Western Vancouver Company has just completed their trial balance for the year of operations ending March 31, 2020 as shown below:

$

Office supplies 140

Interest earned 3,370

Office supplies expense 10,220

Patent 600

Commission expense 1,320

Prepaid advertising expense 480

Rent income 10,840

Furniture 9,200

Interest expense 4,500

Accrued interest expense 374

Cash 3,400

Copyright 6,000

Notes receivable, 2025 28,600

Unearned rent income 800

Investment, due 3 months 2,400

Accrued salary expense 526

Translation services revenue 36,000

Land 22,000

Depreciation expense, building 5,000

Accrued commission income 10,200

Accumulated depreciation, furniture 700

Advertising expense 5,520

John Wright, capital 149,200

Depreciation expense, furniture 390

Long-term notes payable, (2030) 75,000

Utilities expense 7,344

John Wright, withdrawals 1,100

Accounts payable 1,684

Building 125,000

Salaries expense 312,520

Accumulated depreciation, building 5,000

Rent paid 24,600

Additional information: 1. Additional investment made by the owner during the year, $22,000.

2. $8,000 of the Long Term Notes Payable will be paid in 5 months after March 31, 2020.

3. $3,600 of the Notes Receivable will be received by March 31, 2021.

Required: Prepare, in good form, a Balance Sheet for the year 2020.

For the financial year ending 30 June 2020, Malkin Ltd has some liability issues for which it seeks your help:

1. The company sells widgets and provides a one-year warranty. 100,000 widgets were sold for the year ended 30 June 2020, and 150,000 are expected to be sold next year. 2% of units sold are estimated to require warranty work, at an average cost of $3 per unit. Actual repairs incurred for units sold in the year just ended were $1,800. In the unadjusted trial balance, the Warranty Provision account has a $1,200 debit balance.
   1. Prepare the AJE required to update the Warranty Provision.
   2. What balance should be shown for Warranty Provision on the 30 June 2020 Balance Sheet?
2. Employees are paid $2,980 cash in hand every two weeks (wages and salaries), representing 10 days of work. At the same time, $1,200 of PAYE is withheld by Malkin Ltd, which it will pay to the IRD on the employees’ behalf. 30 June was on a Tuesday, and the last payroll run was the previous Friday (26 June). Employees do not work weekends. Prepare the AJE required on 30 June.
3. Malkin Ltd’s management is having trouble distinguishing provisions, contingent liabilities, and liabilities such as accounts or notes payable. Explain to Malkin Ltd’s management the key differences between these three categories, including their reporting implications, e.g., recognition or not; if not, what then?

Corporate Accounting

Benito Company reported the following information for the financial year ended 30/06/2020:

Required:

l. What is the net cash inflow (outflow) from operating activities?   

ll. What is the net cash inflow (outflow) from investing activities?

lll. What is the net cash inflow (outflow) from financing activities?

IV. Determine the cash & cash equivalents as of 30/06/2020.

V. Determine the total cash flow from operations as of the end of the year. Opening Balance of Cash at the start of the year is $100,000.

Sweet Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $10,000,000 on January 1, 2020. Sweet expected to complete the building by December 31, 2020. Sweet has the following debt obligations outstanding during the construction period.

A. Assume that Sweet completed the office and warehouse building on December 31, 2020, as planned at a total cost of $10,400,000, and the weighted-average amount of accumulated expenditures was $7,200,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.)

B. Compute the depreciation expense for the year ended December 31, 2021. Sweet elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $600,000. (Round answer to 0 decimal places, e.g. 5,275.)

Cheyenne Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $15,000,000 on January 1, 2020. Cheyenne expected to complete the building by December 31, 2020. Cheyenne has the following debt obligations outstanding during the construction period.

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Assume that Cheyenne completed the office and warehouse building on December 31, 2020, as planned at a total cost of $15,600,000, and the weighted-average amount of accumulated expenditures was $10,800,000. Compute the avoidable interest on this project. (Use interest rates rounded to 2 decimal places, e.g. 7.58% for computational purposes and round final answers to 0 decimal places, e.g. 5,275.)

Compute the depreciation expense for the year ended December 31, 2021. Cheyenne elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $900,000. (Round answer to 0 decimal places, e.g. 5,275.)

Crane Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2019, and December 31, 2020. This information is presented below:

(a) Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

(b) Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

(c) Which of the two methods above provides the higher net income in each year?

Ramsey Corporation's capital structure consists of 50,000 shares of common stock with a par value of $4. At December 31, 2020, an analysis of the accounts and discussions with company officials revealed the following information: Sales revenue $1,250,000 Discontinued operations loss (Note: you must adjust for tax) 90,000 Selling expenses 128,000 Cash 60,000 Accounts receivable 90,000 Common stock 200,000 Cost of goods sold 700,000 Accumulated depreciation-machinery 180,000 Dividend revenue 18,000 Unearned service revenue 4,400 Interest payable 1,000 Land 370,000 Patents 100,000 Retained earnings, January 1, 2020 270,000 Accumulated Other Comprehensive Income, Jan. 1, 2020 20,000 Unrealized holding loss from AFS debt securities, net of tax 5,000 Interest expense 17,000 Administrative expenses 170,000 Dividends declared common shareholders 14,000 Dividends declared preferred shareholders (and paid) 10,000 Allowance for doubtful accounts 5,000 Notes payable (maturity 7/1/26) 200,000 Machinery 450,000 Supplies 40,000 Accounts payable 60,000 Tax Rate is 30%

(a) Prepare a multiple-step income statement in good form (b) Prepare a statement of comprehensive income (separate from income statement) in good form. Note round EPS figures to the nearest penny. (c) Prepare a statement of stockholders’ equity in good form

Coronado Ranch & Farm is a distributor of ranch and farm equipment. Its products include small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company Internet site. However, given some of its specialty products, select farm implement stores carry Coronado’s products. Pricing and cost information on three of Coronado’s most popular products are as follows.

On January 1, 2020, Coronado sells augers to Mills Farm & Fleet for $41,280. Mills signs a six-month note at an annual interest rate of 12%. Coronado allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Coronado estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Coronado’s costs to recover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entries for Coronado on January 1, 2020.

(To Record Cost of Goods Sold)

Mary Miller, Robert Riley, Charlie Carson, and Renee Regal are executives who work for Amsdahl Inc. On January 2, 2018, Amsdahl granted each executive incentive stock options to acquire 5,000 shares of Amsdahl $2 par value common stock at $18 per share. The options are exercisable beginning on January 2, 2021, and expire on December 31, 2022. The market value of Amsdahl common was equal to the exercise price on the grant date. Using an appropriate options pricing model, the fair value of one option on the grant date was $4.50. All four executives worked for Amsdahl during 2018. During 2019 and 2020, all executives continued working for the company except for Renee Regal, who resigned effective January 1, 2019. During 2020, Mary Miller and Charlie Carson exercised their options when the market value of Amsdahl common was $23 per share. During 2022, the market value of Amsdahl common fell to $16 per share, and Robert Riley let his options expire.

Make the journal entry to record compensation expense for 2018.

What is compensation expense for 2019?

What is compensation expense for 2020?

Make the journal entry to record the exercise of the stock options in 2021.

Make the journal entry to record the expiration of Robert Riley’s options in 2022.