1.

Given the following Adjusted Trial Balance, what will be the totals of the debit and credit columns of the Post-Closing Trial Balance?

2.

On March 1, Hoffman paid $3,120 in advance for 4 months' insurance.

Enter the March 31 month-end adjusting entry in Journal Entry format.

3.

Great Kids Co. began providing day care for the children of employees of a large corporation on January 15 for an agreed monthly fee of $9,000. The first payment is to be received on February 15.

Enter the January month-end adjusting entry in Journal Entry format.

4.Emerald Co. uses a perpetual inventory system and records purchases of merchandise at net cost. The company recently purchased 200 compact discs for the price of $6,000 and terms of 2/10, n/30. Half of these discs had been mislabeled and were returned immediately to the supplier. Record the journal entry to record payment of this invoice after the discount period has expired. Use Journal Entry format.

5.

At December 31, 2015, the accounting records of Braun Corporation contain the following items:

If Common Stock is $320,000, what are the total assets of Braun Corporation?

Jordan is a construction contract company involved in building commercial properties. Its current policy for determining the percentage of completion of its contracts is based on the proportion of cost incurred to date compared to the total expected cost of the contract.
One of Jordan’s contracts has an agreed price of $250 million and estimated total costs of $200 million.

The cumulative progress of this contract is:
Year ended: 30 September 2011 30 September 2012
$million $million
Costs incurred 80 145
Work certified and billed 75 160
Billings received 70 150

Based on the above, Jordan prepared and published its financial statements for the year ended 30 September 2011. Relevant extracts are:

Statement of Profit and Loss
$million
Revenue (balance) 100
Cost of sales (80)
––––
Profit (50 x 80/200) 20
––––
Statement of financial position
$million
Current assets
Amounts due from customers
Contract costs to date 80
Profit recognised 20
––––
100
Progress billings (75)
––––
25
––––
Contract receivables (75 – 70) 5

Jordan has received some adverse publicity in the financial press for taking its profit too early in the contract process, leading to disappointing profits in the later stages of contracts. Most of Jordan’s competitors take profit based on the percentage of completion as determined by the work certified compared to the contract price.
Required:
(i)   Assuming Jordan changes its method of determining the percentage of completion of contracts to that used by its competitors, and that this would represent a change in an accounting estimate, calculate equivalent extracts to the above for the year ended 30 September 2012 (5marks)

(ii)   Explain the Criteria for Recognising Revenue from contract with customers. .

(iii)   Explain the difference between Revenue Recognition from construction contracts when The contract is profit making and when losses are probable.

Prepare balance sheet,income statement and statement of owners equity.

Greek Tavern Co was established on July 1, 2020 by a cash investment of $100,000. The following is the Trial Balance prepared on September 30, 2020.

During the three month period, the following activities occurred: 1. The physical checkup revealed that $4,000 worth of supplies is still on hand on September 30. 2. The annual depreciation of office equipment is $15,000. The equipment were purchased on August 1, 2020. 3. The unearned revenue was created on September 1, 2020 by an advance payment from a major customer for services extending over the period August 1 till December 31, 2020. 4. The loan was borrowed on July 1, 2020 for 5 years from BOND Bank. The bank charges 9% interest. 5. The firm pays its 5 employees a weekly salary of $6250. The policy is that it pays every Monday of the week for the previous 5 days' work, Monday through Friday. September 30, 2020 is a Tuesday. Last time the firm paid salary was on Monday September 29, 2020 for the week from 22 till 25. 6. Rogelio paid $50,000 cash on July 1, 2020 for 2 years' office rent.

Rogelio Legal Advisory firm follows the fiscal year extending from July 1 till September 30 and adjust Quarterly.

A. Journalize all the necessary adjusting entries on September 30, 2020 showing all the calculations.

B. Compute the Net Income.

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $17,300; cost of goods sold, $7,200; selling expenses, $1,400; general and administrative expenses, $900; interest revenue, $150; interest expense, $250. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount.

1. Investments were sold during the year at a loss of $320. Schembri also had an unrealized gain of $420 for the year on investments in debt securities that qualify as components of comprehensive income.
2. One of the company’s factories was closed during the year. Restructuring costs incurred were $1,300.
3. During the year, Schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of $660 in 2021 prior to the sale, and its assets were sold at a gain of $1,600.
4. In 2021, the company’s accountant discovered that depreciation expense in 2020 for the office building was understated by $300.
5. Negative foreign currency translation adjustment for the year totaled $320.

Required:
1. Prepare Schembri’s single, continuous multiple-step statement of comprehensive income for 2021, including earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares were issued on July 1, 2021.
2. Prepare a separate statement of comprehensive income for 2021.

A juice manufacturer conducted a marketing study three years ago to determine the consumers’ preferences for different type of juices including organic juices. This study was very extensive and detrimental in their decision to start a new organic juice division today. It cost them $1,000,000 to perform this study.

The company is considering introducing organic juices. The company will add a new assembly line in order to produce the organic juices separate from their existing assembly line for regular non-organic juices.

The project has an anticipated life of 4 years.

The new assembly line has a cost of $1,500,000. It will require $500,000 to customize it to the new specifications for organic juice production, and $100,000 for transportation and shipping to the company’s plant.

The new machine falls into 5-years MACRS category (20%, 32%, 19.2%, 11.52%, 11.52% and 5.76%).

The organic juice production will require inventories to increase by $1,000,000 at time 0; in addition, accounts payables and accruals will increase by $450,000 and $150,000 respectively.

The organic juice is expected to generate sales revenue of $700,000 million the first year. The revenue is expected to increase by $300,000 every year. Each year the operating costs (excluding depreciation) are expected to equal 50 percent of sales revenue.

In order to do this expansion, the company will borrow $3 million. The annual interest expense on this borrowing $400,000.

The organic juice is expected to decrease the company’s existing non-organic juice sale by $350,000 per year before tax basis.

The company can sell the new machine at the end of 4 years for $50,000 in the market. The company’s cost of capital is 12 percent. The company’s tax rate is 40 percent.

What is the initial investment CF0?

What is the CF1 to be used in NPV calculations?

What is the non-operating cash flow for year 4?

What is cash flow 4 to be used in NPV calculations?

What is the NPV of the project?

Peanut Corporation is a private corporation using IFRS. At December 31, 2020, an analysis of the accounts and discussions with company officials included the following account balances and other information:

Accounts receivable

$102,000

Accrued interest payable

1,000

Dividend revenue

9,000

Sales revenue

600,000

Purchase discounts

9,000

Purchases

360,000

Accounts payable

30,000

Loss from fire (net of $7,000 tax)

21,000

Selling expenses

64,000

Common shares (20,000 issued; no change during 2020)

200,000

Accumulated depreciation

90,000

Long-term note payable (due Oct 1, 2024)

100,000

Inventory, Jan 1, 2020

76,000

Inventory, Dec 31, 2020

62,500

Supplies inventory

40,000

Unearned service revenue

3,000

Land, at cost (fair value is $450,000).

370,000

Cash

60,000

Franchise

100,000

Retained earnings, Jan 1, 2020

135,000

Interest expense

8,500

Cumulative effect of change from straight-line to accelerated depreciation (net of $6,000 tax) prior to 2020

(18,000)

General and administrative expenses

80,000

Dividends declared and paid

15,000

Allowance for doubtful accounts

5,000

Loss from discontinued operation (before tax)

20,000

Machinery and equipment

225,000

Unless indicated otherwise, you may assume a 25% income tax rate.

General and administrative expenses include depreciation.

Peanut has chosen to account for its land at fair value but the bookkeeper does not understand what to do so he has kept the land’s recorded value at cost.

There are no preferred shares issued.

Instructions

a.    Prepare, in good form, a multiple-step comprehensive income statement.

b. Prepare, in good form, the retained earnings portion of the statement of changes in equity.

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows: 2018 2019 2020 Cost incurred during the year $ 2,400,000 $ 3,600,000 $ 2,200,000 Estimated costs to complete as of year-end 5,600,000 2,000,000 0 Billings during the year 2,000,000 4,000,000 4,000,000 Cash collections during the year 1,800,000 3,600,000 4,600,000 Westgate Construction uses the completed contract method of accounting for long-term construction contracts.

Required: 1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.

2-a.In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred).

2-b.In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred).

2-c. In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred).

3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract.

4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. 2018 2019 2020 Cost incurred during the year $ 2,400,000 $ 3,800,000 $ 3,200,000 Estimated costs to complete as of year-end 5,600,000 3,100,000 0 5.

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. 2018 2019 2020 Cost incurred during the year $ 2,400,000 $ 3,800,000 $ 3,900,000 Estimated costs to complete as of year-end 5,600,000 4,100,000 0

Question: CC4 It is the end of November and Natalie has been in touch with her grandmother. Her grandmother asked Natalie how well things went in her first month of business. Natalie, too, would like to know if her business has been profitable or not during November. Natalie realizes that in order to determine Cookie Creations' income, she must first make adjustments.

I have this information as well:

a) Prepare journal entries to record the December transactions. I know there are no December JEs, that is what the question is asking for. Is it unanswerable?  

 Net cash flows for a marketing campaign-- Marcus​ Tube, a manufacturer of​ high-quality aluminum​ tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 5 % per​ year, Marcus has been unsuccessful in sharing this growth. To increase its​ sales, the firm is considering an aggressive marketing campaign that centers on regularly running ads in all relevant trade journals and exhibiting products at all major regional and national trade shows. The campaign is expected to require an annual​ tax-deductible expenditure of $150,000 over the next 5 years. Sales​ revenue, as shown in the income statement for 2018

Marcus Tube Income Statement for  
the Year Ended December 31, 2018  
Sales revenue   $20,600,000
Less: Cost of goods sold   15,450,000
Gross profits   $5,150,000
Less: Operating expenses  
General and administrative expense   $1,648,000
Depreciation expense   490,000
Total operating expense   $2,138,000
Earnings before interest and taxes   $3,012,000
Less: Taxes   1,204,800
Net operating profit after taxes   $1,807,200

totaled $20,600,000.

If the proposed marketing campaign is not​ initiated, sales are expected to remain at this level in each of the next 5​ years, 2019 through 2023. With the marketing​ campaign, sales are expected to rise to the levels shown in the table

  
Year   Sales revenue
2019   $21,100,000
2020   21,600,000
2021   22,100,000
2022   23,100,000
2023   24,100,000

for each of the next 5​ years; cost of goods sold is expected to remain at 75% of​ sales; general and administrative expense​ (exclusive of any marketing campaign​ outlays) is expected to remain at 8% of​ sales; and annual depreciation expense is expected to remain at $490,000. Assuming a 40% tax​ rate, find the net cash flows over the next 5 years associated with the proposed marketing campaign.