Questions
CASE : Manuel Market opens first branch in Riyadh Manuel Market, a Jeddah-based supermarket retailer, opened...

CASE : Manuel Market opens first branch in Riyadh

Manuel Market, a Jeddah-based supermarket retailer, opened its first branch in Riyadh on Feb. 26, 2020.

The ninth and newest Manuel Market, located in Riyadh-Mercato, Prince Muqrin bin Abdul Aziz Street, An-Nuzhah district, aims to provide customers a luxurious shooping experience, the best service, and the finest healthy, natural and organic products at reasonable prices. The opening ceremony was attended by Khaled Al-Darwish, CEO of Manuel Market; Abdulelah Al-Darwish, chairman; Abdullah Al-Darwish; Abdulrazzaq Al-Darwish, general manager; Faisal Al-Darwish, deputy general manager; a group of businessmen and media representatives; and a gathering of Manuel’s customers.

The supermarket chain, which opened its first branch in Jeddah in 2010, currently has seven branches in Jeddah, one in Jubail and one in the Saudi capital.
CEO Al-Darwish said: “The Manuel Market chain offers the best and widest selection of consumer goods and food products of the most famous global brands. In addition to being a leader in the field of organic and healthy natural foods, Manuel provides its customers with outstanding national and international product options under one roof.”
One of the most important goals of Manuel, Al-Darwish said, is to “make a positive difference in people’s lives by paying attention to their passion, understanding their needs, and meeting their aspirations.” He also reiterated Manuel’s commitment to developing and improving service levels to meet the demands of its customers.

Question: Suggest your strategies to differentiate Manuel Market from other super markets in Riyadh

In: Operations Management

Average Oil Prices Year Price per Barrel 1949 $2.54 1950 $2.51 1951 $2.53 1952 $2.53 1953...

Average Oil Prices
Year Price per Barrel
1949 $2.54
1950 $2.51
1951 $2.53
1952 $2.53
1953 $2.68
1954 $2.78
1955 $2.77
1956 $2.79
1957 $3.09
1958 $3.01
1959 $2.90
1960 $2.88
1961 $2.89
1962 $2.90
1963 $2.89
1964 $2.88
1965 $2.86
1966 $2.88
1967 $2.92
1968 $2.94
1969 $3.09
1970 $3.18
1971 $3.39
1972 $3.39
1973 $3.89
1974 $6.87
1975 $7.67
1976 $8.19
1977 $8.57
1978 $9.00
1979 $12.64
1980 $21.59
1981 $31.77
1982 $28.52
1983 $26.19
1984 $25.88
1985 $24.09
1986 $12.51
1987 $15.40
1988 $12.58
1989 $15.86
1990 $20.03
1991 $16.54
1992 $15.99
1993 $14.25
1994 $13.19
1995 $14.62
1996 $18.46
1997 $17.23
1998 $10.87
1999 $15.56
2000 $26.72
2001 $21.84
2002 $22.51
2003 $27.54
2004 $38.93
2005 $46.47
2006 $58.30
2007 $64.67
2008 $91.48
2009 $53.48
2010 $71.21
2011 $87.04
2012 $93.02
2013 $97.91
2014 $93.26
2015 $48.69
2016 $43.14
2017 $50.88

a) Using the 1949 oil price and the 1969 oil price, compute the annual growth rate in oil prices during the 20 yr period. b) Compute the growth rate between 1969 & 1989 and between 1989 & 2017. c) given the price in 2017 and your growth rate between 1989 and 2017 compute the future price of oil in 2020 & 2025.

In: Finance

The following facts relate to Sunland Corporation. 1. Deferred tax liability, January 1, 2020, $33,900. 2....

The following facts relate to Sunland Corporation.
1. Deferred tax liability, January 1, 2020, $33,900.
2. Deferred tax asset, January 1, 2020, $11,300.
3. Taxable income for 2020, $118,650.
4. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $259,900.
5. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $107,350.
6. Tax rate for all years, 20%. No permanent differences exist.
7. The company is expected to operate profitably in the future.
Compute the amount of pretax financial income for 2020.
Pretax financial income $
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (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.)

Account Titles and Explanation

Debit

Credit
Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.” (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Sunland Corporation
Income Statement (Partial)

December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020

CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues

 $

CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues

    Current    Deferred    Dividends    Expenses    Income before Income Taxes    Income Tax Expense    Net Income / (Loss)    Retained Earnings, January 1    Retained Earnings, December 31    Revenues    Total Expenses    Total Revenues    

 $

    Current    Deferred    Dividends    Expenses    Income before Income Taxes    Income Tax Expense    Net Income / (Loss)    Retained Earnings, January 1    Retained Earnings, December 31    Revenues    Total Expenses    Total Revenues    

CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues

 $
Compute the effective tax rate for 2020. (Round answer to 0 decimal places, e.g. 25%)
Effective tax rate %
Click if you would like to Show Work for this question:

Open Show Work

In: Accounting

Exercise 17-03 On January 1, 2020, Pearl Company purchased 8% bonds having a maturity value of...

Exercise 17-03

On January 1, 2020, Pearl Company purchased 8% bonds having a maturity value of $400,000, for $433,699.52. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Pearl Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.
Your answer is correct.
Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. 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.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1, 2020

 enter an account title to record the transaction on January 1, 2020 enter a debit amount enter a credit amount
enter an account title to record the transaction on January 1, 2020 enter a debit amount enter a credit amount

SHOW LIST OF ACCOUNTS

SHOW ANSWER

LINK TO TEXT
Your answer is incorrect. Try again.
Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

Schedule of Interest Revenue and Bond Premium Amortization
Effective-Interest Method


Date

Cash
Received

Interest
Revenue

Premium
Amortized

Carrying Amount
of Bonds

1/1/20

1/1/21

1/1/22

1/1/23

1/1/24

 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places

1/1/25

 enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places enter a dollar amount rounded to 2 decimal places
Your answer is incorrect. Try again.
Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020.

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2020

 enter an account title to record the transaction on December 31, 2020 enter a debit amount enter a credit amount
enter an account title to record the transaction on December 31, 2020 enter a debit amount enter a credit amount
enter an account title to record the transaction on December 31, 2020 enter a debit amount enter a credit amount

In: Accounting

On August 1, 2019, ABC Co. borrowed $10,000 on a one-year Note Payable with an interest...

On August 1, 2019, ABC Co. borrowed $10,000 on a one-year Note Payable with an interest rate of 12% per year.

a) What is the adjusting journal entry on November 30, 2019 to record the relevant expense for the month of November?

Debit Credit Amount
  

b) When the December 31, 2019 adjusting journal entry is made, a balance sheet account is impacted. Select the name of this account. Also, on January 1, 2020, after making the December 31 adjusting journal entry, what is the balance of this account?

Account Name Balance on January 1, 2020

c) As of August 1, 2020, after paying off the loan with interest, what is the total amount of interest expense the company will have recorded for 2020 and the total cash paid for interest in 2020? Do not include the $10,000 principal repayment.

2020 Interest Expense 2020 Cash Paid for Interest

d) If the company incorrectly recognized interest expense for August 2019 through July 2020 at the time cash was paid rather than when the expense was incurred, what would be the impact on the 2019 and 2020 income statements?

2019 Income Statement 2020 Income Statement
     

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Question 2415 pts

Note: There are 5 parts to this question (3 points each).

Capital expenditures are added to the balance sheet as assets and (usually) are expensed over time. Revenue expenditures are expensed in the period in which the cost is incurred. Select the appropriate accounting treatment under GAAP for each equipment-related expenditure below by classifying it as a capital expenditure or a revenue expenditure.

Expenditure Classification
a) Purchase price of equipment   
c) Cost of assembling equipment on site   
d) Reconditioning to extend its useful life
e) Ordinary ongoing repairs and maintenance
f) Monthly electricity costs for equipment

A company purchased equipment on January 1, 2017 for $102,000. The equipment has an estimated residual value of $6,000 and an estimated useful life of 8 years. The company uses the straight-line method to depreciate the equipment and makes the relevant adjusting entry at the end of each month.

a) What is the annual depreciation for the equipment?

  

b) In general, what is the journal entry to record depreciation? (Ignore the amount.)

Debit Credit
  

c) What is the value of the Accumulated Depreciation--Equipment account on January 1, 2019?

  

d) What is the book value of the equipment on January 1, 2019?

                             

e) On January 1, 2019, the company sells the equipment for $85,000 cash. What is the gain or loss on the sale of the equipment?

Gain or Loss? Amount of Gain or Loss
  

In: Accounting

An excerpt from the statement of financial position of Twilight Limited follows: TWILIGHT LIMITED Selected Statement...

An excerpt from the statement of financial position of Twilight Limited follows:
TWILIGHT LIMITED
Selected Statement of Financial Position Information
At December 31, 2020
Long-term debt
Notes payable, 10% $5,000,000
4% convertible bonds payable 2,000,000
6% convertible bonds payable

3,000,000
Total long-term debt

$10,000,000
Shareholders' equity
$0.68 cumulative, no par value, convertible preferred shares
(unlimited number of shares authorized, 600,000 shares
issued and outstanding)		 $3,000,000
Common shares, no par value (8,000,000 shares authorized,
3,000,000 shares issued and outstanding)		 25,000,000
Contributed surplus 200,000
Retained earnings

7,000,000
Total shareholders’ equity

$35,200,000

Notes and Assumptions
December 31, 2020
1. Options were granted/written in 2019 that give the holder the right to purchase 100,000 common shares at $8 per share. The average market price of the company’s common shares during 2020 was $14 per share. The options expire in 2028 and no options were exercised in 2020.
2. The 4% bonds were issued in 2019 at face value. The 6% bonds were issued on June 1, 2020, at face value. Each bond has a face value of $1,000 and is convertible into 100 common shares.
3. The convertible preferred shares were issued at the beginning of 2020. Each share of preferred is convertible into one common share.
4. The average income tax rate is 25%.
5. The common shares were outstanding during the entire year.
6. Preferred dividends were not declared in 2020.
7. Net income was $2,500,000 in 2020.
8. No bonds or preferred shares were converted during 2020.
Calculate the income effect of the dividends on preferred shares.
Dividends on preferred shares $
Calculate basic earnings per share for 2020. (Round answer to 2 decimal places, e.g. 15.25.)
Basic EPS $
Determine an incremental per share effect for $0.68 preferred shares. (Round answer to 2 decimal places, e.g. 15.25.)
Potentially dilutive security Incremental
Numerator Effect		 Incremental
Denominator Effect		 EPS
$0.68 Preferred shares $ $
Calculate the proceeds from assumed exercise of 100,000 options.
Proceeds from exercise of options $

Calculate the incremental shares oustanding upon the exercise of options.
The incremental shares oustanding upon the exercise of options
Calculate the after-tax interest paid on the 4% bonds.
After-tax interest on 4% bonds converted $

In: Accounting

An excerpt from the statement of financial position of Twilight Limited follows: TWILIGHT LIMITED Selected Statement...

An excerpt from the statement of financial position of Twilight Limited follows:

TWILIGHT LIMITED
Selected Statement of Financial Position Information
At December 31, 2020
Long-term debt
Notes payable, 10% $5,000,000
4% convertible bonds payable 2,000,000
6% convertible bonds payable

3,000,000
Total long-term debt

$10,000,000
Shareholders' equity
$0.68 cumulative, no par value, convertible preferred shares
(unlimited number of shares authorized, 600,000 shares
issued and outstanding)		 $3,000,000
Common shares, no par value (8,000,000 shares authorized,
3,000,000 shares issued and outstanding)		 25,000,000
Contributed surplus 200,000
Retained earnings

7,000,000
Total shareholders’ equity

$35,200,000


Notes and Assumptions
December 31, 2020

1. Options were granted/written in 2019 that give the holder the right to purchase 100,000 common shares at $8 per share. The average market price of the company’s common shares during 2020 was $14 per share. The options expire in 2028 and no options were exercised in 2020.
2. The 4% bonds were issued in 2019 at face value. The 6% bonds were issued on June 1, 2020, at face value. Each bond has a face value of $1,000 and is convertible into 100 common shares.
3. The convertible preferred shares were issued at the beginning of 2020. Each share of preferred is convertible into one common share.
4. The average income tax rate is 25%.
5. The common shares were outstanding during the entire year.
6. Preferred dividends were not declared in 2020.
7. Net income was $2,500,000 in 2020.
8. No bonds or preferred shares were converted during 2020.
Determine an incremental per share effect for 4% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.)
Potentially dilutive security Incremental
Numerator Effect		 Incremental
Denominator Effect		 EPS
4% Bonds $ $
Calculate the after-tax interest paid on the 6% bonds.
After-tax interest on 6% bonds converted $
Determine an incremental per share effect for 6% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.)
Potentially dilutive security Incremental
Numerator Effect		 Incremental
Denominator Effect		 EPS
6% Bonds $ $
Rank the potentially dilutive securities from most dilutive to least dilutive.
4% Bonds
6% Bonds
$0.68 Preferred shares
Options
Calculate diluted earnings per share for 2020. (Round earnings per share to 2 decimal places, e.g. 15.25.)
Numerator Denominator EPS
Basic $ $
Sub Total
Sub Total
Sub Total

In: Accounting

Comprehensive Accounting Cycle Review 15.ACR  Quigley Corporation's trial balance at December 31, 2020, is presented below. All...

Comprehensive Accounting Cycle Review

15.ACR  Quigley Corporation's trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

Debit Credit
Cash $  25,500
Accounts Receivable 51,000
Inventory 22,700
Land 65,000
Buildings 95,000
Equipment 40,000
Allowance for Doubtful Accounts $      450
Accumulated Depreciation—Buildings 30,000
Accumulated Depreciation—Equipment 14,400
Accounts Payable 19,300
Interest Payable -0-
Dividends Payable -0-
Unearned Rent Revenue 8,000
Bonds Payable (10%) 50,000
Common Stock ($10 par) 30,000
Paid-in Capital in Excess of Par—Common Stock 6,000
Preferred Stock ($20 par) -0-
Paid-in Capital in Excess of Par—Preferred Stock -0-
Retained Earnings 75,050
Treasury Stock -0-
Cash Dividends -0-
Sales Revenue 570,000
Rent Revenue -0-
Bad Debt Expense -0-
Interest Expense -0-
Cost of Goods Sold 400,000
Depreciation Expense -0-
Other Operating Expenses 39,000
Salaries and Wages Expense 65,000                
Total $803,200 $803,200

Unrecorded transactions and adjustments:

  • 1.On January 1, 2020, Quigley issued 1,000 shares of $20 par, 6% preferred stock for $22,000.
  • 2.On January 1, 2020, Quigley also issued 1,000 shares of common stock for $23,000.
  • 3.Quigley reacquired 300 shares of its common stock on July 1, 2020, for $49 per share.
  • 4.On December 31, 2020, Quigley declared the annual cash dividend and a $1.50 per share dividend on the outstanding common stock, all payable on January 15, 2021.
  • 5.Quigley estimates that uncollectible accounts receivable at year-end is $5,100.
  • 6.The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,000.
  • 7.The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,000.
  • 8.The unearned rent was collected on October 1, 2020. It was the receipt of 4 months' rent in advance (October 1, 2020 through January 31, 2021).
  • 9.The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded.

Instructions

(Ignore income taxes.)

(a)  

Prepare journal entries for the transactions and adjustment listed above.

(b)  

Prepare an updated December 31, 2020, trial balance, reflecting the journal entries in (a).

Total $871,200

In: Accounting

Question 1 Jack is a restaurant owner in San Francisco downtown. Due to the recent coronavirus...

Question 1

Jack is a restaurant owner in San Francisco downtown. Due to the recent coronavirus pandemic, he can now accept orders only for pickups and delivery services. This change in the format of incoming orders has made him revisit his assumption for daily estimation of order arrival. The reason why he needs to make this estimation, is for him to prepare the raw materials the night before, for the following day orders.

Based on his past experience, his assumption has been to expect around 18.5 orders a day. He also knows that regardless of season or the situation, the incoming orders always follow a normal distribution. However, to re-evaluate his assumption of 18.5 orders a day, he decided to keep a track of the total number of orders per day for about 10 days. Now Jack has come to you to help him evaluate the daily demand since he knows you are a pro in supply chain analytics.

Using the information that Jack has recorded in the table below, please calculate the upper and lower bound for a 90% confidence interval.

Date

#Orders

June 29, 2020

35

June 30, 2020

22

July 1, 2020

11

July 2, 2020

17

July 3, 2020

36

July 4, 2020

55

July 5, 2020

42

July 6, 2020

28

July 7, 2020

25

July 8, 2020

19

A) 90% Confidence interval lower bound

Round your answer to 1 decimal place (ex.: 19.4 for 19.432).

Answer:

B) 90% Confidence interval upper bound

Round your answer to 1 decimal place (ex.: 19.4 for 19.432).

Answer:

Question 2

After you reported the confidence interval bounds, Jack has come back to you for more information. He wants to know if his original assumption of 18.5 orders a day is still the same after the changes in the format of incoming orders.

Using the daily orders that Jack has captured during the 10 days, please run a hypothesis testing to check whether or not his original assumption of an average of 18.5 orders per day is still in line with the actuals that he has recorded.

H 0 : The average number of orders per day is equal to to 18.5  

H 1 : The average number of orders per day is not equal to 18.5

A) What is the test statistic of this hypothesis testing?

Round your answer to 1 decimal place (ex.: 19.4 for 19.432)

Answer:

B) Based on the significance level of 10% (the same as the previous section), can we reject the null hypothesis?

No

Yes

In: Statistics and Probability

Consider each of the following independent and material situations. In each case: • the balance date...

Consider each of the following independent and material situations. In each case: • the balance date is 30 June 2020. • the fieldwork was completed on 25 August 2020. • the financial report and audit report were signed on 28 August 2020. • the financial report and audit report were mailed to the members on 1 September 2020. (i) Your client, Central Mining, owns a mineral exploration licence in Central Australia. At 30 June 2020 this licence was valued by an independent expert at $50,000,000. This valuation is reflected in the financial report. On 8 September 2020 Central Mining received notice that a claim was being lodged under the Native Titles Act for land which included that subject to the exploration licence. If the claim is successful the exploration licence will be worthless. (ii) Your client, Bird Pty Limited, derives approximately 10% of revenues from selling aviary supplies to city-based bird breeders. A draft copy of a government report, leaked to the press and reported in the media on 11 September, recommends that strict limits be placed on the number of birds that are allowed to be kept in suburban areas. Bird Pty Limited estimates that if the recommendations are enacted, about 70% of its customers will have to cut their flocks by 50% or more. This would affect not only future sales but also their ability to pay existing debts. No further information, other than the draft report, is available as at 15 September. (iii) Your client, Gem Pty Limited, made an out of court settlement on 1 August 2020 of $300,000. The settlement related to a litigation case dating back 4 years. A provision of $150,000 was recorded in the 30 June 2020 financial report. Ans; Since the settlement was done before the closing the Financial Statements so balance of $150000 (300000-150000) should be provided in the current year Financials. (iv) On 14 September 20X7, you discover that a debtor of your client, Galaxy Ltd, was placed in provisional liquidation on 8 September. The debtor owed $600,000 as at 30 June 2020; at this date the amount had been considered collectable by the company. (v) A flood occurred in the warehouse of your client SuperSpring Ltd on 21 September 2020. Inventory valued at $2m was destroyed. The directors believe only half of this value will be recovered from the insurers. Required: For each of the above events (i) to (v), state the appropriate action that the auditor would need to carry out in order to find out about the above and what the company would need to do for each of the above

In: Accounting