Ferry Corporation had 300,000 shares of common stock outstanding at December 31, 2020. In addition, it had 90,000 stock options outstanding, which had been granted to certain executives on June 30, 2020, and which gave them the right to purchase shares of Ferry's stock at an option price of $35 per share. The average market price of Ferry's common stock for 2020 was $50. Net income was $1,000,000. SHOW ALL COMPUTATIONS>
In: Accounting
Ferry Corporation had 300,000 shares of common stock outstanding at December 31, 2020. In addition, it had 90,000 stock options outstanding, which had been granted to certain executives on June 30, 2020, and which gave them the right to purchase shares of Ferry's stock at an option price of $35 per share. The average market price of Ferry's common stock for 2020 was $50. Net income was $1,000,000. SHOW ALL COMPUTATIONS>
In: Accounting
E11.3
(LO 1, 2 ) (Depreciation Computations—SYD, DDB—Partial Periods) Judds Company purchased a new plant asset on April 1, 2020, at a cost of $711,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Judds' accounting period is the calendar year.
Instructions
a.
Compute the depreciation for this asset for 2020 and 2021 using the sum-of-the-years'-digits method.
b.
Compute the depreciation for this asset for 2020 and 2021 using the double-declining-balance method.
In: Accounting
b. Audio Waves Ltd. has five employees who have been extremely busy during the current fiscal year, which ends on December 31, 2020. Each employee is entitled to 2 weeks' vacation in return for working 50 weeks. Audio Waves has a weekly payroll of $10,000, and as of December 31, 2020, none of the employees has taken vacation leave. How should this liability be reported on the company's statement of financial position on December 31, 2020?
In: Accounting
JJJ Corporation owns a number of shopping centers used to produce rental income. In 2020, the corporation received an advanced rental payment of $20,000 from one of the tenants. The advance payment represented the payment of the rent for the year 2021.
A. If JJJ Corporation used the cash method of accounting, indicate the amount of income, if any, the corporation would need to report in 2020.
B. If JJJ Corporation used the accrual method of accounting, indicate the amount of income, if any, the corporation would need to report in 2020.
In: Accounting
In: Economics
Using the three-step method, compute the dirty price (to 3 decimal places) of a $100 face-value bond maturing on 15-Feb-29, paying a 5%pa semi-annual coupons with a yield to maturity of 3%pa for settlement on 05-May-20. Set out the intermediate calculations for each of the three steps.
(Note there are 102 days between 05-May-20 and 15-Aug-2020. There are 182 days between 15-Feb-2020 and 15-Aug-2020)
In: Finance
Caldor Health accrued $140,000 for a warranty liability related to sales made in 2020. Warranties cover defects for 2 years from the date of sale. Claims in 2020 were $60,000 and in 2021 were $70,000. Warranty expense fro 2020 and 2021 are:
A) $60,000 and $70,000
B)$60,000 and $80,000
C)$140,000 and $0
D)$140,000 expense and $10,000 income
Please give specific reason for every choice that why it is correct and why it is wrong if you can. Thank you so much!!!!!
In: Accounting
Acorn Limited is a listed company based in Vermont. On January 1, 2018, the company granted 1,000 share units to its CFO. Each share unit has a contractual service period of three years and a vesting condition based on the details below.
At the end of 2020, each share unit is convertible into 100 common shares of Acorn Limited if both of the following criteria are met:
2018-2020 Accumulated company net income is greater than $5 million.
2018-2020 Stock price increase is greater than 25%.
On the grant date, the company’s common shares had a fair value of $6 per share and the company was expected to meet both of the criteria above.
During 2018 and 2019, the company was expected to meet both of the criteria above. However, during 2020 the company’s stock price decreased and the company did not meet the stock price increase criteria at the end of the year.
The company’s accountant has asked for your help to check the compensation costs recorded for these share units during 2018-2019 and record the appropriate journal entry at the end of 2020.
End of 2018 -> 100*6*(1/3)=200
End of 2019-> (100*6(2/3))-200=200
Ignore the effects of taxes.
what are the journal entries for 2018,2019,&2020?
In: Accounting
Reporting Earnings per Share Disclosures
Siera Inc. had 350,000 shares of no par common stock outstanding throughout 2020 that declared and paid dividends of $75,000 in 2020. The company also had 45,000 shares of preferred stock that paid dividends of $7,500 in 2020 (declared in 2020). The company reported the following amounts in its income statement for the year ended December 31, 2020 (pretax).
| Income from continuing operations | $1,875,000 |
| Loss from discontinued operations | 52,500 |
Required
a. Prepare the earnings per share section of the income statement for the year ended December 31, 2020, assuming a tax rate of 25%.
| Per Share: | |
| Income from continuing operations | Answer |
| Loss from discontinued component, net of tax savings | Answer |
| Net income | Answer |
Required
b. Repeat requirement of part a except now assume that the company reported income from discontinued operations of $52,500.
| Per Share: | |
| Income from continuing operations | Answer |
| Income from discontinued component, net of tax | Answer |
| Net income | Answer |
In: Accounting