1. Suppose that your company is based in the UK but has significant sales in the US. You want to hedge your currency exposure for when you convert US dollars back to British Pounds. Should you go long or short the contract?

On August 1, 2020, Kazazis Company sold inventory to Magic Company and received Magic’s 9-month, noninterest-bearing $100,000 note due April 30, 2021. The cash selling price of the inventory was $94,000. The cost of the inventory was $60,000. Kazazis records adjusting entries annually at December 31.

a. Record the August 1, 2020, journal entries (including COGS) for Kazazis.

b. If Kazazis recorded the note as an interest-bearing note on August 1, 2020, (i.e., did not record a discount on the note), how would the financial statements be misstated (overstated/understated and $ amount)?. (Hint: Record the entry without the discount and compare to your answer in part a.)ASSETSLIABILITIESSE2020 NET INCOME$$$$OverstatedOverstatedOverstatedOverstatedUnderstatedUnderstatedUnderstatedUnderstated

c. Record the December 31, 2020, adjusting entry for Kazazis.

d. If Kazazis’ 2020 net income without including the Aug. 1 sale or December 31 adjusting entry was $200,000, what is the correct 2020 net income? Ignore taxes.

e. What amounts related to the note will Kazazis report on its 2020 balance sheet?

f. Record the April 30, 2021, journal entry/entries for Kazazis. (You may choose to record 1 entry as we did in the example in class or 2 entries as required by Connect.)

Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for several years. On October 1, 2019, it had 10 million common shares authorized and 1.5

million shares issued at an average value of $30 per share. As well, there were 1 million preferred shares authorized, with 200,000 of them issued at $15 per share. On October 1, 2019, the balance in Retained Earnings was $20,375,000. During the fiscal year 2020, the following transactions affected shareholders' equity:

1. On November 1, 2019, 400,000 new common shares were issued at $32 per share.
2. On March 15, 2020, a 5% common stock dividend on the outstanding shares was declared and distributed when the market price was $45 per share.
3. On September 1, 2020, a dividend of $5.15 per common share was declared. The date of record was September 15, 2020, with the date of payment being October 5, 2020.
4. The preferred shares pay an annual dividend of $1.20. The preferred dividend for the year was declared and paid.
5. During the fiscal year ended September 30, 2020, the company generated net income after taxes of $25 million. RequiredComplete the below statement of changes in shareholders' equity as at September 30, 2020

For each of the following transactions that occurred during the year, indicate the dollar amount to be reported as a current liability as of December 31, 2020. (Enter 0 for amounts if no current liability is to be reported. Do not leave any answer field blank.)

You are a senior accounting specialist at a large company that makes high-quality apparel. The company also has 45 retail stores where its manufactured brands as well as other brands are sold. On your financial statements, you have a goodwill balance of $425 million. This amount is split between three business segments as follows: US Retail Operation $200 million; US Manufacturing Operations $195 million and International Operations $30 million.

1. Should your company be a private company, are there different accounting guidance available, please explain.

The statement of comprehensive income of kolad plc, a publicly listed company, is as follows:

Statement of comprehensive income for the year ended 31 March 2020

The following supporting information is available:

1. Depreciation of £965,000 was charged (to cost of sales) for property, plant and equipment in the year ended 31 March 2020. An item of plant with a carrying value of £750,000 was sold at a profit of £65,000 during the year.

2. The following extracts from the statements of financial position for the years ended 31 March 2020 and 31 March 2019 are relevant:

YOU ARE REQUIRED TO:

1. Calculate the net cash flow from operating activities for kolad plc for the year to 31 March 2020 in accordance with IAS 7 Statement of cash flows using the indirect method.

2. Explain the characteristics of an item to be considered as a cash equivalent and give three examples of items that could be included as cash and cash equivalents in a statement of cash flows.

3. Profit is not a good indicator of performance as it can be changed to suit management’s needs.

Discuss whether, in your opinion, the statement of profit or loss or the statement of cash flows is a better indicator of a company’s performance.

Proceeds from the sale of capital assets for 2020 are $16,000

A. Prepare the Cash Flow Statement

B. Prepare the Reconciliation of net income to net cash flow from operations balances to net cash flow from operations in the basic statement

C. calculate the purchases of fixed assets

University magazine agency wants to determine the best combination of two possible magazines to print for the month of May. Star which the University has published in the past with great success is the first choice under consideration. Prime is a new venture and is a promising magazine. The university envisages that by positioning it near Star, it will pick up some spillover demand from the regular readers. The University also hopes that the advertising campaign will bring in a new type of reader from a potentially very lucrative market. The publishing department wants to print at most 500 copies of Star and 300 copies of Prime. The cover price for Star is $3.50, the university is pricing Prime for $4.50 because other magazines doing the same line of business command this type of higher price. The University publishing department has 25 hours of printing time available for the production run. It has 27.5 hours for the collation department, where the magazines are actually assembled. Each copy of Star magazine requires 2.5 minutes to print and 3 minutes to collate. Each Prime requires 1.8 minutes to print and 5 minutes to collate. How many of each magazine should the University print to maximize revenue? Show all the corner solutions and the value of the objective function.

Shows work please!

Hint: You are required to maximize revenue assuming that Star = X and Prime = Y. create a table, specify the LP, draw graph to show feasible region and solve for the corner points. Find the profit for each of the solutions. Also convert hours to minutes in the constraints. The problem has 4 constraints excluding the non-negative constraints.

a. Formulate a linear programming model for this problem. (15 points)

b. Represent this problem on a graph using the attached graph paper. Show the feasible region. (10 points)

c. Solve this model by using graphical analysis showing the optimal solution and the rest of the corner points as well as the profits. (25 points)

Louise works in a foreign branch of her employer's business. She earned $5,000 per month throughout the relevant period. Which of the following is correct?

a.If Louise worked in the foreign branch from May 1, 2019 until October 31, 2020, she may exclude $40,000 from gross income in 2019 and exclude $50,000 in 2020.

b.If Louise began work in the foreign country on May 1, 2019, she must work through November 30, 2020 in order to exclude $55,000 from gross income in 2020 but none in 2019.

c.If Louise worked in the foreign branch from May 1, 2019 until October 31, 2020, she cannot exclude anything from gross income because she was not present in the country for 330 days in either year.

d.Louise will not be allowed to exclude any foreign earned income because she made less than $107,600.