On June 1, 2018, Novak Company and Splish Company merged to form Blossom Inc. A total of 837,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis.

On April 1, 2020, the company issued an additional 576,000 shares of stock for cash. All 1,413,000 shares were outstanding on December 31, 2020.

Blossom Inc. also issued $600,000 of 20-year, 7% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 36 shares of common at any interest date. None of the bonds have been converted to date.

Blossom Inc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,395,000. (The tax rate is 20%.)

Determine the following for 2020.

(a) The number of shares to be used for calculating: (Round answers to 0 decimal places, e.g. $2,500.)

(b) The earnings figures to be used for calculating: (Round answers to 0 decimal places, e.g. $2,500.)

2. working with databases and files in python

a) Write a function with prototype “def profound():” that will prompt the user to type something profound. It will then record the date and time using the “datetime” module and then append the date, time and profound line to a file called “profound.txt”. Do only one line per function call. Use a single write and f-string such that the file contents look like:

2020-10-27 11:20:22 -- Has eighteen letters does

2020-10-27 11:20:36 -- something profound

b) Write a function with prototype “def bestwords():” that will prompt the user to enter a line with some of the best words (separated by spaces). These will be converted to lower case and stored in a data base file (using the dbm and pickle modules) whose keys are a tuple of the current year, month and day (using the datetime module) and the “values” are a set of words collected on that day. Each new word should be checked against all previously-entered words (even those on other days) and it is not added if it already exists in the database. (Hint: I simply subtracted all previous sets of words from the current set, then added that new set to the one for the current day (if it already existed).

c) Write a function with prototype “def printbestwords():” that will simply open the database of best words and print the keys and values, sorted by the keys. Don’t forget to close the database on exit. Example output:

(2020, 10, 26) {'infantroopen', 'susbesdig'}

(2020, 10, 27) {'deligitimatize'}

(2020, 10, 28) {'transpants', 'resaption'}

Problem 21-06 (Part Level Submission)

Novak Leasing Company agrees to lease equipment to Splish Corporation on January 1, 2020. The following information relates to the lease agreement.
1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years.

2.The cost of the machinery is $517,000, and the fair value of the asset on January 1, 2020, is $657,000

3.At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $55,000. Splish estimates that the expected residual value at the end of the lease term will be 55,000. Splish amortizes all of its leased equipment on a straight-line basis

4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020

5.The collectibility of the lease payments is probable.

6.Novak desires a 10% rate of return on its investments. Splish’s incremental borrowing rate is 11%, and the lessor’s implicit rate is unknown.
(Assume the accounting period ends on December 31.)

A. Discuss the nature of this lease for both the lessee and the lessor.

-This is a finance lease for Splish

-This is a sales type lease for Novack

B. Calculate the amount of the annual rental payment required.

- Annual rental payment $117413

C. Compute the value of the lease liability to the lessee.

- Present value of minimum lease payments ????

D. Prepare the journal entries Splish would make in 2020 and 2021 related to the lease arrangement

E. Prepare the journal entries Novak would make in 2020 and 2021 related to the lease arrangement.

Amanah Berhad is a furniture manufacturer which is based in Pasir Gudang. The following trial balance was taken from the books of Amanah Berhad on 31 December 2020.

Additional information:

(i)           Insurance expired during the year, RM2,000.

(ii)      Estimated bad debts, 5% of the accounts receivable.

(iii)     Depreciation on equipment, 10% per year.

(iv)     Interest at 5% is receivable on the note for one full year.

(v)      Rent paid in advance, RM5,400 (originally charged to expense).

(vi)     Accrued salaries and wages at December 31, RM5,800.

(vii)    Advertising paid in advance, RM560 (originally charged to expense).

Required;

(a)      Prepare adjusting journal entries for the above items.

(b)      Prepare Income Statement of Amanah Berhad for the year ended 31 December 2020.

(c)          Prepare Statement of Financial Position of Amanah Berhad as at 31 December 2020.

Brighton Ltd has unadjusted trial balance as follows on 30 June 2020.

Additional information:

1. Depreciation on the motor vehicles is on the straight-line method with a useful life of 12 years and scrap value of $4,800.
2. Depreciation on the equipment is on the reducing-balance method with a depreciation rate of 20% and scrap value of $300.
3. Expired insurance amounted to $4,500.
4. A physical stocktake has determined that office supplies on hand amounted to $700.
5. The balance in the unearned rental revenue account includes $350 for services provided on 25 June 2020.
6. Salaries earned but not paid amounted to $2,500.
7. Accrued interest on the bank loan is $4,100.
8. Electricity expense for June of $275 has not been paid for or recorded at 30 June 2020.

Required:

(a) Prepare the necessary adjusting entries in the general journal for the year ended 30 June 2020. Narrations are not required.

(b) Prepare an income statement for the year ended 30 June 2020.

*Please upload the solution as soon as you can finish it. Thanks for your help

Canvas Corp. is a large construction company that reports under IFRS. They have recently signed a contract with Ontario Tech University to build an addition to the library. Canvas began work on the contract at the beginning of 2020. Contract information and estimates are as follows: Contract price ……………………………………………….. $ 2,000,000 Estimated costs Labour.................................................................................. $ 435,000 Materials and subcontracts ................................................. 765,000 Indirect costs........................................................................ 300,000 1,500,000 Estimated gross profit................................................................... $ 500,000 At the end of 2020, the following was the actual status of the contract: Progress Billings to date ......................... $ 1,115,000 Costs incurred to date: Labour.................................................................................. $ 207,000 Materials and subcontracts ................................................. 468,000 Indirect costs........................................................................ 75,000 Latest forecast of total costs of project (no change).................... $ 1,500,000 At the end of 2021, progress billings to date totalled $1,900,000 and costs incurred to date totalled $1,395,000 with a forecast of $155,000 remaining costs to complete. Cash collected was $980,000 during 2020 and $1,000,000 during 2021. Job is expected to be completed in 2022 Instructions a) Calculate the gross profit that would be reported on this contract for 2020 and 2021. b) Prepare all journal entries for 2020. c) Indicate the account(s) and the amount(s) that would be shown on Canvas’ statement of d) Assume all the same facts, except that the forecast of remaining costs in 2021 is not $155,000, but $555,000. How much income (loss) would Canvas then report for the year 2021? e) Assume you are a shareholder of Canvas Corp. Do you think that recognizing revenue over time rather than at a point in time makes the financial statements more useful? Explain your answer.

Exercise 8-19 (Part Level Submission)

Waterway Corporation began operations on December 1, 2019. The only inventory transaction in 2019 was the purchase of inventory on December 10, 2019, at a cost of $25 per unit. None of this inventory was sold in 2019. Relevant information is as follows.

During the year 2020, the following purchases and sales were made.

The company uses the periodic inventory method.

(a1) Calculate average-cost per unit. (Round answer to 2 decimal places, e.e. 2.76.)

(a2) Determine ending inventory under (1) specific identification, (2) FIFO, (3) LIFO, and (4) average-cost. (Round answer to 0 decimal places, e.g. 2,760.)

(b1) Calculate price index. (Round answer to 4 decimal places, e.g. 2.7600.)

(b2) Determine ending inventory using dollar-value LIFO. Assume that the December 2, 2020, purchase cost is the current cost of inventory.(Hint: The beginning inventory is the base layer priced at $25 per unit.) (Round answer to 0 decimal places, e.g. 2,760.)

Part 1

As the controller of Lynbrook, Inc., you were asked to evaluate a potential bond issuance to raise funds to expend the company’s operations. Lynbrook is considering issuing a $10 million 5- year, 12 percent bonds payable on June 30, 2020. Interest would be payable semiannually on December 31 and June 30. Bond discounts and premiums would be amortized at each interest payment date using the straight-line method. The company's fiscal year ends at December 31.

Requirement:

a. Prepare an amortization table for each of the 10 semiannual periods, under each of the following assumptions:

1. The bonds were issued at 98. (round to the nearest dollar.) 2. The bonds were issued at 101. (round to the nearest dollar.)

2. Prepare the journal entry to record the issuance of the bonds on June 30, 2020 if Lynbrook issues the bonds at 98.

3. Prepare the journal entries necessary to record the semiannual bond interest payments on December 31, 2020 and June 30, 2021, if the bonds were issued at 101.

Part 2

The long-range strategic budgeting process also called for Lynbrook to borrow $2,000,000 cash on January 1, 2020 from Wells Fargo by signing a ten-year 6% installment note. The note requires equal payments of principal and interest on December 31 each year in the amount of $271,736.

Required

1. Prepare the journal entries required by Lynbrook on the following dates: a) December 31, 2020

b) December31,2021
2. Determine the total interest expense Lynbrook will recognize over the life of the note.

1. Calculate the cost of a Regular widget in 2020 using the traditional costing system.
2. Calculate the cost of a Regular widget in 2020 using the ABC system.
3. Explain why your results differ in questions 7 and 8. Be specific.
4. What characteristics of Company DEF suggest that changing to an ABC system might benefit it? Which costing system do you recommend Company DEF use? Why

The accounting department has also compiled the following data by product line for 2020:

Company DEF makes three types of widgets: Simple, Regular, and Deluxe. The company currently uses a traditional costing system with one indirect cost pool and machine hours as its allocation base; however, it is considering whether it should implement an activity-based costing (ABC) system in 2020. The accounting department has studied the indirect cost pool and developed the following cost pool data for use in an ABC system in 2020:

Crane Sports began operations on January 2, 2020. The following stock record card for footballs was taken from the records at the end of the year. Date Voucher Terms Units Received Unit Invoice Cost Gross Invoice Amount 1/15 10624 Net 30 51 $22 $1,122 3/15 11437 1/5, net 30 66 18 1,188 6/20 21332 1/10, net 30 91 17 1,547 9/12 27644 1/10, net 30 85 13 1,105 11/24 31269 1/10, net 30 77 12 924 Totals 370 $5,886 A physical inventory on December 31, 2020, reveals that 108 footballs were in stock. The bookkeeper informs you that all the discounts were taken. Assume that Crane Football Shop uses the invoice price less discount for recording purchases.

1.) Compute the December 31, 2020, inventory using the FIFO method. (Round per unit and final answer to 2 decimal paces, e.g. 35.57.) Ending Inventory using the FIFO method $

2.)Compute the 2020 cost of goods sold using the LIFO method. (Round per unit and final answer to 2 decimal paces, e.g. 35.57.) Cost of Goods Sold using the LIFO method $

3.) What method would you recommend to the owner to minimize income taxes in 2020, using the inventory information for footballs as a guide?