Suppose you use a call spread strategy on 4/15/2020, by buying a Facebook call option with the strike price of $180 at $7 and selling a Facebook call option with the strike price of $195 at $2. Both call options mature on 5/15/2020.
In: Finance
Suppose you use a call spread strategy on 4/15/2020, by buying a Facebook call option with the strike price of $180 at $7 and selling a Facebook call option with the strike price of $195 at $2. Both call options mature on 5/15/2020.
(a) What is your total payoff and profit if Facebook share is traded at $170 on 5/15/2020?
(b) What is your total payoff and profit if Facebook share is traded at $185 on 5/15/2020?
(c) What is your total payoff and profit if Facebook share is traded at $200 on 5/15/2020?
In: Finance
Buzz Bee Yard Company’ Apiary began operations on January 1, 2020, with the purchase of 100 bee hives for $500 total. Buzz follows IFRS and its standard on agricultural products. It has completed the first year of operations and has the following information for its bee hives at December 31, 2020:
Required:
In: Accounting
Bedco makes high quality beds. Each bed sells for $1,000. They sold 750 beds in 2020 and 900 beds in 2019. Their costs for both years are presented below:
2019:
Cost of Goods Sold: $360,000
Operating Expenses: $220,000
Factory Rent: $60,000
2020:
Cost of Goods Sold: 300,000
Operating Expenses: 190,000
Factory Rent: 60,000
A. PROVIDE BEDCO’S CONTRIBUTION MARGIN INCOME STATEMENT FOR 2020 AND 2019.
B. PROVIDE THE BEDCO’S 2020 VARIABLE COST RATIO AND VARIABLE COST/UNIT.
C. PROVIDE THE BEDCO’S 2020 CONTRIBUTION MARGIN RATIO AND CONTRIBUTION MARGIN/UNIT.
D. PART D: USING BREAK-EVEN ANALYSIS, DETERMINE THE BEDCO’S 2020 BREAK-EVEN POINTS IN TERMS OF SALES DOLLARS AND NUMBER OF UNITS SOLD.
In: Accounting
| On April 1, 2020, Pritima Ltd. paid $375 for a call to buy 800 shares of Niamini Corporation at a strike price of $65 per share any time during the next six months. The market price of Niamini’s shares was $50 per share on April 1, 2020. On June 30, 2020, the market price for Niamini’s stock was $87 per share, and the value of the option was $16,700. |
| a) Prepare the journal entry to record the purchase of the call option on April 1, 2020. |
| b) Prepare the journal entry(ies) to recognize the change in the call option’s fair value as of June 30, 2020. |
| c) Prepare the journal entry that would be required if Pritima Ltd. exercised the call option and took delivery of the shares as soon as the market opened on July 1, 2020 |
In: Accounting
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