Contingent Liabilities – The CEO of Smith & Sons, Inc., negotiated with its principal supplier of raw materials to purchase 10,000 units for a total price of $100,000. The units are to be delivered in 90 days. The CEO is uncertain whether she should record the purchase commitment on the company’s balance sheet as a liability or not. She asks for your advice. What would you advise her?

The 2019 balance sheet of Dyrdek’s Skate Shop, Inc., showed $590,000 in the common stock account and $4.8 million in the additional paid-in surplus account. The 2020 balance sheet showed $630,000 and $5.3 million in the same two accounts, respectively. If the company paid out $600,000 in cash dividends during 2020, what was the cash flow to stockholders for the year? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)

Cash Flow to Stockholders: _______

Company sells its product for $11700 per unit. Variable costs per unit are: manufacturing, $5500; and selling and administrative, $135. Fixed costs are: $30000 manufacturing overhead, and $40000 selling and administrative. There was no beginning inventory at 1/1/18. Production was 20 units per year in 2018–2020. Sales were 20 units in 2018, 16 units in 2019, and 24 units in 2020. Income under variable costing for 2019 is

In May 2020, Mary began searching for a trade or business to acquire. In anticipation of finding a suitable acquisition, Mary hired an investment banker to evaluate three potential businesses, She also hired a law firm to begin drafting regulatory approval documents for a target company. Eventually, Mary decided to purchase all of the assets of Peterson Corporation. Peterson and Mary entered into an acquisition agreement on Decemeber 1, 2020. Identify the relevant tax issues for Mary.

Please make sure to explain well.

The inventory account of Cullumber Company at December 31, 2020, included the following items:

Based on the above information, the inventory account at December 31, 2020, should be reduced by

1. On January 1, 2020, Travis Corporation issued $800,000, 6%, 5-year bonds for $735,110. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid semiannually on July 1 and January 1. The company uses the effective-interest method of amortization. Instructions: Prepare the journal entries that Travis Corporation would make on January 1, June 30, December 31, 2020, January 1, 2021 and at maturity, related to the bond issue

On March 1, 2020, Spring Break Company sold 4,000 individual bonds. The bond terms were as follows: 25 years, $1,000 face value, and 2.1% coupon rate. The bonds were issued at an annual effective interest rate of 1.9%. Interest is payable semi-annually and is due each year on September 1 and March 1. As of March 1, 2020, bond issue costs of $103,500 were incurred in preparing and selling the bond issue. Calculate the selling price of the bond

Astrom Ltd. purchased a piece of equipment on May 12, 2020, for $51,200. At the time, management determined that the equipment would have a 4-year useful life and a residual value of $4,400. Astrom uses the straight-line depreciation method for its equipment, and the company has a December 31 year end. Also assume that Astrom sold the equipment on September 25, 2022, for $20,725. Prepare all necessary journal entries for 2020, 2021, and 2022 related to each of the following scenarios:

on january 1, 2020, Wampum Jewelry company issued deep discount bonds having a total maturity value of 500,000. Wampum received 354,832 from investors on the date of issuance. The bonds mature 5 years from the date of issuance.

a- prepare the journal entry for the issuance of bonds on January 1, 2020

b-calculate the implicit rate of interest on the bonds

c-prepare an amortization schedule for the life of the bonds

d- Record journal entry for interest expense for the year ended dec 31,2023

TTT is a television ratings company. TTT announced that on 11^th of June 2020, for a specific program on DDD TV channel, 10% of all televisions in NY tuned to DDD TV channel. It is known that the similar specific program will be presented on 25^th of June 2020 on DDD TV channel. What is the probability that in a random sample of 20 television sets in NY , 3 or fewer would have been tuned to DDD TV channel? Find the mean and standard deviation. Explain your solution in detail.