(Calculating The Cost Of​ Short-term Financing) The R. Morin Construction Company Needs To Borrow

(Calculating the cost of​ short-term financing) The R. Morin Construction Company needs to borrow 90,000 to help finance the cost of a new 135,000 hydraulic crane used in the​ firm’s commercial construction business. The crane will pay for itself in one​ year, and the firm is considering the following alternatives for financing its​ purchase: Alternative A. The​ firm’s bank has agreed to lend the $90,000 at a rate of 13 percent. Interest would be​ discounted, and a 15 percent compensating balance would be required.​ However, the​ compensating-balance requirement is not binding on the firm because it normally maintains a minimum demand deposit​ (checking account) balance of $22,500 in the bank. Alternative B.    The equipment dealer has agreed to finance the equipment with a​ 1-year loan. The 90,000 loan requires payment of principal and interest totaling 104,373. a. Which alternative should Morin​ select? b. If the​ bank’s compensating-balance requirement had necessitated idle demand deposits equal to 15 percent of the​ loan, what effect would this have had on the cost of the bank loan​ alternative?

Problem 10-7 Pearl Inc. Is A Book Distributor That Had Been Operating In

Problem 10-7 Pearl Inc. is a book distributor that had been operating in its original facility since 1987. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Pearl since 2012. Pearl’ original facility became obsolete by early 2017 because of the increased sales volume and the fact that Pearl now carries CDs in addition to books. On June 1, 2017, Pearl contracted with Black Construction to have a new building constructed for $4,720,000 on land owned by Pearl. The payments made by Pearl to Black Construction are shown in the schedule below. Date Amount July 30, 2017 $1,062,000 January 30, 2018 1,770,000 May 30, 2018 1,888,000    Total payments $4,720,000 Construction was completed and the building was ready for occupancy on May 27, 2018. Pearl had no new borrowings directly associated with the new building but had the following debt outstanding at May 31, 2018, the end of its fiscal year. 10%, 5-year note payable of $2,360,000, dated April 1, 2014, with interest payable annually on April 1. 12%, 10-year bond issue of $3,540,000 sold at par on June 30, 2010, with interest payable annually on June 30. The new building qualifies for interest capitalization. The effect of capitalizing the interest on the new building, compared with the effect of expensing the interest, is material. Compute the weighted-average accumulated expenditures on Pearl’s new building during the capitalization period. Weighted-Average Accumulated Expenditures $ Compute the avoidable interest on Pearl’s new building. (Round intermediate percentage calculation to 1 decimal place, e.g. 15.6% and final answer to 0 decimal places, e.g. 5,125.) Avoidable Interest $ Some interest cost of Pearl Inc. is capitalized for the year ended May 31, 2018. Compute the amount of each items that must be disclosed in Pearl’s financial statements. Total actual interest cost $ Total interest capitalized $ Total interest expensed $

This Question Relates To Jardine Matheson Holdings Limited’s (“JM”) 31 December 2017 Annual Report

This question relates to Jardine Matheson Holdings Limited’s (“JM”) 31 December 2017 Annual Report available from their investor relations website. Also, you should have created an account on the S

1. It’s Now June 2017 And You Are Advising The Australian Government On The

1. It’s now June 2017 and you are advising the Australian Government on the GST tax treatment of digital currencies. What was the rationale/basis for the withdrawal of Goods and Services Tax Ruling GSTR 2014/3 by the ATO.

2. It’s Now July 2017 And The ATO Has Now Withdrawn GSTR 2014/3. Amendments

2. It’s now July 2017 and the ATO has now withdrawn GSTR 2014/3. Amendments now need to be made to the A New Tax System (Goods and Services Tax) Act 1999 (the GST Act) to remove the ‘double taxation’ of digital currencies. You are specifically advising on what changes of the GST law would be most appropriate to prevent ‘double taxation’. You consider that there are two main options and a possible alternative option that would achieve the objective of removing the ‘double taxation’ of digital currencies. The two main options are to either treat digital currencies as input taxed or to treat them as equivalent to ‘money’ for GST purposes. The alternative option is to treat digital currencies as being GST free. Discuss the positives and negatives of each option. After considering each, which option will you advise government to be the preferred option and why? Please include a bibliography

SET UP A NEW COMPANY. ASSUME YOU ARE MANUFACTURING ONLY ONE PRODUCT. FILL THE

SET UP A NEW COMPANY. ASSUME YOU ARE MANUFACTURING ONLY ONE PRODUCT. FILL THE FOLLOWING TABLES AS YOUR MASTER BUDGET FOR YOUR COMPANY: January February March Quarter Cash sales (…%) Credit sales (…%) Total collections Production Budget January February March Quarter Unit Sales Plus : Desired Ending Inventory Total Needed Less : Beginning Inventory Units to produce Direct Materials Budget January February March Quarter Units to be produced Multiply by: Quantity of DM needed per unit Quantity of DM needed for production Plus: Desired ending inventory of DM Total quantity of DM needed Less: Beginning inventory of DM Quantity of DM to purchase Multiply by: Cost per pound Total cost of DM purchases Cash payments for Direct Material Purchases Budget January February March Quarter December purchases (From AP) January purchases February purchases March purchases Total payments Cash Payments for Direct Labor Budget January February March Quarter Direct labor Cash Payments for Manufacturing Overhead Costs January February March Quarter Rent (fixed) Other MOH (fixed) Variable manufacturing overhead costs Total disbursements Cash Payments for Operating Expenses January February March Quarter Variable operating expenses Fixed operating expenses Total disbursements Combined Cash Budget January February March Quarter Cash balance, beginning Plus: cash collections (req. 1) Total cash available Less cash disbursements: DM purchases (req 4) Direct labor costs (req 5) MOH costs (req 6) Operating expenses (req 7) Tax payment Equipment purchases Total Cash payments Ending cash before financing Financing: Borrowings Repayments Interest Total financing Cash balance, ending Budgeted Manufacturing Cost per Unit Cost per unit Direct materials cost per unit Direct labor cost per unit Variable manufacturing overhead costs Fixed MOH Cost of manufacturing each unit Budgeted Income Statement Sales Less: Cost of goods sold Gross profit Less: Operating expenses Less: Depreciation expense Operating income Less: interest expense Less: pincome tax expense @ 30% Net income

Accounting For Share Capital On 1 February 2019, Sunshine Ltd Was Registered And Issued

Accounting for share capital On 1 February 2019, Sunshine Ltd was registered and issued a prospectus inviting applications for 2,000,000 shares, at an issue price of $3.00, payable as follows: $1.50 on application, $1.00 on allotment (payment due within 1 month of allotment), $0.50 on a call to be made at a later date. The issue was underwritten at a commission of $12,000. By 28 February 2019, applications had been received for 1,800,000 shares. On 10 March, shares are allotted, and the underwriter forwarded the application and allotment money due on their shares, less their commission. All remaining allotment money was received by 10 April. Other share issue costs amounted to $5,000, and were paid on 15 April. The call was made on 1 May 2019, with money due by 31 May 2019. All money owing in relation to the call was received by the due date, except for the holders of 20,000 shares who did not pay the call. On 10 June 2019, as provided in the company’s constitution, the directors forfeited these 20,000 shares. On 20 June 2019, the forfeited shares were reissued as fully paid for a consideration of $2.70 per share. Costs of forfeiture and reissue amounted to $4,000, and were paid. The constitution allows for the refund of any balance in the forfeited shares account after reissue to former shareholders, so refunds were made on 25 June 2019. Required: Prepare the journal entries to record the transactions of Sunshine Ltd up to and including that which took place on 25 June 2019. Show all relevant dates, narrations and workings (note: workings/calculations may be shown in the narrations).   

Step Six Data (Click On The Link To Return To The Prompt.) On September

Step Six Data (Click on the link to return to the prompt.) On September 30, the following adjustments must be made:  [Note: This is a sample.] Depreciation of baking equipment transferred to company on 7/13. Assume a half month of depreciation in July using the straight-line method.  Accrue interest for note payable. Assume a full month of interest for July. (6% annual interest on $10,000 loan from parents.)  Record insurance used for the year.  Actual baking supplies on-hand as of September 30 are $1,100.  Office supplies on-hand as of September 30 are $50

Suzy Books Inc. Wishes To Borrow $225,000 Today For The Purchase Of Publishing Materials.

Suzy Books Inc. wishes to borrow $225,000 today for the purchase of publishing materials. They have an agreement with their commercial banker that they can borrow money at an annual rate of 3.5%. How much will the firm owe if they repay the loan in exactly 1 year?

Question 40 Of 50. Jennifer Searcy, A Single Mother, Has Three Dependent Children. As

Question 40 of 50. Jennifer Searcy, a single mother, has three dependent children. As of December 31, 2018, their ages were as follows: Sydney (7), Patrick (11), and JoAnna (17). Jennifer’s 2018 AGI is $62,000, and her tax liability is $3,384. All requirements are met. The amount of Jennifer’s Child Tax Credit is __________. $0 $2,000 $3,384 $4,000

On January 1, NewTune Company Exchanges 17,949 Shares Of Its Common Stock For All

On January 1, NewTune Company exchanges 17,949 shares of its common stock for all of the outstanding shares of On-the-Go, Inc. Each of NewTune’s shares has a $4 par value and a $50 fair value. The fair value of the stock exchanged in the acquisition was considered equal to On-the-Go’s fair value. NewTune also paid $23,500 in stock registration and issuance costs in connection with the merger. Several of On-the-Go’s accounts’ fair values differ from their book values on this date: Book Values Fair Values    Receivables 35,250 29,150    Trademarks 105,500 255,500 Record Music Cat 80,000 267,500 In process R

One Of The Measures Of Success For Any Business Is Profitability. Managers And Business

One of the measures of success for any business is profitability. Managers and business owners must be able to assess the profitability of a company using information about its financial transactions: This is done through accounting. By working through the accounting cycle, you will understand how to organize transactions in a way that communicates the financial position of a company. This information is critical for external stakeholders who may be interested in working for or investing in the business. This process also helps you understand the level of attention to detail that is required in a successful business venture. The final project for this course consists of two major parts: an accounting workbook (Final Project I) and a professional relevance essay (Final Project II). In the accounting workbook, you will use provided information to record journal entries that document financial transactions in a business. To do this, you will follow the business transactions for a three-month period, starting from the first step of the accounting cycle through the reporting process. These transactions include the initial setup of the business, sales, and purchases, payments made to vendors, payments made to store employees, and debt management. In the second part of the final project, you will create a well-crafted essay in which you draw connections between your accounting exercises and their practical applications for furthering your own professional practice. The project is divided into two milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Three and Five. The final products will be submitted in Modules Seven and Eight. In this assignment, you will demonstrate your mastery of the following course outcomes:  ACC-201-01: Record financial data that accurately captures business transactions according to accepted accounting principles  ACC-201-02: Apply the accrual basis of accounting to correctly create adjusting entries in the preparation of financial statements  ACC-201-03: Create financial statements by properly employing prescribed methods in accordance with generally accepted accounting principles Prompt Your dog, Peyton, has severe allergies and cannot have the usual store-bought dog treats. You have been making homemade treats for him that are all-natural and hypoallergenic. Over the past year, you have been making and selling these treats out of your home, and you have been quite successful. You now have an opportunity to open your own dog treat bakery. You have decided on a corporate form of business and have named your company “Peyton Approved.” 2 Use accepted accounting principles to follow and record your business transactions for a three-month period from the first step of the accounting cycle through the reporting process. Enter your transactions in the workbook provided. Your completed workbook will consist of journal entries for each transaction, and postings of transactions to account ledgers. You will develop a trial balance from ledger balances and adjust revenue and expense accounts, as necessary, to ensure that revenues and expenses are reported in the appropriate period under the accrual accounting method. The adjusted trial balance will be used to prepare the income statement, the statement of owner’s equity, the balance sheet, and the statement of cash flows. After the preparation of the financial statements, closing entries will be entered to transfer earnings to equity and prepare temporary accounts for the new accounting period. You will find the provided data for your workbook in the appendix at the end of this document. The data have been separated from the prompt so that you can more easily view the full scope of the project. Links have been provided to help you locate the information you need for each step. Specifically, you must address the critical elements listed below. Most of the critical elements align with a particular course outcome (shown in brackets). I. Record financial data that accurately captures business transactions according to accepted accounting principles: A. Step One: Complete the “July Journal Entries” tab in your workbook using the Step One data in the appendix. [ACC-201-01] B. Step Two: Complete the “August Journal Entries” tab in your workbook using the Step Two data in the appendix. [ACC-201-01] C. Step Three: Complete the “September Journal Entries” tab in your workbook using the Step Three data and updated scenario information in the appendix. Note that there was an additional line of products added this month, so you must first complete the “Inventory Valuation” tab in your workbook and copy the journal entries from the inventory evaluation page into your journal for this month to ensure the impact of merchandising is reflected in your reporting. [ACC-201-01] The following critical element is not graded: D. Step Four: Transfer posted entries to T accounts. II. Apply the accrual basis of accounting to correctly create adjusting entries in the preparation of financial statements: A. Step Five: Prepare the unadjusted trial balance. Note that you should use the T account balances completed in Step Four to prepare the unadjusted trial balance portion of the “Trial Balance” tab in your workbook. [ACC-201-02] B. Step Six: Complete the “Adjusting Entries” tab in your workbook using the Step Six data in the appendix. Note that you should take the adjusting entries from this worksheet and enter them into the “Trial Balance” tab in your workbook. [ACC-201-02] C. Step Seven: Apply adjusting entries to create the adjusted trial balance. Note that the adjusting entries from Step Six will apply to affected accounts in the unadjusted trial balance to arrive at the adjusted trial balance. [ACC-201-02] 3 III. Create financial statements by properly employing prescribed methods in accordance with generally accepted accounting principles: A. Step Eight: Prepare the financial statements. Note that you must use your adjusted trial balance to prepare the income statement, statement of owner’s equity, and balance sheet. You must complete these statements in this order, as there are interdependencies among them. [ACC-201- 03] B. Step Nine: Complete the “Closing Entries” tab in your workbook by closing all temporary income statement amounts to create closing entries. [ACC-201-03] C. Step Ten: Prepare the “Post Closing Trial Balance” tab for the next accounting period. [ACC-201-03] D. Step Eleven: Prepare the reversing entries in the “Reversing Entries” tab of your workbook. [ACC-201-03] Milestones Milestone One: Accounting Workbook (Steps 1–4) In Module Three, you will submit the first part of your accounting workbook, including the monthly journal entries and general ledger accounts. This milestone will be graded with the Milestone One Rubric. Milestone Two: Accounting Workbook (Steps 1–7) In Module Five, you will submit the second part of your accounting workbook, including the trial balance, adjusting entries, and adjusted trial balance. You should also incorporate any feedback you received from Milestone One on your monthly journal entries and general ledger accounts. This milestone will be graded with the Milestone Two Rubric. Final Submission Part I: Final Accounting Workbook In Module Seven, you will submit the first part of your final project. It should be a complete, polished artifact containing all of the critical elements of the prompt. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project I Rubric

“Property Transactions” Discuss The Circumstances When An Investor Can Use Section 1031 Of The

“Property Transactions” Discuss the circumstances when an investor can use section 1031 of the Internal Revenue Code (IRC) for like-kind of real estate exchanges to defer taxes when making a sale or disposal of property. Explain the three (3) conditions that must be met for 1031 to apply. Support your response with one (1) real-world example. Define what “improper tax year” means through an empirical example. Explain two (2) reasons why a business owner would like to exercise the use of improper tax year.

B.Explain And Defend The Selling Prices That You Established For Grooming, Day Care, And

B.Explain and defend the selling prices that you established for grooming, day care, and boarding. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] C. Explain and defend your selected target profits for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] D. Explain and defend your contribution margin per unit and contribution margin ratio. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] III. Financial Statements: Assess your financial performance to-date using the post-opening scenario information. A. Financial Statements 1. Share the statement of cost of services and logically interpret the business’s performance against the provided benchmarks. [ACC-202- 02] 2. Share the income statement and logically interpret the business’s performance against the provided benchmarks. [ACC-202-02] B. Variance Analysis 1. Identify all variances for the direct labor time and the materials price. [ACC-202-02] 2. Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning. [ACC-202-02] IV. In an addendum, submit your completed workbook, including the following: A. Accurately classify all of your costs in the “Cost Classification” tab. [ACC-202-01] B. Conduct a cost-volume profit analysis: 1. Determine your contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab. [ACC-202-01] 2. Determine your break-even points for achieving your target profits in the “Break-even analysis” tab. [ACC-202-01]

You Recently Got A Job As A Part-time Supply Chain Accounting Clerk To

You recently got a job as a part-time supply chain accounting clerk to earn money while you attend school. Today, your employer, the owner of the business, made some purchases and instructed you to debit Office Supplies and credit Accounts Payable for the entire amount. He tells you that the invoice is for a few office supplies but mainly for some items that he needed for personal use at home. Discuss which GAAP is being violated, and the impact of this error on the financial statements of the business.

Rose Oil Cosmetics Plans To Grow Its Company By Offering A New Line

Rose Oil Cosmetics plans to grow its company by offering a new line of anti-aging products that are superior and uniquely different than their competitor’s product. Rose Oil knows that it needs to invest heavily in R

Stora Enso Is A Finnish Pulp And Paper Manufacturing Company. It Discloses In Its

Stora Enso is a Finnish pulp and paper manufacturing company. It discloses in its 1999 consolidated Annual Report, the following items: Excerpted from the Consolidated balance sheet Assets € mill. 1999 1998 (…) Shares, associated companies 165.5 334.1 Shares, other companies 280.4 128.8 In the notes to its financial statements, the Stora Enso provides explanations relating to these two items: Excerpts from the notes Note 12 Associated companies € mill. 1999 1998 Historical cost Jan. 1 289.9 273.1 Translation difference 1.8 -14.8 Additions 20.2 42.3 Disposals -36.8 -1.2 Transfers to other companies -141.9 -9.4 Historical cost Dec. 31 133.2 290.0 Equity adjustments to investments in associated companies Jan. 1 44.2 44.8 Equity earnings in associated companies 9.7 10.0 Translation difference -27.3 -0.1 Dividends received during the year -3.1 -7.2 Taxes -2.4 -2.6 Disposals and other changes 11.2 -0.7 Equity adjustments Dec. 31 32.3 44.2 Carrying value of investments in associated companies on Dec. 31 165.5 334.2 Note 14 Shares in other companies € mill. 1999 1998 Acquisition cost Jan. 1 128.8 57 Translation differences 0.5 -1.1 Additions 13.4 68.8 Disposals -7.1 -4.8 Write-downs 3 -0.5 Transfers from associated companies 141.9 9.4 Carrying amount Dec. 31 280.4 128.8 In addition, the company explains in the notes that “associated companies (voting rights between 20% and 50%) are consolidated using the equity method” and “the income statements of foreign subsidiaries are translated into Euros using the average rate for the accounting period. The balance sheets of foreign subsidiaries are translated using the rate prevailing on the balance sheet day.” Pechiney, a French group operating worldwide in aluminum and packaging materials, discloses in its 1999 Annual Report the following note: Note 7 – Investments in Equity Affiliates (in millions of €) 1999 1998 1997 Beginning of period 334 337 354 Changes: – Equity in net income of Quensland Alumina Limited, Pechiney Reynolds Québec Inc. and in partnerships 7 7 10 – Equity in net income of other affiliates 41 10 20 – Dividends received from equity affiliates (12) (12) (20) – New investments or share capital increases – – 42 – Divestments and reduction in ownership percentage (73) – (71) – Change from equity method to consolidation – – (9) – Change from consolidation to equity method 457 – 7 – Translation adjustment 22 (10) 5 – Other 1 2 (1) End of period 777 334 337 Required A) Using the Stora Enso data Associated companies: explain the computation of the historical cost at year-end and the meaning of each component of this computation. Where will be found, other than in the notes, the carrying value of associated companies at year-end? Other companies: explain the computation of carrying amount at year-end and the meaning of each component of this computation. Double-check the carrying value of other companies at year-end. What is the usefulness to an investor or shareholder of the 1999 figure of €280.4 millions shown both in the balance sheet and in the notes? B) Comparison: notes 12 and 14 in Stora Enso’s annual report and note 7 in Pechiney’s annual report have the same purpose. Compare and contrast the computations and reporting choices made by each company.

Which Of The Following Accounting Methods Is Used To Deduct Unpaid Charitable Contributions?

which of the following accounting methods is used to deduct unpaid charitable contributions? This happens if the Board of Directors authorizes them and pays them before the due date of the return

I Thought Ration Maybe Subject To An Underpayment Penalty If It Has A Total

I thought ration maybe subject to an underpayment penalty if it has a total tax liability amount of blank or more and has paid less than the smaller of the current year tax liability or their prior years tax liability.

Which Of The Following Statements Regarding C Corporation’s Is True A A C

which of the following statements regarding C corporation’s is true A a C corporation is a separate entity for tax purposes B shareholders have limited liability C shareholders are taxed only when the corporation distributes earnings and profits de all of the above statements are correct

Explain In Detail The Derivation Of The BOPM For A Call Option. Include

Explain in detail the derivation of the BOPM for a call option. Include Derivation of the single-period model (use parameters) Include a single-period example where: u = 1.10, d = 0.95, Rf = 0.025, S0 = $50, X = $50. Show an arbitrage example when the call is mispriced. Explain the mechanics for pricing a call with the multiple-period model. Include a multiple period model example with n = 2 (u = 1.0488, d = 0.9747, Rf = 0.025, S0 = $50, and X = $50). Explain why subdividing the binomial model adds realism to the model Describe the methodology for estimating u and d. Include verbal statement, graphical picture, and math explanation.

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