1. 14 marks Contract price $ 3,140,000 Total estimated construction cost at contract inception $ 2,305,000 2020 2021 2022 Total costs incurred to date $ 691,500 $ 1,540,500 $ 2,350,000 Estimated costs to complete $ 1,613,500 $ 829,500 $ - Customer billings to date $ 625,000 $ 2,175,000 $ 3,140,000 Collections to date $ 600,000 $ 1,790,000 $ 2,899,000 Required: 1. Calculate the gross profit that should be recognized for 2020, 2021, and 2022, using the percentage of completion method. 2. Prepare the journal entries required for the 2021 year assuming that the percentage of completion method is used. 3. Determine the gross profit to be recognized for 2020, 2021, and 2022, using the completed contract method. On February 1, 2020, Kenora Contractors agreed to construct a building. The project was scheduled to be finished in 2022. Information relating to the costs and billings for this contract is as follows:

Here is the unemployment summary from February, 2020 (pre-COVID19)

Data from February 2020:

Unemployed: 5.7 million

Employed: 158.8 million

Not in the Labor Force: 95.1 million

Unemployment rate: 3.5%

Labor force participation rate: 63.4%

Here is the unemployment summary from April, 2020

Data from April, 2020

Unemployed: 23.08 million

Employed: 133.4 million

Not in the Labor Force: 103.4 million

Unemployment rate: 14.7%

Labor force participation rate: 60.2%

1. Describe what happened between February and April using the unemployment and labor force participation rates. You must JUSTIFY these changes using rationale from this chapter. You must consider how we calculate unemployment and the labor force participation rate (look at the numbers that go into the calculations and not just the percentages).

Sheridan Corp. has a deferred tax asset account with a balance of $74,440 at the end of 2019 due to a single cumulative temporary difference of $372,200. At the end of 2020, this same temporary difference has increased to a cumulative amount of $450,400. Taxable income for 2020 is $757,900. The tax rate is 20% for all years. At the end of 2019, Sheridan Corp. had a valuation account related to its deferred tax asset of $44,800.

(a) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that the deferred tax asset will be realized in full.

(b) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that none of the deferred tax asset will be realized.

Roberto Company makes wooden foot stools and has prepared a sales budget of 15,000 finished units for the first quarter of 2020. The company has an inventory of 450 foot stools on hand at December 31, 2019 and has a target finished goods inventory of 750 foot stools at the end of the first quarter, 2020. It takes five (5) board feet of wood to produce a foot stool. The company has 15,000 board feet of wood on hand at December 31, 2019 and a target ending inventory of 3,750 board feet at the end of the first quarter, 2020. The wood costs $8 per board foot. What is the cost of direct material used in the first quarter of 2020?

Group of answer choices $588,000 $600,000 $522,000 $612,000

On January 1, 2020, Oriole Company purchased 11% bonds, having a maturity value of $328,000 for $353,515.61. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Oriole Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.

2020
$351,400      
2023
$338,100
2021
$337,000      
2024
$328,000
2022
$336,000              

(a)       Prepare the journal entry at the date of the bond purchase.
(b)       Prepare the journal entries to record the interest revenue and recognition of fair value for 2020.
(c)       Prepare the journal entry to record the recognition of fair value for 2021.

Presented below is information related to Kiwi Ltd. for calendar 2020. The corporation uses IFRS.

The pension expense to be reported for 2020 is:

A) $108,800 B) $60,000 C) $140,000 D) $109,700

The balance of the defined benefit obligation at December 31, 2020 is

A) $779,700

B) $789,700

C) $778,800

D) $724,000

The fair value of the plan assets at December 31, 2020 is

Wildhorse Company had $278,700 of net income in 2019 when the selling price per unit was $154, the variable costs per unit were $94, and the fixed costs were $573,300. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Wildhorse Company is under pressure from stockholders to increase net income by $42,600 in 2020.

A.)Compute the number of units sold in 2019.
B.)Compute the number of units that would have to be sold in 2020 to reach the stockholders’ desired profit level.

C.)Assume that Wildhorse Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders’ desired profit level? New selling price

The inventory of Waterway Company on December 31, 2020, consists of the following items.

^a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.

(a) Determine the inventory as of December 31, 2020, by the LCNRV method, applying this method to each item.

(b) Determine the inventory by the LCNRV method, applying the method to the total of the inventory.

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.

Q- 8.  What was the risk premium for this bond on October 15, 2020? [To 3 decimal places.]