Al’s Car Wash purchased a piece of equipment on October 1, 2018, for $27,000. The equipment has a useful life of four years and a residual value of $2,000. Compute the depreciation for 2020, accumulated depreciation at the end of 2020, and book value at the end of 2020 using the straight-line method.

Given the following four subsequent events (unrelated) for the December 31, 2019 year-end:

1. On January 15, 2020, a major customer declared bankruptcy.
2. On January 25, 2020 a fire destroyed a major suppliers building that warehouses inventory .
3. On January 4^, 2020, an investment analyst downgraded the stock of the auditee.

            The audit report date is February 15, 2020.

Required:

      State clearly the type of subsequent event (Type I or Type II), if any, and the required impact on the financial statements.

Singularity Products began business on January 1, 2020. During 2020, Singularity recorded the following:

Purchases of inventory, at cost: $400,000
Purchases of inventory, at retail value: $800,000
Net Markups: $200,000
Net Markdowns: $400,000
Sales: $500,000

a. Calculate the balance in ending inventory on December 31, 2020 if Singularity uses the Retail
Inventory – Conventional Method to value inventory. (7 points)

b. What amount of gross profit will Singularity report on its 2020 Income Statement? (7 points)

Coyote Company sold a merchandise costing $30,000 for $50,000 on credit to Beer Company on 4/1/2020. To expedite the cash payment, Coyote offered a cash discount of 3/15, n/30.

Instructions: prepare any necessary journal entries for the following transactions for the seller and the buyer using the net method.

1. The credit sale on 4/1/2020.
2. A receipt of the full payment if it is paid on 4/10/2020.
3. A receipt of the full payment if it is paid on 4/24/2020.

Make the following journal entries in good form.

1. On January 1, 2020, Entity A sold common stock for $30,000 to investors.

2. On January 3, 2020, Entity A performed services for Entity B for $1,500 on account.

3. On January 5, 2020, Entity A performed services for Entity C for $750 and Entity C paid.

4. On January 7, 2020, Entity A purchased a new computer (office equipment) from Best Buy for $500, paying $100 down, the rest on account.

A simple random sample of 300 colleges and universities was selected and for each it was determined whether they planned to move summer 2020 classes online or not. Of the 300 colleges and universities in the sample, 90 responded that they will move summer 2020 classes online , and 210 responded that they will not move summer 2020 classes online. . If appropriate, use this information to calculate and interpret a 99% confidence interval for the proportion of all colleges and universities that will move their summer 2020 classes online . Please type your solution in the box below.

3. Prepare the journal entry to record receipt of payment by Hamada LLC if the spot rate on dirhams was 4.75 dirhams/GBP on April 2, 2020.

Suppose that on February 1, 2020, Victoria, Plc., a British company, makes a sale and ships goods to Hamada, LLC, an Emirati customer, for 100,000 (GBP).

However, it is agreed that Hamada will pay in dirhams on April 2, 2020. The exchange (spot) rate as of February 1, 2020 is 5 dirhams per Great British Pound.

Suppose you use a call spread strategy on 4/15/2020, by buying a Facebook call option with the strike price of $180 at $7 and selling a Facebook call option with the strike price of $195 at $2. Both call options mature on 5/15/2020.

What is your total payoff and profit if Facebook share is traded at $170 on 5/15/2020 and what is your total payoff and profit if Facebook share is traded at $185 on 5/15/2020?

Jamee is a resident taxpayer. For the year ended 30 June 2020 he received:

Gross salary of $82,000 from which PAYG of $20,100 had been withheld.

Net interest of $745 after TFN withholding tax of $715 had been withheld.

In September 2019 Jamee received $1,100 as his share in the winnings from a punters club with his work colleagues.

In January 2020 he received a holiday valued at $3,400 from his employer for achieving the highest sales in the previous year.

In June 2020, Jamee’s employer announced that he would be giving Jamee a pay rise effective from 1 April 2020. He is therefore to receive backpay of $2,000 of which $1,000 will be paid on 27June 2020 and the remaining $1,000 will be paid on 4 July 2020.

Dividend of $12,000 deposited to his bank account in May 2020 in respect of a 70% franked Australian dividend (company tax rate 30%).

Interest on a term deposit with a Swedish bank of $3,600 (10% withholding tax had been deducted). Advise Jamee how each payment would be treated, provide relevant section, case law and other supporting evidence. Calculate Jamee’s assessable income for the current year ended 30 June 2020.

1. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $1,063,000 in 2021. (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.)

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