On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $287,000 cash and $374,000 of equipment, respectively. The partnership also assumed responsibility for a $47,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $157,000, both are to receive an annual interest allowance of 5% of their original capital investments, and any remaining profit or loss is to be shared 40/60 (to Bow and Adams, respectively). On November 20, 2020, Adams withdrew cash of $107,000. At year-end, May 31, 2021, the Income Summary account had a credit balance of $450,000. On June 1, 2021, Peter Williams invested $127,000 and was admitted to the partnership for a 20% interest in equity.

Required:
1. Prepare journal entries for the following dates.

a. June 1, 2020

b. November 20, 2020

c. May 31, 2021

d. June 1, 2021

2. Calculate the balance in each partner’s capital account immediately after the June 1, 2021, entry.

P20.8 (LO2,4,5) (Comprehensive 2-Year Worksheet) Lemke SA sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2019 and 2020.

Instructions

a. Prepare a pension worksheet presenting both years 2019 and 2020.

b. Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.

C. For 2020, indicate the pension amounts reported in the financial statements.

Question text

The Chancellor of the California State University System has recently indicated that classes in the Fall of 2020 will continue to be virtual to be able to cope with the Corona Virus. Assume that all CSULB business students take a student satisfaction survey each semester. A researcher wants to compare compare two random groups of students from Fall 2019 to Fall 2020 in their satisfaction scores. The Chancellor has indicated that student satisfaction will improve with virtual classes. The groups are called FSS2019 for Student Satisfaction scores for Fall, 2020 and FSS202- for Student Satisfaction Scores for Fall, 2020. The study will calculate the difference using a confidence level of 95%. The population standard deviation is known.

The researcher wants to make sure even though they take random samples, they get a group from each of the local community colleges and plans to use Anova to analyze the data. What type of design could ensure this?

Select one:

a. Randomized Block Design

b. Completely Randomized Design

c. Matched Samples

d. Random but Related Sampling

Problem 20-09 (Part Level Submission)

Sunland Co. has the following defined benefit pension plan balances on January 1, 2020.

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $595,000 are created. Other data related to the pension plan are:

a. prepare pension worksheet for the pension plan in 2020

c. Prepare a pension worksheet for 2021 and any JE related to the pension plan as of December 31, 2021

d. indicate the pension-related amounts reported in the 2021 financial statements

In July 2020, Worley Ltd calls for public subscriptions for 20 million shares. The issue price per share is $1.20, to be paid in three parts, these being $0.50 on application, $0.40 within one month of the shares being allotted and $0.30 within two months of the first and final call, with the call for final payment being payable on 1 September 2020. By the end of July, when applications close, applications have been received for 24 million shares; that is, 4 million in excess of the amount to be allotted. The shares are allotted on 1 August 2020. Regarding final call for $0.30 per share, it becomes apparent that the holder(s) of 200 000 shares have failed to pay the amount due. As a result, the directors of the company elect to forfeit the shares.

Worley Ltd reissues the shares on 1 October 2020 as fully paid for an amount of $1.00; that is, $0.20 below the original issue price. The costs involved in generating the sale of the shares amount to $5,000.

Required:

Provide the accounting entries to record the issue of Worley Ltd’s shares.

On December 31, 2019, Mills Manufacturing Ltd. had a $197,000 balance in its Accounts Receivable and a $10,400 balance in its Allowance for Doubtful Accounts. During 2020, the company made total sales of $858,000, of which $225,000 were cash sales. By the end of the year, Mills had received payments of $552,000 from its customers on account. The company also wrote off as uncollectible $13,300 of its receivables when it learned that these customers had declared bankruptcy. The company was subsequently able to recover $5,700 from one of these customers. (Note that this amount is not included in the cash collections noted above.) Management estimates that bad debts expense will be 3% of its credit sales.

1. Prepare the journal entries to record all the 2020 transactions, including the adjustment for bad debts expense at year end.

2. Show how the accounts receivable section of the statement of financial position at December 31, 2020, would be presented.

3. What amount of bad debts expense would appear in the statement of income for the year ended December 31, 2020?

You have received the following information:-

Property, plant and equipment (PPE) at 30 June 2020 = 800 000 carrying vale

Property, plant and equipment (PPE) at 30 June 2019 = 660 000 carrying value

Total depreciation for the 2020 year was R90 000. Plant with an original cost of R100 000 and accumulated depreciation of R60 000 was sold in the 2020 year at a loss of R5 000. Equipment was impaired by R20 000. Additional PPE was purchased and no other PPE . All purchases and sales take place with cash.

Which of the following statements concerning cash flow for property, plant and equipment in the cash flow statement for the year ending 30 June 2020 are correct?:-

i) New PPE purchased (R290 000)

ii) Cash received on the sale of plant R45 000

iii) Cash received on the sale of plant R35 000

iv) New PPE purchased (R270 000)

Select one:

a. i and ii only

b. iii only

c. ii and iv only

d. i and iii only

On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $282,000 cash and $364,000 of equipment, respectively. The partnership also assumed responsibility for a $42,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $152,000, both are to receive an annual interest allowance of 5% of their original capital investments, and any remaining profit or loss is to be shared 40/60 (to Bow and Adams, respectively). On November 20, 2020, Adams withdrew cash of $102,000. At year-end, May 31, 2021, the Income Summary account had a credit balance of $400,000. On June 1, 2021, Peter Williams invested $122,000 and was admitted to the partnership for a 20% interest in equity.

Required:
1. Prepare journal entries for the following dates.

a. June 1, 2020

b. November 20, 2020

c. May 31, 2021

d. June 1, 2021

2. Calculate the balance in each partner’s capital account immediately after the June 1, 2021, entry.

Question 1 – CVP Analysis

Brandon Manufacturing provides the data below relating to its single product for 2020:

• Selling price per unit $20
• Annual fixed costs $280,800
• Variable costs per unit $14
• Annual sales volume expected in 2020: 52,000 units

Required:

1. Complete the following table calculating each requirement listed in the table.

2. Prepare a Contribution Margin Income Statement for the expected sales in 2020: (given the original data)