Remediation Required:
A Brazilian listed entity, Company B, violated environmental regulations by seeping hazardous chemicals from its production plant into a nearby pond. As of 12/31/X1, government regulators are aware of the pollution and plan to take action against the company. Company B anticipates that this action will include fines, plus a requirement to remediate the pollution. What disclosure or accruals are required by Company B? How would this accounting differ if Company B were subject to U.S. GAAP?
In: Accounting
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c. using the indirect method, calculate onlly the net cash flow from operating activities for windsor company for the year ended May 31, 2020
In: Accounting
Salmone Company reported the following purchases and sales of its only product. Salmone uses a periodic inventory system. Determine the cost assigned to ending inventory using LIFO.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| May 1 | Beginning Inventory | 310 units @ $16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5 | Purchase | 300 units @ $18 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10 | Sales | 220 units @ $26 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 15 | Purchase | 180 units @ $19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 24 | Sales | 170 units @ $27 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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A)$5,174 B)$4,860 C)$10,100 D)$7,880 E)$6,580 Salmone Company reported the following purchases and sales of its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to ending inventory using LIFO.
A)$3,900 B)$4,340 C)$4,040 D)$4,705 E)$8,605 Salmone Company reported the following purchases and sales of
its only product. Salmone uses a perpetual inventory
system. Determine the cost assigned to cost of goods sold using
FIFO.
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In: Accounting
On December 31, 2019, Novak Inc. borrowed $4,440,000 at 13% payable annually to finance the construction of a new building. In 2020, the company made the following expenditures related to this building: March 1, $532,800; June 1, $888,000; July 1, $2,220,000; December 1, $2,220,000. The building was completed in February 2021. Additional information is provided as follows.
| 1. | Other debt outstanding | |||
| 10-year, 14% bond, December 31, 2013, interest payable annually | $5,920,000 | |||
| 6-year, 11% note, dated December 31, 2017, interest payable annually | $2,368,000 | |||
| 2. | March 1, 2020, expenditure included land costs of $222,000 | |||
| 3. | Interest revenue earned in 2020 | $72,520 |
Determine the amount of interest to be capitalized in 2020 in relation to the construction of the building.
| The amount of interest |
$ |
List of Accounts
Prepare the journal entry to record the capitalization of interest and the recognition of interest expense, if any, at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
| December 31, 2020 | |||
In: Accounting
Cullumber Company sponsors a defined benefit pension plan for its 600 employees. The company’s actuary provided the following information about the plan.
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January 1, |
December 31, |
||||||
|
2020 |
2020 |
2021 |
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| Projected benefit obligation | $2,780,000 | $3,622,200 | $4,163,976 | ||||
| Accumulated benefit obligation | 1,900,000 | 2,441,000 | 2,904,000 | ||||
| Plan assets (fair value and market-related asset value) | 1,700,000 | 2,896,000 | 3,753,000 | ||||
| Accumulated net (gain) or loss (for purposes of the corridor calculation) | 0 | 196,000 | (24,000 | ) | |||
| Discount rate (current settlement rate) | 9 | % | 8 | % | |||
| Actual and expected asset return rate | 10 | % | 10 | % | |||
| Contributions | 1,026,000 | 567,400 | |||||
The average remaining service life per employee is 10.5 years. The
service cost component of net periodic pension expense for employee
services rendered amounted to $396,000 in 2020 and $472,000 in
2021. The accumulated OCI (PSC) on January 1, 2020, was $1,312,500.
No benefits have been paid.
(a)
Compute the amount of accumulated OCI (PSC) to be amortized as a component of net periodic pension expense for each of the years 2020 and 2021.
| Amount of accumulated OCI (PSC) to be amortized for the year 2020 |
$ |
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| Amount of accumulated OCI (PSC) to be amortized for the year 2021 |
$ |
In: Accounting
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In: Accounting
Zdon Inc. reports an accounting income of $105,000 for 2020, its first year of operations. The following items cause taxable income to be different than income reported on the financial statements.1- Capital cost allowance (on the tax return) is greater than depreciation on the income statement by $16,000. 2- Rent revenue reported on the tax return in $24,000 higher than rent revenue reported on the income statement. 3- non-deductible fines appear as an expense of $15,000 on the income statement. 4- Zdon's tax rate is 30% for all years and the company expects to report taxable income in all future years. Zdon report under IFRS
Instructions:
a. Calculate taxable income and income tax payable for 2020.
b. Calculate any deferred tax balances at December 31, 2020.
c. Prepare the journal entries to record income taxes for 2020.
d. Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income tax"
e. reconcile the statutory and effective rates of income tax for 2020. Round rates to one decimal place.
f. Provide the SFP presentation for any resulting deferred tax accounts at December 31, 2020. Be specific about the classification.
g. Repeat part (f) assuming Zdon follow ASPE
In: Accounting
1.
| The New York Division of MVP Sports Equipment Company manufactures baseball | |||||
| gloves. Two production departments are used in sequense: the Cutting Department | |||||
| and the Stitching Department. In the Cutting Department, direct material, consisting | |||||
| of imitation leather is placed into production at the beginning of the process. Direct | |||||
| labor and manufacturing overhead costs are incurred uniformly throughout the | |||||
| process. The material is rolled to make it softer, and is then cut into the pieces | |||||
| needed to produce baseball gloves. The predetermined overhead rate is 150% of | |||||
| direct labor costs. MPV uses weighed average costing. | |||||
| We have the following data about production in the Cutting Department: | |||||
| Goods-in-Process, January 1, 2020 | 10,000 units | ||||
| Direct Material-100% Complete | $40,000.00 | ||||
| Conversion (Labor & Overhead)- 50% Complete | 120,000 | ||||
| Total cost of Goods in Process, January 1, 2020 | $160,000.00 | ||||
| Units added in January 2020: | 70,000 units | ||||
| Costs added in January 2020: | |||||
| Direct Material | $320,000 | ||||
| Direct Labor | 723,840 | ||||
| Factory Overhead | 1,028,160 | ||||
| Total costs added in January 2020 | $2,072,000 | ||||
| Units in Goods-in-Process, January 31, 2020: | 22,000 units | ||||
| Direct Material-100% Complete | |||||
| Conversion Costs-20% Complete | |||||
a) Anaylze the flow of units:
b) Compute equivalent units:
c)Compute the per units:
d)The value of Goods-inProcess in the cutting Department on 1/31/2020:
e)The value of Goods-In-Process transferred to the Stiching Department is:
In: Accounting
Kash Company is reviewing its December 31, 2020 unadjusted trial balance and determines that a sale in the amount of $15,000 had been incorrectly recorded as a debit to sales and a credit to accounts receivables. The correcting journal entry at December 31, 2020 is:
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Debit accounts receivables and credit sales $30,000 |
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Debit accounts receivables and credit retained earnings $30,000 |
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Debit retained earnings and credit sales $15,000 |
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Debit accounts receivables and credit sales $15,000 |
In: Accounting
2018
2019
2020
Costs to
date
$1,500,000
$4,000,000
$6,200,000
Cost to
complete
$4,500,000
$2,200,000
$0
Amounts billed to date
$1,400,000
$5,800,000
$9,000,000
Amounts collected to date
$1,300,000
$4,300,000
$9,000,000
Determine the gross profit to be recognized for
2018 2019 2020
In: Accounting