(Supplemental Disclosures) It is February 2021 and Janix Corporation is preparing to issue financial statements for the year ended December 31, 2020. To prepare financial statements and related disclosures that are faithfully representative, Janix is reviewing the following events in 2020 and 2021:

1. In August 2020, Maddux Incorporated filed a lawsuit against Janix for alleged patent infringement, claiming $1.8 million in damages. In the opinion of Janix's management and legal counsel, it is not likely that damages will be awarded to Maddux.
2. In January 2021, there was a significant decline in the fair value of Janix's FV-NI investments, resulting in an unrealized holding loss of $720,000.
3. In January 2021, a customer filed a lawsuit against Janix for alleged breach of contract related to services provided in 2020. The customer is seeking damages of $950,000. Janix's legal counsel believes that Janix will likely lose the lawsuit and have to pay between $850,000 and $950,000.
4. In August 2020, Janix signed a contract to purchase 200,000 inventory units in August 2021 for a price of $12 per unit. According to the supplier's price list at December 31, 2020, the price per inventory unit had decreased to $10 per unit.
5. At December 31, 2020, Janix had a $1.1-million demand loan outstanding. The terms of the demand loan restrict Janix's payment of dividends to $2 per common share.
6. On January 31, 2021, Janix issued 100,000 new common shares, raising $2 million in new capital.
7. On January 28, 2021, management settled a dispute with the union of its factory workers. A strike had started on November 14, 2020. A portion of the settlement involved a lump sum payment to each worker in lieu of a retroactive adjustment in pay rate dating back to the beginning of the strike.
Janix prepares financial statements in accordance with IFRS.

Instructions
For each item above, indicate whether the event relates to a provision, contingency, commitment, or subsequent event, and explain the appropriate accounting treatment. If no adjustment or disclosure is required, explain why.

Stellar Company in its first year of operations provides the following information related to one of its available-for-sale debt securities at December 31, 2020.

What is the amount of the credit loss that Stellar should report on this available-for-sale security at December 31, 2020?

Prepare the journal entry to record the credit loss, if any (and any other adjustment needed), at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Assume that the fair value of the available-for-sale security is $53,200 at December 31, 2020, instead of $40,200. What is the amount of the credit loss that Stellar should report at December 31, 2020?

Assume the same information as for part (c). Prepare the journal entry to record the credit loss, if necessary (and any other adjustment needed), at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Investment in Trading and AFS Securities

In 2019, a company purchases debt securities at a par value of $500,000. Their year-end value is $520,000. In 2020, these securities are sold for $525,000 and new securities are purchased for $700,000. At the end of 2020, the securities have not yet been sold, and have a value of $600,000.

Required
Prepare the journal entries to record the above information for 2019 and 2020, assuming that:

a. The securities are categorized as trading securities.

P4.1B:   Karlin Company Information for 2020.

Retained earnings , January 1, 2020 2,250,000

Sales revenue 53,000,000

Cost of goods sold   33,000,000

Interest revenue 120,000

Selling and administrative expenses 8,900,000

Write-off of goodwill 2,100,000

Income taxes for 2020 3,650,000

Loss on the sale of investments 53,000

Loss due to hurricane damage 1,100,000

Gain on the disposition of the retail division (net of tax) 23,000

Loss on operations of the retail division (net of tax) 231,000

Dividends declared on common stock 350,000

Dividends declared on preferred stock 125,000

INSTRUCTIONS:1. Prepare a multiple-step income statement 2. Prepare a separate Retained Earnings StatementOn September 15, Karlin sold the retail operations to Shark CorpAssume that 60,000 shares of common stock are outstanding.

based on the ratios completed above)

1. What the Ratios Tell Us About the Company in General or its Financial Management?

2. How the Ratios Affect the Decision Whether to Grant Short-term Credit or Long-term Credit, or to Buy Shares in the Company

Ivanhoe Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

Unrecorded transactions and adjustments:

(Ignore income taxes.)

Prepare journal entries for the transactions and adjustment listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

VII        Cortex Corporation had the following stockholders’ equity as of January 1, 2020:

                        Common stock, $5 par value, 20,000 shares issued         $100,000

                        Paid-in Capital in Excess of Par – Common Stock               300,000

                        Retained earnings                                                           320,000

                                    Total Stockholders’ Equity                                 $720,000

            During 2020, the following transactions occurred:

            Feb. 20             Cortex repurchased 2,400 shares of treasury stock at a price of $19 per share.

            Mar. 11            800 shares of treasury stock repurchased above were reissued at $17 per share.

            Mar. 21            500 shares of treasury stock repurchased above were reissued at $14 per share.

            Apr. 11             600 shares of treasury stock repurchased above were reissued at $20 per share.

            April 25            The remaining shares of treasury stock were retired.

            Required:

3. (a) Prepare the stockholders’ equity section as of April 30, 2020.  Net income for the first 4 months of 2020 was $130,000. Please include both Cost and Par value methods.

HCM 213

Q1. Balance sheet. The following are account balances as of September 30, 2020, for Ray

Hospital. Prepare a balance sheet at September 30, 2020. (Hint net assets will also need

to be calculated.) Also Find out the Current Ratio (1 Mark) and Net Working Capital (1 Mark)

Givens

Gross plant, property, and equipment $70,000,000

Accrued expenses                                           $6,000,000

Cash                                                                $8,000,000

Net accounts receivable                                $15,500,000

Accounts payable                                           $7,000,000

Long-term debt                                              $45,000,000

Supplies                                                          $3,000,000

Accumulated depreciation                           $5,000,000

SurveyUSA conducted a poll from March 4, 2020 to March 6, 2020 regarding how concerned people were about the Wuhan Coronavirus. One of the questions asked, "As a result of the coronavirus, have you bought anti-bacterial surface wipes?" The results are summarized in the table below.

Using your tools from the probability chapter, does it appear that buying anti-bacterial wipes is independent of gender?

• Yes, it does appear that buying anti-bacterial wipes is independent of gender.
• No, it appears that buying anti-bacterial wipes and gender are dependent.

Explain.

Are female and purchasing anti-bacterial wipes mutually exclusive (disjoint)?

• Yes, being female and purchasing anti-bacterial wipes are mutually exclusive.
• No, being female and purchasing anti-bacterial wipes are not mutually exclusive.

Explain.

Aires Corporation Comparative Balance Sheets December 31, 2020 and 2019 Assets 2020 2019 Change Cash $ 21,000 $ 54,000 Accounts receivable (net) 421,000 480,000 Inventory 310,000 340,000 Prepaid expenses 17,000 15,000 Long Term Investments 70,000 80,000 Land 400,000 300,000 Equipment 1,730,000 1,590,000 Accumulated depreciation-equipment (610,000) (600,000) Patent 40,000 50,000 Total assets $2,399,000 $2,309,000 Liabilities Accounts payable $ 328,000 $ 335,000 Accrued liabilities 171,000 170,000 Income taxes payable 22,000 34,000 Bonds payable 410,000 700,000 Long-term note payable 130,000 0 Total liabilities $1,061,000 $1,239,000

Stockholders' Equity Common stock $ 800,000 $ 600,000 Additional paid-in capital 152,000 152,000 Retained

earnings 386,000 318,000 Total stockholders' equity $1,338,000 $1,070,000 Total liabilities and stockholders' equity $2,399,000 $2,309,000 Aires Corporation Income Statement Year Ended December 31, 2020 Sales $638,700 Cost of merchandise sold 302,000 Gross profit $336,700 Operating expenses: Depreciation expense $70,000 Amortization expense 10,000 Other operating expenses 58,000 138,000 Income from operations $198,700 Other income/(expenses): Gain on sale of equipment $3,000 Loss on sale of investment (2000) Interest income 6,000 7,000 Income before income tax $205,700 Income tax 62,700 Net income $143,000 a) Issued a long-term note payable in exchange for computer equipment for $130,000. b) Purchased computer equipment for $90,000. c) Sold investments costing $10,000 for $8,000 (Hint: Calculate gain or loss) d) Sold equipment costing $80,000 with accumulated depreciation of $60,000 for $23,000 (Hint: Calculate gain or loss) e) f) Repayment of bonds payable at par for $290,000. g) Declared and paid dividends of $75,000. h) Issued 20,000 shares of common stock at par value of $10 per share. i) Paid $100,000 for land intended for a new plant site.

Required: a) Prepare a statement of cash flows using the indirect method. Include a schedule of noncash investing and financing transactions, if applicable. b) Calculate (Write final answer in space provided below. Show calculation). Ratio Answer Free Cash Flows