Amy Dyken, controller at Marigold Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Marigold’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2020.

The following transactions have also occurred at Marigold.

For the fiscal year ended June 30, 2020, calculate the following for Marigold Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. $2.45.)

(a) Basic earnings per share.

(b) Diluted earnings per share.

Amy Dyken, controller at Waterway Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Waterway’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2020.

Waterway Pharmaceutical Industries
Selected Balance Sheet Information
June 30, 2020
Long-term debt      
Notes payable, 10% $990,000
8% convertible bonds payable       5,030,000
10% bonds payable 5,880,000
Total long-term debt $11,900,000
       
Shareholders’ equity      
Preferred stock, 5% cumulative, $50 par value, 107,000 shares authorized, 26,750 shares issued and outstanding $1,337,500
Common stock, $1 par, 9,800,000 shares authorized, 980,000 shares issued and outstanding 980,000
Additional paid-in capital 3,940,000
Retained earnings 6,110,000
Total shareholders’ equity $12,367,500

The following transactions have also occurred at Waterway.

1.       Options were granted on July 1, 2019, to purchase 190,000 shares at $15 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share.
2.       Each bond was issued at face value. The 8% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019.
3.       The preferred stock was issued in 2019.
4.       There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020.
5.       The 980,000 shares of common stock were outstanding for the entire 2020 fiscal year.
6.       Net income for fiscal year 2020 was $1,490,000, and the average income tax rate is 20%.

For the fiscal year ended June 30, 2020, calculate the following for Waterway Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. $2.45.)

(a) Basic earnings per share.

Basic earnings per share      
$ (?)

(b) Diluted earnings per share.

Diluted earnings per share      
$ (?)

1)On January 1, 2020, Bramble Company purchased at face value, a $1210, 10% bond that pays interest on January 1. Bramble Company has a calendar year end.
The adjusting entry on December 31, 2020, is

not required

2)Marigold Inc. has 5200 shares of 5%, $100 par value, cumulative preferred stock and 49200 shares of $1 par value common stock outstanding at December 31, 2020. What is the annual dividend on the preferred stock?

3)

Waterway, Inc., has 9500 shares of 5%, $100 par value, noncumulative preferred stock and 95000 shares of $1 par value common stock outstanding at December 31, 2020. If the board of directors declares a $201500 dividend, the

A)preferred stockholders will receive the entire $201500.

b)preferred stockholders will receive $47500 and the common stockholders will receive $154000.

c)$47500 will be held as restricted retained earnings and paid out at some future date.

d)preferred stockholders will receive 1/10^th of what the common stockholders will receive.

4)

Outstanding stock of the Bramble Corporation included 19800 shares of $5 par common stock and 9900 shares of 6%, $10 par noncumulative preferred stock. In 2019, Bramble declared and paid dividends of $4200. In 2020, Bramble declared and paid dividends of $11000. How much of the 2020 dividend was distributed to preferred shareholders?

A)$6800

b)$4200

c)$5940

D)None of these answer choices are correct

5)

Outstanding stock of the Crane Corporation included 19000 shares of $5 par common stock and 4500 shares of 5%, $10 par noncumulative preferred stock. In 2019, Crane declared and paid dividends of $1500. In 2020, Crane declared and paid dividends of $5500. How much of the 2020 dividend was distributed to preferred shareholders?

1)$1500

2)$4000

3)$2250

4)None of these answer choices are correct

(you dont need to show the work just answer them)

Samson plc is registered for VAT.

The following information relates to the company’s VAT return for the quarter ended 31 March 2020:

1. Sales invoices totalling £330,000 were issued to VAT registered customers, of which £240,000 were for standard-rated sales and £90,000 were for zero-rated sales.

2. Samson plc offers its standard-rated customers a 5% discount for prompt payment. This discount was taken by 1/3 of the customers.

3. Purchase invoices totalling £154,000 were received from VAT registered suppliers, of which £136,000 were for standard-rated purchases and £18,000 for zero-rated purchases.

4. Standard-rated expenses amounted to £28,000. This includes £3,900 for entertaining UK customers.

5. On 15 March 2020, the company wrote off irrecoverable receivables of £4,000 and £1,680 in respect of invoices that were due for payment on 10 August 2019 and 5 November 2019 respectively.

6. On 11 January 2020, Samson plc purchased machinery for £24,000 and sold office fittings for £8,000. Input VAT had been claimed when the office fittings were originally purchased.
7. On 1 March 2020, Samson plc purchased a motor car costing £28,400 for the use of its finance director. The finance director is provided with free petrol for private mileage, and the cost of this is included in the standard-rated expenses in note (iv). The relevant quarterly scale charge is £432. Both figures are inclusive of VAT.

Unless stated otherwise, all of the figures above are exclusive of VAT.

YOU ARE REQUIRED TO:

1. Calculate the VAT payable by Samson plc for the quarter ended 31 March 2020 and state the payment due date.

2. Samson plc is experiencing cash-flow difficulties. The company submitted its VAT return and paid the VAT due for the quarter ended 31 December 2019 on 15 March 2020.

State the consequences if Samson plc does not submit the return for the quarter ended 31 March 2020 until 25 May 2020.

(maximum word count 80 words)

TOTAL 20 MARKS

UK TAX

(Supplemental Disclosures) It is February 2021 and Janix Corporation is preparing to issue financial statements for the year ended December 31, 2020. To prepare financial statements and related disclosures that are faithfully representative, Janix is reviewing the following events in 2020 and 2021:

1. In August 2020, Maddux Incorporated filed a lawsuit against Janix for alleged patent infringement, claiming $1.8 million in damages. In the opinion of Janix's management and legal counsel, it is not likely that damages will be awarded to Maddux.
2. In January 2021, there was a significant decline in the fair value of Janix's FV-NI investments, resulting in an unrealized holding loss of $720,000.
3. In January 2021, a customer filed a lawsuit against Janix for alleged breach of contract related to services provided in 2020. The customer is seeking damages of $950,000. Janix's legal counsel believes that Janix will likely lose the lawsuit and have to pay between $850,000 and $950,000.
4. In August 2020, Janix signed a contract to purchase 200,000 inventory units in August 2021 for a price of $12 per unit. According to the supplier's price list at December 31, 2020, the price per inventory unit had decreased to $10 per unit.
5. At December 31, 2020, Janix had a $1.1-million demand loan outstanding. The terms of the demand loan restrict Janix's payment of dividends to $2 per common share.
6. On January 31, 2021, Janix issued 100,000 new common shares, raising $2 million in new capital.
7. On January 28, 2021, management settled a dispute with the union of its factory workers. A strike had started on November 14, 2020. A portion of the settlement involved a lump sum payment to each worker in lieu of a retroactive adjustment in pay rate dating back to the beginning of the strike.
Janix prepares financial statements in accordance with IFRS.

Instructions
For each item above, indicate whether the event relates to a provision, contingency, commitment, or subsequent event, and explain the appropriate accounting treatment. If no adjustment or disclosure is required, explain why.

Stellar 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.

What is the amount of the credit loss that Stellar 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 that the fair value of the available-for-sale security is $53,200 at December 31, 2020, instead of $40,200. What is the amount of the credit loss that Stellar should report at December 31, 2020?

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.)

Investment in Trading and AFS Securities

In 2019, a company purchases debt securities at a par value of $500,000. Their year-end value is $520,000. In 2020, these securities are sold for $525,000 and new securities are purchased for $700,000. At the end of 2020, the securities have not yet been sold, and have a value of $600,000.

Required
Prepare the journal entries to record the above information for 2019 and 2020, assuming that:

a. The securities are categorized as trading securities.

P4.1B:   Karlin Company Information for 2020.

Retained earnings , January 1, 2020 2,250,000

Sales revenue 53,000,000

Cost of goods sold   33,000,000

Interest revenue 120,000

Selling and administrative expenses 8,900,000

Write-off of goodwill 2,100,000

Income taxes for 2020 3,650,000

Loss on the sale of investments 53,000

Loss due to hurricane damage 1,100,000

Gain on the disposition of the retail division (net of tax) 23,000

Loss on operations of the retail division (net of tax) 231,000

Dividends declared on common stock 350,000

Dividends declared on preferred stock 125,000

INSTRUCTIONS:1. Prepare a multiple-step income statement 2. Prepare a separate Retained Earnings StatementOn September 15, Karlin sold the retail operations to Shark CorpAssume that 60,000 shares of common stock are outstanding.

based on the ratios completed above)

1. What the Ratios Tell Us About the Company in General or its Financial Management?

2. How the Ratios Affect the Decision Whether to Grant Short-term Credit or Long-term Credit, or to Buy Shares in the Company

Ivanhoe Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

Unrecorded transactions and adjustments:

(Ignore income taxes.)

Prepare journal entries for the transactions and adjustment listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)