ABC Company formed in 2020. ABC company files their tax return using the accrual basis of accounting. ABC’s profit and loss showed the following:

Revenue - $1,000,000

Expenses:

Salaries - $700,000

Office Expense - $50,000

Supplies - $20,000

Postage - $10,000

Meals - $7,000

Entertainment - $1,000

Repairs - $2,000

Rent - $50,000

Political Contributions - $2,500

Calculate ABC company’s taxable income using the accounts above. Assuming ABC company operates a sole proprietorship, calculate the Qualified Business Income Deduction for 2020.

Think up a company you would like to start.   Then, choose an organizational type.   Assume the company will start on January 1st, 2020.   Create 10 transactions for the year 2020.   Please make sure you use entries which affect equity, revenue, expenses, assets and liabilities.   You can draw the "T" accounts or you can describe the affect of the transactions on the financial statement. Then, show the income statement, the balance sheet and the statement of equity for the year ending 12/31/2020.  

Any company or organization is fine!

ACCT 301

ASSIGNMENT 4

1. You are required to prepare a Direct Material Budget for the second quarter (April to June) by considering a manufacturing company operating in Saudi Arabia as a sample study.                                                                          (4marks)

2. You are required to prepare the Sales price variance and Revenue sales quantity variance by taking any of your choice Saudi based company and suggest the suitable reasons for the variances.                                                              (3marks)

3. You are required to allot the support department cost to operations department by taking any Saudi based operating company.                            (3marks)

A new publicly financed bridge is expected to reduce the cost of auto travel between two areas by Php1 per trip. This cost reduction to motorists consists of a reduction in travel time, auto depreciation and petrol expenses totaling Php1.50 per trip, less the Php0.50 bridge toll which the government will collect. Before the bridge was built there were 1 million trips per year between the two areas. Once the bridge is in operation, it is estimated that there will be 1.5 million trips per year between the two areas. In terms of areas under the demand curve, what is the annual benefit of the bridge:

To motorists?

To the government?

What other referent group benefits would need to be considered in a social benefit/cost analysis?

Blossom Inc., a publicly accountable enterprise that reports in accordance with IFRS, issued convertible bonds for the first time on January 1, 2017. The $1 million of six-year, 10% (payable annually on December 31, starting December 31, 2017), convertible bonds were issued at 107, yielding 7%. The bonds would have been issued at 96 without a conversion feature, and yielding a higher rate of return. The bonds are convertible at the investor’s option.

The company’s bookkeeper recorded the bonds at 107 and, based on the $1,070,000 bond carrying value, recorded interest expense using the effective interest method for 2017. He prepared the following amortization table:

You were hired as an accountant to replace the bookkeeper in November 2018. It is now December 31, 2018, the company’s year end, and the CEO is concerned that the company’s debt covenant may be breached. The debt covenant requires Blossom to maintain a maximum debt to equity ratio of 2.3. Based on the current financial statements, the debt-to-equity ratio would be 2.6. The CEO recalls hearing that convertible bonds should be reported by separating out the liability and equity components, yet he does not see any equity amounts related to the bonds on the current financial statements. He has asked you to look into the bond transactions recorded and make any necessary adjustments. He would also like you to explain how any adjustments that you make affect the debt to equity ratio.

Determine the amount that should have been reported in the equity section of the statement of financial position at January 1, 2017, for the conversion right, considering that the company must comply with IFRS.

Prepare the journal entry that should have been recorded on January 1, 2017

Using a financial calculator or computer spreadsheet functions, calculate the effective rate (yield rate) for the bonds.

Prepare a bond amortization schedule from January 1, 2017, to December 31, 2021, using the effective interest method and the corrected value for the bonds.

Prepare the journal entry dated January 1, 2018 to correct the bookkeeper’s recording errors in 2017. Ignore income tax effects.

Prepare the journal entry at December 31, 2018 for the interest payment on the bonds.

The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to

Which of the following statements regarding a 30-year monthly payment amortized mortgage with a nominal interest rate of 8% is CORRECT?

.

The Magnus Corporation, a publicly accountable entity, had the following investments as at

December 31, 20x2:

Company

Type

Classification

Original

Cost

Carrying

Value

Fair

Value

Will Corp. Shares FVPL $65,000 $61,000 $58,000

Simon Co. Shares FVPL 205,000 212,000 225,000

Craig Inc. Shares FVOCI 82,000 88,000 106,000

Frey Inc. Shares FVOCI 94,000 80,000 88,000

Blandin Co. Bonds FVOCI 210,106 210,106 210,106

The Blandin Co. bonds were purchased on December 31, 20x2. The bonds have a face value of

$200,000, pay interest of 4% semiannually (Jun 30 & Dec 31) and mature on December 31,

20x19. Bond issue costs were capitalized to the FVOCI investment account.

The following transactions took place in 20x3:

Feb 4 Sold the Simon shares for $250,000 less $10,000 in brokerage fees

Mar 31 Purchased shares of Winny Inc. for $105,000 plus $6,500 in brokerage fees. The

shares are classified as FVPL.

April 20 Sold the Frey Inc. shares for $98,000 less $1,800 in brokerage fees.

Aug 12 Purchased shares of Bane Co. for $45,000 plus $1,000 in brokerage fees. The

shares are classified FVOCI.

Dec 31 The fair values of the investments on hand are as follows:

Will Corp. $ 51,000

Craig Inc. 125,000

Blandin Co. 206,000

Winny Inc. 114,000

Bane Co. 29,500

Required –

a) Prepare the journal entries to record all 20x3 transactions for the investments above.

When preparing the December 31, 20x3 fair value adjustment entry, write two journal

entries only: one for the total fair value adjustment on FVPL investments and one for the

total fair value adjustment on FVOCI investments. Do not write a separate journal entry

for each individual investment.

b) Assume that Magnus’s net income for the year ended December 31, 20x3 is $1,000,000.

Prepare the bottom portion of the Statement of Comprehensive Income starting with the

net income line.

c) Prepare a t-account showing the transaction in the A•OCI account from the beginning to

the end of the year. Prove the ending balance.

d) At the end of 20x4 the Blandin Co. bonds were trading at 104. Write all journal entries

for the bonds for the year ended December 31, 20x4.

Facebook, Inc., is a publicly held corporation and issued its financial statements for 2015 earlier in 2016. To follow is a condensed and adapted trial balance as of December 31, 2015, that was constructed from those financial statements. Please note that the accounts have been adapted and condensed for educational use and should not be used for investment decisions. Facebook Trial Balance

Facebook, Inc. Consolidated trial balance (adapted for classroom use) As of December 31, 2015

Debit Credit Cash and cash equivalents $ 4,907 - debit

Marketable securities 13,527 - debit

Accounts receivable, net 2,559 - debit

Prepaid and other expenses 659- debit

Property and equipment

net 5,687 - debit

Intangible assets, net 3,246 - debit

Other long-term assets 18,822 - debit

Accounts payable $ 196 - credit

Other current liabilities 1,729 - credit

Capital lease obligations, long-term 107 - credit

Other long-term liabilities 3,157 - credit

Common stock and other 34,431 - credit

Beginning retained earnings 6,099 - credit

Net revenues 17,928 - credit

Expenses 11,703 - debit

Other expenses and adjustments 2,537 - debit

Totals $ 63,647- debit $ 63,647 - credit

Questions (calculate each of the following totals using Facebook’s trial balance) 1. Current assets 2. Total assets 3. Current liabilities 4. Total liabilities

5. Net income 6. Ending retained earnings 7. Total stockholders’ equity 8. Write Facebook’s accounting equation as of December 31, 2015.

need help solving this .. thanks - please share in easiest form

Assume that a highly controversial and publicly polarizing bill has been passed by the US House of Representatives and is currently up for vote in the US Senate. If the bill passes through the Senate, outline and describe the process by which the bill will become law, or not become law. If the bill becomes law, will it remain law forever?

Identify the three branches of government and describe how the separation of powers created by the three different branches can provide a system of checks and balances of the bill. Be sure to mention each branch of government and thoroughly describe each branch’s role in providing checks and balances to the action of the Senate. If the bill does in fact become law, generally describe what, if anything, states who may oppose the new law may do to counteract or abate the impact of the federal law.