On January 1, 2019, FLOWERS Inc. rendered services in exchange for a four-year promissory note having a face value of $10,000. Interest at a rate of 3% is payable annually on January 1 (first payment
Jan 1, 2020). The customer has credit ratings that require it to borrow money at 8% interest.
FLOWERS uses IFRS.
Required: Show and label all calculations. (Round to the nearest dollar.)
What is the value of note / interest receivable recorded by FLOWERS at its year end of December 31, 2020
In: Accounting
| On January 5, 2018 Calvin's Cropcrushers, Inc. purchased crop | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| crushing equipment for which the following information is available: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Original cost.................. | $3,800,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Estimated residual value....... | $200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Useful life in years........... | 10 | years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Useful life expressed in operating hours | 20,000 | hours | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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In: Accounting
1.The population of India in the year 2000 was 1 billion and it increased exponentially at a rate of 1.6% per year. If the growth rate is maintained, what will be the population in the year 2020? If the growth rate is decreased to 1.2% per year from 2020 onwards and is maintained at that level, what will be the population in the year 2050? Assuming the average human exhales 2.3 pounds of carbon dioxide on an average day, what is the total amount of Carbon released in the atmosphere annually by human exhalation (in billion tonnes) around the year 2020?
2.Calculate the suspended particulate concentration (in μg/m3) in a sample collected through a hi-vol. sampler: Weight of clean filter = 5.00 g, Weight of the filter after exposure for 24 hours = 5.38 g, Average air flow = 2000 m3 in 24 hours.
In: Mechanical Engineering
P18.8 (LO 2, 3) (Time Value, Gift Cards, Discounts) Presented below are two independent revenue arrangements for Colbert Company.
Instructions
Respond to the requirements related to each revenue
arrangement.
Colbert sells 20 nonrefundable $100 gift cards for 3D printer paper on March 1, 2020. The paper has a standalone selling price of $100 (cost $80). The gift cards expiration date is June 30, 2020. Colbert estimates that customers will not redeem 10% of these gift cards. The pattern of redemption is as follows.
Redemption Total
March 31
50%
April 30
80%
June 30
85%
Prepare the 2020 journal entries related to the gift cards at March
1, March 31, April 30, and June 30.
In: Accounting
You are the accountant for ADO Corporation, and you have to prepare the journal for income taxes. You have gathered the following information for 2020:
Pretax financial income (i.e., pretax GAAP income) is $520,000.
The tax rate for 2020 is 40%.
Depreciation expense on the tax return is $13,000 greater than on the GAAP income statement.
One of the corporation’s executives died in a plane crash. ADO received life insurance benefits of $40,000.
Rent revenue on the tax return (i.e., rent collected) is $35,000 higher than rent revenue (i.e., rent earned) on the GAAP income statement.
Instructions
(a) Compute taxable income. Clearly list all differences between pretax financial and taxable income, and indicate whether they are permanent or temporary.
(b) Prepare the journal entry to record income taxes for 2020.
In: Accounting
In 2018, the Westgate Construction Company entered into a
contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2020. Information related to
the contract is as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,604,000 | $ | 4,032,000 | $ | 1,940,400 | |||
| Estimated costs to complete as of year-end | 5,796,000 | 1,764,000 | 0 | ||||||
| Billings during the year | 2,040,000 | 4,596,000 | 3,364,000 | ||||||
| Cash collections during the year | 1,820,000 | 4,000,000 | 4,180,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
|
In: Accounting
|
Maturity |
Coupon |
Bid |
Asked |
Chg |
Asked |
|
2/15/2021 |
7.875 |
106.2120 |
106.2160 |
0.0020 |
1.618 |
In: Finance
Omaha LLC had the following inventory amounts:
12/31/2019 3/31/2020
Raw materials 3052 3135
WIP 3771 3804
Finished goods 2251 2175
During Q1 2020, the company transferred $4294 of raw materials. to WIP. In addition, the firm incurred the following costs during the quarter: direct labor of $2584, variable manufacturing overhead of $2180, fixed manufacturing overhead of $2190, variable non-manufacturing overhead of $2027, and fixed non-manufacturing overhead of $2607. Omaha uses full absorption costing.
a.How much raw materials did Omaha purchase in Q1 2020?
b.How much is Omaha's cost of goods manufactured?
c.Notwithstanding your answer to the prior question, assume the cost of goods manufactured is $9525. How is much is the cost of goods sold?
In: Accounting
On January 1, 2020, the first day of its accounting year, Lessor Inc., leased certain equipment at an annual payment of $10,254.19, receivable at the beginning of each year for 10 years. The first payment was received immediately. The equipment has an estimated useful life of 12 years and no residual value. Lessor’s implicit rate is 6%. Lessor had no other costs associated with this lease and properly classified the lease as a sales-type lease. The leased equipment was carried on Lessor Inc.’s books at $65,000.
Required
a. Calculate the value of the lease receivable at the commencement of the lease.
b. What amounts would be presented in the balance sheet as of December 31, 2020, related to this lease?
c. What amounts would be presented in the income statement for the year ended December 31, 2020, related
to this lease?
In: Accounting
On January 1, 2018, Surreal Manufacturing issued 670 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $651,410. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year.
Required:
1. Prepare a bond amortization schedule.
2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2018 and 2019, the interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 102.
In: Accounting