In January 2010, Construction Corp. contracted to construct a building for $ 6,000,000. Construction started in early 2010 and was completed in 2011. The following additional information is available:

                                                                                                   2010                       2011

       Costs incurred............................................................. $ 2,430,000            $ 2,700,000

       Estimated costs to complete............................................. 2,600,000                         —

       Collections during the year.............................................. 2,400,000               3,600,000

         Billings for the year …………………………………………..     2,800,000                3,200,000

Used the percentage-of-completion method.

Instructions

Under the contract-based approach,

a)     How much revenue should be reported for 2010 and 2011?

b)    Prepare all journal entries for 2010 and 2011 for this contract.

Part II: Wexler Wholesalers has an extensive line of sought after books, which has led to amassing an efficient distribution system to retailers. The following activities occurred during the first six months of 2020 with respect to its inventory:

1. Jan. 3, 2020: Wexler Wholesalers purchased 1,000 books from Jolly Publishers for $28 per book, terms 2/10,n30.

2. Jan. 7, 2020: Wexler Wholesalers returned 20 of the books purchased in transaction #1 for full credit.

3. Jan. 9, 2020: Wexler Wholesalers paid Jolly Publishers in full.

4. Feb. 1, 2020: Wexler Wholesalers purchased 1,200 books from Simon and Schuster for $34 each, terms 1/15,n30.

5. Feb. 2, 2020: Wexler Wholesalers phoned Simon and Schuster after receiving the order in transaction #4. The issue is the books were water damaged from sitting on a loading dock in the rain. Simon and Schuster offered Wexler Wholesalers a 75% allowance on the damaged books. Wexler Wholesalers accepted the offer.

6. Feb. 3, 2020: Wexler Wholesalers paid Simon and Schuster in full.

7. Feb. 27, 2020: Wexler Wholesalers sold inventory to Juniper Reading Nook costing $28 with a sales price of $60 each. A total of 180 books were sold, terms 3/15,n45.

8. Mar. 5, 2020: Wexler Wholesalers received payment from Juniper Retailers.

9. Jun. 3, 2020: Wexler Wholesalers sold 400 books to Read It Again Sam. The cost was $17 per book with a selling price of $55 each, terms 2/10,n30.

10. Jun. 8, 2020: Read It Again Sam returned 30 books to Wexler Wholesalers for full credit.

11. Jun. 9, 2020: Wexler Wholesalers received payment in full from Read It Again Sam.

12. Jun. 30, 2020: After being lost in the mail for months, Wexler Wholesalers received and paid $175 shipping costs associated with purchases from Simon and Schuster. Wexler Wholesalers is responsible for paying the shipping costs.

Part B: Prepare the income statement for Wexler Wholesalers for the first six months of the year through gross margin (gross profit). Part C: Wexler Wholesalers had opening inventory on January 1, 2020 of $11,500. What is the ending inventory as of June 30, 2020?

In 2018, Simon Corporation began selling a new line of toasters that carry a three-year warranty against defects. Based upon past experiences with similar products, the estimated warranty costs related to dollar sales are as follows:

                  First year after sale                           2%

                  Second year after sale                       4%

                  Third year after sale                          6%

Sales and actual warranty expenditures for 2018, 2019 and 2020 are presented below:

Instructions:

1. Prepare the journal entries to record the above transactions for the third fiscal year only (the one ending December 31, 2020), including:

1. the initial journal entry to record the sales. Assume all sales are “on account.”
2. The Warranty Expenditures for the year, and
3. The year end adjustment to record the warranty expense.

Assume the company uses the “expense warranty approach” for recording estimated warranty liabilities (like the assignment you handed it). Don’t forget the narratives! And Show Calculations.

2. Calculate the amount that Simon should report as warranty expense on its 2020 income statement.

3. What will be the balance in the “Estimated Warranty Liability” account as at December 31^st 2020? Consider using a “T” account to prove your answer (not mandatory).

VISUAL BASICS

Determine if each of the following statements is true or false. (1 point each, 13 total)

3. After May 2020, what are the prospects of futures contracts as a significant risk management tool for firms? Discuss critically.

3. After May 2020, what are the prospects of futures contracts as a significant risk management tool for firms? Discuss critically.

3. After May 2020 collapse of the futures oil markets, what are the prospects of futures contracts as a significant risk management tool for firms? Discuss critically.

Analyze the different approaches to innovation discussed in this chapter to determine which approach you think would be the greatest value to the greatest number of organizations. Explain your rationale. Create one innovative approach that is not discussed in the textbook for increasing the amount of innovation within a large company. Describe this approach in detail and explain how companies could benefit from it.

Sourcing selection strategy has a very important role in the supply chain and one of the most important point is Innovation orientation. Please write at least 3-5 paragraphs about Sourcing selection strategy and Innovation orientation, and how important is that for a business, and how it effect the business. Also, list some examples about some businesses.

P18.8 Sarah Corp. reported the following differences between SFP carrying amounts and tax bases at December 31, 2019:

The differences between the carrying amounts and tax bases were expected to reverse as follows:

Tax rates enacted at December 31, 2019, were 31% for 2019, 30% for 2020, 29% for 2021, and 28% for 2022 and later years.

During 2020, Sarah Corp. made four quarterly tax instalment payments of $9,500 each and reported income before income tax on its income statement of $119,650. Included in this amount were dividends from taxable Canadian corporations of $5,800 (non-taxable income) and $25,000 of expenses related to the executive team's golf dues (non–tax-deductible expenses). There were no changes to the enacted tax rates during the year.

As expected, book depreciation in 2020 exceeded the capital cost allowance claimed for tax purposes by $17,500, and there were no additions or disposals of property, plant, and equipment during the year. A review of the 2020 activity in the Warranty Liability account in the ledger indicated the following:

All warranties are valid for one year only. The Pension Liability account reported the following activity:

Pension expenses are deductible for tax purposes, but only as they are paid to the trustee, not as they are accrued for financial reporting purposes.

Sarah Corp. reports under IFRS.

Instructions

a. Calculate the Deferred Tax Asset or Deferred Tax Liability account at December 31, 2019, and explain how it should be reported on the December 31, 2019 SFP.

b. Calculate the Deferred Tax Asset or Deferred Tax Liability account at December 31, 2020.

c. Prepare all income tax entries for Sarah Corp. for 2020.

d. Identify the balances of all income tax accounts at December 31, 2020, and show how they will be reported on the comparative statements of financial position at December 31, 2020 and 2019, and on the income statement for the year ended December 31, 2020.

e. How would your responses to parts (a) and (d) change if Sarah Corp. followed the ASPE future/deferred income taxes method?

please use accelerated investment incentive, not half rule