Garda World Security Corporation has the following shares, taken from the equity section of its balance sheet dated December 31, 2020.

*All shares were issued during 2018.

During its first three years of operations, Garda World Security Corporation declared and paid total dividends as shown in the last column of the following schedule.

Required:
Part A
1. Calculate the total dividends paid in each year to the preferred and to the common shareholders.

Total Dividend 2018$ 170,000

2019 $410,000

2020 $570,000

2. Calculate the dividends paid per share to both the preferred and the common shares in 2020. (Round the final answers to 2 decimal places.)

Part B
1. Calculate the total dividends paid in each year to the preferred shares and to the common shareholders assuming preferred shares are cumulative.

Total for three years$1,150,000

Total Dividend 2018$ 170,000

2019 $410,000

2020 $570,000

2. Calculate the dividends paid per share to both the preferred and the common shares in 2020 assuming preferred shares are cumulative. (Round the final answers to 2 decimal places.)

Grape Inc. had the following balance sheet at December 31, 2019:

Grape INC. BALANCE SHEET DECEMBER 31, 2019

Cash $ 31,000

Accounts payable $ 61,000 x

Accounts receivable 56,800 x

Notes payable (long-term) 76,000

Investments 86,000 x

Common stock 200,000

Plant assets (net) 138,500

Retained earnings 41,300

Land 66,000

Total assets and Total Liabilities and Stockholders' Equity $378,300 $378,300

During 2020, the following occurred:

1. Grape liquidated its available-for-sale investment portfolio at a gain of $15,000. x

2. A tract of land was purchased for $61,000 cash. x

3. An additional $15,200 in common stock was issued at par. x

4. Dividends totaling $41,000 were declared and paid to stockholders. x

5. Net income for 2020 was $46,000x, including $8,000x in depreciation expense.

6. Land was purchased through the issuance of $195,000x in additional notes payable.

7. At December 31, 2020, Cash was $68,000x, Accounts Receivable was $84,000x, and Accounts Payable was $72,000x

Instructions (a) Prepare the balance sheet as it would appear at December 31, 2020 (b) Prepare a statement of cash flows for the year 2020 for Grape. . Prepare all in good form.

Sha Corporation produces milk on its farms located in Zamboanga. At December 31, 2019, the herd of cows are as follows:

4,000 cows (3 years old), all purchased in prior years

2,000 heifers (2 years old), all purchased in prior years

1,000 heifers (1 year old) purchased on December 31, 2011

The unit vales less estimated point of sale costs were as follows:

      1 year old animal at December 31, 2019 ₱35,000

      2 year old animal at December 31, 2019                    45,000

      3 year old animal at December 31, 2019 54,000

      1 year old animal at December 31, 2020                    38,000

      2 year old animal at December 31, 2020                    47,500

      3 year old animal at December 31, 2020                    57,000

      4 year old animal at December 31, 2020                    60,000

Required:

1. Compute for the change in fair value less estimated point of sale cost of the biological assets dues to;
   1. Price change
   2. Physical change
2. Prepare schedule showing the reconciliation of beginning balances to ending balances of biological assets and the changes during the period due to price purchase and change in fair value
3. Give the journal entries for 2020 to reflect the foregoing.

Kailee’s Cookery Pty Ltd sells ovens and access to online cooking classes. On 1 May 2020, Kailee’s Cookery Pty Ltd signs an agreement with Chef School to provide 15 weekly online cooking classes and five ovens. The contract price amounted to $66,000 (GST inclusive), on credit terms n/30 for the ovens and n/60 for the cooking classes. This amount also includes one free service of the oven to be performed six months after the delivery of the ovens to Chef School.

The stand-alone price for the 15 weekly online cooking classes is $33,000 (GST inclusive). The cooking classes will start on 18 May 2020.

The stand-alone price of the ovens is $55,000 (GST inclusive). The six-month service fee for the ovens is usually $1,100 (GST inclusive).

The ovens were delivered on 18 May 2020.

Chef School paid the full amount on 20 May 2020 for the ovens.

By 30 June 2020, 7 online cooking classes were delivered. Chef School has yet to make any payment for the online cooking classes.

Required:

With reference to AASB 15 Revenue from Contracts with Customers, apply the five-step process for revenue recognition in regards to the contract with Chef School. List each of the five steps and show any calculations

Crane Construction Inc., which has a calendar year end, has entered into a non-cancellable fixed price contract for $2.9 million beginning September 1, 2020, to build a road for a municipality. It has been estimated that the road construction will be complete by June 2022. The following data pertain to the construction period.

Using the percentage-of-completion method, calculate the estimated gross profit that would be recognized during each year of the construction period.

Using the percentage-of-completion method, prepare the journal entries for 2020 and 2021. (Use Materials, Cash, Payables for costs incurred to date.)

For the Year 2020:

1-

2-

(To record Cost of Construction)

1-

2-

To record progress billings

1-

2-

To record collections

1-

2-

To record revenues

1-

2-

To record construction expenses

Same procedures for 2021:

Marigold Inc. began operations in January 2018 and reported the following results for each of its 3 years of operations.

At December 31, 2020, Marigold Inc. capital accounts were as follows.

Marigold Inc. has never paid a cash or stock dividend. There has been no change in the capital accounts since Marigold began operations. The state law permits dividends only from retained earnings.

(a) Compute the book value of the common stock at December 31, 2020. (Round answers to 2 decimal places, e.g. $38.50.)

(b) Compute the book value of the common stock at December 31, 2020, assuming that the preferred stock has a liquidating value of $107 per share. (Round answers to 2 decimal places, e.g. $38.50.)

Novak Sports began operations on January 2, 2020. The following stock record card for footballs was taken from the records at the end of the year.

A physical inventory on December 31, 2020, reveals that 119 footballs were in stock. The bookkeeper informs you that all the discounts were taken. Assume that Novak Football Shop uses the invoice price less discount for recording purchases.

Compute the December 31, 2020, inventory using the FIFO method.

Compute the 2020 cost of goods sold using the LIFO method.

What method would you recommend to the owner to minimize income taxes in 2020 based on the inventory info?

The following data is supplied from the comparative balance sheets and income statement information from Westerman, Inc.

Additional Information:

1. Net Income for 2020 was $40,000.
2. Depreciation expense was $8,000 during 2020.
3. No long term assets were sold during the year.
4. Westerman purchased land for $24,000 during 2020.
5. Notes payable of $8,000 were repaid during the year.
6. Westerman issued new common stock for $24,000 in 2020.
7. Westerman paid cash dividends of $24,000 during the year.

Prepare the Statement of Cash Flows for Westerman using the indirect method.

Provide the following amounts:

What is the total of the net cash flows from operating activities?  

What is the total of the net cash flows from investing activities?   

What is the total of the net cash flows from financing activities?   

Exercise 7-48 (Algorithmic) Depreciation Methods Berkshire Corporation purchased a copying machine for $9,800 on January 1, 2019. The machine's residual value was $1,175 and its expected life was 5 years or 2,000,000 copies. Actual usage was 480,000 copies in the first year and 462,000 in the second year. Required: 1. Compute depreciation expense for 2019 and 2020 using the: a. Straight-line method. Depreciation expense: $fill in the blank 1 per year b. Double-declining-balance method. Depreciation Expense 2019 $fill in the blank 2 2020 $fill in the blank 3 c. Units-of-production method. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Depreciation Expense 2019 $fill in the blank 4 2020 $fill in the blank 5 2. For each depreciation method, what is the book value of the machine at the end of 2019? At the end of 2020? If required, round your answers to the nearest whole dollar. 2019 2020 a. Straight-line method $fill in the blank 6 $fill in the blank 7 b. Double-declining-balance method $fill in the blank 8 $fill in the blank 9 c. Units-of-production method $fill in the blank

10 $fill in the blank 11

Question 1

The following balances have been extracted from the accounts of Peya, a sole trader, for the period ended 31 March 2020.
N$
Sales 427,726
Carriage inwards 476
Wages and salaries 64,210
Carriage outwards 829
Purchases 302,419
Rent and rates 12,466
Heat and light 4,757
Stock at 1 April 2019 15,310
Drawings 21,600
Equipment at cost 102,000
Motor vehicles at cost 43,270
Provision for depreciation
– equipment 22,250
– motor vehicles 8,920
Debtors 50,633
Creditors 41,792
Bank 3,295 cr
Sundry expenses 8,426
Cash 477
Capital 122,890
The following information as at 31 March 2020 is also available:
(1) N$350 is owing for heat and light
(2) N$620 has been prepaid for rent and rates
(3) Depreciation is to be provided for the year as follows:
equipment at 10% on cost and motor vehicles at 20% on cost
(4) Stock at 31 March2020 isN$16,480
Required:
(a) Prepare the trial balance for Peya (before any adjustments) as at 31 March 2020.
(b) Prepare the trading and profit and loss accounts for Peya for the year ending 31 March 2020.
(c) Prepare the balance sheet for Peya as at 31 March 2020.
(Total 31 marks)
Due Date: