notice of Appeal with the Court of Appeals . • In December 2010, the Court of Appeals issued a ruling in favor of M’s appeal and reversed the lower court ’s ruling on the matter. This meant that the Court of Appeals overturned the jury verdict and the $18.5 million judgment against M . • On January 6, 2011, W filed a petition for a re -hearing before the same panel of appellate judges against the reversal of r uling by Court of Appeals . • On February 10, 2011, the appellate judges declined the petition for a re -hearing . • On February 28, 2011, management of M determined this matter was closed upon discussions with in- house legal counsel.

Please provide one page summary of the above case

Vigor Corporation reports a net income before tax for 2020 of $512,800, has a tax rate of 21% and provides the following selected information (covers the three tax difference items) from its ledger as at December 31, 2019 and 2020:

                                                                                                    2019             2020

                        Equipment, at cost                                  900,000 DR 900,000 DR

                        Accumulated depreciation, equipment    450,000 CR 525,000 CR

                        Deferred Tax Asset                                   10,080 DR                   ?

                        Warranty Liability                                     48,000 CR    56,000 CR

                        Deferred Tax Liability                              47,250 CR                   ?

                        Depreciation expense, equipment             75,000 DR   75,000 DR

                        Warranty expense                                     27,000 DR   30,000 DR

                        Municipal bond interest (tax exempt)       17,800 CR    18,800 CR

The tax basis of the equipment (book value for tax purposes or the amount of the cost of the asset not yet deducted for tax purposes) is $225,000 at December 31, 2019 and $112,500 as at December 31, 2020. The tax deduction for warranties is limited to actual warranty payments.

Required:

1. What is the tax deduction for warranties on Vigor’s 2020 tax return?
2. What is taxable income for 2020?
3. What is income tax expense/benefit, current portion for 2020?
4. What is the amount of the deferred tax asset at December 31, 2020?
5. What is the amount of the deferred tax liability at December 31, 2020?
6. What was income tax expense/benefit, deferred portion for 2020?
7. What is Vigor’s effective income tax rate (ETR) for 2020?

On 1 June2020, Purchase Limited enters into a firm commitment Supply Limited to buy USD 100,000 of inventory. On 1 July 2020, the Purchase Limited enters into a hedging arrangement which meets the hedge accounting criteria stipulated by the accounting standards (Australian Accounting Standards Board (AASB) 9). Purchase Limited has designated the firm commitment hedging arrangement as a fair value hedge. On 1 August 2020, Supply Limited transfers the inventory to Purchase Limited, and on that date, the Purchase Limited makes the payment. The spot and forward rates are as follows. Date Spot rate in AUD Forward rate in AUD 1 June 2020 0.19 0.2 30 June 2020 0.2 0.25 1 August 2020 0.3 0.3 Required: a) Explain at least two determinants of determining an effectiveness of a hedge instrument against a he

ue

2. What is your subject?

dge 5 Marks b) Provide journal entries to account for the hedged item (firm commitment to buy inventory) 8 Marks i. On 1 June 2020 ii. On 30 June 2020 iii. On 1 August 2020 c) Provide journal entries to account for the hedge instrument (forward contract) 7 Marks i. On 1 June 2020 ii. On 30 June 2020 iii. On 1 August 2020

Complete the required tasks utilizing excel and label everything. All work must be shown to receive credit. A 20% late penalty will be assessed for each 24 hours submitted late. Below is the activity (purchases and Sales) for inventory held by Random Creations for the month of January, 2020: Beginning Inventory: January 1, 2020 80 Units @ $50 per unit Total $ 4,000 Purchases: January 18, 2020 40 Units @ $51 per unit Total $ 2,040 January 28, 2020 40 Units at $52 per unit Total $ 2,080 Sales: January 12, 2020 Sold 30 Units January 22, 2020 Sold 30 Units January 31, 2020 Sold 45 Units Using the information above, answer the following:

a) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses FIFO

b) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses LIFO and the Perpetual System

c) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses LIFO and the Periodic System

d) Compute the January 31, 2020 Ending Inventory and Cost of Goods Sold assuming Random Creations uses Average Cost and the Perpetual System REMEMBER ALL WORK MUST BE SHOWN TO RECEIVE CREDIT