On October 1, 2013, Adrian Lopez launched a computer services company, Success Systems, which is organized as a corporation and provides consulting services, computer system installations, and custom program development. Lopez adopts the calendar year for reporting purposes and expects to prepare the company's first set of financial statements on December 31, 2013. A list of business transactions for the months of October to December:

Oct.1Adrian Lopez invested $55,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for its common stock.

2 The company paid $3,300 cash for four months’ rent. (Hint: Debit Prepaid Rent for $3,300.)

3 The company purchased $1,420 of computer supplies on credit from Harris Office Products.

5 The company paid $2,220 cash for one year’s premium on a property and liability insurance policy. (Hint: Debit Prepaid Insurance for $2,220.)

6 The company billed Easy Leasing $24,800 for services performed in installing a new Web server.

8 The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on Oct 3

10 The company hired Lyn Addie as a part-time assistant for $125 per day, as needed.

15 The company received $24,800 cash from Easy Leasing as payment on its account.

17 The company paid $805 cash to repair computer equipment that was damaged when moving it. 20 The company paid $1,940 cash for advertisements published in the local newspaper.

31 The company paid $875 cash for Lyn Addie's wages for seven days' work.

31 The company paid $3,600 cash in dividends.

November 2 The company received $4,633 cash from Liu Corporation for computer services performed.

5 The company purchased computer supplies for $1,125 cash from Harris Office Products.

31 The company paid $2,000 cash in dividends.

Dec.2 Paid $1,025 cash to Hillside Mall for Success Systems’ share of mall advertising costs.

3 Paid $500 cash for minor repairs to the company’s computer.

10 Paid cash to Lyn Addie for six days of work at the rate of $125 per day.

15 Purchased $1,100 of computer supplies on credit from Harris Office Products.

20 Completed a project for Liu Corporation and received $5,625 cash.

21 Received $1,500 Cash advance from a customer for computer service that will be performed next month

22- 26 Took the week off for the holidays.

31 The business paid $1,500 cash for dividends.

Record the following adjustments at year end:

•The December 31 inventory count of computer supplies shows $580 still available.

•Three months have expired since the 12-month insurance premium was paid in advance.

•As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.

•Total Depreciation expense for the computer equipment, acquired on October 1, is $1,250

•Total Depreciation expense for the office equipment, acquired on October 1, is $400

•Three of the four months’ prepaid rent has expired

Create income statement and balance sheet.

(I need to do this project through the Wave accounting software but an income statement and balance sheet would be great help)

How serious is the current threat of nuclear weapons being acquired and used in a terrorist attack and why? Please write your response in at least 350 words.

1. What are the pros and cons of Mr. Zuckerberg’s actions when he acquired Instagram?
2. Do you believe executive pay packages are justified? Why or why not?

​(Business

and financial

risk​)

Which of the following sources of new earnings volatility demonstrates the effect of business versus financial risk​ (discuss the rationale for your​ decisions):

a. Amos Gooding Real Estate Company recently constructed a new office building and borrowed 100 percent of the money needed to fund the project.

b. Clearing House Outsourcing has historically paid a printer to prepare all of its printed documents.​ However, last year the firm acquired its own printing press​ (paying cash).

c. Smithers Enterprises has been a specialty retail shop that sells outdoor camping equipment. The firm recently decided to purchase a golf course.

a. Amos Gooding Real Estate Company recently constructed a new office building and borrowed 100 percent of the money needed to fund the project.

The fact that the firm borrowed​ 100% of the cost of the new investment suggests that the​ firm's

▼

business

financial

risk has risen.  ​(Select from the​ drop-down menu.)

b. Clearing House Outsourcing has historically paid a printer to prepare all of its printed documents.​ However, last year the firm acquired its own printing press​ (paying cash).

In this instance an outsourcing firm has entered into a new business related to printing.​ Also, the firm paid cash for the asset acquisition. One might think that the​ firm's

▼

business

financial

risk may have changed.  ​(Select from the​ drop-down menu.)

c. Smithers Enterprises has been a specialty retail shop that sells outdoor camping equipment. The firm recently decided to purchase a golf course.

It would appear that this firm may have changed its overall

▼

financial

business

risk since the firm was a specialty retailer and now combines this business with that of a golf course.  ​(Select from the​ drop-down menu.)

1. Lower-of-cost-or-market. The December 31, 2017 inventory of Gwynn Company consisted of four products, for which certain information is provided below.

                     Original     Replacement     Estimated           Expected     Normal Profit

Product        Cost                  Cost            Disposal Cost Selling Price       on Sales

A                   $24.00             $22.00               $6.50            $40.00                  20%

B $                 42.00              $40.00              $10.00           $48.00                25%

C                   $120.00          $115.00             $25.00           $190.00              30%

D                   $19.00            $15.80               $4.00              $26.00             10%

Instructions Using the lower-of-cost-or-market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2017. Show your work/calculations.

2. Nonmonetary exchange.

A machine cost $300,000, has annual depreciation expense of $60,000, and has accumulated depreciation of $150,000 on December 31, 2017. On April 1, 2018, when the machine has a fair value of $120,000, it is exchanged for a similar machine with a fair value of $360,000 and the proper amount of cash is paid. The exchange lacked commercial substance.

Instructions Prepare all entries that are necessary at April 1, 2018. Show your work/calculations.

3. On July 1, 2017, Vinson Corporation acquired Carley Company for $900,000 cash. At the time of purchase, Carley's balance sheet showed assets of $775,000 and liabilities of $250,000. The fair value of Carley's assets is estimated to be $950,000.

Instructions

(a) Compute the amount of goodwill acquired by Vinson. Show your work/calculations.

(b) On December 31, the fair value of Carley is estimated to be $720,000 and the implied fair value of goodwill is $170,000. The carrying value of Carley's net assets, including the goodwill, at year-end is $750,000. Prepare Vinson's journal entry, if necessary, to record impairment of goodwill. Show your work/calculations.

Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $660,000; Raw Materials Inventory, $67,000; Work in Process Inventory, $35,000; Finished Goods Inventory, $47,000; Common Stock, $590,000; and Retained Earnings, $219,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.

1. Paid $29,000 of research and development costs.

2. Paid $64,000 for raw materials that will be used to make eBook readers.

3. Placed $98,000 of the raw materials cost into the process of manufacturing eBook readers.

4. Paid $69,000 for salaries of selling and administrative employees.

5. Paid $102,000 for wages of production workers.

6. Paid $66,000 to purchase equipment used in selling and administrative offices.

7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $16,000 salvage value and a five-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($66,000 – $16,000) ÷ 5 = $10,000.

8. Paid $157,000 to purchase manufacturing equipment.

9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $21,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($157,000 – $21,000) ÷ 8 = $17,000.

10. Paid $54,000 for rent and utility costs on the manufacturing facility.

11. Paid $77,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost).

12. Completed and transferred eBook readers that had total cost of $255,000 from work in process inventory to finished goods.

13. Sold 820 eBook readers for $421,000.

14. It cost Antioch $155,800 to make the eBook readers sold in Event 13.

Problem 2-32 Recording events in a horizontal statements model

The following events pertain to Super Cleaning Company:

Acquired $10,000 cash from the issue of common stock.

Provided $15,000 of services on account.

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Provided services for $5,000 cash.

Received $2,800 cash in advance for services to be performed in the future.

Collected $12,200 cash from the account receivable created in Event 2.

Paid $1,900 for cash expenses.

Performed $1,400 of the services agreed to in Event 4.

Incurred $3,600 of expenses on account.

Paid $4,800 cash in advance for one-year contract to rent office space.

Paid $2,800 cash on the account payable created in Event 8.

Paid a $1,500 cash dividend to the stockholders.

Recognized rent expense for nine months’ use of office space acquired in Event 9.

Required

Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Use NA to indicate accounts not affected by the event. The first event is recorded as an example.

*$          x    /12 = $

The 6-month forward discount for converting the U.S. dollar into the British pound is 1.34% and 6-month U.S. Treasury bills yield 1.56%. Based on interest rate parity, what should be the 6-month British Treasury bill yield?

Based on the data in the text, describe the degree of income inequality in the U.S. Make a case for or against government policy to reduce income equality in the U.S. Be aware that government policy could be directed toward improving work skills and earning potential or redistributing work income through taxes or subsidies

Type please