On January 1, 2018, Blossom Ltd. purchased equipment for $808,000. The equipment was assumed to have an 8-year useful life and no residual value, and was to be depreciated using the straight-line method. On January 1, 2020, Blossom's management became concerned that the equipment may have become obsolete. Management calculated that the undiscounted future net cash flows from the equipment was $580,750, the discounted future net cash flows was $515,100, and the current fair value of the equipment (after costs to sell) was $505,000.

1. Assuming that Blossom is a private Canadian company following ASPE, and uses the cost recovery impairment model. Record the journal entry to record the impairment loss, if any

2. Assuming that Blossom is a public Canadian company, and uses the rational entity impairment model. Record the journal entry to record the impairment loss, if any

class: Derivative Securities

. Company X wishes to borrow US dollars at a fixed rate of interest. Company Y wishes to borrow Japanese Yen at a fixed rate of interest. The amount required by the two companies is the same at current exchange rate. The companies are subject to the following interest rates:

Design a swap that will net a bank, acting as intermediary, 30 basis points per annum and will appear equally attractive to X and Y.

Q5. Briefly explain Delta, Theta, Gamma, and Vega.

Below is the leasing footnote disclouse from UPS 2015 10-K report:

The following table sets for the aggregate minimum lease payments under operating leases (in millions): The implicit interest rate is 7%

Year Operating LEase

2016 $324

2017 $263

2018 $197

2019 $125

2020 $84

After 2020 $252

What adjustments would be made to UPS's Balance Sheet to capitalize the operating leases at the end of 2015?

E13.13 (LO 3), AP The condensed financial statements of Ness Company for the years 2021 and 2022 are presented below.

Compute ratios.

Compute the following ratios for 2022 and 2021.

• a. Current ratio.
• b. Inventory turnover. (Inventory on December 31, 2020, was $340.)
• c. Profit margin.
• d. Return on assets. (Assets on December 31, 2020, were $1,900.)
• e. Return on common stockholders' equity. (Equity on December 31, 2020, was $900.)
• f. Debt to assets ratio.
• g. Times interest earned.

Problem 7-11 A Preparing a bank reconciliation and recording adjustments

CHECK FIGURE: 1. Adjusted book balance = $28,250

The following is information for Dundee Reality:

1. Balance per the bank statement dated October 31, 2020, is $26,830.
2. The balance of the Cash account on the company books as of October 31, 2020, is $5,575.
3. $14,680 of customer deposits were outstanding as of September 30; this amount has been deposited to Dundee’s account in October.
4. Cheques written in October that had not cleared the bank as of October 31 were:

#8700, $985

#8709, $12,600

#8801, $620

#8815, $145

5. The bank charged Dundee’s account for a $2,350 cheque of the E-Zone Networks; the cheque was found among the cancelled cheques returned with the bank statement.
6. Bank service charges for October amount to $65.
7. A customer’s cheque (Teresa Krant) for $7,050 had been deposited in the bank correctly but was recorded in the accounting records as $7,500.
8. Among the cancelled cheques in one for $260 given in payment of an account payable to Decker Company; the bookkeeper had recorded the cheque incorrectly at $620 in the company records.
9. The bank statement showed an electronic fund transfer of 22,880 for a customer payment. A bank service fee of $50 was charged.
10. A bank deposit of October 31 for $13,420 does not appear on the bank statement.

Required

1. Prepare a bank reconciliation statement as of October 31, 2020.
2. Prepare the necessary entries to make the Cash account agree with the bank reconciliation adjusted Cash balance as of October 31.

Analysis Component:

Identify the effects on the income statement and balance sheet if the entries in Part 2 were not recorded.

Q:Hearty Snacks Company sells its Paleo-Popcorn product to consumers through a distribution channel that consists of distributors (wholesalers) and retailers. The company has decided to set a margin of 40% on all its products. Retailers’ margins in the industry are typically 40%, and distributors’ margins average 25%. The company wants the retail price of the product to be $10. Answer the questions below.

(a) Given the information provided, fill in the missing numbers in the price chain below:

(b) Hearty Snacks’ advertising agency has proposed a new marketing campaign, and the CEO is considering raising the company’s margin to 50% in order to fund the campaign. Assuming that their cost (from the previous question) doesn’t change, and that the distributor and retailer margins in the industry remain the same, fill in the missing numbers below and indicate what the new retailer’s price to consumers will be.

Thomas Consulting received the September 30th bank statement with the following monthly activity:

On 9/30/2020, the cash account ledger balance was $41,773.

Deposits in transit were as follows;

• 9/28 $3,200
• 9/29 $2,461
• 9/30 $2,757

All checks posted in the ledger cleared the bank except for those totaling $10,205. Also, a $500 deposit from a customer was mistakenly recorded as a $50 debit to cash and credit to accounts receivable.  

Required:

1. Using excel, prepare a Bank Reconciliation for Thomas Consulting as of 9/30/2020. You can use any format, just be sure your adjusted/corrected cash balance reconciles. Don't submit a Bank Reconciliation that doesn't reconcile. Please format your numbers with the thousands separator and no decimals.
2. In the same excel file, use a new sheet to record any necessary journal entries to adjust the cash account.  

Stevens Ltd is the leading retailer of Gym equipment. The following information occurred during May 2020. Stevens Ltd had an opening inventory balance of $8,400,000.

May

1            Returned to the suppliers $80,000 of the opening inventory and received cash.

12          Purchased additional inventory on credit from the supplier for $12,000,000.

18          Sold inventory for $6,000,000 cash (Cost price to Stevens Ltd $2,400,000).

19          Paid the suppliers the account from 12 May.

31          The closing stocktake at year-end revealed an inventory balance of $17,800,000.

Required:

1. Record the above information for the month of May 2020 in the general journal using the perpetual inventory method. Narrations are not required. Ignore GST. [6 marks]

2. Record the above information for the month of May 2020 in the general journal using the physical inventory method. Narrations are not required. Ignore GST. Journal entries should include the four closing entries to determine the cost of goods sold and ending inventory. [8 marks]

3. Present the Income Statement extract for Stevens Ltd using the periodic inventory method for the month ended 31 May 2020. [3 marks]

4. Briefly explain two advantages of the perpetual inventory method for Stevens Ltd. [2 marks]

Stevens Ltd is the leading retailer of Gym equipment. The following information occurred during May 2020. Stevens Ltd had an opening inventory balance of $8,400,000.

May

1            Returned to the suppliers $80,000 of the opening inventory and received cash.

12          Purchased additional inventory on credit from the supplier for $12,000,000.

18          Sold inventory for $6,000,000 cash (Cost price to Stevens Ltd $2,400,000).

19          Paid the suppliers the account from 12 May.

31          The closing stocktake at year-end revealed an inventory balance of $17,800,000.

Required:

1. Record the above information for the month of May 2020 in the general journal using the perpetual inventory method. Narrations are not required. Ignore GST. [6 marks]

2. Record the above information for the month of May 2020 in the general journal using the physical inventory method. Narrations are not required. Ignore GST. Journal entries should include the four closing entries to determine the cost of goods sold and ending inventory. [8 marks]

3. Present the Income Statement extract for Stevens Ltd using the periodic inventory method for the month ended 31 May 2020. [3 marks]

4. Briefly explain two advantages of the perpetual inventory method for Stevens Ltd. [2 marks]

I need this ASAP.

Information for the economy of Pogo

2019

• Interest payments received from Foreign on Foreign assets owned by Pogo:                     $45M
• Interest payments paid to Foreign citizens on Pogo assets owned by Foreign:                   $48M
• Federal Reserve Bank of Pogo’s holding of interest-free Foreign assets, start of 2019:   $85M

2020

• Interest payments received from Foreign on Foreign assets owned by Pogo:                     $46M
• Interest payments paid to Foreign citizens on Pogo assets owned by Foreign:                   $52M
• Federal Reserve Bank of Pogo’s holding of interest-free Foreign assets, start of 2020:   $77M

Assumptions:            

• Interest rate on Foreign assets is 5% and the Interest rate on Pogo assets is 8% for both 2019 & 2020.
• Foreign central bank does not hold Pogo assets
• There are no Foreigners working in Pogo and no Pogo citizens working in Foreign during these years.

Questions:

1. What is Pogo’s international net worth at the start of 2019? Show your work.

2. What is Pogo’s current account, CA, in 2019. Show your work.

3. What is Pogo’s trade account, TA, in 2019. Show your work.

4. What is Pogo’s international net worth at the start of 2020? Show your work.