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:

Modify your program from Learning Journal Unit 7 to read dictionary items from
a file and write the inverted dictionary to a file. You will need to decide on
the following:

    * How to format each dictionary item as a text string in the input file.
    * How to convert each input string into a dictionary item.
    * How to format each item of your inverted dictionary as a text string in
      the output file.

Create an input file with your original three-or-more items and add at least
three new items, for a total of at least six items.

------------------------------------------------------------------------------------------------------------------

The Unit 7 program:

Dr_Appointments = {'Mom':[2, 'April', 2020], 'Brother':[6, 'July', 2020], 'Sister':[6, 'January', 2021], }

def invert_dict(d):
inverse = dict()
for key in d:
    val = d[key]
    for val in val:
      if val not in inverse:
        inverse[val] = [key]
      else:
        inverse[val].append(key)
return inverse

print('Dr. Appointments:', Dr_Appointments)

print('Inverted Dr. Appointments:')
Invert_Appointments = invert_dict(Dr_Appointments)
print(Invert_Appointments)

This is the expanded dictionary: the Unit 7 plus three more:

Mom: 2, April, 2020,
Brother: 6, July, 2020,
Sister: 6, January, 2021,
Aunt: 2, December, 2021,
Uncle: 6, November, 2021,
Niece: 2, December, 2020

Negative Announcements on Routine Matters: You can certainly sympathize with employees when they complain about having their email and instant messages monitored, but you are implementing a company policy that all employees agree to abide by when they join the company. Your firm, Webcor Builders of San Mateo, California, is one of the estimated 60 percent of U.S. companies with such monitoring systems in place. More and more companies use these systems (which typically operate by scanning messages for keywords that suggest confidential, illegal, or otherwise inappropriate content) in an attempt to avoid instances of sexual harassment and other problems.

As the chief information office, the manager in charge of computer systems in the company, you’re often the target when employees complain about being monitored. Consequently, you know you’re really going to hear it when employees learn that the monitoring program will be expanded to personal blogs as well.

Your task: Write a memo to be distributed to the entire workforce, explaining that the automated monitoring program is about to be expanded to include employees’ personal blogs. Explain that, while you sympathize with employee concerns regarding privacy and freedom of speech, it is the management team’s responsibility to protect the company’s intellectual property and the value of the company name. Therefore, employees’ personal blogs will be added to the monitoring system to ensure that employees don’t intentionally or accidentally expose company secrets or criticize management in a way that could harm the company.

A company is evaluating the purchase of Machine A. The new machine would cost $120,000 and would be depreciated for tax purposes using the straight-line method over an estimated ten-year life to its expected salvage value of $20,000. The new machine would require an addition of $30,000 to working capital. In each year of Machine A’s life, the company would reduce its pre-tax costs by $40,000. The company has a 12% cost of capital and is in the 35% marginal tax bracket.

a.         Identify the incremental cash flows from investing in Machine A.

b.         Calculate the investment’s net present value (NPV).

c.         Calculate the investment’s internal rate of return (IRR).

This problem follows Problem #2. It is now five years later. The company did buy Machine A, but just this week Machine B came on the market; Machine B could be purchased to replace Machine A. If acquired, Machine B would cost $80,000 and would be depreciated for tax purposes using the straight-line method over an estimated five-year life to its expected salvage value of$20,000. Machine B would also require $30,000 of working capital but would save an additional $20,000 per year in pre-tax operating costs. Machine A’s salvage value remains $20,000, but it could be sold to-day for $40,000.

1. Identify the incremental cash flows from converting to Machine B
2. Calculate this investment’s net present value (NPV).
3. Calculate this investment’s internal rate of return (IRR).
4. Should the company convert to Machine B? Why or why not?

BACC460

Assignment 4 (LO3)

Trial balance data for Peanut and Snoopy as of December 31, 2018 follows. Peanut company acquired 100% of the shares of Snnopy at $ (700,220) when the book value of Snoopy’s net assets was equal to $344,000. At that date the fair value of Building and equipment was $40,000 more than the book value. Building and equipment are depreciated on a 5-year basis. At December 31, 2018, Peanut Company concluded that good will involved in the acquisition of Snoopy has been impaired and the correct carrying value was $10,000. Peanut uses the equity method to account for investments.

Instructions:

a) Prepare the journal entries in Peanut Company books to record the transaction related to the investment in Snoopy.

  Acquisition of 100 % of shares in Snoopy for $( ** it should be around 400,000 to 700,000 according to your ids) cash

b) Post the previous transactions to   the ledger and find new balances. (*) and Prepare a consolidated worksheet in good form.