The company disclosed the following lease information in its 2018 annual report related to its leasing activities (in millions).

What effect does the failure to capitalize operating leases have on the company’s balance sheet? Over the life of the lease, what effect does this classification have on net income?

Bramble Corp. will invest $88000 every December 31st for the next six years (2020 – 2025). If Bramble will earn 13% on the investment, what amount will be in the investment fund on December 31, 2025?

$827609.

$732398.

$397518.

$351783

Sheffield Corp. has outstanding accounts receivable totaling $1.25 million as of December 31 and sales on credit during the year of $6.20 million. There is also a debit balance of $6100 in the allowance for doubtful accounts. If the company estimates that 2% of its accounts receivable will be uncollectible, what will be the balance in the allowance for doubtful accounts after the year-end adjustment to record bad debt expense?

$25000.

$31100.

$24878.

$18900.

Hi i need analysis on textbook sollution On January 1, 2017, AJ Corporation purchased bonds with a face value of $300,000 for $308,373.53. The bonds are due June 30, 2020, carry a 13% stated interest rate, and were purchased to yield 12%. Interest is payable semiannually on June 30 and December 31. On March 31, 2018, in contemplation of a major acquisition, the company sold one-half the bonds for $159,500 including accrued interest; the remainder were held until maturity. (Analyze the specific outcomes and write an analysis directed toward the team at AJ Corporation describing what the numbers mean and how they relate to the business.)

Below is the account information for UMPI Corporation. Prepare a classified balance sheet in report form for the company as of December 31, 2018. Prepare a balance sheet as of December 31, 2020.

Equipment 60,000

Interest Payable 250

Retained Earnings ?

Dividends Payable 50,000

Land 140,000

Accounts Receivable 102,000

Bonds Payable (long-term) 78,000

Notes Payable (due in 6 months) 29,000

Common Stock 70,000

Accumulated Depreciation - Equip. 10,000

Prepaid Advertising 5,000

Buildings 80,000

Supplies 1,000

Income Taxes Payable 3,000

Salaries and Wages Payable 900

A/D - Building 15,000

Cash 95,000

Scenario 1 Financing Company Operations

The equity of ChiHerbal Ltd as at 30 June 2018 comprises the following:

320 000 ordinary Class 1 shares, issued at $4, fully paid $1 280 000

240 000 ordinary Class 2 shares, issued at $4, called to $2.40 576 000

40 000 6% redeemable preference shares, issued at $3.00, fully paid 120 000

Share issue costs (4 272)

Calls in advance (at $1.60) 25 600   

Share options (issued at $1.20, fully paid) 38 400

Retained earnings 508 800

The options are exercisable by 28 February 2019. Each option entitles the holder to acquire two ordinary Class 3 shares at a price of $3.60 per share, payable by 28 February 2019.

The following transactions occurred during the financial year ending 30 June 2019:

2018

Oct. 20 The preference shares were redeemed out of Retained earnings at a 5% premium.

25 Cheques were issued to the preference shareholders.

Nov. 1 A 1-for-5 renounceable rights offer was made to ordinary Class 1 shareholders at an issue price of $3.80 per share. The offer’s expiry date is 30 November 2018. The rights issue is underwritten at a commission of $4 800.

30 Holders of 256 000 shares accept the rights offer, with other rights being renounced to the underwriter. Ordinary Class 1 shares are issued and money received.

Dec.20 The underwriting commission is paid.

2019

Jan.10 The directors transfer $56000 from Retained earnings to a General reserve account.

Feb.28 As a result of options being exercised, 56 000 ordinary Class 3 shares are issued.

April 30 Unexercised options lapse

May 31 The final call, due by 31 May 2019, is made on the partly paid shares. All call money is received by this date, except for that due on 12 000 shares.

June 18 The shares on which the final call was unpaid are forfeited.

26 The forfeited shares are reissued, credited as paid to $4, for $3.60 cash per share. The balance of the Forfeited Shares account will be refunded to the former shareholders on 27 June.

27. Pay refund to former holders of forfeited shares.

Required:

a) Prepare general journal entries to record the above transactions.

Note: Show all your workings. Journal narrations are required.

b) Prepare the equity section of ChiHerbal’s statement of financial position as at 30 June 2019 once the above transactions have been recorded.

You have been hired as consultants to design and implement a widespread security initiative for a rapidly expanding global eCommerce corporation with two websites and locations in New York, Chicago, San Francisco, London, Paris and Johannesburg. Business is good! In the next three months, the corporation will be acquiring another company in a different line of business with plans to offer products for sale online.

Part of your role is to recommend the best way for integrating both environments. However, not much information is available about the IT setup for the company being acquired. The other company might even have a mix of different operating environment – it is unclear since the IT staff in that company is not very communicative.

Some critical staff members in the other company are not happy with the upcoming merger and have sworn to be as uncooperative as possible. In particular, the Network Manager for the other company is a difficult personality – plans have been afoot to fire him but unfortunately he is the only one who knows the network architecture completely and he is not willing to share. You must find out everything about the new environment and propose specifics on how to seamlessly integrate both environments

In the initial conversation with executives of the global company, you realize that the company does not have a security policy. After much discussion, they have agreed that you should come up with a detailed security policy customized for the company.

In a follow-up meeting with the executives and IT staff of the global corporation, you are also assigned the task of identifying two (2) security audit tools (vulnerability/web scanners), two (2) intrusion detection systems and two (2) network firewall products that would be suitable for the global company. You are to test and describe the features of selected security solutions, indicating (a) which you prefer and (b) providing convincing rationale for why you prefer a specific solution in each category. In other words, you are to evaluate two products for each category and recommend one, giving the reasons for your choice.

Salient points: The new corporate acquisition will increase the total number of computers under you IT department’s care to about 60,000 computers and network devices. The exact number is not clear: even the management at the other company is not sure of the number of systems in that network because of the difficulty in finding out the specifics about the company being acquired.

From the little information that has been gleaned from the other company, it appears to run a mixture of a peer-to-peer network and the domain model. Part of the decision you would have to make would be how the integrated environments would be networked: you have been given the discretion to come up with the design and budget (subject to approval, of course) for the overall security initiative, covering (1) the security policy, (2) network audit to determine what devices and data are being protected, (3) seamless integration between the merging companies, (4) recommendation for IDS system(s), (5) recommendations for security audit tools (web/vulnerability scanners) and (6) recommendation for network firewall device(s).   

Deliverables:

The Security Policy Document (You can adapt an Acceptable Use Policy document from www.sans.org)

An eight-page paper in Microsoft Word double-spaced describing how you would go about implementing the overall security initiative for the company, including a budget. Breakdown:

1 page summary of your overall strategy

1 pages of information security-related recommendations for integrating both corporate environments

1 page for the IDS

1 page for the web/vulnerability scanners

1 page for the network firewall device(s)

1 page of your overall conclusions showing demonstrating you grasp of information security best practices and current trends

1 page for budget  

1 page of references

Prepare the journal entries to record the December 2020 transactions found down below. Remember to skip a line between each journal entry and use J1, J2, J3, etc, instead of the date.

1. On December 1, Rocky Ram, Inc. received $17,000 from Kanga Roo Inc. for partial payment of account.(First entry journalized and posted for you.)

2. On December 1, Rocky Ram, Inc. received $6,000 in advance for renting office space to Bullwinkle, Inc. for the December 1, 2020 through February 28, 2021.

3. On December 6, Rocky Ram, Inc. issued checks to Acne Corporation for $12,000, Bow & Arrow, Inc. for $8,000, and Boa Construction Inc. for $15,000 in payment on accounts.

4. On December 10, the company purchased supplies in the amount of $4,000 on account from Boa Construction Inc.(FOB Shipping Point, terms n/10, n/30), order shipped in December.

5. On December 10, Rocky Ram, Inc. received a check in the amount of $30,000 from Poodle & Co. in payment of account.

6. On December 13, Rocky Ram, Inc. made a sale in the amount of $77,000 to Poodle & Co (terms 2/10, n/30). The cost of the inventory sold was $36,000.

7. On December 17, Board of Directors declared $8,200 in dividends to be paid in January.

8. On December 20, the company paid employees $31,000 for wages earned during the period from December 1 through December 15, 2020.

9. On December 23, received full payment from Poodle & Co. for sale made December 13(J6), within the discount period.

10. On December 23, Rocky Ram, Inc. made a sale in the amount of $90,000 to Bulldog Inc. (terms 2/10, n/30). The cost of the inventory sold was $28,000.

11. On December 28, Bulldog Inc. returned goods purchased on December 25, in the amount of $14,000. The cost of inventory was $9,000.

12. On December 28, Rocky Ram, Inc. ordered inventory from Bow & Arrow, Inc. in the amount of $50,000 (FOB Destination, terms 2/10, n/30), inventory is expected to arrive sometime in January.

13. On December 31, the company purchased office equipment costing $60,000. They paid $15,000 down on the equipment and signed a promissory note for the remaining balance. The note is due March 31, 2021.

14. On December 31, Rocky Ram, Inc. paid utility bills totaling $2,020 for utilities used during the month of December.

Abbotsford Tile Ltd. (ATL) is a wholesaler of high quality glass, ceramic and marble tiles. In November 2019 the owner of ATL agreed to sell the company to Barrie Tile Inc. (BTI) another tile wholesaler. Each company is owned and operated by a single individual who originally founded his company. The owner of ATL decided to sell his business because he was beginning to get too old to run the store. The owner of BTI wants to purchase ATL to expand the size of his business. The two men agreed over lunch that BTI would buy ATL for an amount equal to five times ATL’s net income before tax for the year ended December 31, 2019. The deal is to be finalized on March 1, 2020. Closure of the deal requires that BTI approve of the financial statements prepared by ATL. The two men agreed that any disputes regarding the financial statements would be settled by negotiations and, if necessary, by arbitration by an independent third party. It is now January 15, 2020. You have been called by BTI’s owner to help him understand and assess a number of transactions that are reported in ATL’s December 31, 2019 financial statements. The owner of BTI explained that he does not have much experience working with financial statements but based on his examination, along with information obtained from other sources, he is concerned about a number of transactions reported in ATL’s statements. The owner has asked you for a detailed report explaining the impact of each event on the purchase price of ATL and your assessment of each of the issues. BTI’s owner said that he would like a full explanation of the implications of each event, your evaluation of the accounting used by ATL, and your supported recommendation of the appropriate treatment for each event. Your explanations are important because they will be used in negotiations with the owner of ATL and, if necessary, presented to the arbitrator.

The owner of BTI provided you with the following information about the events that are of concern to him:

a) In November 2019 ATL received a large order for tiles from a new customer. The customer’s normal supplier was on strike and had to find an alternative supplier and so the customer came to ATL. The contract requires that the parts be delivered in early January 2020. Production of the order was completed on December 18, 2019 and was ready to ship at that time. The contract requires that the customer must receive the tiles and must inspect and accept them before the contract is finalized. ATL shipped the tiles to the customer on December 31, 2019 and recognized the revenue in the year ended December 31, 2019.

b) Net income before taxes was $625,000 for the year ended December 31, 2019.

Pelzer Company reconciled its bank and book statement balances of Cash on August 31 and showed two cheques outstanding at that time, #5888 for $6,390 and #5893 for $1,528.00. The following information was available for the September 30, 2020, reconciliation:

From the September 30, 2020, bank statement:

From Pelzer Company’s accounting records:

• Cheque #5904 was correctly written for $9,340.55 to pay for computer equipment; however, the bookkeeper misread the amount and entered it in the accounting records with a debit to Computer Equipment and a credit to Cash as though it were for $3,940.55. The NSF cheque was originally received from a customer, Lisa Willis, in payment of her account. Its return was not recorded when the bank first notified the company.
• The credit memo resulted from an electronic fund transfer of $3,568 for a customer payment. The bank had deducted a $50.00 bank service charge. The collection has not been recorded.

Required:
1. Prepare a September 30 bank reconciliation for the company. (Round your answers to 2 decimal places.)

2. Prepare the General Journal entries needed to adjust the book balance of cash to the reconciled balance. (Round your answers to 2 decimal places.)