Prior to 2019, the accounting income and taxable income for Bridgeport Corporation were the same. On January 1, 2019, the company purchased equipment at a cost of $576,000. For accounting purposes, the equipment was to be depreciated over 9 years using the straight-line method. For income tax purposes, the equipment was subject to a CCA rate of 20% (half-year rule applies for 2019). Bridgeport’s income before tax for accounting purposes for 2020 was $1,892,000. The company was subject to a 25% income tax rate for all applicable years and anticipated profitable years for the foreseeable future. Bridgeport Corporation follows IFRS.

a) Calculate taxable income and taxes payable for 2020.

b) Prepare the journal entries to record 2020 income taxes (current and deferred). (If no entry is required, select "No Entry" )

Splish Company reports pretax financial income of $66,300 for 2020. The following items cause taxable income to be different than pretax financial income.

Splish’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.

1. Compute taxable income and income taxes payable for 2020.

2. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

3. Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.”

4. Compute the effective income tax rate for 2020.

1. ABC Company is planning for 2021 financial performance. 2020 total sales were $6,000,000. Monthly fixed costs for the firm for 2020 averaged $260,000 and are expected to increase by 8% for 2021. The variable cost ratio for 2020 averaged 40% and is expected to increase to 42% for 2021. The firm's average tax rate for 2020 was 30% and is expected to remain the same for 2021. The firm incurs no interest expense.

Required: (show your work below and write your final answer for each question on the line provided)

1. Calculate annual breakeven sales (revenue) for 2020 and 2021

2. Calculate the actual net operating income (NOI) and the after tax income for 2020 and 2021 assuming there is no change in sales for 2021.

3. It is management's goal to have operations produce a NOI / Sales ratio of 12% for 2021. Given the data above what level of 2021 sales are needed to reach the 12% NOI / Sales ratio?

What are the appropriate descriptive statistics to summarize the Company-Z daily sales in Pre- and Post- COVID-19 Y1 & Y2?   Can you visualize both random variables separately using the graphing technique? Explain why you used these descriptive statistics and this graphing technique?               
Given;

Flint 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 $51,500

Fair value 43,000

Expected credit losses 12,800

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

Amount of the credit loss $ _____________

2) Prepare the journal entry to record the credit loss, if any (and any other adjustment needed), at December 31, 2020.

3) Assume that the fair value of the available-for-sale security is $56,000 at December 31, 2020, instead of $43,000. What is the amount of the credit loss that Flint should report at December 31, 2020?

Amount of the credit loss $ ___________

4) 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.

Mr.Ahmed made a written contract with Mr.Hamood, on March 2^nd 2020, promising to sell 10 computers, for a total price of 2000 (Omani Rials), by 1^st April, 2020. It is also agreed that if computers are not supplied till 1^st April, 2020, Mr.Ahmed should pay damages of 500(Omani Rials) to Mr.Hamood.

On 20^th March lockdown declared by government, all businesses are closed till 1^st May 2020, including selling and buying of computers. Due to which Mr.Ahmed could not able to supply computers on promised date of 1^st April, 2020.

1. Can Hamood claim for damages for not supplying computers by 1^st April, 2020, on the ground of breach of contract? (Write yes or no)                                                         

2. Can Ahmed take a plea of discharge of contract. Explain.                      

3. Explain which type of damages are they?                                                  

4. Explain about specific performance of contract. Can Hamood claim for the relief of specific performance?                                                                                                       (2+2=4 Marks)

On January 1, 2020, Spalding Company sold 12% bonds having a maturity value of $1,000,000 for $1,075,815, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020 and they mature on January 1, 2025, with semiannual interest payable on July 1 and January 1 each year. The company uses the effective-interest method. Instructions:

a) Prepare a complete amortization schedule for these bonds in good form.

b) Prepare the journal entry needed to record the issuance of bonds on January 1, 2020.

c) Prepare the journal entry needed to record the payment accrual of interest on July 1, 2020. Show all calculations.

d) Determine how much interest expense will be on the income statement for the year ended December 31, 2020.

e) Show what will be on the balance sheet related to these transactions as of December 31, 2020. Indicate clearly if any assets or liabilities are current or noncurrent.

The following data applies to the two unrelated companies Aldi Ltd    Wooli Ltd:

All taxable and deductible temporary differences relate to the profit or loss. Assume a corporate tax rate of 30%.

1. For each company, prepare the journal entries to record the current and deferred tax for 30 June 2020. Show all calculations

2. For each company, prepare the income tax section of the statement of profit or loss and other comprehensive income for the year ended 30 June 2020, and show the note disclosure for the current and deferred components of income tax expense.

Complete the journal entries as necessary for both Part 1 and Part 2.

Part 1. Transaction

1. On January 1st of 2020, Casey bought 10% of Apple 100,000 shares of outstanding common stock at $20 a share.

2. On December 31, 2020 Apple reported $40,000 of net income and paid $20,000 of dividends.

3. On December 31, 2020, the market price of stock was $ 25 a share. Assume there was a zero balance in the fair value adjustment account.

Part 2. Complete the journal entries as required: Transaction

4. On January 1st of 2020, Casey bought 30% of Apple 100,000 shares of outstanding common stock at $20 a share and has significant influence.

5. On December 31, 2020 Apple reported $40,000 of net income and paid $20,000 of dividends.

6. On December 31, 2020, the market price of stock was $ 25 a share. Assume there was a zero balance in the fair value adjustment account before this transaction.

subject: company accounting    

  Consolidation

Indigo Ltd gives $55 000 as an interest-free loan to Violet Ltd on 1 July 2019. Violet Ltd made a $20 000 repayment by 30 June 2020.Violet Ltd owns all the share capital of Indigo Ltd. The following transactions are independent:

1. Indigo Ltd rented a spare warehouse to Violet Ltd starting from 1 July 2019 for 1 year. The total charge for the rental was $3 500, and Violet Ltd paid half of this amount to Indigo Ltd on 1 January 2020 and the rest on 1 July 2020.
2. During March 2020, Indigo Ltd declared a $5000 dividend. The dividend was paid in August 2020.

Required

In relation to the above intragroup transactions:

1.      Prepare adjusting journal entries for the consolidation worksheet at 30 June 2020.

2.     Explain in detail why you made each adjusting journal entry.