Mastery Problem: Corporations: Organization, Stock Transactions, and Dividends

Pranks, Inc.

Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.

Stock Dividend

The company declared a 2% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $25 on December 1, and is $32 on the actual distribution date of the stock, December 31.

Fill in the missing information in the following table, using the information given and your work on the other panels. All “before” items are before the stock dividend was declared. All “after” items are after the stock dividend was declared and closing entries were recorded at the end of the year.

URGENT PLEASE URGENT The fiscal year of Baker Street Cinema Limited ends on December 31. The business adjusts its accounts on a monthly basis. The unadjusted trial balance for the month ended August 31, 2020 is given below along with further information relating to adjustments for the month (adjusting entries for the period January 1 – July 31, 2020 have already been made).             

Additional Items

1. The expenses relating to movie rental are $10,500 per month. These have been paid in advance.
2. Depreciation rates applied to the building are 5% and the fixtures are 20%.
3. Interest on the note payable is paid on the first of the following month (interest for the month of January is paid on Feb 1st, etc.) It is a 10%, two year note issued on January 1, 2020.
4. Limited time offers are regularly offered to the public. Recently the cinema has introduced a special deal for the local care home allowing buy one get one free each Wednesday afternoon. The care home has made a $1,500 advance payment to avail this facility for its residents for the months of July, August, and September.
5. Baskin Robbins runs a kiosk in the premises and pays the cinema a share of its revenues on or before the 10th of the following month. The amount payable by Baskin Robbins for the month of August amounted to $2,250. This revenue has not yet been recorded. (Use the account Kiosk Revenue.)
6. Unrecorded but accrued salaries at August 31 amount to $1,700.
7. The August income tax expense is estimated at $4,200 (payable before November 15).
8. Utilities expense is recorded as monthly bills are received during the month. No adjusting entries for utilities expense are therefore made at month-end.
9. Cash received from Barnabus School as an advance payment for an upcoming school trip to the cinema was debited for $500, and Accounts Payable was credited for the same amount.
10. A dividend paid during the period of 1,000 was debited to Salaries and Wages Expense for 1,000 and credited to Cash for the same amount.

Instructions

Where necessary, round numbers to the nearest whole number

a. Journalize the above transactions (omit explanations)

b. Prepare the adjusted trial balance for the period ended August 31, 2020

c. Prepare the Income Statement for the period ended August 31, 2020

d. Prepare the Statement of Retained Earnings for the period ended August 31, 2020

e. Prepare a Classified Statement of Financial Position at August 31, 2020

f. Refer to the balances shown in the unadjusted trial balance at August 31. How many months of expense are included in each of the following account balances?

1.         Utilities Expense

2.         Depreciation Expense - Building

3.         Accumulated Depreciation: Building

g. Calculate the total amount of interest expense that will be charged to the income statement over the life of the Notes Payable and the interest payable balance in respect of this Notes Payable at December 31, 2021.

h. If Baker Street Cinema Limited were to close its temporary accounts on August 31, 2020, state the entries for closing the revenue and dividend accounts.

Is humankind dangerously harming the environment?

Many key industries are dominated by a handful of large firms. This tendency has been increasingly evident in recent years, as many separate firms have merged into larger ones. How might this trend affect technological innovation? Could it pose a threat to the overall development of the economy?

Is humankind dangerously harming the environment?

Many key industries are dominated by a handful of large firms. This tendency has been increasingly evident in recent years, as many separate firms have merged into larger ones. How might this trend affect technological innovation? Could it pose a threat to the overall development of the economy?

What are the steps to encouraging healthcare leaders to be more open to disruptive innovation that may threaten the status quo but will ultimately enhance the quality of health care for the majority of the population?

What problems do you predict with personalized medicine? How have you seen your health systems utilize personalized medicine?

Are well-established firms or new entrants more likely to a) develop and/or b) adopt new technologies? What are some reasons for your choice?

PLEASE ANSWER IN WORD FORMAT ONLY. NO PICTURES. PLEASE ANSWER IN 350 WORDS.

Dont copy paste from website.

Thanks

Subject: Management of Technological Innovation

Subject; Innovation and technology management

A single product or process architecture that dominates a product category usually 50% or more of the market. A dominant design is a de facto standard, meaning that while it may be officially enforced or acknowledged, it has become a standard for the industry. Are dominant designs beneficial for competitors, consumers, complementors, and suppliers?

For each of the following scenarios, explain how things are included or excluded from being counted in GDP:

1. You get a new XBOX-1 gaming system at Best Buy last year and sell it on Facebook marketplace this year
2. You buy a new digital textbook for your macroeconomics course
3. You and your realtor find a fully renovated historic home that you purchase
4. Newly produced leather that is used for automobile seats
5. Your friend buys a 2020 certified pre-owned Toyota
6. Your neighbor purchases a new snow plow for his 2010 pickup truck
7. A construction firm trades in a used bulldozer for a new one; the used bulldozer is sold to another firm.

2. GDP (also known as "Y") is made up of 4 components:

• G - Government spending
• I - Investment
• C- Consumption
• XN - Net exports

Which component are each of the following included in? Label each one.

1. A newly built condominium on Miami Beach
2. Specialty cheeses imported from Italy
3. Your new pumpkin spice Yankee candle
4. Your automobile registration renewal from the DMV

3.  Suppose C = 600, I = 250, G = 150, and X = 0

1. What is gross domestic product (GDP)?
2. Calculate each component’s share of GDP.
3. Suppose government spending increases to 200, but the other components of GDP do not change. What is government spending’s share of GDP now? What is the new non-government share?
4. Suppose that the level of potential GDP (Y*) is 1000 and is unaffected by the increase in government spending described previously. Without doing any calculations, explain in general terms what happens to C/Y*, X/Y*, and I/Y* after the government spending increase in (b).

0n 4/21/2020, Netflix reported 16 million new subscribers during the first quarter of 2020. Streaming services are a bright spot during this economic shutdown due to the Coronavirus outbreak, but the company faces negative factors as well. Increased operating costs may explain the results, discussed late in the article, that profit of $709.1, or $1.57 a share, was achieved while “the company was expected to earn $1.64 a share.” Nonetheless, shares rose in after-hours following Netflix’s release of its video to discuss financial results in the first quarter of 2020.

So, how does the breakdown of Netflix's new subscribers by geographic area help to assess the company’s operating results? Do you think that assessing financial information in addition to subscriber numbers by geographic area would help to further understand Netflix's performance during this period? Explain your reasoning. Is there a specific requirement to provide information about the geographic areas discussed by Netflix and reported in this article? Explain your answer and provide supporting citations to professional literature.

Alsup Consulting sometimes preforms services for which it receives payment at the conclusion the engagement, up to six months after service commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows:

There are no  differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%

Required:

1. Prepare the appropriate journal entry to record Alsup’s 2021 income taxes
2. Prepare the appropriate journal entry to record Alsups 2022 income taxes
3. Prepare the appropriate journal entry to record Alsups 2023 income taxes

(HINT: You will find it helpful to prepare a schedule that shoes the balances in service revenue receivable at December 31, 2020 – 2023)