Use the following information on the U.S. dollar value of the euro.

On October 30, 2020, a U.S. company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100,000 on April 30. On October 30, the U.S. company also enters a forward contract to sell €100,000 on April 30, 2021. The company delivers the merchandise to the customer on November 1. On April 30, the company receives €100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31.

What net gain or loss is recognized in 2020, in addition to sales revenue?

During 2020, Bonita Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Bonita for a lump sum of $77,805 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.

During 2020, Bonita sells 260 lounge chairs, 130 armchairs, and 156 straight chairs.

What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

Bramble Company purchased equipment for $220,800 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 36,000 units and estimated working hours are 20,000. During 2020, Bramble uses the equipment for 500 hours and the equipment produces 1,100 units.

Compute depreciation expense under each of the following methods. Bramble is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.)

Ashley Stores, Inc., sells gift cards for use at its stores. The following data pertains to 2019, 2020, and 2021, the company’s first three years of operation: 2019 2020 2021 Gift card sales $ 30,000 $ 45,000 $ 50,000 Gift card usage 12,000 28,000 37,000 As of December 31, 2019, Ashley estimates that 1.0% of its gift cards will never be redeemed. As of December 31, 2020, Ashley has revised its estimate, and now believes 1.5% of all gift cards, including those issued in 2019, will not be redeemed. As of December 31, 2021, its estimate remains at 1.5%. Ashley is not required to remit unused gift card amounts to the state. Required: What amount of breakage revenue should Ashley recognize in 2019, 2020, and 2021? (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) What amount of gift card liability should be reported on Ashley’s balance sheet at December 31, 2019, 2020, and 2021?

During 2020, Tamarisk Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Tamarisk for a lump sum of $149,625 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.

During 2020, Tamarisk sells 500 lounge chairs, 250 armchairs, and 300 straight chairs.

What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

With the following information answer questions A to D

The company produces computers. Its normal costing system consists of 2 cost categories (materials and labor) and a manufacturing overhead category. Manufacturing overhead is applied using a direct labor hour rate.

Budgdeted information for january-dec 2020
Direct labor 420,000
Manufacturing overhead 252,000
Direct labor hours 25,200

At the end of 2020, these were the jobs with costs accumulated
#one
Direct materials 22,000
Direct labor 11,000
Labor machine hour 1,200
#two
Direct materials 42,000
Direct labor 39,000
Labor machine hours 2,400

Total current costs for 2020 were
Manufactory overhead 250,000
Direct labor 400,000
Total labor hours during 2020 were 24,000

Determine Manufactory Overhead rate application: A
Make journal entry for manufactury overhead application in 2020: B
Is it overapplied or underapplied? Please demonstrate under a T account. C
Calculate the total cost for order # 1 D

The Garvey Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 6% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2019, and December 31, 2020, appear below:

Instructions:

(a) Record the following events in 2020. Omit explanations. 8pts

Aug. 10 - Determined that the account of Kurt West for $900 is uncollectible.

Sept. 12 - Determined that the account of Jill Lynch for $3,000 is uncollectible.

Oct. 10 - Received a check for $300 as payment on account from Kurt West, whose account had previously been written off as uncollectible.

(b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2020. SHOW CALCULATIONS.

(c) What is the balance of Allowance for Doubtful Accounts at December 31, 2020? SHOW CALCULATIONS.

p) Product Differentiation Strategy

Ratliff Appliances Company makes a household appliance with model number RM16. The goal for 2020 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of RM16 units that can be produced. The industry market size for appliances increased 10% from 2019 to 2020. The following additional data are available for 2019 and 2020:

Ignoring the market growth, but considering your answer to question (a), how much of Ratliff Co’s change in income from 2019 to 2020 is due to a product differentiation strategy?

Question 6

Bonita Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date.

On October 10, 2020, the Horton shares were sold at a price of $56 per share. In addition, 2,750 shares of Patriot common stock were acquired at $57 per share on November 2, 2020. The December 31, 2020, fair values were Monty $104,680, Patriot $124,190, and Oakwood $184,410.

Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 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.)

On February 1, 2020, Joe agreed to construct a building at a contract price of $17,400. Joe estimated total construction costs would be $12,000 and the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows:

                                                                             2020                       2021                      2022       

Total costs incurred to date                                        $4,500                    $7,920                  $13,800

Estimated costs to complete                                         7,500                      5,280                     -0-

Customer billings to date                                             6,600                    12,000                    16,800

Collections to date                                                      6,000                    10,500                    16,500

Instructions:

1. Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for completed-contract accounting, show the gross profit that should be recorded for 2020, 2021, and 2022.

                        Percentage-of-Completion                                   Completed-Contract

                                    Gross Profit                                                   Gross Profit

            2020               ___________                            2020              ___________

            2021               ___________                            2021              ___________                 

            2022               ___________                            2022              ___________                 

2. Make the journal entries to record construction expense, construction revenue, and gross profit for the second year, 2021.
3. At the end of the 2021, the second year of construction, will the company report a current asset or a current liability? And how much?