ABC Inc. borrowed funds from its bank. Details are as follows.
Four year term loan, U.S. $500,000
Funds borrowed 1 January 2016; due 31 December 2019
Exchange rates:

Required:

Prepare the journal entries as follows to record:
A) Receipt of loan proceeds for January 2016.
B) The adjustment to spot rate for December 2016.
C) The adjustment to spot rate December 2017
D) The adjustment to spot rate December 2018
E) The adjustment to spot rate December 2019
F) Repayment of loan December 2019

7. Based on the above information calculate the total accounting recognition of loss.

The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,385,000, $137,000 in the common stock account, and $2,620,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed long-term debt of $1,550,000, $147,000 in the common stock account, and $2,920,000 in the additional paid-in surplus account. The 2016 income statement showed an interest expense of $92,500 and the company paid out $142,000 in cash dividends during 2016. The firm’s net capital spending for 2016 was $930,000, and the firm reduced its net working capital investment by $122,000.
  
What was the firm's 2016 operating cash flow, or OCF? (A negative answer should be indicated by a minus sign. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
  
Operating cash flow            $

QUIZ (MUST BE TYPED)

With the information given below, construct Pedro Inc.’s Balance Sheet, Income Statement and Retained Earnings Statement for 2016 (NO PREFERRED STOCK).

(In 000’s)

December 31, 2016

Cash                                                    $          ?

Notes Payable                                     500,000

Sales                                                   10,000,000

Accounts Receivable                          850,000

Accounts Payable                               1,200,000

Long-term Debt                                  18,000,000

Common Stock (10,000 shares)         10,000

Additional Capital                              4,990,000

Retained Earnings (2015)                 5,050,000

Gross Fixed Assets                             32,350,000

Cost of Goods Sold                            4,000,000

Other Operating Expenses                 1,450,000

Inventory                                            1,980,000

Interest Expense                                 2,500,000

Tax Rate 50%

Depreciation Expense                        50,000

Accumulated Depreciation                6,050,000

Dividends                                           5,000

Pedro’s

INCOME STATEMENT

2016 (in 000’s)

Pedro’s

STATEMENT OF RETAINED EARNINGS

2016 (in 000’s)

Pedro’s

BALANCE SHEET

2016 (in 000’s)

Cash & MS                             $___________            Accounts Payable       $___________

Accounts Receivable             

1. On January 1, 2015 Costco began construction of a new warehouse in Redmond, WA. The building was completed on June 30, 2016. Cash outlays for the $5 million project were as follows:

2015

January 1                        $1,000,000

March 1                          $600,000

June 30                           $800,000

September 30               $750,000

December 1                   $600,000

2016

March 31                        $800,000

June 30                           $450,000 (final payment)

Total payments             $5,000,000

On January 1, 2015 Costco obtained a $3 million dollar construction loan with a 5% interest rate. Costco’s other long-term debt consisted of $30 million 6% bonds and $20 million of 8% bonds. All debt was outstanding throughout 2015 and 2016.

1. Calculate the amount of interest to be capitalized in 2015.

2. Calculate the amount of interest to be capitalized in 2016.

3. What is the final total capitalized cost of the warehouse?

4. How much interest expense is reported in Costco’s Income Statement for both 2015 and 2016?

Marie Inc. and Nick Inc. formed a joint venture on January 1, 2016 to produce and sell custom-fit earphones and earplugs. Marie invested plant and equipment with a book value of $250,000 and a fair value of $400,000 for a 25% interest in the venture which was to be called Jola Inc. Nick Inc. contributed raw materials (i.e. silicone and packing materials) with a fair value of $650,000 and cash of $550,000 for its 75% stake in Jola Inc. Jola Inc. reported net income of $2,200,000 for 2016. Marie Inc.’s plant and equipment has a 5 year remaining life as of January 1, 2016. Ignore income taxes.

What is the amount of the gain or loss that Marie Inc. can recognize on January 1, 2016 arising from the transfer of its assets to Jola Inc.? Provide the journal entry that Marie Inc. will record for 2016 to reflect its share of Jola Inc.’s net income

1.

Consider the following data for the following economy,

where there only two goods: wine and cheese. In the

following table are data for three different years. Use the

first year, 2016, as the base year in calculating real

GDP, the GDP deflator, and the CPI.

2016

2017

2018

P

Q

P

Q

P

Q

Wine

$2.50

25

$3.50

30

$ 4.00

35

Cheese

$7.00

20

$9.00

20

$ 10.00

25

a.

Calculate the inflation rate b

etween 2016

and 2017 and then between 2017 and 2018

using

a Laspeyres

index (call it the CPI

).

b. Calculate

the inflation rate between 201

6 and 2017 and then

between 2017 and 2018

using

a Paasche index

(call it the

GDP deflator

).

c.

Calculate the growth rate of

nominal GDP between 2016 and 2017

and then between 2017 and 2018.

d. Calculate the grow

th rate of real GDP between 2016 and 2017

and then between 201

7 and 2018.

On January 1, 2016, Trueman Corp. issued $600,000 of 20-year, 11% bonds for $554,860, Yielding a market ( yield) rate of 12%. Interest is payable semiannually on June 30 and December 31.

a) Confirm the bond issue price.

b) Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2016, and semiannual interest payment and discount amortization on December 31, 2016. Use the effective interest rate method.

c) Post the Journal entries from part b) to their respective T-accounts

d) Trueman elected to report these bonds in its financial statements at fair value.

On December 31, 2016, these bonds were listed in the bond market at a price of 101 ( or 1015 of par value)

What entry is required to adjust the reported value of these bonds to fair value?

e) Prepare a table summarizing the effect of these bonds on earnings for 2016

You are the accountant of Seton Enterprises Ltd. You have obtained the following data from the company’s accounting records for the year ended 30 June 2016:

Factory overhead is applied at the rate of 240% of direct labor cost.

Required:

1. Prepare the cost of goods manufactured statement for the year ended 30 June 2016.
2. Show the presentation of the cost of sales calculation as it would appear on the company’s income statement for the year ended 30 June 2016.
3. Calculate the company’s Gross profit for the year ended 30 June 2016.

Do not copy from Chegg, otherwise, I have to report the answer.

Here are the salaries for a sample of professors in a mathematics department at a large midwestern university for the academic years 2014–2015 and 2015–2016.

(a)

Construct a scatterplot with the 2015–2016 salaries on the vertical axis and the 2014–2015 salaries on the horizontal axis.

(b)

Comment on the form, direction, and strength of the relationship in your scatterplot.

The form of the scatterplot is  ---Select--- nonlinear linear , the direction is  ---Select--- negative positive , and the strength is  ---Select--- weak strong .

(c)

What proportion of the variation in 2015–2016 salaries is explained by 2014–2015 salaries? (Round your answer to four decimal places.)