On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which requires the New Zealand Company to construct an item of machinery for Holmes Ltd. The cost of the machinery is NZ$750,000. The machinery is completed on 1 June 2021 and shipped FOB Auckland on that date. The debt is unpaid at 30 June 2020, which is also Holmes Ltd’s reporting date. The exchange rates at the relevant dates are:
1 March 2020 A$1.00 = NZ$1.20
30 June 2020 A$1.00 = NZ$1.30
1 June 2021 A$1.00 = NZ$1.25
Required:
a) Determine the amount in AUD, as at: • 1 March 2020; and • 30 June 2020.
b) Prepare the journal entries for the above dates, up to 1 June 2021,showing the amount of exchange gain or loss
In: Accounting
Stellar Inc. has a defined benefit plan for its employees. On
December 31, 2019 the company’s records showed the following
information related to the plan: Pension plan assets $835,000
Defined benefit obligation 933,000 All employees are expected to
receive benefits under the plan. The company’s actuary provided the
following information as at December 31, 2020: Current year service
cost $178,000 Past service benefits, granted July 1, 2020 29,000
Discount rate 5% Actual return on assets 6% Contributions for the
year 266,000 Benefits paid to retirees 124,000 Calculate pension
expense for Stellar Inc. for 2020, assuming ASPE is used.
Pension expense, 2020 $__________________
Calculate pension expense for Stellar Inc. for 2020, assuming IFRS is used.
Pension expense, 2020 $__________________
In: Accounting
Sheffield Inc. reported the following partial statement of
income data for the years ended December 31, 2021, and
2020:
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Sales | $263,000 | $254,000 | |||
| Cost of goods sold | 204,000 | 199,390 | |||
| Gross profit | 59,000 | 54,610 |
The company reported inventory in the statement of financial
position at $46,000, $49,500, and $48,000 at the end of 2019, 2020,
and 2021, respectively. The ending inventory amounts for 2019 and
2021 are correct. However, the ending inventory at December 31,
2020, is understated by $7,620.
Prepare correct statements of income for 2020 and 2021 through
to gross profit.
| 2021 | 2020 | |||
|---|---|---|---|---|
| Sales | $enter a dollar amount | $enter a dollar amount | ||
| Cost of goods sold | enter a dollar amount | enter a dollar amount | ||
| Gross profit | $enter a total amount | $enter a total amount |
In: Accounting
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In: Accounting
Amusement Corp. showed the following amounts in the equity section of its balance sheet at January 1, 2020:
Preferred shares, $2 cumulative (in arrears for 2019), 10,000
shares issued Common shares 40,000 shares issued
Retained earnings
In 2021:
$ 500,000 $ 800,000 $ 500,000
On January 20, 2020, On November 1, 2020, On December 31, 2020
Required
10,000 common shares were issued for $150,000
Cash dividends of $90,000 were declared. Dividends will be paid on
January 18, 2021 Amusement Corp. reported revenues of $150,000 and
expenses of $80,000 for the year
What is the amount of dividend per share owing to preferred shareholders?
Prepare journal entries for 2020. Use an Income summary account and Dividend declared account as required
Calculate the average issue price per common share for 2020
Prepare the statement of changes in shareholders equity for the year ended December 31, 2020
Prepare the balance sheet (partial) at December 31, 2020
Note: you can skip posting any other point but I need point 5 to be done (balance sheet)-Thank you!
In: Accounting
Thorp Inc. maintains a defined benefit pension plan for its employees. Pension plan balances as at January 1, 2020 include: Projected Benefit Obligation (PBO), January 1, 2020 $ 600,000 Plan assets at market-related value, January 1, 2020 $ 550,000 Prior service cost (PSC- OCI)1 $ 150,000 Average remaining service period 15 years Service cost $ 90,000 Expected returns on plan assets 8% Actual returns earned on plan assets $40,000 Actuarial interest rate 4% Contributions paid $ 150,000 Benefits to retirees in 2020 $ 100,000 Loss from change in actuarial assumption, December 31, 2020 $ 46,000 1 These prior service costs are from 2019 and already included in PBO on January 1,2020. Required: a. Determine the pension expenses recognized in 2020. b. Prepare the journal entries to reflect the accounting for the pension plan for 2020. c. Prepare the ending balances (31 December 2020) for plan assets, PBO, and calculate net pension liability. d. What will be the expected impact of the current pandemic (Covid-19) on PBO?
In: Accounting
Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:
| WIPER INC. | |||||||||
| Condensed Balance Sheets | |||||||||
| December 31, 2020, 2019, 2018 | |||||||||
| (in millions) | |||||||||
| 2020 | 2019 | 2018 | |||||||
| Current assets | $ | 798 | $ | 1,031 | $ | 893 | |||
| Other assets | 2,429 | 1,936 | 1,735 | ||||||
| Total assets | $ | 3,227 | $ | 2,967 | $ | 2,628 | |||
| Current liabilities | $ | 593 | $ | 846 | $ | 748 | |||
| Long-term liabilities | 1,611 | 1,079 | 946 | ||||||
| Stockholders’ equity | 1,023 | 1,042 | 934 | ||||||
| Total liabilities and stockholders' equity | $ | 3,227 | $ | 2,967 | $ | 2,628 | |||
| WIPER INC. | ||||||
| Selected Income Statement and Other Data | ||||||
| For the year Ended December 31, 2020 and 2019 | ||||||
| (in millions) | ||||||
| 2020 | 2019 | |||||
| Income statement data: | ||||||
| Sales | $ | 3,066 | $ | 2,929 | ||
| Operating income | 312 | 326 | ||||
| Interest expense | 100 | 81 | ||||
| Net income | 239 | 234 | ||||
| Other data: | ||||||
| Average number of common shares outstanding | 42.9 | 48.3 | ||||
| Total dividends paid | $ | 66.0 | $ | 53.9 | ||
In: Accounting
Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:
| WIPER INC. | |||||||||
| Condensed Balance Sheets | |||||||||
| December 31, 2020, 2019, 2018 | |||||||||
| (in millions) | |||||||||
| 2020 | 2019 | 2018 | |||||||
| Current assets | $ | 722 | $ | 949 | $ | 803 | |||
| Other assets | 2,420 | 1,927 | 1,726 | ||||||
| Total assets | $ | 3,142 | $ | 2,876 | $ | 2,529 | |||
| Current liabilities | $ | 584 | $ | 837 | $ | 730 | |||
| Long-term liabilities | 1,544 | 1,006 | 874 | ||||||
| Stockholders’ equity | 1,014 | 1,033 | 925 | ||||||
| Total liabilities and stockholders' equity | $ | 3,142 | $ | 2,876 | $ | 2,529 | |||
| WIPER INC. | ||||||
| Selected Income Statement and Other Data | ||||||
| For the year Ended December 31, 2020 and 2019 | ||||||
| (in millions) | ||||||
| 2020 | 2019 | |||||
| Income statement data: | ||||||
| Sales | $ | 3,057 | $ | 2,920 | ||
| Operating income | 303 | 317 | ||||
| Interest expense | 91 | 72 | ||||
| Net income | 212 | 207 | ||||
| Other data: | ||||||
| Average number of common shares outstanding | 42.0 | 47.4 | ||||
| Total dividends paid | $ | 57.0 | $ | 53.0 | ||
In: Accounting
Change in Reporting for Equity Investment
Stream Company buys 10 percent of Topsia Company’s stock for $2 million in cash on January 1, 2020, and reports the investment as having no significant influence. Fair value of the investment on December 31, 2020 is $2.1 million. On January 1, 2021, Stream acquires another 30 percent of Topsia’s stock for $8 million in cash, and changes to the equity method of reporting for this investment. Fair value of the 40 percent interest on December 31, 2021, is $12 million. Topsia reported the following amounts for the years 2020 and 2021:
| 2020 | 2021 | |
|---|---|---|
| Net income | $300,000 | $400,000 |
| Cash dividends (paid at year-end) | 200,000 | 300,000 |
Topsia reported no other comprehensive income, and any basis difference is attributed to goodwill. Stream and Topsia have no intercompany transactions.
Required
Calculate the balances appearing in the following accounts of Stream Company for 2020 and 2021:
a. Investment in Topsia, reported on Stream’s December 31, 2020 and December 31, 2021 balance sheets.
b. Dividend income reported on Stream’s income statements, 2020 and 2021.
c. Unrealized gain on investment in Topsia, reported on Stream’s 2020 and 2021 income statements.
d. Equity in net income of Topsia, reported on Stream’s 2020 and 2021 income statements.
| Account | 2020 | 2021 |
|---|---|---|
| Investment in Topsia | $Answer | $Answer |
| Dividend income | Answer | Answer |
| Unrealized gain on investment | Answer | Answer |
| Equity in net income of Topsia | Answer | Answer |
In: Accounting
Problem 8-80A
Ratio Analysis
Consider the following information taken from GER's financial statements:
| September
30 (in thousands) |
|||
| 2020 | 2019 | ||
| Current assets: | |||
| Cash and cash equivalents | $1,274 | $6,450 | |
| Receivables | 30,071 | 16,548 | |
| Inventories | 31,796 | 14,072 | |
| Other current assets | 4,818 | 2,620 | |
| Total current assets | $67,959 | $39,690 | |
| Current liabilities: | |||
| Current portion of long-term debt | $97 | $3,530 | |
| Accounts payable | 23,124 | 11,228 | |
| Accrued compensation costs | 5,606 | 1,929 | |
| Accrued expenses | 9,108 | 5,054 | |
| Other current liabilities | 874 | 777 | |
| Total current liabilities | $38,809 | $22,518 | |
Also, GER's operating cash flows were $12,829 and $14,874 in 2020 and 2019, respectively.
Required:
Round your answers to two decimal places.
1. Calculate the current ratios for 2020 and 2019.
| Current Ratio | |
| 2020 | |
| 2019 |
2. Calculate the quick ratios for 2020 and 2019.
| Quick Ratio | |
| 2020 | |
| 2019 |
3. Calculate the cash ratios for 2020 and 2019.
| Cash Ratio | |
| 2020 | |
| 2019 |
4. Calculate the operating cash flow ratios for 2020 and 2019.
| Operating Cash Flow Ratio | |
| 2020 | |
| 2019 |
5. Conceptual Connection: What are some reasons why GER's liquidity may be considered to be improving and some reasons why it may be worsening?
GER’s liquidity appears to hold constant when one looks only at the quick ratio . However, because the receivables and inventories may not be easily converted to cash, the liquidity of GER may be worsening.
In: Accounting