. You are the accountant for Auxerre, and you have to prepare the journal for income taxes. You have gathered the following information for 2020:

1. Deferred tax liability, January 1, 2020, $40,000.
2. Deferred tax asset, January 1, 2020, $0.
3. Taxable income for 2020, $127,000.
4. Cumulative temporary difference on December 31, 2020, giving rise to future taxable amounts, $220,000.
5. Cumulative temporary difference on December 31, 2020, giving rise to future deductible amounts, $35,000.
6. There is one permanent difference between taxable and pretax financial income due to a $5,000 fine imposed by OSHA.
7. The tax rate is 40% for all years.
8. The company is expected to operate profitably in the future.

Prepare the journal entry to record income taxes for 2012.

Question 1 25 Marks
Malali Traders had the following transactions for 29 February 2020 financial year.
The following transactions was extracted from the books of Tesco Traders for February 2019.
1. Malali Traders borrowed N$ 18 400 from East Bank, and was deposited into AC Traders bank account. AC Traders’ is Malali Traders cement supplier.
2. Malali Traders acquired a Motor Vehicle on 01 February 2020 for N$ 10 600 from MZ Motors and it was paid on the 2nd March 2020 by cheque.
3. Sold goods on credit to Jayz Traders valued at N$ 28 000 and received a cheque of N$ 25 000 in full settlement of account on the 20 April 2020.
4. Purchased good for resale from NTN for N$ 8 000 and paid by cheque on 28 February 2020.
5. Cheque issued to NTN was dishonoured on the 29 February 2020 (see no.4 above).
6. Issued a debit note to Jayz on the 29 February 2020 for N$ 2 000.
7. Sold goods worth N$ 22 500 to SSS on credit, and SSS paid 10% deposit into Malali Traders Bank upon signing the sale contract on 07 February 2020.
8. Mr. Malali deposited N$ 11 000 into the business bank account on 01 February 2020 and in the same day he withdraws N$ 1 000 cash for business use.
9. Received Computers worth N$ 7 000 on 03 February 2020 as token of appreciation from Web Trader.
10. Sold goods valued at N$ 5 000 and received a cheque of N$ 4 750 from Unam in exchange for goods on 29 February 2020.
Required:
Page 12 of 14
Journalise the above transactions as at 29 February 2020: NARATIONS ARE NOT REQUIRED

The Articles of Partnership for partners Moon, Sun, and Stars stipulate 10% interest allowance for each partner based on average capital balances during 2020. The beginning capital balances for Moon, Sun, and Stars on January 1, 2020 are $100,000, $250,000, and $400,000, respectively. On April 1, 2020, Moon invests additional 20,000 in the partnership. On July 1, 2020 Star withdraws 50,000 from the partnership. During 2020, Sun and Stars have drawings of 60,000 and 20,000, respectively. During 2020, partners Sun and Stars receive salary allocation of 60,000 and 20,000, respectively. If the partnership’s Net Income for the period after salary allocations are considered is above 130,000, Stars is also going to receive a bonus allowance of 10% of Net Income. The measure of Net Income used to determine the actual amount of the bonus is Net Income after bonus and interest allocations are considered, but before salary allocations are considered. The profit-and-loss sharing ratios for the partnership are: Moon (20%), Sun (50%), and Stars (30%) Required (show all your calculations):

1. Assume that the partnership’s net income for 2020 is $250,000. What is the TOTAL partnership RESIDUAL INCOME allocation in 2020? What is the total partnership profit allocation for Moon, Sun, and Stars, respectively? (10 points)

2. Assume that the partnership’s net income for 2020 is $250,000. Prepare the journal entry to close the NI into the Capital balances of the partners. (5p.)

3. Assume that the partnership incurs a net loss of $100,000 in 2020. What is the TOTAL partnership RESIDUAL INCOME allocation in 2020? What is the total partnership profit allocation for Moon, Sun, and Stars, respectively? (10 points)

4. Assume that the partnership incurs a net loss of $100,000 in 2020. Prepare the journal entry to close the net loss into the Capital balances of the partners. (5p.)

Hedged Sale Commitment and Exposed Asset Position

On June 25, 2020, GlobalAgra Inc., a U.S. company, received a purchase order from a Swiss customer for delivery of merchandise on July 10, 2020, at a price of CHF10,000,000, payable in Swiss francs (CHF) on September 10, 2020. To hedge its exposure to exchange rate changes, on June 25, 2020, GlobalAgra entered a forward contract for delivery of CHF10,000,000 to the broker on September 10, 2020. The merchandise was delivered as scheduled. On September 10, 2020, GlobalAgra received payment from the customer, and delivered the Swiss francs to the broker to close the forward contract. GlobalAgra’s accounting year ends December 31. Exchange rates ($/ CHF) are as follows:

Required

Prepare the journal entries GlobalAgra made on July 10, 2020, and September 10, 2020, to record the above transactions.

If China (a country known to have a large open economy) were to become a closed economy, how might the long-run real interest rate, GDP, saving, and investment change?

How do we sterilize tubings, test tubes closed at one end in the autoclaves, in addition, the endoscopic equipment, and other reusable expensive items. Write a five page report on it.

How do ETF’s work? What is the difference between an ETF and Closed and Open End Mutual Funds? If you are saving for your retirement does the choice have a big impact?