On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 310,000 rubles in four months (on January 31, 2018) and receive $186,000 in U.S. dollars. Exchange rates for the ruble follow:

Sharp's incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent (1 percent per month) is 0.9901. Sharp must close its books and prepare financial statements on December 31.

Prepare journal entries, assuming that Sharp entered into the forward contract as a fair value hedge of a 310,000 ruble receivable arising from a sale made on October 1, 2017. Include entries for both the sale and the forward contract.

Entry 1. Record the sale.

Entry 2. Record entry for forward contract entered into by Hanks Company.

Entry 3. Record the entry for changes in the exchange rate.

Entry 4. Record gain or loss on forward contract.

Entry 5. .Record the entry for changes in the exchange rate.

Entry 6. Record gain or loss on forward contract.

Entry 7. Record the receipt of LCUs.

Entry 8. Record settlement of forward contract.

A Treasury bond that settles on October 18, 2016, matures on March 30, 2035. The coupon rate is 6.05 percent and the bond has a yield to maturity of 5.50 percent. What are the Macaulay duration and modified duration?

Monthly adjusted closing prices for Stock A for the months of November, October, Sept, Aug, July, June and May are $98, 100, 90, 100, 110, 105, 100 respectively. The corresponding market index are $100, 105, 110, 115, 118, 120 and 118. Based on the above data,

1. The annualized volatility of stock A is...

2. The beta of stock A is...

3. If the market index goes up from $100 to $120, what is the estimated percentage change in stock A

On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 310,000 rubles in four months (on January 31, 2018) and receive $186,000 in U.S. dollars. Exchange rates for the ruble follow: Date Spot Rate Forward Rate (to January 31, 2018) October 1, 2017 $ 0.56 $ 0.60 December 31, 2017 0.59 0.62 January 31, 2018 0.61 N/A Sharp's incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent (1 percent per month) is 0.9901. Sharp must close its books and prepare financial statements on December 31.

Prepare journal entries, assuming that Sharp entered into the forward contract as a fair value hedge of a firm commitment related to a 310,000 ruble sale that will be made on January 31, 2018. Include entries for both the firm commitment and the forward contract. The fair value of the firm commitment is measured by referring to changes in the forward rate.

On October 15, 2017, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2018, 38 million stock options were granted, exercisable for 38 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2021, and December 31, 2023, at 80% of the quoted market price on January 1, 2018, which was $10. The fair value of the 38 million options, estimated by an appropriate option pricing model, is $3 per option. Ensor chooses the option to recognize forfeitures only when they occur.

Ten percent (3.8 million) of the options were forfeited when an executive resigned in 2019. All other options were exercised on July 12, 2022, when the stock’s price jumped unexpectedly to $36 per share.

Required:
1. When is Ensor’s stock option measurement date?
2. Determine the compensation expense for the stock option plan in 2018. (Ignore taxes.)
3. & 5. Prepare the necessary journal entries.

On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 340,000 rubles in four months (on January 31, 2018) and receive $122,400 in U.S. dollars. Exchange rates for the ruble follow:

Sharp's incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent (1 percent per month) is 0.9901. Sharp must close its books and prepare financial statements on December 31.

1. Prepare journal entries, assuming that Sharp entered into the forward contract as a fair value hedge of a 340,000 ruble receivable arising from a sale made on October 1, 2017. Include entries for both the sale and the forward contract.
2. Prepare journal entries, assuming that Sharp entered into the forward contract as a fair value hedge of a firm commitment related to a 340,000 ruble sale that will be made on January 31, 2018. Include entries for both the firm commitment and the forward contract. The fair value of the firm commitment is measured by referring to changes in the forward rate.

1.In October of 2017 Bruce, a cash basis CPA, contracted to perform an audit for $2,000 and to prepare the corporate tax return for $1,000. The contract called for payment January 31 of 2018. The client called Bruce on December 31, 2017, and offered him $1,500. Bruce accepted and the client mailed him a check on December 31, 2017. What amount must Bruce include in his 2017 tax return?

2. Bobby is age 62, single, and claimed as a dependent by his daughter on her tax return. During the current year, Bobby received Social Security payments of $6,000, interest on a bank account of $3,500, and $2,300 from a part-time job. What is Bobby’s taxable income?

3.Sally is 92 years old and single and claimed by her daughter as a dependent. During the tax year she received $1,900 in interest from her savings account, $1,500 in interest from State of New York general obligation bonds, and $8,000 distributions from a Roth IRA. What is her gross income?

4.George, age 21 is a full-time student at the University and is claimed as a dependent by his parents he had earned income of $2000 from a part-time job. In addition he had $950 interest from a savings account. He had total itemized deductions of $200 in the current year. What is George’s taxable income this year?

On October 31, the stockholders’ equity section of Heins Company consists of common stock $365,000 and retained earnings $903,000. Heins is considering the following two courses of action: (1) declaring a 6% stock dividend on the 36,500, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $16 per share.

Prepare a tabular summary of the effects of the alternative actions on the components of stockholders’ equity, outstanding shares, and par value per share.

On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 100,000 rubles in four months (on January 31, 2018) and receive $39,000 in U.S. dollars. Exchange rates for the ruble follow:

Sharp's incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent (1 percent per month) is 0.9901. Sharp must close its books and prepare financial statements on December 31.

Prepare journal entries, assuming that Sharp entered into the forward contract as a fair value hedge of a 100,000 ruble receivable arising from a sale made on October 1, 2017. Include entries for both the sale and the forward contract.

Prepare journal entries, assuming that Sharp entered into the forward contract as a fair value hedge of a firm commitment related to a 100,000 ruble sale that will be made on January 31, 2018. Include entries for both the firm commitment and the forward contract. The fair value of the firm commitment is measured by referring to changes in the forward rate.

Entries into T accounts and Trial Balance

Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the following transactions connected with her professional practice:

Transferred cash from a personal bank account to an account to be used for the business, $36,000.

Paid October rent for office and workroom, $2,400.

Purchased used automobile for $32,800, paying $7,800 cash and giving a note payable for the remainder.

Purchased office and computer equipment on account, $9,000.

Paid cash for supplies, $2,150.

Paid cash for annual insurance policies, $4,000.

Received cash from client for plans delivered, $12,200.

Paid cash for miscellaneous expenses, $815.

Paid cash to creditors on account, $4,500.

Paid $5,000 on note payable.

Received invoice for blueprint service, due in November, $2,890.

Recorded fees earned on plans delivered, payment to be received in November, $18,300.

Paid salary of assistants, $6,450.

Paid gas, oil, and repairs on automobile for October, $1,020.

Required:

1. Record the above transactions (in chronological order) directly in the following T accounts, without journalizing. Cash; Accounts Receivable; Supplies; Prepaid Insurance; Automobiles; Equipment; Accounts Payable; Notes Payable; Connie Young, Capital; Professional Fees; Salary Expense; Blueprint Expense; Rent Expense; Automobile Expense; Miscellaneous Expense. To the left of each amount entered in the accounts, select the appropriate letter to identify the transaction.

2. Determine account balances of the T accounts. Accounts containing a single entry only (such as Prepaid Insurance) do not need a balance.

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1. and 2. First, identify what account is used and then what type of account is used. Every account is either an asset, liability, capital, withdrawal, revenue, or expense account. Every transaction involves at least two accounts. Then determine whether the account increases or decreases. Each increase or decrease is recorded as a debit or credit in the T-accounts, following the rules of debit and credit. Net debits against credits to determine the balance and double-check to see if it is a normal balance for that account classification.

3. Prepare an unadjusted trial balance for Connie Young, Architect, as of October 31, 2019. If an amount box does not require an entry, leave it blank.

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4. Determine the net income or net loss for October.
Net income $