Continental Company is building a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 11%, callable, 10-year bonds. These bonds were issued on January 2018 and pay interest on January 1 and July 1. The bonds yield 10%.

Instructions:

1. Prepare the journal entry to record the issuance of the bonds on January 1, 2018
2. Prepare a bond amortixation schedule up to and including January 1, 2022
3. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.
4. Prepare the journal entry to record the bond called on January 2021 at 106

please use excel

It is December 2019. Google has offered to buy your internet startup. The Google negotiators and you both agree on the following expectations.

After 2024, cash flows are expected to grow by 5% per year. Based on the riskiness of your industry, you think that your weighted average cost of capital is 15%.

You have bank loans worth $400,000 outstanding.

What is the horizon value, i.e., the present value of all free cash flows from 2025 to infinity expressed in 2024-dollars?

What is the total value of the company?

What is the value per share of common stock if you have 100,000 shares outstanding?

The pretax financial income of Swifty Company differs from its taxable income throughout each of 4 years as follows. Year Pretax Financial Income Taxable Income Tax Rate 2017 $285,000 $178,000 35 % 2018 318,000 234,000 40 % 2019 381,000 282,000 40 % 2020 402,000 593,000 40 % Pretax financial income for each year includes a nondeductible expense of $28,600 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2017. Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 40% was not enacted until the beginning of 2018.

Moon Inc., a publicly listed company, has a building with an initial cost of $400,000. At December 31, 2020, the date of revaluation, accumulated depreciation amounted to $110,000. The fair value of the building, by comparing it with transactions involving similar assets, is assessed to be $330,000. Prepare the journal entries to revalue the building under the revaluation model using:

the asset adjustment (direct) method

the proportionate method

Use the information from 1 above. On January 5, 2021, Moon sold the building for $325,000 cash. Prepare the journal entries to record the sale of the building after having used

the cost model

the revaluation model using the asset adjustment method

the revaluation model using the proportionate method.

Would a potential investor prefer Moon Inc. use the asset adjustment method or the proportionate method to apply the revaluation model, why?

Beans manufactures a single product, details of which are as follows.

Annual fixed production overheads are budgeted to be $10 million and the company expects to produce 200,000 units each year. Overheads are absorbed on a per unit basis.

Fixed operational expenses for the quarter are as follows

·         Selling costs $400,000

·         Administrative costs $1,500,000

·         Distribution costs $600,000

Actual stock data for quarter of 2020 are given below.

Required-

a.       Calculate Opening stock.

b.      Prepare a Marginal Costing Statement.

c.       Prepare an Absorption Costing Statement.

d.      Reconcile profit figures from both statements.

Andrew and Jeff are attempting to determine if their GRE scores are high enough to get into the graduate schools they are interested in. DeCicco College has an average GRE score of 1550 with a standard deviation of 45. Jeff achieves a score of 1450 and Andrew a score of 1300.

a. What is the probability of the score Jeff achieved occurring within those that are accepted to the university? (e.g. what is his percentile rank?)

B. What is the probability of the score Andrew achieved occurring within those that are accepted to the university? (e.g. what is his percentile rank?)

c. Is it probable that Jeff will be accepted based on his score? d. Is it probable that Andrew will be accepted based on his score?

Christine’s son is 2 months old and makes a visit to the pediatrician for a well-visit. The average height for a 2 month old in the US is 20 inches with a standard deviation of 2. Christine’s son is 22 inches.

Determine his percentile rank.

What percentage of children fall between one standard deviation above and below the mean.

Adrian has a beagle named Sadie. Sadie has a healthy appetite and Adrian is concerned that she might be eating too much. Adrian weighs Sadie and finds she is 30 pounds. The national average is 25 pounds with a standard deviation of 3 pounds.

a. Determine Sadie’s percentile rank.

b. Should Adrian be very concerned about Sadie’s weight?

For a population with a mean of μ = 80 and a standard deviation of σ = 12, find the z- score corresponding to each of the following samples.

a. M = 83 for a sample of n = 4 scores

b. M = 83 for a sample of n = 16 scores

c. M = 83 for a sample of n = 36 scores.

The population of IQ scores form a normal distribution with a μ = 100 and a standard deviation of σ = 10.

What is the probability of obtaining a sample mean greater than M = 97, For a random sample of n = 9 For a random sample of n = 25 people

Most analysts think that the US$ was overvalued in the 1990s and 2000s. This is certainly suggested by the persistent trade deficits run between the US and the rest of the world. What accounts for the persistent high value of the US$? What impact does the high value have on GDP and inflation in the US?

The US President Donald Trump and his advisors have repeatedly said that they intended to get rid of the US trade deficit.

Question 01: As of April 8th 2018, list the goods and the countries for which the US has decided to create new tariffs. For these goods, what are the amounts currently imported by the US? (Words 250)

Question 02: List the US goods for which China has decided to create new tariffs. For these goods, what are the amounts currently imported by China? (Words 200)

Question 03: Assume that the new tariffs will decrease both US exports to China and Chinese exports to the US by 30% (only for the targeted goods). Building on your answer on questions 1 to 4, what would be the impact of the new tariffs on the US-China trade deficit? Support your answer with numbers (Words 200)