please answer this
Salad Ltd acquired all the net assets of an existing business, Lettuce Ltd on 1 July 2020. The statements of financial position of the two companies immediately prior to the acquisition were as follows:
|
Salad Ltd |
Lettuce Ltd |
||
|
Cash |
$4,200 |
$2,000 |
|
|
Accounts receivable |
30,000 |
16,500 |
|
|
Freehold land |
265,000 |
100,000 |
|
|
Building (net) |
35,000 |
28,000 |
|
|
Cultivation equipment (net) |
69,000 |
46,000 |
|
|
Irrigation equipment |
18,000 |
21,000 |
|
|
Delivery trucks |
46,000 |
36,000 |
|
|
Motor vehicles |
30,000 |
32,000 |
|
|
497,200 |
281,500 |
||
|
Accounts payable |
29,000 |
24,500 |
|
|
Loan - Bank of NSW |
155,000 |
79,000 |
|
|
Loan - Bernard Bros |
35,000 |
34,000 |
|
|
Loan - Golds Corp. |
72,000 |
52,500 |
|
|
Share capital |
110,000 shares |
110,000 |
- |
|
60,000 shares |
- |
60,000 |
|
|
Reserves |
28,500 |
- |
|
|
Retained earnings |
67,700 |
31,500 |
|
|
497,200 |
281,500 |
||
All of the assets of Lettuce Ltd are recorded at fair value, with the exception of:
|
Fair value |
|
|
Freehold land* |
120,000 |
|
Buildings |
40,000 |
|
Cultivation equipment |
40,000 |
|
Motor vehicle |
34,000 |
*Fair value excluding Lettuce’s vacant land.
The terms of the acquisition are as follows:
vehicles and the delivery trucks. The land and vehicles had the following values at 1 July 2020:
|
Carrying amount |
Fair Value |
|
|
Freehold Land |
$50,000 |
$120,000 |
|
Delivery Trucks |
30,000 |
27,000 |
Required:
In: Accounting
How does composition (by final use) of crude oil demand in the US and Canada differ from many countries in the rest of the world that are less well developed and less motorized?
Given your answer to above, how does this affect the refining sector in the US and Canada relative to many countries in the rest of the world?
In: Economics
Throughout history empires have portrayed their power and governance of others as benevolent and just. The US characterizes itself as a champion of democracy, human rights, and free markets but on numerous occasions it has abandoned these values in the name of national interest. Is the US just another Empire indistinguishable from past empires, why or why not?
In: Operations Management
The following phrases are the six purposes of our Federal government found in the Preamble of the Constitution.
We the People of the United States, (1) in order to form a more perfect Union, (2) establish justice, (3) ensure domestic Tranquility, (4) provide for the common defense, (5) promote general Welfare, and (6) secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.
The statements below describe actions that may be taken by the US government. Using the information above regarding the Preamble of the Constitution, match the statements below with the number associated (1,2,3,4,5, or 6) with the purpose of government that BEST fits the situation. Place your answer in the space beside the statement.
|
1. |
The President negotiates a nuclear arms deal with North Korea. |
|
|
2. |
The US government gives emergency aid to tornado victims in Charlotte, NC. |
|
|
3. |
The police catch and arrest three people suspected of robbing a bank. |
|
|
4. |
The President asks Congress for money to build 100 additional stealth bombers. |
|
|
5. |
The first amendment was added to the Constitution in 1791. It protects citizens’ rights to freedom of speech, religion, press, assembly, and petition. |
|
|
6. |
Congress passes a law saying that no state can stop a US citizen from freely traveling from one state to another. |
|
|
7. |
Congress passes a law providing universal healthcare to all citizens. |
|
|
8. |
Congress decides to provide more funds to the FBI’s “War on Crime” |
|
|
9. |
The president signs a measure providing for the first peacetime draft in US history shortly before the attack on Pearl Harbor. |
|
|
10. |
A federal court orders a chemical company to make payments to workers who were injured in a spill. |
|
|
11. |
The government pays unemployment benefits to workers who lose their jobs during a recession. |
In: Economics
Health insurance and privacy A 21 year-old Japanese woman who is a university student has been considering going to see a psychiatrist. Since she has national health insurance, she has to pay the hospital only 30% of the total medical cost, which she thinks she can afford. What makes her pause, however, is that if she uses the national health insurance her hospital visits will be reported to her father through the company he is working for, which she does not want to happen. Details of treatment or prescribed medicines are not reported but because the name of hospital/clinic she attends will be reported her family can guess her conditions. This means she cannot hide the fact that she sees a psychiatrist and that will make them worry. This is because she is a dependent family member of her father in the national health insurance system until she starts to work after graduating from the university. Another option is that she pays all the cost by herself without using the national health insurance but then this is too costly and she cannot go to see a psychiatrist. She has been wondering what to do but she really does not want to let her family know about this and be worried about her.
In this case, what ethical theory can be applied. Does she have any privacy or confidentiality ?
In: Psychology
Chapter 5: Customer and Sales
Additionally, please refer to Chapter 6 in your Cengage Accounting eText, accessible from the eText link in the Course Navigation Panel to the left of your screen.
Requirement 1:
Margie Johnson is a staff accountant at ToolEx Company, a manufacturer of tools and equipment. The company is under pressure from investors to increase earnings, and the president of the company expects the accounting department to “make this happen.” Margie's boss, who has been a mentor to her, is concerned that if earnings do not increase, he will be terminated.
Shortly after the end of the fiscal year, the company performs a physical count of the inventory. When Margie compares the physical count to the balance in the inventory account, she finds a significant amount of inventory shrinkage. The amount is so large that it will result in a significant drop in earnings this period. Margie's boss asks her not to make the adjusting entry for shrinkage this period. He assures her that they will get “caught up” on shrinkage in the next period, after the pressure is off to reach this period's earnings goal. Margie's boss asks her to do this as a personal favor to him.
What should Margie do in this situation? Why?
Requirement 2:
On April 18, 2020, Bontanica Company, a garden retailer, purchased $9,800 of seed, terms 2/10, n/30, from Whitetail Seed Co. Even though the discount period had expired, Shelby Davey subtracted the discount of $196 when he processed the documents for payment on May 1, 2020.
Discuss whether Shelby Davey behaved in a professional manner by subtracting the discount even though the discount period had expired.
Responses to Classmates:
Please let your classmates know if you agree or disagree with the information that they provided in Requirement 1 or Requirement 2 and explain why.
Response to Instructor:
Please check your thread for questions or comments from me and be sure to provide a comprehensive response, as requested.
Writing:
Please make sure that your initial post contains a properly cited reference. Please use APA style. You should cite your text as a minimum. Additionally, check your spelling and proofread your post before you hit the submit button.
In: Accounting
4. A U.S. company borrows HK$1,000,000 from a Hong Kong bank on November 1, 2019, when the spot rate is $0.127/HK$. The loan carries an interest rate of 3%, and principal and interest are due on April 1, 2020, in Hong Kong dollars. The spot rate on December 31, the company’s year-end, is $0.128/HK$. On April 1, the company pays principal and interest to close the loan. The spot rate on April 1 is $0.124/HK$. The average spot rate for the period November 1 – April 1 is $0.1272/HK$.
Using the attached T-account template, prepare all necessary journal entries to record the above events on the U.S. company's books, including year-end adjusting entries.
In: Accounting
Waterways prepared the balance sheet and income statement for the irrigation installation division for 2020. Now the company also needs to prepare a statement of cash flows for the same division. The comparative balance sheets for Waterways Corporation’s Irrigation Installation Division for the years 2019 and 2020 and the income statement for the year 2020 are presented below. Additional information: 1. Waterways sold a company vehicle for $24,200. The vehicle had been used for 10 years. It cost $80,500 when purchased and had a 10-year life and a $6,100 salvage value. Straight-line depreciation was used. 2. Waterways purchased with cash new equipment costing $209,100. 3. Prepaid expenses increased by $33,800. All changes in accounts payable relate to inventory purchases.
| WATERWAYS CORPORATION—INSTALLATION
DIVISION Balance Sheets December 31 |
|||||||
| Assets | 2020 | 2019 | |||||
| Current assets | |||||||
| Cash | $829,900 | $751,300 | |||||
| Accounts receivable | 679,600 | 543,100 | |||||
| Work in process | 705,000 | — | |||||
| Inventory | 16,800 | 7,500 | |||||
| Prepaid expenses | 76,200 | 42,400 | |||||
| Total current assets | 2,307,500 | 1,344,300 | |||||
| Property, plant, and equipment | |||||||
| Land | 302,000 | 302,000 | |||||
| Buildings | 447,000 | 447,000 | |||||
| Equipment | 921,800 | 793,200 | |||||
| Furnishings | 40,300 | 40,300 | |||||
| Accumulated depreciation | (483,600 | ) | (483,800 | ) | |||
| Total property, plant, and equipment | 1,227,500 | 1,098,700 | |||||
| Total assets | $3,535,000 | $2,443,000 | |||||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $157,000 | $128,300 | |||||
| Income taxes payable | 101,500 | 80,700 | |||||
| Wages payable | 4,400 | 2,000 | |||||
| Interest payable | 1,100 | — | |||||
| Other current liabilities | 14,600 | 15,100 | |||||
| Revolving bank loan payable | 14,900 | — | |||||
| Total current liabilities | 293,500 | 226,100 | |||||
| Long-term liabilities | |||||||
| Note payable | 142,000 | — | |||||
| Total liabilities | 435,500 | 226,100 | |||||
| Stockholders’ equity | |||||||
| Common stock | 1,250,000 | 1,250,000 | |||||
| Retained earnings | 1,849,500 | 966,900 | |||||
| Total stockholders’ equity | 3,099,500 | 2,216,900 | |||||
| Total liabilities and stockholders’ equity | $3,535,000 | $2,443,000 | |||||
| WATERWAYS CORPORATION—INSTALLATION
DIVISION Income Statement For the Year Ending December 31, 2020 |
||||||
| Sales | $5,513,457 | |||||
| Less: Cost of goods sold | 3,125,200 | |||||
| Gross profit | 2,388,257 | |||||
| Operating expenses | ||||||
| Advertising | $50,500 | |||||
| Insurance | 400,400 | |||||
| Salaries and wages | 587,300 | |||||
| Depreciation | 74,200 | |||||
| Other operating expenses | 20,900 | |||||
| Total operating expenses | 1,133,300 | |||||
| Income from operations | 1,254,957 | |||||
| Other income | ||||||
| Gain on sale of equipment | 18,100 | |||||
| Other expenses | ||||||
| Interest expense | (12,200 | ) | ||||
| Net other income and expenses | 5,900 | |||||
| Income before income tax | 1,260,857 | |||||
| Income tax expense | 378,257 | |||||
| Net income | $882,600 | |||||
(a) Prepare a statement of cash flows using the
indirect method for the year 2020. (Show amounts that
decrease cash flow with either a - sign e.g. -15,000 or in
parenthesis e.g. (15,000).)
In: Accounting
Exercise 9-12
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available.
| 1. | Sales: 20,800 units quarter 1; 22,100 units quarter 2. | |
| 2. | Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. | |
| 3. | Fixed costs per quarter: sales salaries $10,900, office salaries $6,160, depreciation $4,490, insurance $2,080, utilities $880, and repairs expense $670. | |
| 4. | Unit selling price: $24. |
Prepare a selling and administrative expense budget by quarters for
the first 6 months of 2020. (List variable expenses
before fixed expense.)
KIRKLAND COMPANY
Selling and Administrative Expense Budget
| KIRKLAND
COMPANY Selling and Administrative Expense Budget For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020June 30, 2020 |
|||||
|
Quarter |
|||||
|
1 |
2 |
Six Months |
|||
|
Budget Sales in Units |
|||||
| Variable Expenses | |||||
| Sales Commissions | $ | $ | $ | ||
|
Delivery Expense |
|||||
|
Advertising |
|||||
|
Total Variable |
|||||
| Fixed Expenses | |||||
|
Sales Salaries |
|||||
|
Office Salaraies |
|||||
|
Depreciation |
|||||
|
Insurance |
|||||
|
Utilities |
|||||
|
Repair Expense |
|||||
|
Total Fixed |
|||||
| Total Selling and Administrative Expenses | $ | $ | $ | ||
In: Finance
Income Statement
For the Year Ended December 31, 2018
Sales $8,500,000
Manufacturing Expenses
Variable $3,250,000
Fixed overhead 640,000 3,890,000
Gross Margin $4,610,000
Selling and administrative expenses
Commissions $580,000
Fixed marketing expenses 300,000
Fixed admin expenses 450,000 1,330,000
Net Operating Income $3,280,000
Fixed Interest expenses 230,000
Income before Taxes $3,050,000
Income Taxes (21%) 640,500
Net Income $2,409,500
Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales. The outsourcing would remove the commissions, reduce the marketing by $270,000, and reduce the fixed administrative expenses by $35,000. The out-sourcing firm, Jangler Marketing, will charge a fee of 14% of sales. Jangler requires a 3-year contract. Jangler believes that it can increase sales by 10% for 2019 and 13% each year after (2020 and 2021). The company believes that with its current sales and marketing staff, sales will increase by 8% for 2019 and 9% in each year after (2020 and 2021).
1.Prepare contribution format projected income statements for 2019, 2020 & 202a assuming the company hires Jangler Marketing.
2.Prepare contribution format projected income statements assuming the outsourcing is rejected.
In: Accounting