On September 1, 2020, a consignor consigned 10,000 units of inventory which costs P12 per unit and sells for P15 per unit. Freight charges of P15,000 were paid by the consignee. The consignee was able to sell 6,000 units from September 1 to November 30, 2020, and incurred. On December 1, 2020, the products were marked to sell for P13 per unit to accommodate the Christmas rush. During December, the consignee was able to sell 3,000 more units. The discounted price lasted until February 28, 2021. The consignee is entitled to a commission of 10% of the selling price of the products. For the period ending December 31, 2020, the consignor will report a net loss from this consignment arrangement amounting to:
In: Accounting
Suppose you have purchased 1,000 BHP common stocks in Australia since August 2019. (students are required to get the relevant data by themselves)
Please list the monthly closing prices of BHP common stock in Australia from August 2019 to July 2020. Using the monthly closing prices to calculate:
The holding period rate of return from August 2019 to July 2020.
The holding period rate of return from August 2019 to July 2020, if you use a margin account with 40% of initial margin (ignore the interest paid on margin loans).
The holding period rate of return from August 2019 to July 2020 if you purchased only 500 BHP common stocks.
In: Finance
The following is selected financial information for Qualmart, Inc. for its year ending January 31, 2021:
|
Retained earnings, January 31, 2020 …….. |
$153,790 |
|
Stock issuance ……………………………… |
1,235 |
|
Contributed capital, January 31, 2020 … |
9,470 |
|
Net income ……………………………………… |
32,560 |
|
Other stockholders’ equity changes…… |
(592) |
|
Dividends …………………………………………. |
14,930 |
|
Other stockholders’ equity, January 31, 2020 |
2,463 |
Prepare a statement of stockholders' equity for 2021 for Qualmart.
|
Qualmart, Inc. Statement of Stockholders' Equity For Year Ended January 31, 2021 |
||||||
|
Contributed Capital |
Retained Earnings |
Other |
Total |
|||
|
Balance, January 31, 2020 |
||||||
|
Stock issuance |
||||||
|
Net income |
||||||
|
Dividends |
||||||
|
Other stockholders’ equity changes |
||||||
|
Balance, January 31, 2021 |
||||||
In: Accounting
On January 1, 2020, Blue Animation sold a truck to Peete Finance
for $40,000 and immediately leased it back. The truck was carried
on Blue’s books at $35,000. The term of the lease is 5 years, there
is no bargain purchase option, and title does not transfer to Blue
at lease-end. The lease requires 5 equal rental payments of $9,239
at the end of each year (first payment on January 1, 2018). The
appropriate rate of interest is 5%, the truck has a useful life of
5 years, with no expected residual value at the end of the lease
term.
Prepare Blue’s 2020 journal entries.
| Date | Account Titles & Explanation | Debit | Credit |
| 01/01/2020 | Cash | 40,000 | |
| ???? | 40,000 | ||
| 12/31/2020 | ???? | ||
| ???? |
In: Accounting
1) Cullumber Corporation had 2020 net income of $1,407,000. During 2020, Cullumber has not declared or paid any dividend on 93,000 non-cumulative preferred shares. Cullumber also had 210,000 common shares outstanding during the year.
Calculate Cullumber’s 2020 earnings per share.
2) Sandhill Corporation reported net income of $347,760 in 2020
and had 245,000 common shares outstanding throughout the year. Also
outstanding all year were 21,000 (written) options to purchase
common shares at $10 per share. The average market price for the
common shares during the year was $15 per share.
Calculate the diluted earnings per share
In: Accounting
Assume that in the first quarter of 2020, real GDP and potential GDP were both $20 trillion and the unemployment rate was 3.5%. Assume that potential GDP is still $20 trillion in the second of 2020 but that actual real GDP is $19 trillion.
a. What is the annualized growth rate of real GDP between the first and second quarters?
b. What is the output gap in the second quarter of 2020?
c. According to Okun’s law, what will be the unemployment rate in the second quarter of 2020?
d. Assume that in the second quarter consumption is equal $13 trillion, net exports are equal to -$0.5 trillion, and government purchases and planned investment are both equal to $3 trillion. What is the amount of inventory investment?
In: Economics
Habiby, Inc., began operations in 2017 and has the following income and expenses for 2017 through 2020.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Refer to the Corporate Tax Rate Schedule table to answer the following questions.
a. What is the amount of tax that Habiby should pay each year? If an amount is zero, enter "0".
|
b. How much would Habiby have paid in tax if the old NOL rules were in place but the corporate tax rate was 21 percent?. If an amount is zero, enter "0".
| 2017 | $ |
| 2018 | $ |
| 2019 | $ |
| 2020 | $ |
In: Accounting
Mary Lou, a cash-basis taxpayer, signs a 12-month lease for $36,000 which starts on May 1, 2020.
|
a. Assume that she paid the entire $36,000 on the date she signed the lease as required to obtain this rate. Show the calculation for her 2020 deduction. b. Let's say that prepaying the lease was not required and she paid only the monthly amount the first of each month. Show the calculation of her 2020 deduction. c. Refer back to the original scenario in part a, and $36,000 was required to be paid up front when the lease commences on 5/1/20. But now the lease is for 24 months instead of 12 months. Show the calculation of Mary Lou's 2020 deduction? |
In: Accounting
Classical Ltd. Began work in 2020 on a contract for $ 1,250,000. Other data are:
2020 2021
Costs incurred to date...................................................................... $ 540,000 $ 875,000
Estimated costs to complete as of December 31................. 360,000 100,000
Billings to date..................................................................................... 420,000 950,000
Collections to date............................................................................. 300,000 700,000
Classical uses the percentage-of-completion method. Gross profit recognized in 2020 was $210,000 (Revenue $750,000; expense $540,000). The 2020 opening balance on LT Contract Asset/Liab is $330,000 DR.
Required:
(a) Calculate gross profit to be recognized in 2021.
(b) What amounts will be reported on the Statement of Financial Position in 2021?
(c) If the estimated costs to complete were $300,000 at the end of 2021, how would your response to part (a) change?
In: Accounting
Assume that in the first quarter of 2020, real GDP and potential GDP were both $20 trillion and the unemployment rate was 3.5%. Assume that potential GDP is still $20 trillion in the second of 2020 but that actual real GDP is $19 trillion.
a. What is the annualized growth rate of real GDP between the first and second quarters?
b. What is the output gap in the second quarter of 2020?
c. According to Okun’s law, what will be the unemployment rate in the second quarter of 2020?
d. Assume that in the second quarter consumption is equal $13 trillion, net exports are equal to -$0.5 trillion, and government purchases and planned investment are both equal to $3 trillion. What is the amount of inventory investment?
In: Economics