On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The total fair value of Starr Company was assessed at $1,200,000. Harrison computed annual excess fair-value amortization of $8,000 based on the difference between Starr’s total fair value and its underlying book value. The subsidiary reported net income of $70,000 in 2017 and $90,000 in 2018 with dividend declarations of $30,000 each year. Apart from its investment in Starr, Harrison had net income of $220,000 in 2017 and $260,000 in 2018.

What is the consolidated net income in each of these two years?

What is the balance of the noncontrolling interest in Starr at December 31, 2018?

On August 1, 2017, Indigo Corporation issued $504,000, 8%, 10-year bonds at face value. Interest is payable annually on August 1. Indigo’s year-end is December 31.

Prepare a tabular summary to record the following events.

Aug 1 2017 504000(cash) 504000(bonds)

Dec 31 2017 ??????? Need help with this part

Aug 1 2018 -40320 (cash) ???? interest pay and expense ?????? help

Dec 31 2017

Aug 1 2018

In 2018 and 2019, Health Canada commissioned two national surveys on the use of cannabis among people aged 20 to 24. They found 175 users out of the 1000 surveyed individuals in 2018 and 230 out of the 1100 sample in 2019.

1. (a) Test the hypothesis that there has been a change in the proportion of cannabis users in the 20-24 age

   group population between 2018 and 2019. Use the critical value approach and a 0.05 level of

   significance.

2. (b) Find the p-value for your result in (a) above.

3. (c) Calculate a 95% two-sided confidence interval for the true difference using the data provided.

4. (d) Explain how the p-value and the confidence interval are or are not consistent with your result in

   part (a) above.

Assignment 3:

P9-6A Altona Limited purchased delivery equipment on March 1, 2016, for $130,000 cash. At that time, the equipment was estimated to have a useful life of five years and a residual value of $10,000. The equipment was disposed of on November 30, 2018. Altona uses the diminishing-balance method at one time the straight-line depreciation rate, has an August 31 year end, and makes adjusting entries annually.

Instructions

(a) Record the acquisition of equipment on March 1, 2016.

(b) Record depreciation at August 31, 2016, 2017, and 2018.

(c) Record the disposal of the equipment on November 30, 2018, under each of the following independent assumptions:

1. It was sold for $60,000.
2. It was sold for $80,000.
3. It was retired for no proceeds.

Prepare journal entries to record the following transactions relating to long-term bonds of Ramirez, Inc. (Show computations)

a) On March 1, 2018, Ramirez, Inc. issued $10,000,000, 9% coupon rate bonds. The market interest rate was 12%. Interest is payable semiannually on February 1 and August 1 with the bonds maturing on February 1, 2021. Hint: This is a bond issued between interest dates.

b) On August 1, 2018, Ramirez paid interest on the bonds and recorded amortization. Ramirez uses effective-interest method of amortization.

c) On September 1, 2018. Ramirez purchased $6,000,000 face value (60% of initial issuance amount) of the bonds at the $6,200,000 PLUS accrued interest.

American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2018. The lease agreement for the $4.5 million (fair value and present value of the lease payments) machine specified four equal payments at the end of each year. The useful life of the machine was expected to be four years with no residual value. Barton and Barton’s implicit interest rate was 8%.

1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2018.
2. Prepare an amortization schedule for the four-year term of the lease.
3. & 4. Prepare the appropriate entries related to the lease on December 31, 2018 and 2020.

Apple has the following at Jan 1, 2018

2,000,000 shares of common stock issued and $1 par   outstanding 4,000,000 shares authorized

Additional paid in capital $5,750,000

retained earnings $12,345,000

During 2018 the following occured

Net income: $6,789,000

cash dividend declared May 15: $.70 per share

cash dividends paid on Jun 30th

stock dividends declared on November 30th : 17%

stock dividend distributed on 12/31

the market price of the stock has been $36 all year

Prepare journal entries to record cash and stock dividends

prepare a owners equity section of Apple's balance sheet of 12/31/2018

3. Suppose that in 2005 in Monetaria the money supply is 10,000 and the nominal GDP is 20,000.

A) Find the velocity of circulation V for 2005.

B) In 2018 the money supply was 18,850. The real GDP for 2018 was 29,370 in 2005 dollars. Find the average growth rate of the money supply and the average growth rate of real GDP. (Hint: what is the relationship between real and nominal GDP for the base year?)

C) Assuming that the velocity of circulation has stayed constant from 2005 to 2018, what was the inflation rate between those years?

D) Suppose that the real interest rate in Monetaria has been stable at 4% (0.04 as a fraction.) What was the nominal interest rate over that time frame?

Vibrant Company had $1,020,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $560,000 in each of those years. It also maintained a $320,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $300,000 rather than the correct $320,000.

Required:
1. Determine the correct amount of the company’s gross profit in each of the years 2016–2018.
2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.
  

In 2018 and 2019, Health Canada commissioned two national surveys on the use of cannabis among people aged 20 to 24. They found 175 users out of the 1000 surveyed individuals in 2018 and 230 out of the 1100 sample in 2019.

(a) Test the hypothesis that there has been a change in the proportion of cannabis users in the 20-24 age

group population between 2018 and 2019. Use the critical value approach and a 0.05 level of

significance.

(b) Find the p-value for your result in (a) above.

(c) Calculate a 95% two-sided confidence interval for the true difference using the data provided.

(d) Explain how the p-value and the confidence interval are or are not consistent with your result in

part (a) above.