Crystal apple sales company began 2010 with cash of $2,000, inventory of $3,600 (200 crystal apples that cost $18 each), $2,500 of common stock, and $3,100 of retained earnings. the following events occured during 2010.

1. Crystal Apple purchased additional inventory twice during 2014. The first purchase consisted of 800 apples that cost $20 each, and the second consisted of 1,200 apples that cost $24 each. The purchases were on account.

2. The company sold 2,040 apples for cash at a selling price of $40 each.

3. The company paid $44,800 cash on accounts payable for inventory purchases.

4. Crystal Apple paid $26,000 cash for operating expenses.

5.Assume an income tax rate of 30 percent. Crystal Apple paid income tax expense in cash.

Required:

a. Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average.

b. Prepare an income statement, a balance sheet, and a statement of cash flows under each of the three cost flow assumptions.

6. ​Recently, fixed mortgage rates have been at historical lows due to the housing slowdown. The data table linked below shows the​30-year fixed average mortgage rate for the month of December every year between 1987 and 2010.

Year   Rate_(%)
1987   11.09
1988   11.04
1989   10.17
1990   9.93
1991   8.57
1992   8.3
1993   7.25
1994   9.04
1995   7.21
1996   7.06
1997   7.07
1998   6.84
1999   7.65
2000   7.74
2001   7.07
2002   6.84
2003   6.94
2004   6.79
2005   7.02
2006   6.82
2007   6.63
2008   5.88
2009   5.64
2010   5.4

b. Forecast the average December mortgage rate in 2011 using a trend projection ​(Round to two decimal places as​ needed.)

c. Calculate the MAD for this forecast. ​(Round to two decimal places as​ needed.)

d. Determine the Durbin–Watson statistic (Round to two decimal places as​ needed.)

e. Identify the critical values. ​(Round to two decimal places as​ needed.)

Question four
(I)During the year KCM acquired a new asset with a fair value of K500, 000 under a finance lease. The
lease agreement states that payments of K100, 000 must be paid for six years on 31 December each
year, starting on 31 December 2010. At the end of the six year period legal title of the asset will pass to
KCM.
KCM believes the only accounting entry he must make in relation to this asset is for the K100, 000
payments he has made and he has treated this as an operating expense. The interest rate is 12%
Required.
(a) Using the actuarial method(present value techniques) as recommended by IAS 17 leases
,prepare the calculations and the journal entry for the adjustments required to be made in the
accounts of KCM for the year ended 31 December 2010, to account for this finance lease .
(. b) Explain briefly why ethically KCM cannot treat the lease payment as an operating expense.
(3
Marks)
(ii)Explain the term operating segment as used in IFRS 8 and explain why the users of financial
statement may find a segment report useful.

Beavis Construction Company was the low bidder on a construction project to build an earthen dam for $1,700,000. The project was begun in 2020 and completed in 2021. Cost and other data are presented below: 2020 2021 Costs incurred during the year $ 486500 $1,000,000 Estimated costs to complete 903,500 0 Billings during the year 455,000 1,245,000 Cash collections during the year 355,000 1,345,000 ) Assume that Beavis recognizes revenue on this contract over time according to percentage of completion.

Gross Profit 2020 and 2021

On September 1, 2019, the entity bought the bonds belonging to the private sector with a nominal value (par value) of $400,000 with an annual interest payment of 12% through the bank. The related bonds were sold on February 1, 2020 with a bank equivalent of $424,000 .

a- Please show the journal entries required on 31 December 2019.

b- Show the journal entries required on February 1, 2020.

c- If these bonds were sold on February 1, 2020 for $418.000 show the journal entries.

On 12/31/2020, Heaton Industries Inc. reported retained earnings of $275,000 on its balance sheet, and it reported that it had $172,500 of net income during the year. On its previous balance sheet, at 12/31/2019, the company had reported $555,000 of retained earnings. No shares were repurchased during 2020. How much in dividends did Heaton pay during 2020?

elect the correct answer.

11

Green Company sells its product for $11100 per unit. Variable costs per unit are: manufacturing, $5600; and selling and administrative, $125. Fixed costs are: $51000 manufacturing overhead, and $61000 selling and administrative. There was no beginning inventory at 1/1/18. Production was 34 units per year in 2018–2020. Sales were 34 units in 2018, 30 units in 2019, and 38 units in 2020. Income under absorption costing for 2020 is

On September 1, 2019, the entity bought the bonds belonging to the private sector with a nominal value (par value) of $400,000 with an annual interest payment of 12% through the bank. The related bonds were sold on February 1, 2020 with a bank equivalent of $424,000 .

a- Please show the journal entries required on 31 December 2019.

b- Show the journal entries required on February 1, 2020.

c- If these bonds were sold on February 1, 2020 for $418.000 show the journal entries.

Waterway Industries includes one coupon in each bag of dog food it sells. In return for eight coupons, customers receive a leash. The leashes cost Waterway $3 each. Waterway estimates that 50 percent of the coupons will be redeemed. Data for 2020 and 2021 are as follows:

The premium liability at December 31, 2020 is

$44375.

$50625.

$66375.

$54375.