Pearson Industries uses platinum in its manufacturing process.  The company will need 1,000 troy ounces of platinum in January of 2020 for a production run in that month.  The company is concerned that the price of platinum will rise during the next several months.  On October 14, 2019, Pearson acquired a futures contract to buy 1,000 troy ounces of platinum On January 2, 2020 at a price of $480 per troy ounce.   Spot prices and current futures prices per troy ounce of platinum are as follows:

                                                            Oct. 14            Dec. 31            Jan 2               

Futures price per oz (current)              $480                $525                $525                             

Spot price per oz                                 $480                 $524               $525    

Fair Value of Contract            $  0    

On January 2, 2020, the company settled the options and purchased 1,000 troy ounces of platinum for $525 per ounce.

11)  This is:   A Fair Value Hedge      A Cash Flow Hedge      Not a Hedge            Pick one

12) On the December 31, 2019 Statement of Financial Position, what amount, if any, would be listed for the Derivative- Platinum Futures Contract?    

13) If your answer to 12 was not zero, would the amount be an asset or liability? If zero put neither.

14) On the December 31, 2019 Statement of Financial Position, what amount, if any, would be listed for the Inventory of Platinum?    

15) If your answer to 14 was not zero, would the amount be an asset or liability? If zero put neither.

16)  On the Income Statement for year ended December 31, 2019, what amount, if any, would appear as a gain or loss from the Derivative- Platinum?  

17) If your answer to 16 is nonzero, is it a gain or loss? If zero put neither.  

18)  On the Statement of Comprehensive income for year ended December 31, 2019, what amount, if any, would appear as a gain or loss as Other Comprehensive Income?  

19) If your answer to 18 is nonzero, is it a gain or loss? If zero put neither.                                       

20) Assume the platinum purchased on January 2, 2020 was used to make inventory that was sold in 2020. On the Income Statement for year ended December 31, 2020, what amount, if any, would be included in cost of goods sold related to the platinum?  ___________________

Pasti Berhad values advertise and sell residential property on behalf of its customers. The company has been in business for only a short time and is preparing a cash budget for the first four months of the year 2020. The expected sales of residential properties are as follows.

The average price of each property is RM180,000 and Pasti Berhad charges a fee of 3% of the value of each property sold. Pasti Berhad receives 1% in the month of sale and the remaining 2% in the month after sale. The company has ten employees who are paid monthly. The average salary per employee is RM36,000 per year. If more than 20 properties are sold each month, each employee will be paid in that month a bonus of RM1,500 for each additional property sold.

Variable expenses are incurred at the rate of 50% of the value of each property sold and these expenses are paid in the month of sale. Fixed overheads of RM44,300 per month are paid in the month in which they arise. Pasti Berhad pays interest every three months on a loan of RM200,000 at a rate of 6% per year. The last interest payment in each year is paid in December.

Outstanding tax liability of RM95,800 is due to be paid in April. In the same month, Pasti Berhad intends to dispose of surplus vehicles, with a net book value of RM15,000, for RM20,000. The cash balance at the start of January 2020 is expected to be a deficit of RM40,000.

Required:
a) Prepare a monthly cash budget for the period from January to April. Your budget must clearly indicate each item of income and expenditure, and the opening and closing monthly cash balances.
b) Discuss the factors to be considered by Pasti Berhad in planning ways to invest any cash surplus forecast by its cash budgets.
c) Discuss the TWO (2) advantages and TWO (2) disadvantages to Pasti Berhad of using overdraft finance to fund any cash shortages forecast by its cash budgets.

I am currently completing an assignment for an introduction for accounting.

I have been asked to complete a general journal for the following transactions:

August 2           Sahra paid $30 from the business bank account for dinner at ‘Waves’ a beachside café.

August 3           Deep Sea Cleaning Co cleaned the shop and workshop and left an invoice for $195 on the counter.

August 6           A new range of SPF fabric was purchased from ‘World Fabrics Ltd’ for $6,200. A part-payment of $200 was paid in cash whilst the remaining amount was on credit.  

August 12         Sahra sold 27 long sleeve Rashies for $62 each to ‘The Tornadoes’, a local beach volleyball club on credit.  The terms of the sale require full payment is made within 30 days.

August 20         The business borrowed $4,300 from WAV Bank to purchase and install new lighting for the workshop. $2,300 of this amount paid for the light fittings with the remaining balance to be paid to the electrician for installing the lighting.

August 28         ‘The Tornadoes’ beach volleyball club paid $522 off the amount they owe ‘Vacation’ for the purchase of the Rashies on August 12.                                                          

August 31         The first payment of $500 was paid off the loan that ‘Vacation’ borrowed from WAV Bank on August 20.  

this is what i have done:

General Journal

just wondering if I am on the right track, if not how can I fix it.

thank you!

Suppose the comparative balance sheets of Nike, Inc. are presented here.

(a)

Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base. (Show the amount of increase or decrease as well.) (Enter amounts in millions. Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)

(b)

Prepare a vertical analysis of the balance sheet data for Nike for 2020. (Round percentages to 1 decimal place, e.g. 12.3%.)

Canberra acquired all of the equity shares in Yass on 1 October 2019, for consideration of $2,150 million. The carrying amount of identifiable net assets at acquisition was $2,130 million, which was the same as the fair value. Canberra is actively selling its entire shareholding in Yass as a single transaction and has classified the investment as a disposal group held for sale, in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, for the year ended 30 September 2020. The carrying amounts of the net assets of Yass in the individual financial statements of Canberra at 30 September 2020, before classification as held for sale, were ($ million):

Canberra measures properties at fair value, in accordance with IAS 16 Property, Plant and Equipment. No revaluations had been recognised on acquisition, when the estimated fair values were substantially the same as the carrying amounts. Properties with a carrying amount of $630 million were revalued to fair value of $680 million, at 30 September 2020. This fair value change has not been recognised in the financial statements. The total fair value less costs to sell of the disposal group was estimated as $2,140 million, at 30 September 2020. No impairments had been recognised previously, to the goodwill of Yass.

Yass owns and operates private hospitals and the medical sector is highly regulated. Canberra is confident that the sale of Yass will be agreed shortly after 30 September 2020. Any purchaser will require regulatory approval, which could delay completion of the sale until after 30 September 2021. Regulatory approval cannot be sought by a purchaser until a contract of sale had been agreed. Yass will continue to operate the hospitals until the sale is completed. Canberra will sell all of the shares in Yass to the purchaser, who would obtain all of Yass’s rights and obligations. Yass does not intend to sell or acquire any significant assets or liabilities prior to completion of the sale, as that would affect the value of the shares being sold.

Required:

Discuss the correct recognition and measurement of the investment in Yass in the consolidated financial statements, for the year ended 30 September 2020. Provide calculations.     

Canberra acquired all of the equity shares in Yass on 1 October 2019, for consideration of $2,150 million. The carrying amount of identifiable net assets at acquisition was $2,130 million, which was the same as the fair value. Canberra is actively selling its entire shareholding in Yass as a single transaction and has classified the investment as a disposal group held for sale, in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, for the year ended 30 September 2020. The carrying amounts of the net assets of Yass in the individual financial statements of Canberra at 30 September 2020, before classification as held for sale, were ($ million):

Canberra measures properties at fair value, in accordance with IAS 16 Property, Plant and Equipment. No revaluations had been recognised on acquisition, when the estimated fair values were substantially the same as the carrying amounts. Properties with a carrying amount of $630 million were revalued to fair value of $680 million, at 30 September 2020. This fair value change has not been recognised in the financial statements. The total fair value less costs to sell of the disposal group was estimated as $2,140 million, at 30 September 2020. No impairments had been recognised previously, to the goodwill of Yass.

Yass owns and operates private hospitals and the medical sector is highly regulated. Canberra is confident that the sale of Yass will be agreed shortly after 30 September 2020. Any purchaser will require regulatory approval, which could delay completion of the sale until after 30 September 2021. Regulatory approval cannot be sought by a purchaser until a contract of sale had been agreed. Yass will continue to operate the hospitals until the sale is completed. Canberra will sell all of the shares in Yass to the purchaser, who would obtain all of Yass’s rights and obligations. Yass does not intend to sell or acquire any significant assets or liabilities prior to completion of the sale, as that would affect the value of the shares being sold.

Required:

Discuss the correct recognition and measurement of the investment in Yass in the consolidated financial statements, for the year ended 30 September 2020. Provide calculations.                 

Donald’s Juice Shop had the following balances in its ledger at 30 June 2020.

Donald’s Juice Shop financial year ends on 30 June. During the year the accountant prepared monthly statements using worksheets, but no adjusting entries were made in the journals and ledgers. Data for the year-end adjustments are as follows.

1. Expired insurance, 30 June 2020, $2624.
2. Office supplies on hand, 30 June 2020, $4088.
3. Depreciation expense for year, furniture and fixtures, $9640.
4. Depreciation expense for year, delivery equipment, $26 460.
5. Sales salaries payable but unrecorded, $6400.
6. Office salaries payable but unrecorded, $1760.

Required

1. Prepare a worksheet for the year ended 30 June 2020.
2. Prepare an income statement for the year ended 30 June 2020.
3. Prepare a balance sheet as at 30 June 2020.
4. Make the necessary adjusting entries.
5. Make the closing entries.
6. Make any necessary reversing entries.
7. Do you think Donald’s Juice Shop is in good financial position? Analyse and explain. (1500 words)

Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2020, for $345,900 in cash. The book value of Kinman's net assets on that date was $675,000, although one of the company's buildings, with a $63,600 carrying amount, was actually worth $125,850. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $127,500.

Kinman sold inventory with an original cost of $69,300 to Harper during 2020 at a price of $99,000. Harper still held $19,800 (transfer price) of this amount in inventory as of December 31, 2020. These goods are to be sold to outside parties during 2021.

Kinman reported a $55,000 net loss and a $21,000 other comprehensive loss for 2020. The company still manages to declare and pay a $7,000 cash dividend during the year.

During 2021, Kinman reported a $45,800 net income and declared and paid a cash dividend of $9,000. It made additional inventory sales of $84,000 to Harper during the period. The original cost of the merchandise was $52,500. All but 30 percent of this inventory had been resold to outside parties by the end of the 2021 fiscal year.

Prepare all journal entries for Harper for 2020 and 2021 in connection with this investment. Assume that the equity method is applied. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

• 1

  Record the initial investment.

• 2

  Record the dividend declaration.

• 3

  Record the receipt of dividend.

• 4

  Record the accrual of income and OCI from equity investee.

• 5

  Record the amortization relating to acquisition of Kinman.

• 6

  Record the deferred unrealized gross profit on intra-entity sale.

• 7

  Record the dividend declaration.

• 8

  Record the receipt of dividend.

• 9

  Record the 40% accrual of income as earned by equity investee.

• 10

  Record the amortization relating to acquisition of Kinman.

• 11

  Record the recognized income deferred from 2020.

• 12

  Record the deferred unrealized gross profit on intra-entity sale.

Ivanhoe Industries manufactures sump-pumps. Its most popular product is called the Super Soaker, which has a retail price of $1,280 and costs $540 to manufacture. It sells the Super Soaker on a standalone basis directly to businesses. Ivanhoe also provides installation services for these commercial customers, who want an emergency pumping capability (with regular and back-up generator power) at their businesses. Ivanhoe also distributes the Super Soaker through a consignment agreement with Menards. Income data for the first quarter of 2020 from operations other than the Super Soaker are as follows.

Ivanhoe has the following information related to two Super Soaker revenue arrangements during the first quarter of 2020.