The following information was taken from the accounting records of CJTR Company as of December 31, 2020: Accounts Payable .......... ? Accounts Receivable ....... $43,000 Building .................. $68,000 Cash ...................... $17,000 Common Stock .............. $62,000 Cost of Goods Sold ........ $41,000 Dividends ................. ? Equipment ................. $79,000 Interest Revenue .......... $46,000 Inventory ................. $63,000 Land ...................... $82,000 Notes Payable ............. $65,000 Rent Expense .............. $17,000 Retained Earnings ......... ? Salaries Expense .......... $52,000 Salaries Payable .......... $29,000 Sales Revenue ............. $94,000 Supplies .................. $28,000 Trademark ................. $18,000Additional information: 1) At January 1, 2020, CJTR Company reported total assets of $223,000; total liabilities of $121,000; and common stock of $40,000. 2) 20% of CJTR’s 2020 net income was paid to stockholders as dividends. Calculate the balance in the accounts payable account at December 31, 2020.
In: Accounting
On 1 March 2020 Holmes Ltd enters into a binding agreement with a New Zealand company, which requires the New Zealand Company to construct an item of machinery for Holmes Ltd. The cost of the machinery is NZ$750,000. The machinery is completed on 1 June 2021 and shipped FOB Auckland on that date. The debt is unpaid at 30 June 2020, which is also Holmes Ltd’s reporting date.
The exchange rates at the relevant dates are: 1 March 2011 A$1.00 = NZ$1.20 1 June 2011 A$1.00 = NZ$1.30 30 June 2011 A$1.00 = NZ$1.25 Required: a) Determine the amount in AUD, as at: • 1 March 2020; and • 30 June 2020. b) Prepare the journal entries for the above dates showing the amount of exchange gain or loss .
In: Accounting
Back in May 2020, an ethanol plant’s risk manager looked at futures prices and considered a hedge to lock in a price on part of her new-crop corn acquisition planned for mid-to-late October 2020. She saw that the December 2020 futures contract was trading at $3.20/bushel and she knew that the basis in mid-October—when she expected to take delivery of the corn in question and to lift the hedge (i.e., to offset her futures position)—has typically (most years) been about 25 cents under December. What net price did she, back in May, expect to pay in October 2020 if she placed this hedge? d. $2.80/bu b. $2.95/bu c. $3.20/bu a. $3.45/bu e. None of the above
In: Finance
On October 15, 2016, Koala, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $60. [We are assuming that the 2020 coupon has just been redeemed.]
• Initially, the bond was sold for the premium price of $1,025.
• On October 15, 2020, this bond was selling for only $975.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.5% on October 15, 2016, which reflects market expectations about future rates of inflation.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.0% on October 15, 2020, which reflects market expectations about future rates of inflation.
Question- What was the nominal yield on this bond on October 15, 2020? [To 1 decimal place.]
In: Economics
On October 15, 2016, Koala, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $60. [We are assuming that the 2020 coupon has just been redeemed.]
• Initially, the bond was sold for the premium price of $1,025.
• On October 15, 2020, this bond was selling for only $975.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.5% on October 15, 2016, which reflects market expectations about future rates of inflation.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.0% on October 15, 2020, which reflects market expectations about future rates of inflation.
Question- What was the current yield on this bond on October 15, 2020? [To 2 decimal place.]
In: Economics
ABC, Inc. acquired 15% of EFG Corporation on January 1, 2019, for $125,000 when the book value of EFG's net assets was $950,000. During 2019, EFG reported net income of $530,000 and paid dividends of $40,000. On January 1, 2020, ABC purchased an additional 15% of EFG for $550,000. Any excess of cost over book value was attributable to goodwill (No amortization). On that same date, ABC changed to the equity method. During 2020, EFG reported net income of $730,000 and paid dividends of $90,000.
Required:
A. What type and amount of income(s) did ABC record from EFG in 2019?
B. What type and amount of income(s) did ABC record from EFG in 2020?
C. What was the balance in the Equity Investment in EFG account at December 31, 2020?
In: Accounting
The following information was taken from the accounting
records of CJTR Company as of December 31, 2020:
Accounts Payable .......... ?
Accounts Receivable ....... $44,000
Building .................. $68,000
Cash ...................... $17,000
Common Stock .............. $56,000
Cost of Goods Sold ........ $41,000
Dividends ................. ?
Equipment ................. $79,000
Interest Revenue .......... $40,000
Inventory ................. $63,000
Land ...................... $82,000
Notes Payable ............. $67,000
Rent Expense .............. $23,000
Retained Earnings ......... ?
Salaries Expense .......... $52,000
Salaries Payable .......... $34,000
Sales Revenue ............. $94,000
Supplies .................. $23,000
Trademark ................. $10,000
Additional information:
1) At January 1, 2020, CJTR Company reported total
assets of $223,000; total liabilities of $118,000;
and common stock of $40,000.
2) 20% of CJTR’s 2020 net income was paid to stockholders
as dividends.
Calculate the balance in the accounts payable account at
December 31, 2020.In: Accounting
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.
5. On January 20, Entity B paid Entity A in full (see item 2).
6. On January 30, Entity A paid Best Buy for the computer (see item 4).
7. On January 31, Entity A received its utility bill for $150 and paid it.
In: Accounting
Prepare a lease schedule and journal entries for the leased motor vehicle. Useful life = 8 years, no residual value.
18 Feb 2020, entered a lease agreement $42,000
Lease term 5 years, the number of monthly lease payments is 60 months (134 days from 18 Feb 2020 to 30 June 2020), the year 2020 = 366 days
The first lease payment of $660 is made in advance, hence no interest on the first payment.
Thereafter, 59 monthly lease payments are due on the 18th day of each. The final payment is due on 18 Jan 2025.
In the final payment, the company also has to make the guaranteed lease residual payment of $10,000, the company intends to pay out the guaranteed lease residual in 5 years time and take full legal possession.
In: Accounting
On January 1, 2020, Sunland Manufacturers had 342,000 common shares outstanding. On April 1, the corporation issued 34,200 new common shares to raise additional capital. On July 1, the corporation declared and distributed a 10% stock dividend on its common shares. On November 1, the corporation repurchased on the market 9,900 of its own outstanding common shares to make them available for issuances related to its key executives’ outstanding stock options.
a) Calculate the weighted average number of shares outstanding as at December 31, 2020
b) Assume that Sunland Manufacturers had a 1-for-10 reverse stock split instead of a 10% stock dividend on July 1, 2020. Calculate the weighted average number of shares outstanding as at December 31, 2020.
In: Accounting