In preparing the consolidation worksheet for Pencil Corporation and its 60 percent–owned subsidiary, Stylus Company, the following consolidation entries were proposed by Pencil's bookkeeper:

Pencil's bookkeeper recently graduated from Oddball University, and although the dollar amounts recorded are correct, he had some confusion in determining which accounts needed adjustment. All intercorporate sales in 20X5 were from Stylus to Pencil, and Stylus sells inventory at cost plus 40 percent of cost. Pencil uses the fully adjusted equity method in accounting for its ownership in Stylus.

Required:
a. What percentage of the intercompany inventory transfer was resold prior to the end of 20X5? (Do not round your intermediate calculations. Round your final answer to nearest whole percentage.)

b. Prepare the appropriate consolidation entries needed at December 31, 20X5, to prepare consolidated financial statements. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

• Record the entry to eliminate intercompany receivable/payable.
• Record the entry to eliminate the intercompany inventory sale.

The balance of payments consists of three accounts which together record the flow of money into and out of a country. The current account records the sale and purchase of goods and services, the capital account records the sale and purchase of financial assets, and the official settlements (OS) account records changes in government holding of foreign currencies. Anything that brings domestic currency into the country is recorded as a positive while anything that sends domestic currency out of the country is a negative. Based on this description, identify which UAE account (current, capital, or OS) each transaction would be included in and whether it would be positive or negative.

a) Etihad Airlines buys 2 new airplanes from Boeing (a US company)

b) A London businessman buys 100 shares of Etihad Airlines stock

c) The UAE government buys 100,000 Omani rial

d) A UAE housewife receives an interest payments of 250,000 AED on short-term foreign deposits in a UK bank

e) A petrol station in Iceland buys 3,000 liters of petrol from ADNOC

f) The UAE government sells 1 million US dollars

g) The UAE government lends 1 billion euros to the Greek government

Assume that the following hold true for the US and China, and assume that the growth rate listed will remain the same over the next century and a half. (The numbers given are fairly close to the current values, but the assumption that the growth rates will remain constant for the next 150 years is pretty ridiculous. Still, go with it.)

1. Given the data in the table, what is the annual growth rate of real GDP per capita in the US? Show your work.

2. Given the data in the table, what is the annual growth rate of real GDP per capita in China? Show your work.

3. According to the Rule of 70 and using your answer from part 1, approximately how many years would it take for the real GDP in the US to double? Show your work.

4. According to the Rule of 70 and using your answer from part 2, approximately how many years would it take for the real GDP in China to double? Show your work.

5. Given your answer to part 3, approximately what will the real GDP per capita be in the US in 2158: that is, 140 years from now? Show your work.

6. Given your answer to part 4, approximately what will the real GDP per capita be in China in 2158: that is, 140 years from now? Show your work.

Blue Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020. Amortized cost $51,700 Fair value 43,400 Expected credit losses 12,900

What is the amount of the credit loss that Blue should report on this available-for-sale security at December 31, 2020?

Prepare the journal entry to record the credit loss, if any (and any other adjustment needed), at December 31, 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.)

Assume the same information as for part (c). Prepare the journal entry to record the credit loss, if necessary (and any other adjustment needed), at December 31, 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.)

Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with inventory of 5,600 units of its only product. The beginning inventory balance of $75,600 consisted of the following layers:
  

  
During the three years 2018–2020, the cost of inventory remained constant at $17 per unit. Unit purchases and sales during these years were as follows:
  

  
Required:
1. Calculate cost of goods sold for 2018, 2019, and 2020.
2. Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for each of the three years.
3. Determine the effects of LIFO liquidation on cost of goods sold and net income for 2018, 2019, and 2020. Cansela’s effective income tax rate is 35%.

1.) Winnie the Pooh Inc. issues 5,000 shares of $2 par common stock for $75 a share and 10,000 shares of $6 par preferred stock for $88 dollars per share. Journalize the issuance of these stocks:

2.) Winnie the Pooh Inc. the most generous of the companies declares a $200,000 cash dividend on April 1st, 2020. The company has 10,000 shares of $5 par common stock with a market value of $25 per share and 20,000 shares of $10 par 8% preferred stock with a $60 market value per share. The preferred stock is cumulative, and dividends were not paid in 2019. The date of record is April 20th, and the payment date is April 29th. Make the necessary journal entry showing exactly which shareholders will receive how much of each dividend, also be sure to perform the correct entry on the correct date: April 1st, 2020 journal entry: April 20th, 2020 journal entry: April 29th, 2020 journal entry:

Cansela Corporation uses a periodic inventory system and the LIFO method to value its inventory. The company began 2018 with inventory of 6,100 units of its only product. The beginning inventory balance of $87,200 consisted of the following layers: 2,600 units at $12 per unit = $ 31,200 3,500 units at $16 per unit = 56,000 Beginning inventory $ 87,200 During the three years 2018–2020, the cost of inventory remained constant at $18 per unit. Unit purchases and sales during these years were as follows: Purchases Sales 2018 19,000 20,000 2019 25,000 27,500 2020 21,000 22,000 Required: 1. Calculate cost of goods sold for 2018, 2019, and 2020. 2. Disregarding income tax, determine the LIFO liquidation profit or loss, if any, for each of the three years. 3. Determine the effects of LIFO liquidation on cost of goods sold and net income for 2018, 2019, and 2020. Cansela’s effective income tax rate is 30%.

Metlock Co. has the following postretirement benefit plan balances on January 1, 2020.

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends the plan so that prior service costs of $177,000 are created. Other data related to the plan are:

1. Prepare a worksheet for the postretirement plan in 2020.

2.Prepare any journal entries related to the postretirement plan that would be needed at December 31, 2020.

3.Prepare a worksheet for 2021

4.Prepare journal entries related to the postretirement plan as of December 31, 2021.

5. Indicate the postretirement-benefit–related amounts reported in the 2021 financial statements.