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^a Part No. 121 is obsolete and has a realizable value of $1.00 each as scrap.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

On January 1, 2020, Riverbed Company purchased 12% bonds, having a maturity value of $276,000 for $296,924.88. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Riverbed 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 $294,800 2023 $286,100 2021 $285,000 2024 $276,000 2022 $284,100 (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.

Case 2: Reporting shareholders’ equity

Vinabread Ltd had the following equity account on 1 July 2020:

Share Capital (100,000 shares) 1,800,000

Retained Earnings $ 960,000

General Reserve $ 100,000

Vinabread Ltd’s profit for the year ending 30 June 2020, which has not been included in the retained earnings was $180,000. During the year, the following transactions and events occurred:

July 15, 2020 Declared and paid interim dividend of $0.50 per share.

July 30, 2020 Effected 3 for 1 share split,

June 30, 2021 Declared a final cash dividend of $0.30 per share and transferred $20,000 from retained earnings to general reserve.

Required: Prepare the equity section of the statement of financial position of Vinabread Ltd as at 30 June 2021.

The total costs incurred in 2019 at various output levels in a factory have been measured as follows:

When output is 200 units or more, another factory unit must be rented and fixed costs therefore increase by 50%. Variable cost per unit is forecast to rise by 20% at the start of 2020.

Required:

Using the high-low method and least squares method-

a.       Calculate the Variable cost per unit.

b.      Calculate Total Fixed Cost.

c.       Develop the cost function that links Cost to Output (2020).

d.      Calculate the estimated total costs of producing 200 units in 2020.

e.       Calculate the estimated output if total cost is $15,400 in 2020.

Geraths Windows manufactures and sells custom storm windows for three-season porches. Geraths also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Geraths enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,400 and chooses Geraths to do the installation. Geraths charges the same price for the windows irrespective of whether it does the installation or not. Geraths estimates the standalone selling price of the installation based on an estimated cost of $400 plus a margin of 20% on cost The customer pays Geraths the full amount upon delivery. The windows are delivered on September 1, 2020, Geraths completes installation on October 15, 2020. Prepare the journal entries for Geraths in 2020.

On January 1, 2020, Larkspur Company purchased 12% bonds, having a maturity value of $275,000 for $295,849.07. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Larkspur 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.

COSTS INCURRED DURING THE YEAR 2020:

SALES REVENUE DURING 2020 WAS $600K. THE TAX RATE=21%

CALCULATE:

1. COST OF RAW MATERIALS USED

2. COST OF GOODS MANUFACTURED/COMPLETED

3. COST OF GOODS SOLD

4. GROSS MARGIN

5. NET INCOME