a) On January 1, 2020, Blue Inc. sold computer equipment to Larkspur Co. The sales price of the equipment was $511,000 and its carrying amount is $396,000. Record any journal entries necessary for Blue from the sale of the computer equipment in 2020.
b) Use the information from part a. Assume that, on the same day the sale occurred, Blue enters into an agreement to lease the equipment from Larkspur for 10 years with annual lease payments of $69,428.50 at the end of each year, beginning on December 31, 2020. If Blue has an incremental borrowing rate of 6% and the equipment has an economic useful life of 10 years, record any journal entries necessary for Blue from the sale and leaseback of computer equipment in 2020.
I really just need the answer for the entries for part B) I cannot figure it out, It is so confusing to me
In: Accounting
Cho Co. includes one coupon in each box of cereal it sells. In return for 5 coupons and $1, customers receive a Cho branded spoon that the company purchases for $2 each. Cho's experience indicates that 40 percent of the coupons will be redeemed. During 2019, 200,000 boxes of cereal were sold, 20,000 spoons were purchased, and 55,000 coupons were redeemed. During 2020, 280,000 boxes of cereal were sold, 25,000 spoons were purchased, and 90,000 coupons were redeemed. The premium payable account balance at the beginning of the 2019 fiscal year was $8,000. Determine the premium expense reported in the income statement and the ending premium liability balance reported in the balance sheet for 2019 and 2020.
2019 Premium Expense: $
2019 Ending Premium Liability: $
2020 Premium Expense: $
2020 Ending Premium Liability: $
In: Accounting
Ayayai Corporation had the following stockholders’ equity
accounts on January 1, 2020: Common Stock ($5 par) $500,000,
Paid-in Capital in Excess of Par—Common Stock $200,000, and
Retained Earnings $120,000. In 2020, the company had the following
treasury stock transactions.
| Mar. | 1 | Purchased 5,500 shares at $9 per share. | |
| June | 1 | Sold 1,000 shares at $13 per share. | |
| Sept. | 1 | Sold 1,000 shares at $11 per share. | |
| Dec. | 1 | Sold 1,500 shares at $7 per share. |
Ayayai Corporation uses the cost method of accounting for treasury
stock. In 2020, the company reported net income of $30,000.
Prepare the stockholders’ equity section for Ayayai Corporation at December 31, 2020. (Enter the account name only and do not provide the descriptive information provided in the question.)
In: Accounting
PHP Question:
Write the PHP code to list out all of the dates of the current month and assign them to their given days. As an example, for the month of October 2020, the output should look something like this:
October 2020
Monday: 5, 12, 19, 26
Tuesday: 6, 13, 20, 27
Wednesday: 7, 14, 21, 28
Thursday: 1, 8, 15, 22, 29
Friday: 2, 9, 16, 23, 30
Saturday: 3, 10, 17, 24, 31
Sunday: 4, 11, 18, 25
IMPORTANT: The code MUST use the current month,
whatever the current month is at the time (so if I used this PHP
code during July of 2020, it would use all of the dates of July
2020 and assign them to the proper days). Do NOT
use tables for this code.
In: Computer Science
Hall Corp. purchases a new machine on October 1, 2018. Year end is December 31.
Purchase price 100,000
Residual Value 5,000
Useful life 3 years
Estimated working hours during useful life 7,500
Machine usage in 2018 1,500
Machine usage in 2019 3,750
Machine usage in 2020 2,250
1. Calculate depreciation expense using the activity method for 2018
2. Prepare Hall Corp's journal entry to record 2018 depreciation on December 31, 2018
3. Calculate depreciation expense using the activity method for 2019
4. Prepare Hall Corp's journal entry to record 2019 depreciation on December 31, 2019
5. Calculate depreciation expense using the activity method for 2020
6. Prepare Hall's journal entry to record 2020 depreciation on December 31, 2020
In: Accounting
For 2018, Mr. Mason Boardman has combined federal and provincial Tax Payable of $62,350. For this year, his employer withheld $61,600.
For 2019, his combined federal and provincial Tax Payable is $29,760. For this year, his employer withheld $13,740.
For 2020, he anticipates having combined federal and provincial Tax Payable of $52,370. He expects that his employer will withhold $47,390.
In January, 2020, you are asked to provide tax advice to Mr. Boardman. He has asked you whether it will be necessary for him to pay instalments in 2020 and, if so, what the minimum amounts that should be paid are, along with the dates on which these amounts are due. Assume that his estimates for 2020 will be accurate.
Required: Provide the information requested by Mr. Boardman. He would like to know what the amount of instalments are under all three options and which is the best option you would recommend.
In: Accounting
During 2018, Pina Inc., a furniture store, issued two different series of bonds, details of which follow:
First issue: 670 $100, 10% bonds, at par, each convertible into 6 common shares.
Second issue: 390 $100, 7% bonds, at par, each convertible into 3 common shares.
For the year ended December 31, 2020, the company had net income of $53,850. Throughout 2020, 2,500 common shares were outstanding; none of the bonds were converted or redeemed. The company’s tax rate was 19%. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).
1. Calculate basic earnings per share for the year ended December 31, 2020.
2. Calculate diluted earnings per share for the year ended December 31, 2020.
In: Accounting
| Discuss how the following affect Assets, Income, Liabilities, Common Stock and Retained Earnings on the end of 2019 financial statements (Increase by $x, Decreases by $x, or No Effect): |
| 1. In June 2019, $1000 of gift cards were sold. At the end of the year 2019, $200 has not been redeemed. |
| 2. On November 1st 2019, John paid $300 for a 12 month insurance policy, with it beginning on the same day, and he showed all of it as an expense. |
| 3. The water bill for November 2019 was $100 |
| 4. On December 1st 2019, a consulting contract was signed for work in 2020, with the work starting in January 2020, and gets paid $10000 March 1st 2020. |
| 5. A company pays employees on the first day of the month. This is for working the previous month. December 2019's salaries will be paid on Jan. 1st 2020 is $1200 |
In: Accounting
Outline three possible arguments for not recognising internally generated Goodwill as an intangible asset in accordance with NZ IAS 38.
(b) As of 30 June 2020, Rezar Ltd has the following intangible assets to report in the financial statements.
(i) The company has acquired patents on 1 July 2016 for $45,000. This patent allows the production of 300,000 units. During the year ended 30 June 2020, the company produced 36,000 units.
(ii) Externally acquired Goodwill as at 1 July 2019 was $85,000. Goodwill has been impaired by $10,000 during the current year.
(iii) On 1 October 2019, the company acquired a franchise for $27,000 for 5 years. There is great demand for this franchise in the current market, and it has a fair value of $23,000 as of 30 June 2020.
Required: Explain how each of the above intangible assets should be measured in accordance with NZ IAS 38 as of 30 June 2020. Your answer should include the most appropriate model or models available to Rezar Ltd to measure above intangible assets, amortisation (if any), impairments (if any) and the closing balances as at 30 June 2020. Show all calculations. No journal entries required.
In: Accounting
On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 514,000 euros for one year at an interest rate of 5 percent per annum. Mendoza must make its first interest payment on the loan on October 1, 2020, and will make a second interest payment on March 31, 2021, when the loan is repaid. Mendoza prepares U.S. dollar financial statements and has a December 31 year-end. Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 euro:
| Date | U.S. Dollar per Euro | ||
| April 1, 2020 | $ | 1.10 | |
| October 1, 2020 | 1.20 | ||
| December 31, 2020 | 1.24 | ||
| March 31, 2021 | 1.28 | ||
1 Record the borrowal of the foreign loan.
2 Record the first interest payment on the foreign loan.
3 Record the year-end interest accrual on the foreign loan.
4 Record the year-end adjustment to the foreign loan.
5 Record the second interest payment and foreign exchange gain or loss.
6 Record the repayment of the loan and foreign exchange gain or loss.
In: Accounting