Indigo Company manufactures equipment. Indigo’s products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Indigo has the following arrangement with Winkerbean Inc.

Indigo delivers the equipment on June 1, 2020, and completes the installation of the equipment on September 30, 2020. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately.

How should the transaction price of $970,000 be allocated among the service obligations? (Do not round intermediate calculations. Round final answers to 0 decimal places.)

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List of Accounts

Prepare the journal entries for Indigo for this revenue arrangement on June 1, 2020 and September 30, 2020, assuming Indigo receives payment when installation is completed. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

show work and explain

Blue Creek Industrial of Atlanta purchased automated machinery from Sydney Manufacturing of Australia for : A$5,000,000 with payment due in 6 months. The forecasting department of the firm expects the spot rate in 6 months to be $0.7015/A$ The following quotes are available:

Six month investment rate on US$ - 1.20% per annum

Loan Rate on US$ - 4.10% per annum

Six month investment rate on A$2.25% per annum

Loan Rate on A$ - 5.00% per annum

Spot exchange rate :       Bid- $0.7050/A$                Ask- $0.7058/A$

Six month forward rate: Bid- $0.7004/A$                Ask- $0.7018/A$

Six month call option at A$5,000,000 at an exercise price of $0.7100/A$ and a 1.80% of spot ask premium.

Blue Creek’s cost of capital is 10% and it wishes to minimize the dollar cost of this PAYABLE. The CFO has informed your department that the company is currently in a low cash position and if a money market hedge is used, a US dollar loan would be necessary. However, the option premium should be carried forward at the cost of capital.

1. What are the costs from the money market hedge? Please show all work
2. What are the costs from the forward market hedge? Please show all work

During the Global financial crisis of 2008, AIG, an insurance company, had to be bailed out by the US government to prevent it’s collapse into bankruptcy.  Why did AIG have to be bailed out by the US government?  In retrospect, should the government have bailed AIG out?

I am currently completing an assignment for an introduction for accounting.

I have been asked to complete a general journal for the following transactions:

August 2           Sahra paid $30 from the business bank account for dinner at ‘Waves’ a beachside café.

August 3           Deep Sea Cleaning Co cleaned the shop and workshop and left an invoice for $195 on the counter.

August 6           A new range of SPF fabric was purchased from ‘World Fabrics Ltd’ for $6,200. A part-payment of $200 was paid in cash whilst the remaining amount was on credit.  

August 12         Sahra sold 27 long sleeve Rashies for $62 each to ‘The Tornadoes’, a local beach volleyball club on credit.  The terms of the sale require full payment is made within 30 days.

August 20         The business borrowed $4,300 from WAV Bank to purchase and install new lighting for the workshop. $2,300 of this amount paid for the light fittings with the remaining balance to be paid to the electrician for installing the lighting.

August 28         ‘The Tornadoes’ beach volleyball club paid $522 off the amount they owe ‘Vacation’ for the purchase of the Rashies on August 12.                                                          

August 31         The first payment of $500 was paid off the loan that ‘Vacation’ borrowed from WAV Bank on August 20.  

this is what i have done:

General Journal

just wondering if I am on the right track, if not how can I fix it.

thank you!

Green Wellness Berhad owns several properties and has a financial year end of 31 December.Whenever possible, the company considers investment properties using the fair value model.The list of properties owned by the company are as follows:
Property X
Acquired on 1 January 2011. It had a cost of RM1 million, comprising of RM500,000 for land and RM500,000 for buildings. The buildings have a useful life of 40 years. Green Wellness Berhad uses this property as its head office.
Property Y
Acquired on 1 January 2013 for the price of RM1.5 million for its investment potential.
On 31 December 2017, it had a fair value of RM2.3 million. By 31 December 2018, its fair value had risen to RM2.7 million. This property has a useful life of 40 years.
Property Z
Acquired on 30 June 2012 for the price of RM2 million for its investment potential. The directors of Green Wellness Berhad’s company believe that the fair value of this property was RM3 million on 31 December 2017 and RM3.5 million on 31 December 2018. However, due to the specialised nature of this property, these figures cannot be corroborated. This property has a useful life of 50 years.
a) For each of the above properties:

i) Explain whether the property is an investment property in accordance with the accounting standards provided in MFRS 140 Investment Property.

ii) Record the relevant journal entries from the date of acquisition of the property (if the date is known) until 31 December 2018 in accordance with the accounting standards contained in MFRS 140 Investment Property or other relevant accounting standards. Show all computations and supporting explanations.

b) Prepare an analysis of property, plant and equipment for Green Wellness Berhad for the year ended 31 December 2018, by showing the value of each of the above properties separately.  

Langford Ltd. operates a chain of restaurants. The restaurants have performed very well, having established a reputation for affordable, value for money offerings and child-friendly facilities.

In seeking new growth opportunities, the company has embarked on a strategy of acquiring existing successful companies to supply key materials and ingredients to their restaurants. The rationale for this strategy is to secure supplies at more affordable prices as well as exploiting opportunities within these markets more generally.

With the growth of the company, it has become necessary to decentralize decision-making through the creation of two divisions, Supply Services and Restaurants. Each division is treated as an investment center with divisional managing directors being evaluated on the basis of annual return on investment (ROI). Each division in turn consists of a number of business units treated as profit centers for performance management.

Megaco (Pty) Ltd., which manufactures a variety of cheese products, has recently been acquired by Langford Ltd. Megaco’s main customer base is medium sized independent retailers, but it is looking to expand its market and thereby utilize its excess capacity.

A key ingredient of many of the restaurant meals is standard cheddar cheese which is procured centrally by the Restaurant division at a favourable price owing to volume discounts negotiated with the existing supplier.

In line with Langford’s acquisition strategy of securing restaurant supplies at more affordable prices; the Managing Director of Restaurant division have been encouraged to meet the Chief Executive Officer (CEO) of Megaco and discuss mutually beneficial ways of transacting internally. The restaurants currently purchase and use 2,500 kgs of cheddar cheese monthly and pay $12.00 per kg.

The Managing director of Restaurant division, together with Megaco’s CEO have met on two occasions and, although they recognized the benefit to the company as a whole from transacting internally, have not yet reached agreement on a transfer price for standard cheddar cheese.

Megaco currently sells the cheese to its existing customers at $15.00 per kg and its CEO is reluctant to reduce the price for the restaurants. However, in the interests of the company as a whole, he has offered to reduce his normal mark-up and hence discount the existing price by 10%. As he explained: ‘This is the best I can do, after all I have to cover my full costs and make a fair profit.' The Restaurant’s Managing Director was not prepared to accept this price and, although Langford Ltd.’s executive management team was disappointed that no deal had been struck, chose not to interfere.

Megaco’s standard cheddar cheese monthly manufacturing capacity and related costs are as follows:

Required:

1. From the perspective of the overall company, determine the range of transfer prices for cheddar cheese that should be negotiated between Megaco and Restaurant Division. Explain your answer.                                                                                                                                                                   (1 mark)
2. Assume after further negotiation, Megaco and the Restaurant division agree on a transfer price of $10.00. If 2500 kgs per month are transferred internally at this price, what will be the increase in overall monthly profit for Langford Kitchen? Show your calculations to support your answer.                                           

        (1.5 marks)

3. Assume that Megaco and the Restaurant Division agree on a transfer price of $10.00 per kg cheddar cheese:

1. What will be the increase in monthly profit for Restaurant division? Show your calculations to support your answer.                                                                                                                                              (1.5 marks)

2. Calculate Megaco’s additional monthly contribution margin             (1.5 marks)

4. Five months after Megaco started supplying cheddar cheese to the Restaurant Division, its existing retail customers increased their monthly orders of standard cheddar cheese by 2,500 kgs at the normal price of $15.00 per kg. Taking into account this change in Megaco's circumstances, if it continues supplying 2,500 kgs of standard cheddar cheese monthly to the Restaurant Division, Megaco's minimum acceptable transfer price per kg will be? Show your calculations to support your answer.                                                                                                                              

Langford Ltd. operates a chain of restaurants. The restaurants have performed very well, having established a reputation for affordable, value for money offerings and child-friendly facilities.

In seeking new growth opportunities, the company has embarked on a strategy of acquiring existing successful companies to supply key materials and ingredients to their restaurants. The rationale for this strategy is to secure supplies at more affordable prices as well as exploiting opportunities within these markets more generally.

With the growth of the company, it has become necessary to decentralize decision-making through the creation of two divisions, Supply Services and Restaurants. Each division is treated as an investment center with divisional managing directors being evaluated on the basis of annual return on investment (ROI). Each division in turn consists of a number of business units treated as profit centers for performance management.

Megaco (Pty) Ltd., which manufactures a variety of cheese products, has recently been acquired by Langford Ltd. Megaco’s main customer base is medium sized independent retailers, but it is looking to expand its market and thereby utilize its excess capacity.

A key ingredient of many of the restaurant meals is standard cheddar cheese which is procured centrally by the Restaurant division at a favourable price owing to volume discounts negotiated with the existing supplier.

In line with Langford’s acquisition strategy of securing restaurant supplies at more affordable prices; the Managing Director of Restaurant division have been encouraged to meet the Chief Executive Officer (CEO) of Megaco and discuss mutually beneficial ways of transacting internally. The restaurants currently purchase and use 2,500 kgs of cheddar cheese monthly and pay $12.00 per kg.

The Managing director of Restaurant division, together with Megaco’s CEO have met on two occasions and, although they recognized the benefit to the company as a whole from transacting internally, have not yet reached agreement on a transfer price for standard cheddar cheese.

Megaco currently sells the cheese to its existing customers at $15.00 per kg and its CEO is reluctant to reduce the price for the restaurants. However, in the interests of the company as a whole, he has offered to reduce his normal mark-up and hence discount the existing price by 10%. As he explained: ‘This is the best I can do, after all I have to cover my full costs and make a fair profit.' The Restaurant’s Managing Director was not prepared to accept this price and, although Langford Ltd.’s executive management team was disappointed that no deal had been struck, chose not to interfere.

Megaco’s standard cheddar cheese monthly manufacturing capacity and related costs are as follows:

Required:

1. From the perspective of the overall company, determine the range of transfer prices for cheddar cheese that should be negotiated between Megaco and Restaurant Division. Explain your answer. (1 mark)
2. Assume after further negotiation, Megaco and the Restaurant division agree on a transfer price of $10.00. If 2500 kgs per month are transferred internally at this price, what will be the increase in overall monthly profit for Langford Kitchen? Show your calculations to support your answer.       (1.5 marks)

3. Assume that Megaco and the Restaurant Division agree on a transfer price of $10.00 per kg cheddar cheese:
4. What will be the increase in monthly profit for Restaurant division? Show your calculations to support your answer.     (1.5 marks)
5. Calculate Megaco’s additional monthly contribution margin             (1.5 marks)
6. Five months after Megaco started supplying cheddar cheese to the Restaurant Division, its existing retail customers increased their monthly orders of standard cheddar cheese by 2,500 kgs at the normal price of $15.00 per kg. Taking into account this change in Megaco's circumstances, if it continues supplying 2,500 kgs of standard cheddar cheese monthly to the Restaurant Division, Megaco's minimum acceptable transfer price per kg will be? Show your calculations to support your answer.    (2.5 marks)

Windsor Construction Company began work on a $404,000 construction contract in 2020. During 2020, Windsor incurred costs of $273,000, billed its customer for $232,000, and collected $182,000. At December 31, 2020, the estimated additional costs to complete the project total $163,660.

Prepare Windsor’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Tamarisk Construction Company began work on a $406,500 construction contract in 2020. During 2020, Tamarisk incurred costs of $292,500, billed its customer for $213,500, and collected $177,000. At December 31, 2020, the estimated additional costs to complete the project total $161,340.

Prepare Tamarisk’s journal entry to record profit or loss, if any, using (a) the percentage-of-completion method and (b) the completed-contract method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)