Sheffield Corp. had net income of $163625 and paid dividends of $48500 to common stockholders and $16500 to preferred stockholders in 2020. Sheffield Corp.’s common stockholders’ equity at the beginning and end of 2020 was $890000 and $1250000, respectively. Sheffield Corp.’s return on common stockholders’ equity was

13.75%.

10.75%.

9.75%.

15.75%.

1. The Cinci Company issues $100,000, 10% bonds at 103 on April 1, 2020. The bonds are dated January 1, 2020 and mature six years from that date. Straight-line amortization is used. Interest is paid annually each December 31. Compute the bond carrying value as of December 31, 2023.

Answer

$_______________

Assuming that Mccphae Corporation has done each of the following in preparation for its fiscal year-end December 31, 2020 statements, and no adjustments or corrections were made except as noted, what would be the effect of each on: (a) total assets on December 31, 2020? (b) total liabilities on December 31, 2020? (c) owners’ equity on December 31, 2020? (d) cash on December 31, 2020? Circle U/S for understate, O/S for overstate, or NE for no effect. Treat each item independently and ignore income tax effects. 1. No entry for accrued interest on a note payable was made. The $60,000 note was issued on March 1, 2020 and accrues 8% interest annually. The interest will be paid on March 1, 2021. (a) total assets U/S O/S NE (b) total liabilities U/S O/S NE (c) owners’ equity U/S O/S NE (d) cash U/S O/S NE 2. Insurance of $6,000 was prepaid on November 1, 2020 for the six months beginning November 1 and recorded as “Prepaid Insurance.” On December 31, 2020, the following adjustment was made: Insurance Expense $2,000 Cash $2,000 (a) total assets U/S O/S NE (b) total liabilities U/S O/S NE (c) owners’ equity U/S O/S NE (d) cash U/S O/S NE 3. Employee wages of $100,000 were earned in December, but will be paid in January of 2021. No entry was recorded. (a) total assets U/S O/S NE (b) total liabilities U/S O/S NE (c) owners’ equity U/S O/S NE (d) cash U/S O/S NE 4. Depreciation of factory equipment for $200,000 was not recorded. (a) total assets U/S O/S NE (b) total liabilities U/S O/S NE (c) owners’ equity U/S O/S NE (d) cash U/S O/S NE

O’Brien Company is in the process of closing its books at the end of 2020. The company's preliminary income statement for 2020 and its reported income statement for 2019 are given below.

O’Brien's records reveal the following information:

1. In examining the preliminary financial statements, O’Brien realized that it failed to accrue sales commissions at the end of each of the last two years. O’Brien should have accrued $3,500 at the end of 2019 and $2,500 at the end of 2020.

2. O’Brien purchased equipment on January 2, 2017, that cost $70,000 and had a useful life of 10 years and zero salvage value. The straight-line method of depreciation was originally chosen. However, in reviewing the preliminary financial statements, O’Brien decided to change the depreciation method from straight-line to sum-of-the-years'-digits; the estimates relating to useful life and salvage value remained unchanged.

3. At the end of 2020, O’Brien decided to change its inventory costing method from FIFO cost to the Average method. An analysis of the accounting records provides the following cost of goods sold amounts under average cost and FIFO:

                                    Year                     FIFO             Average

                                    2018                 426,500            428,000

                                    2019                 428,750            430,000

                                    2020                 427,500            432,000

O’Brien purchased equipment on July 2, 2016. The asset's original cost was $30,000, and this amount was entirely expensed in 2016. This particular asset has a 10-year useful life and a $5,000 residual value. The straight-line method was chosen for depreciation purposes.

Required:

1. Prepare the necessary journal entries at December 31, 2020, to record the above information.

2. Prepare new comparative income statements to reflect the adjustments required (1) through (4) above. You may ignore income taxes.

3. Retained earnings reported for the end of 2019 was $696,380 and at the end of 2018 was $625,400. Dividends of $30,000 were declared in each year. Prepare comparative statements of retained earnings for O’Brien Company for 2020 and 2019, reflecting appropriate adjustments from items (1)-(4) above, ignoring income taxes.

The unadjusted trial balance of Vancouver Trucking Inc., at December 31, 2020, is as follows:DebitCreditCash$17,310Accounts Receivable102,500Allowance for Doubtful Accounts$3,390Inventory61,000Prepaid Insurance4,559Bond Investment at Amortized Cost57,120Land31,800Buildings154,000Accumulated Depreciation—Buildings12,560Equipment32,400Accumulated Depreciation—Equipment5,400Goodwill17,000Accounts Payable100,400Bonds Payable (20-year, 7%)162,000Common Shares120,100Retained Earnings61,139Sales Revenue197,000Rent Revenue10,350Advertising Expense23,400Supplies Expense10,300Purchases97,100Purchase Discounts950Salaries and wages expense52,800Interest Expense12,000$673,289$673,289

Preparethe followingadjusting and correcting entries for December 31, 2020, using the information given, for the scenarios below (#1 -#9):

1.Actual advertising costs amounted to $1,580 per month. The company has already paid for advertisements for the first quarter of 2021.

2.The building was purchased and occupied on January 1, 2017, with an estimated useful life of 10 years, and residual value of $38,400. (The company uses straight-line depreciation.)

3.Prepaid insurance contains the premium costs of several policies, including Policy A, cost of $2,807, one-year term, taken out on April 1, 2020; and Policy B, cost of $1,962, three-year term, taken out on September 1, 2020.

4.A portion of Vancouver’s Trucking Inc. building has been converted into a snack bar that has been rented to the Blue Spruce Corp. since July 1, 2018, at a rate of $8,900 per year payable each July 1 in advance.

5.One of the company’s customers declared bankruptcy on December 30, 2020. It is now certain that the $2,680 the customer owes will never be collected. This fact has not been recorded. In addition, the Companyestimates that 3% of the Accounts Receivable balance on December 31, 2020, willbecome uncollectible.

6.An advance of $610 to a salesperson on December 31, 2020, was charged to Salaries and Wages Expense.

7.On November 1, 2015, Vancouver Truckingissued 162 $1,000 bonds at par value. Interest is paid semi-annually on April 30 and October 31.

8.The equipment was purchased on January 1, 2015, with an estimated useful life of 10 years, and no residual value. (The company uses straight-line depreciation.)

9.On August 1, 2020, Vancouver Truckingpurchased at par value 42 $1,860, 8% bonds maturing on July 31, 2019. Interest is paid on July 31 and January

On March 1 the spot price of a commodity is $20.00 and the July futures price is $18.75. On June 1 the spot price is $24.10 and the July futures price is $23.50. A company entered into a futures contracts on March 1 to hedge the purchase of the commodity on June 1. It closed out its position on June 1. What is the effective price paid by the company for the commodity?

On March 1, the price of a commodity is $1,000, and the December futures price is $1,015. On November 1, the price of commodity is $980, and the December futures price is $981. A producer of the commodity entered into a December futures contracts on March 1 to hedge the sale of the commodity on November 1. The producer closed out its position on November 1. The hedging futures makes_____.

loss

gain

Entering foreign markets, by definition, means not investing in a firm's home country. For example, Nissan closed factories in Japan and added a new factory in the United States. GM shut down factories at home but kept them open in Europe. Do you see any ethical dilemmas here?

Please answer in detail in no less than 2 paragraphs