You (US company) imported Earth Moving Equipment (EME) from Australia. You imported EME at US$ 300 (with Cash) on Dec 1, 2018. On Dec 15, 2018, you sold EME to Australia at A$400 (Australian $) in AR. The exchange rate on Dec 15, 2018 was 2 A$/US$. The exchange rate on Dec 31, 2018 was 4 A$/US$. On Feb 1, 2019, your customer paid you in full. The exchange rate on Feb 1 was 1 A$/US$. What were NI in 2018 and 2019, respectively? 100, 200 -100, 300 -200, 200 100, 100

  On March 1, 2018, Greenway Corporation issued 5% bonds dated January 1, 2018 with a par value of $1,000,000. The bonds were sold for the present value of the bonds on March 1, 2018 plus two-month accrued interest. The bonds mature on December 31, 2023. Interest is paid semiannually on Jun 30 and December 31. Greenway's fiscal year ends on December 31 each year. The effective interest rate is 7%.

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​Required:

a. Determine the present value the bonds on March 1, 2018 and the amount of accrued interest that was included in the proceeds received from the bond sale. Show calculations.

​b. Prepare the journal entry for the issuance of the bonds on March 1, 2018.

c. Prepare the journal entry for the interest payment on June 30, 2018.

Keesha Co. borrows $155,000 cash on November 1, 2017, by signing a 180-day, 11% note with a face value of $155,000.

1. On what date does this note mature? (Assume that February has 28 days)

April 25, 2018.

April 26, 2018.

April 27, 2018.

April 28, 2018.

April 30, 2018.

2. & 3. What is the amount of interest expense in 2017 and 2018 from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.)



4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2017, and (c) payment of the note at maturity. (Assume no reversing entries are made.) (Use 360 days a year. Do not round intermediate calculations.)

19. On June 30, 2016, Mobley Corporation acquired a patent for $4.10 million. The patent was estimated to have an eight-year life and no residual value. Mobley uses the straight-line method of amortization for intangible assets. At the beginning of January 2018, Mobley successfully defended its patent against infringement. Litigation costs totaled $660,000.

Required: 1. Calculate patent amortization for 2016 and 2017.

2. Prepare the journal entry to record the 2018 litigation costs.

3. Calculate amortization for 2018.

4-a. Prepare the journal entry to record the 2018 litigation costs and calculate amortization for 2018, assuming that Mobley prepares its financial statements according to International Financial Reporting Standards (IFRS).

4-b. Calculate amortization for 2018 under IFRS.

Fredo, Inc., purchased 10% of Sonny Enterprises for $1,000,000 on January 1, 2018. Sonny recognized a total of $310,000 net income during 2018, paid $21,000 of dividends to Fredo during 2018, and at December 31, 2018, the market value of the Sonny investment increased to $1,031,000.

Required: Prepare the journal entries necessary to account for the Sonny investment, assuming that Fredo

(1) lacks significant influence

a.Record the entry for investment in Sonny Enterprises.

b.Record the entry for cash dividend received.

c.Record the net unrealized holding gain or loss for an available-for-sale investment.

Required :(2) Has significant influence over the operating and financial policies of the investee.

a.Record the entry for investment in Sonny Enterprises.

b. Record the revenue from Sonny Enterprise during 2018.

c. Record the receipt of dividend during 2018

The following events occur for The Underwood Corporation during 2018 and 2019, its first two years of operations.
  

June 12, 2018 Provide services to customers on account for $36,200.

September 17, 2018 Receive $21,000 from customers on account.

December 31, 2018 Estimate that 45% of accounts receivable at the end of the year will not be received.

March 4, 2019 Provide services to customers on account for $51,200.

May 20, 2019 Receive $10,000 from customers for services provided in 2018.

July 2, 2019 Write off the remaining amounts owed from services provided in 2018.

October 19, 2019 Receive $41,000 from customers for services provided in 2019.

December 31, 2019 Estimate that 45% of accounts receivable at the end of the year will not be received.

On January 1, 2018, Mania Enterprises issued 12% bonds dated January 1, 2018, with a face amount of $20.1 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

Required:
1. Determine the price of the bonds at January 1, 2018.
2. Prepare the journal entry to record the bond issuance by Mania on January 1, 2018.
3. Prepare the journal entry to record interest on June 30, 2018, using the effective interest method.
4. Prepare the journal entry to record interest on December 31, 2018, using the effective interest method.

The top part of Ramakrishnan, Inc.’s 2018 and 2017 balance sheets is listed below (in millions of dollars).

Calculate Ramakrishnan, Inc.’s current ratio for 2018 and 2017. (Round your answers to 2 decimal places.)

Calculate Ramakrishnan, Inc.’s quick ratio for 2018 and 2017. (Round your answers to 2 decimal places.)

Calculate Ramakrishnan, Inc.’s cash ratio for 2018 and 2017. (Round your answers to 2 decimal places.)

On January 1, 2018, Bishop Company issued 10% bonds dated January 1, 2018, with a face amount of $19.8 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Required:
1. Determine the price of the bonds at January 1, 2018.
2. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2018.
3. Prepare the journal entry to record interest on June 30, 2018, using the effective interest method.
4. Prepare the journal entry to record interest on December 31, 2018, using the effective interest method.