During 2020, Pearl Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Pearl for a lump sum of $29,925 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.

During 2020, Pearl sells 100 lounge chairs, 50 armchairs, and 60 straight chairs.

What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

On January 1, 2020, Whispering Winds Limited paid $575,560.90 for 12% bonds with a maturity value of $535,000.00. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature on January 1, 2020, with interest receivable on December 31 of each year. Whispering Winds applies ASPE using the effective interest method, and has a December 31 year end. Assume that Whispering Winds hopes to make a gain on the bonds as interest rates are expected to fall. Whispering Winds accounts for the bonds at fair value with changes in value taken to net income, and separately recognizes and reports interest income. The fair value of the bonds at December 31 of each year end is as follows:

2020 $571,600

2021 $551, 050

2022 $548,910

2023 $542,490

2024 $535,000

Prepare the journal entry at the date of the bond purchase.

Prepare the journal entries to record interest income and interest received and recognition of fair value as December 31, 2020, 2021, and 2022.

Magpie Ltd enters into a non-cancellable two-year lease agreement with Tiger Ltd for an item of machinery on 1 January 2020. Magpie Ltd pays $15,000 on signing the agreement with Tiger Ltd on 1 January 2020. There are eight quarter payments of $10,000, the first being made on 31 March 2020. Included within the $10,000 lease payments is an amount of $1,000 representing payment to the lessor for insurance and maintenance of the machinery. The machinery is to be depreciated on a straight-line basis. The machinery is expected to have an economic life of five years, after which time it will have a zero-salvage value. There is a purchase option Magpie Ltd will be able to exercise at the end of the second year for $30,000. If this purchase option is exercised, the machinery will be transferred to Magpie Ltd. The rate of interest implicit in the lease is 12%. Refer to the appendix for the tables of Present Value Factor for a single future amount and Present Value of an ordinary annuity of $1.

Prepare the lease payments schedule for Magpie Ltd from 1 January 2020 to 30 June 2020.

The following account balances were taken from ABC Company’s unadjusted trial
balance at December 31, 2020:

Accounts Payable ............  $56,000
Accounts Receivable .........  $42,000
Cash ........................  $11,000
Common Stock ................  $63,000
Cost of Goods Sold ..........  $52,000
Income Tax Expense ..........  $12,000
Insurance Expense ...........  $21,000
Inventory ...................  $70,000
Land ........................  $68,000
Mortgage Payable ............  $49,000
Patent ......................  $31,000
Prepaid Insurance ...........  $17,000
Rental Revenue ..............  $46,000
Retained Earnings ...........  $72,000 (at January 1, 2020)
Sales Revenue ...............  $95,000
Supplies ....................  $19,000
Wage Expense ................  $38,000

ABC Company has not yet recorded adjusting entries related to the following
two items:

(1)  $11,000 of supplies were used up during 2020.

(2)  ABC Company has provided services to a customer totaling $14,000 as of
     December 31, 2020. However, the customer has not yet paid ABC Company.

Calculate the net income reported by ABC Company for 2020 after the appropriate
adjusting entries have been recorded and posted.

Betty is an aspiring CPA. In 2020, she finished her last semester at San Diego State, where she graduated with an undergraduate degree in accounting. Betty was a full-time student and paid $3,500 in tuition and to San Diego State in 2020 and paid $750 for required textbooks. Betty already claimed the American Opportunity Tax Credit in 2017, 2018 and 2019.

Betty’s husband, Barry, is a nurse. He is also pursuing his Masters in Nursing at University of San Diego. In 2020, he spent $8,000 on tuition for his graduate program. Barry also paid $500 for required textbooks. The tuition and books were not reimbursed by Barry’s employer.

Betty and Barry will file a joint tax return for 2020, and neither can be claimed as a dependent on anyone else’s tax return. Their modified AGI is below the phaseout threshold for both the American Opportunity Tax Credit and Lifetime Learning Credit.

What is the maximum amount of education tax credits that Betty and Barry can claim on their 2020 tax return?

Hedging Exposed Asset Position with Adjusting Entries

On November 3, 2020, Robin Franchises, a U.S. company, sold merchandise to a franchisee in the U.K., at a price of £8,000,000, payable in three months in pounds. To hedge its exposed asset position, on November 3, 2020, Robin entered a forward contract for delivery of £8,000,000 to the broker on February 3, 2021. On February 3, 2021, Robin received payment from the franchisee, and delivered the pounds to the broker to close the forward contract. Robin’s accounting year ends December 31. Exchange rates ($/£) are as follows:

a. Prepare the journal entries Robin Franchises made on November 3, 2020 and February 3, 2021, as well as the required end of year adjusting entry. (7 total entries)

b. Calculate the cash gain or loss realized by Robin Franchises by hedging compared with not hedging.

During 2020, Pretenders Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Pretenders for a lump sum of $59,850 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below. Type No. of Chairs Estimated Selling Price Each Lounge chairs 400 $90 Armchairs 300 80 Straight chairs 700 50 During 2020, Pretenders sells 200 lounge chairs, 100 armchairs, and 120 straight chairs. What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

On May 1, 2020, Peters Company purchased 80% of the common stock of Smith Company for $50,000. Additional data concerning these two companies for the years 2020 and 2021 are:

Any difference between book value and the value implied by the purchase price relates to Smith Company's land. Peters Company uses the cost method to record its investment.

Required:

1. Prepare the workpaper entries that would be made on a consolidated statements workpaper for the years ended December 31, 2020 and 2021 for Peters Company and its subsidiary, assuming that Smith Company's income is earned evenly throughout the year.
2. Calculate consolidated net income and consolidated retained earnings for 2020 and 2021

The Miraculous Medicinals Company (MMC), a manufacturer and distributor of cannabis-based therapeutics, issued bonds with the following characteristics on January 1, 2020: $1,000 par value, annual nominal interest rate of 7.5%, semiannual coupon payments, and a maturity of 10 years. The bonds are callable at the end of 3 years with a call premium equal to one semiannual coupon payment.

On July 1^st of 2020 the price of one of these bonds had declined to $875 (Assume that the coupon payment due July 1^st has already been paid.)

Is this bond considered a “discount” or a “premium” bond? Have interest rates risen or fallen since the time the bond was issued? r

Calculate the Yield to Maturity (YTM) of this bond as of July 1, 2020.

Calculate the Yield to Call (YTC) of this bond as of July 1, 2020.

If the interest rate environment that exists in July of 2020 persists over the next several years, would you expect that MMC will call this bond? Why or why not?

Given the above, should investors expect to earn the YTM or the YTC?

Answers provided. Please explain the calculations

This is the entire question that was given. It is not missing information.

Weisman Company, a 100% owned subsidiary of Martindale Corporation, sells inventory to Martindale at a 20% profit on selling price. The following data are available pertaining to inter-company purchases by Martindale:

Weisman’s profit numbers were $125,000, $142,000 and $265,000 for 2020, 2021, and 2022, respectively. Martindale received dividends from Weisman of $25,000 for 2020 and 2021, and $30,000 for 2022.

29.      What would be the net debit or credit to cost of goods sold on the 2021 consolidation worksheet? Answer = $19,000 credit

30.       Assume Weisman uses the equity method to account for its investment in Martindale. What would be the debit to retained earnings regarding the 2020 consolidation entry related to the unrealized inventory profit? Answer = $-0-