Days Ltd's financial year ended on 30 June 2020. The following events occurred between the end of the reporting period and the date the directors of Edwards Ltd expect to authorise the financial statements for issue:

1. On 3 July 2020, directors proposed a final dividend of $120,000.
2. On 15 July 2020, Days Ltd took delivery of building materials (inventory). Building materials were purchased from a Chinese manufacturer. Building materials were in transit at the end of the reporting period. An inspection of the building materials revealed significant flaws and the materials were returned to the supplier on 25 July 2020. Days Ltd is to receive a full refund of the $125,000 purchase price, which had been paid in advance on 27 June 2020.

REQUIRED

For each of the above material after-reporting-period events, state whether adjustment or disclosure is required in the 30 June 2020 financial statements. Assume the above events would not significantly affect the going-concern assumption for Days Ltd.

(No need for financial statement notes or any journal entries for adjustments.)

On January 1, 2020, Sweet Company issued 10-year, $2,060,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Sweet common stock. Sweet’s net income in 2020 was $535,600, and its tax rate was 20%. The company had 103,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020.

(a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)

(b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $1,030,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Sweet common stock. (Round answer to 2 decimal places, e.g. $2.55.)

Armstrong Inc. did a physical inventory count and accidentally overstated ending inventory on the 12/31/18 financial statement by $20,000. The company noticed the error during 2020, before books were closed. The 2020 inventory was not affected since physical inventory was adequately counted. How would Armstrong Inc correct this error in 2020, assume a 21% tax rate.

On January 1, 2020, Bubble Corporation signed a five-year noncancelable lease to obtain a bubble machine. The terms of the lease called for Bubble to make annual payments of $90,000 at the beginning of each year for 5 years. The equipment has an estimated useful life of 7 years and no salvage value. Bubbles effective interest rate is 10%. The fair value on Jan. 1, 2020 of the asset is $500,000. With respect to this lease, what should Bubble record for 2020?

On January 1, 2020, Carla Company issued 10-year, $1,980,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Carla common stock. Carla’s net income in 2020 was $479,400, and its tax rate was 20%. The company had 102,000 shares of common stock outstanding throughout 2020. None of the bonds were converted in 2020.

(a) Compute diluted earnings per share for 2020. (Round answer to 2 decimal places, e.g. $2.55.)

(b) Compute diluted earnings per share for 2020, assuming the same facts as above, except that $1,020,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Carla common stock. (Round answer to 2 decimal places, e.g. $2.55.)

On January 1, 2020, Kingbird Inc. issued $350,000 of 6-year, 3% bonds to yield a market interest rate of 4%. Interest is paid every quarter on January 1, April 1, July 1, and October 1. Kingbird has a calendar year end. After recording the December 31, 2021 accrual for quarterly interest, and making the payment on January 1, 2022, all the bonds were redeemed at 101.

Prepare a bond amortization schedule for the first two years (8 interest periods). (Round answers to 0 decimal places, e.g. 5,276.) KINGBIRD INC. Bond Discount Amortization Schedule Effective-Interest Method Semi-Annual Interest Period Interest Payment Interest Expense Amortization Bond Amortized Cost Issue Date, Jan. 1, 2020 $ Apr. 1, 2020 $ $ $ $ Jul. 1, 2020 Oct 1, 2020 Dec. 31, 2020 (accrual) Apr. 1, 2021 Jul. 1, 2021 Oct 1, 2021 Dec. 31, 2021 (accrual)

Does Elevation Affect Temperature Mid-June?
Suppose that you wanted to determine the effect, if any, that elevation has on temperature. The table below lists the elevations (in feet above sea level) of 24 randomly selected cities in the United States and the low temperatures (in degrees Fahrenheit) of these cities on June 15, 2020.

Our eyes can be fooled by how strong a linear relationship is; we need to use a numerical measure, the correlation coefficient, to accurately describe the association between elevation and low temperature. Correlation measures the strength and direction (type) of linear relationships.

This is quite tedious to compute by hand, so we will use our calculator to obtain the value of r.

Using your calculator, press STAT, choose CALC, then 8: LinReg (a+bx). Enter L₁, L₂. Then press the ENTER key to get the correlation coefficient (rounded to 4 decimal places).

r ≈                                           

Given the value of r above, what is the strength of the linear relationship?            Weak        Moderate      Strong

When a scatterplot shows a linear relationship, we would like to summarize the overall pattern by drawing a line on the scatterplot. A regression line describes how a response variable changes as an explanatory variable changes. The least-squares regression line is the line that makes the sum of the squares of the vertical distances of the data points to the line as small as possible.

The form of the equation of a line is y = a + bx where a is the y-intercept, the value of y when x=0, and b is the slope, the amount y changes when x increases by one unit.

Using your calculator, press STAT, choose CALC, 8: LinReg (a+bx). Enter L₁, L₂. Then press the ENTER key to get the coefficients for the least-squares regression line (don't round).  

a =                                                      

b =                                                      

The equation of the least-squares regression line is: _________________________________________________

The coefficient of determination, r², is the proportion of the variation in the values of y that is explained by the linear relationship with x.

r² ≈                                 for this data (write as a decimal rounded to four decimal places)

Alex's favorite soccer team is Manchester United. When the last new Manchester United jersey became available for sale to the public, Alex was willing to pay $90 for it. However, he was able to buy one for a price of $40. Based on this information, how much consumer surplus did Alex receive from his purchase of the jersey?

Tree Top Company is considering raising additional capital for further expansion. The company wants to finance a new business venture into guided trips down the Amazon River in South America.​ Additionally, the company wants to add another building on their land to offer more services for local customers.

Tree TopCompany plans to raise the capital by issuing $1,400,000 of 7​%,seven​-year bonds on January​ 2, 2020. The bonds pay interest semiannually on June 30 and December 31. The company receives $1,398,320 when the bonds are issued. The company also issues a mortgage payable for $400,000 on January​ 2, 2020. The proceeds from the mortgage will be used to construct the new building. The mortgage requires annual payments of $20,000 plus interest for twentyyears, payable on December 31. The mortgage interest rate is 8​%.

Requirement 1. Will the bonds issue at face​ value, a​ premium, or a​ discount?

Tree Top​'sbonds will be issued at a discount because

▼

Requirement 2. Record the following transactions. Include dates and round to the nearest dollar. Omit explanations. ​(Round your answers to the nearest whole dollar. Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

a. Cash received from the bond issue.

b. Cash received from the mortgage payable.

c. Semiannual bond interest payments for 2020.Amortize the premium or discount using the​ straight-line amortization method. Start by recording the semiannual bond interest payment on June​ 30,2020.

Now record the semiannual bond interest payment on December​ 31, 2020.

d. Payment on the mortgage payable for2020.

Requirement 3. Calculate the total interest expense incurred in 2020.

QUESTION 3 REQUIRED Use the information provided below to prepare the following for Electroman Limited for August and September 2020 (using separate monetary columns for each month):

3.1 Debtors Collection Schedule

3.2 Cash Budget. Note: Where applicable, round off amounts to the nearest Rand. INFORMATION Electroman Limited sells appliances.

The following forecasts were made:

1. The bank balance on 31 July 2020 is expected to be R50 000 (favourable).

2. Sixty percent (60%) of all sales are for cash; the balance is on credit. Credit sales for June and July 2020 are expected to be R320 000 and R360 000 respectively. Sales are expected to increase by 10% each month. Twenty percent (20%) of the credit sales are expected to be settled during the month of the sale for a discount of 5%. The remaining customers usually pay in the month after the sale.

3. All appliances are purchased on credit and the creditors are paid in the month after the purchase. Purchases are expected to be as follows: July R420 000 August R460 000 September R510 000

4. Salaries and wages are expected to cost R85 800 for September 2020, after a 10% increase takes effect on 01 September 2020.

5. Advertising expenses are expected to be 6% of the total monthly sales, and are paid one month later. 6. Equipment that cost R300 000 is expected to be purchased during August 2020.

6. A deposit of 10% will be paid in August and the balance plus finance charges of R20 000 is payable in 5 equal instalments commencing September 2020.

7. A long-term loan of R250 000 at 12% per annum interest is to be raised on 01 August 2020. Interest on loan and a loan repayment of R5 000 is payable monthly on the last day of each month, commencing 31 August 2020.

8. Other cash expenses are expected to amount to R80 000 for July 2020. These expenses are expected to increase by 5% each month.

9. An interim dividend of 8 cents per share is expected to be paid to shareholders on 31 August 2020. The issued share capital of Electroman Li

mited consists of 500 000 ordinary shares