Bingley Company reports the following for year-end (Dec 31st) 2019:

Inventory $6,100 at cost and $5,100 at market

The following is information relating to the inventory as of December 31st, 2020:

The selling price of all items is $1.00. Disposal costs amount to 10% of selling price and profit is 30% of selling price. There are 1,500 units of each of the six items in the 2020 year-end inventory.

Complete the last column of the table using lower of cost or market rules

On January 1, 2018, Patriots Co. awarded restricted stock units (RSUs) representing 30 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $3 per share.

Required:

Determine the total compensation cost pertaining to the RSUs.

Prepare the appropriate journal entry to record the award of RSUs on January 1, 2018.

Prepare the appropriate journal entry to record compensation expense on December 31, 2018, December 31, 2019, and December 31, 2020.

Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2020.

Topic on: Non-Current Assets Held For Sale

On January 1, 2020, Racelle Company purchased land at a cost of P6,000,000. The entity used the REVALUATION MODEL for this asset.

The fair value of the land was P7,000,000 on Dec. 31, 2020 and P8,500,000 on Dec 31, 2021.

On July 1, 2022, the entity decided to sell the land and therefore classified the asset as held for sale.

The fair value of the land on July 1, 2022 is P7,600,000. The estimated cost of disposal is very minimal.

On Dec. 31, 2022, the land was sold for P8,000,000.

Questions:

1. What amount in OCI should be recognized in the statement of comprehensive income for the year ended Dec. 31, 2021?
2. What amount of gain or loss on sale of land is recognized in 2022?
3. What amount of OCI is recycled to retained earnings in 2022?

The XYZ Company uses the conventional retail inventory method to estimate ending inventory for its monthly financial statements and presents the following data for one department for February 2020. Present a schedule that shows the ending inventory at cost and highlight that cell with color and a thick outside border. Label each column and row clearly so your workpaper can be used by other people in Marquette's accounting department. Present the cost to retail percentage as a percentage with two decimal places.

Question: HHQ1 LLC has projected a net income of $1 million USD in 2020. HHQ1 pays $100,000 total dividends to its 100,000 common shareholders outstanding @ the end of 2019 (Jan 01: 80,000 shares outstanding; July 01: 20,000 new shares were issued). The company also has 10,000 convertible preferred stocks ($5 dividend per P.S) and 2000 convertible bonds (10% coupon rate @$1000 par value). In 2020, 80% of the preferred stock holders may convert to common stocks (3 Common shares per preferred share). Also, 100% bondholders are allowed to convert to 2 common shares per bond. Tax rate 40%. Calculate both the basic and diluted EPS for HHQ1.

Required information

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In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

rev: 09_15_2017_QC_CS-99734

Required:

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

Required information

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In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

rev: 09_15_2017_QC_CS-99734

3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.)

Pearl Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2020. Annual rental payments of $61,020 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 7%; Pearl’s incremental borrowing rate is 9%. Pearl is unaware of the rate being used by the lessor. At the end of the lease, Pearl has the option to buy the equipment for $5,000, considerably below its estimated fair value at that time. The equipment has an estimated useful life of 7 years, with no salvage value. Pearl uses the straight-line method of depreciation on similar owned equipment.

Prepare the journal entries, that Pearl should record on December 31, 2020.

Prepare the journal entries, that Pearl should record on December 31, 2021.

Required information

[The following information applies to the questions displayed below.]

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

rev: 09_15_2017_QC_CS-99734

Required:

1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

Vernon Company has an opportunity to purchase a forklift to use in its heavy equipment rental business. The forklift would be leased on an annual basis during its first two years of operation. Thereafter, it would be leased to the general public on demand. Vernon would sell it at the end of the fifth year of its useful life. The expected cash inflows and outflows follow: Year Nature of Item Cash Inflow Cash Outflow 2018 Purchase price $ 94,800 2018 Revenue $ 38,500 2019 Revenue 38,500 2020 Revenue 27,500 2020 Major overhaul 9,700 2021 Revenue 24,500 2022 Revenue 22,500 2022 Salvage value 8,500 Required a.&b. Determine the payback period using the accumulated and average cash flows approaches.