Almaden Valley Variety Store uses the retail inventory method to estimate

Almaden Valley Variety Store uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2016 are as follows:

CostRetail  Beginning inventory$18,000 $26,000   Purchases 108,600  171,000   Freight-in 1,920      Purchase returns 7,000  10,000   Net markups    9,000   Net markdowns    6,000   Normal spoilage    4,800   Net sales    158,000

Required: Complete the table below to estimate the ending inventory and cost of goods sold for 2016, applying the conventional retail method.

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San Lorenzo General Store uses a periodic inventory system and the retail

San Lorenzo General Store uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of October 2016:

CostRetail  Beginning inventory$53,000 $68,000   Net purchases 13,755  33,400   Net markups    3,000   Net markdowns    1,700   Net sales    50,000

Required: Complete the table below to estimate the average cost of ending inventory and cost of goods sold for October.

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LeMay Department Store uses the retail inventory method to estimate

LeMay Department Store uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to one of its largest departments for the month of March 2016:

CostRetail  Beginning inventory$41,000 $61,000   Purchases 208,000  401,000   Freight-in 9,270      Purchase returns 4,500  6,500   Net markups    5,900   Net markdowns    3,600   Normal breakage    6,500   Net sales    281,000   Employee discounts    1,900

Sales are recorded net of employee discounts.

Required: Compute estimated ending inventory and cost of goods sold for March applying the conventional retail method.

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BeBe Hassell is a successful tax attorney in New Orleans, Louisiana

Tax Research:

BeBe Hassell is a successful tax attorney in New Orleans, Louisiana. She purchases a vacation home, or “camp” on Lake Pontchartrain, just north of the city, to enjoy on the weekends with her husband, Gabe, and four children. Gabe is a professor of journalism at the University of New Orleans. Because of poor reception, she and Gabe install a tall, 30 foot antenna tower alongside the camp, at a cost of $4,000.00. They notice over a period of five years, that the tower is battered by wind and waves, and tilts more each year and the metal is weakened a bit more each year by the salty brackish water and the salt air. The tower becomes visibly in poor condition. Almost five years to the day after the tower is installed, there is a near-miss from a hurricane and no great damage is done, except their tower is toppled and ruined. Nearby neighbors with newer towers mostly find that their towers survived the storm, although a couple of the new towers of nearby camps also had their towers destroyed by the storm, which was powerful enough to destroy even new towers if it happened to hit hard at that spot.

Assignment:

For a loss to count as a casualty loss deduction, it must be the result of a sudden, unexpected or unusual event, not a “wearing out” or deteriorating over time. Can BeBe and Gabe take a casualty deduction for this loss? Please do the following:

1. Research this on the internet, using IRS publications, Google or other search engine, and other sources you find on the internet.

2. Write a memo to the me, describing the situation, and also describing the results of your research. Restate the facts, then state what you see as the issue. Then describe the sources that you located that gave you good information on this issue, and describe what each resource said about this situation. If you can, cite the Internal Revenue Code section that discusses casualty losses.

3. Give your conclusion. Is the antenna loss deductible or not, and why or why not?

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Financial benchmarking seeks to measure how the medical practice

Financial benchmarking seeks to measure how the medical practice organizational performance and how it stacks up against competitors and where it does not. The end result should be where to focus your efforts.

Use each question as a HEADING in your assignment. Discuss each question separately.

1. What will or are you benchmarking in your practice?

2. Why is it important?

3. What knowledge will you gain?

4. How will you use this information to improve the practice performance?

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On 1 July 2013, Samwell Ltd acquired 100% of the share capital of Gilly Ltd

ACC 322 Assignment

Question 3 (30 Marks)

On 1 July 2013, Samwell Ltd acquired 100% of the share capital of Gilly Ltd (cum div) for $810,000. Gilly Ltd’s balance sheet on acquisition date included:

Dividend payable    $10,000
Retained earnings    200,000
Share capital    500,000
General reserve    50,000

At acquisition date, all of Gilly Ltd’s net assets were recorded at fair value except for:

Carrying amount    Fair value
Inventory    $34,000    $40,000
Land    67,000    75,000
Contingent liability    -    10,000
Buildings (Cost $96,000)    67,200    78,000

Additional Information:

a) The dividend payable at acquisition date was subsequently paid in August 2013.

b) The revalued inventory was sold during the year ended 30 June 2014.

c) The contingent liability identified on the acquisition of Gilly Ltd still existed at 30 June 2017.

d) The revalued land was sold during the year ended 30 June 2017 for $42,000.

e) The revalued buildings were still held at 30 June 2017 being depreciated on the straight line basis at 10% p.a.

f) Since acquisition, goodwill has been impaired by $4,000. $1,500 of this impairment occurred during the year ended 30 June 2017.

g) Of the management fee revenues earned by Samwell Ltd during the year ended 30 June 2017, $12,000 was collected from Gilly Ltd.

h) Gilly Ltd’s inventory balance at 1 July 2016 included an item previously purchased from Samwell Ltd. This inventory had been sold by Samwell Ltd to Gilly Ltd at a profit of $4,000.

i) During the year ended 30 June 2017, Gilly Ltd sold a quantity of inventory to Samwell Ltd for $18,000. This inventory had originally cost Gilly Ltd $12,000 with 25% of this inventory still being held by Samwell Ltd at 30 June 2017.

j) All dividends paid/declared by Samwell Ltd during the year ended 30 June 2017 was from post-acquisition profits.

k) Financial statements for the year ended 30 June 2017 are reproduced below:

  Samwell Ltd    Gilly Ltd
Sales    $5,220,000    $2,670,000
Cost of goods sold    (4,070,000)    (2,210,000)
Gross profit    1,150,000    460,000
Dividend revenue    92,000    -
Interest revenue    -    20,000
Management fees revenue    25,000    -
Other income    30,000    -
Depreciation expense    (180,000)    (86,000)
Finance costs    (91,000)    (35,000)
Other expenses    (284,000)    (33,000)
Profit before income tax    742,000    326,000
Income tax expense    (202,000)    (88,000)
Profit after tax    540,000    238,000
Retained earnings at (01/07/16)    695,000    322,000
Interim dividend paid    (70,000)    (32,000)
Final dividend declared    (140,000)    (60,000)
Retained earnings at (30/06/17)    1,025,000    468,000
Share capital    800,000    500,000
General reserve    210,000    50,000
Total equity    2,035,000    1,018,000
Trade and other payables    413,000    137,000
Dividend payable    140,000    60,000
Loan from Gilly Ltd
(8% per year, interest payable 31 December)    250,000    -
Mortgage loan    1,453,000    401,000
Deferred tax liabilities    90,000    -
Total liabilities    2,346,000    598,000
Total liabilities and equity    4,381,000    1,616,000
Cash    194,000    115,000
Trade and other receivables    72,000    35,000
Dividends receivable    60,000    -
Inventory    750,000    440,000
Land    770,000    250,000
Buildings    1,500,000    780,000
Accumulated depreciation buildings    (320,000)    (494,000)
Plant and equipment    790,000    450,000
Accumulated depreciation plant and equipment    (235,000)    (210,000)
Investment in Gilly Ltd    800,000    -
Loan to Samwell Ltd
(8% per year, interest payable 31 December)    -    250,000
Total Assets    4,381,000    1,616,000

 Required:

1. Determine the gain on bargain purchase or goodwill as at acquisition date. (2 marks)

2. Prepare the consolidation journal entries for Samwell Ltd immediately after acquisition on 1 July 2013. (6 marks)

3. Prepare the consolidation journal entries for Samwell Ltd as at 30 June 2017. (14 marks)

4. Prepare the consolidation worksheet for the preparation of the consolidated financial statements by Samwell Ltd as at 30 June 2017. (8 marks)

Question 4 (40 marks)
Part A (30 marks)

On 1 January 2013, Petyr Ltd acquired 80% of the share capital of Sansa Ltd for $4,400,000. At acquisition date, Sansa Ltd’s balance sheet included:

Share capital    $5,000,000
Retained profits    350,000
General reserve    50,000

At acquisition date, all of Sansa Ltd’s net assets were recorded at fair value except for:

Carrying Amount    Fair Value
Equipment (cost $67,000)    $50,000    $58,000

Additional information:

a) Petyr Ltd adopts the partial goodwill method.

b) The revalued equipment was still held at 30 June 2017, being depreciated on the straight-line  basis over 5 years.

c) On 1 January 2016, Sansa Ltd sold an item of equipment to Petyr Ltd, recognising a gain of $22,000 on the sale. This equipment was still held at 30 June 2017 and at the time of the sale it was estimated that it would have a further useful life of 10 years.

d) During the year ended 30 June 2017, Sansa Ltd sold a quantity of inventory to Petyr Ltd for $28,000. Sansa Ltd received a gain of $8,500 on the sale and Petyr Ltd still held 25% of this inventory at 30 June 2017.

e) During the year ended 30 June 2017, Petyr Ltd sold an item of plant to Sansa Ltd at a gain of $80,000. This machinery was held as inventory in the books of Sansa Ltd at 30 June 2017.
f) Financial statements for the year ended 30 June 2017 are reproduced below:

   Petyr Ltd    Sansa Ltd
Sales    $3,283,750    $1,800,000
Cost of goods sold    (1,490,000)    (1,460,000)
Gross profit    1,793,750    340,000
Gain on sale of plant    80,000    -
Other income    16,250    -
Depreciation expense    (320,000)    (240,000)
Other expenses    (180,000)    (130,000)
Profit (loss) before income tax    1,390,000    (30,000)
Income tax expense/income    (440,000)    10,000
Profit (loss) after tax    950,000    (20,000)
Retained earnings at 01/07/16    1,100,000    600,000
Dividends paid    (500,000)    -
Dividend declared    -    (25,000)
Trans. from general reserve    -    15,000
Retained earnings at 30/06/17    1,550,000    570,000
Share capital    7,000,000    5,000,000
General reserve    -    35,000
Total Equity    8,550,000    5,605,000
Current tax liability    480,000    -
Other liabilities    960,000    855,000
Borrowings    -    1,500,000
Deferred tax liability    -    -
Total Liabilities    1,440,000    2,355,000
Total liabilities and equity    9,990,000    7,960,000
Inventory    420,000    543,750
Other current assets    930,000    2,180,000
Property, plant and equipment    4,210,000    1,992,500
Accumulated depreciation    (1,050,000)    (800,000)
Investments    5,400,000    3,583,750
Deferred tax asset    80,000    460,000
Total assets    9,990,000    7,960,000

Required:

1. Determine the gain on bargain purchase or goodwill as at acquisition date. (2 marks)

2. Prepare the consolidation journal entries for Petyr Ltd at 1 January 2013, immediately after acquisition. (4 marks)

3. Prepare the consolidation journal entries for Petyr Ltd as at 30 June 2017. (16 marks)

4. Prepare the consolidation worksheet for the preparation of the consolidated financial statements by Petyr Ltd as at 30 June 2017. (8 marks)

Part B (10 marks)

On 1 July 2017, Tywin Ltd acquired 75% of the shares (cum div.) of Shae Ltd for $120,500. At this date the equity of Shae Ltd consisted of:

Share capital    $ 40,000
General reserve    3,000
Retained earnings    25,000

At the date of the business combination, all the identifiable assets and liabilities of Shae Ltd had carrying amounts equal to their fair values except for:

Carrying amount    Fair value
Plant (cost $60,000)    $40,000    $55,000
Inventory    25,000    31,000
Receivables    33,000    30,000

Additional information:
a) One of the liabilities of Shae Ltd at 1 July 2017 was a dividend payable of $5,000.

b) The tax rate is 30%

Required:

A. Prepare the acquisition analysis as at acquisition date using the partial goodwill method. Show all workings. (2 marks)
B. Prepare the acquisition analysis as at acquisition date using the full goodwill method and the fair value of the non-controlling interest at the date of acquisition is $20,000.
Show all workings. (3 marks)
C. What are some of the implications of allowing the group to have two options in accounting for goodwill on consolidation? (5 marks – maximum 350 words)

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Olivia Stevens is trying to value Wonderland’s shares, which are not

Olivia Stevens is trying to value Wonderland’s shares, which are not growing at all. Wonderland declared and paid a $5 dividend last year. The required rate of return for its industry is 11%, but Olivia is unsure about the financial reporting integrity of Wonderland’s finance team, which has short-term focus. She decides to add an extra 1% ‘credibility’ risk premium to the required return as part of her valuation analysis.

a) What is the value of Wonderland’s shares, assuming that the financials are trustworthy?

b) What is the value of Wonderland’s shares, assuming that Olivia includes the extra 1% ‘credibility’ risk premium?

c) What is the difference between the values found in parts a and b, and how might one interpret that difference?

d) What are the key issues for valuation when the finance team adopts a short-term focus? (1 X 4 = 4 Marks)

b) Consider the mixed streams of cash flows shown in the following table.

Cash flow stream

Year A B

1 $50 000 $10 000

2 40 000 20 000

3 30 000 30 000

4 20 000 40 000

5 10 000 50 000

Totals $150 000 $150 000

a) Calculate the present value of each stream using a 15% discount rate.

b) Compare the calculated present values and discuss them in light of the fact that the undiscounted cash flows total $150 000 in each case.

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ACCT 212 INDIVIDUAL LEARNING PROJECT 1 – KELLEY ENTERPRISES

ACCT 212 INDIVIDUAL LEARNING PROJECT 1 (KELLEY ENTERPRISES)

Assignment instructions are as follows:

1. Use the information in the provided trial balance to create the following financial statements:
a. 2016 Income Statement
b. 2016 Balance Sheet
c. 2016 Cash Flow Statement

2. Create ONE Excel Workbook with the following tabs:
a. Tab 1: Trial Balance for 2015 and 2016 provided
b. Tab 2: Closing Entries for 2015 Income Statement
c. Tab 3: 2016 Income Statement
d. Tab 4: Closing entries for 2016
e. Tab 5: 2016 Balance Sheet post-closing entries (Use the 2015 Retained Earnings balance as your beginning 2016 balance)
f. Tab 6: Cash Flow Statement

3. Formulas:
a. Use Excel to setup the financial statements by linking the values from the trial balance.
b. Use Excel formulas to calculate all totals and sub-totals.

4. Save your Excel workbook as last name _ Project1. (For example: Koss_Project1.xls).
5. Upload the completed assignment to BlackBoard using the link provided.

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Maui Enterprises Inc. acquired 15% of the 100,000 outstanding common

Maui Enterprises Inc. acquired 15% of the 100,000 outstanding common shares of Wailea Ltd. on January 1, 2016 for a cash consideration of $150,000 and a further 10% of the company’s common shares a year later for $120,000. On July 1, 2017, Maui Enterprises sold half their holding in Wailea for proceeds of $150,000.

Wailea earned income of $150,000 in 2016 and $180.000 in 2017 (evenly over both years) and paid a regular semi-annual dividend of $60,000 in June and December each year.

The investment in Wailea is accounted for at fair value through other comprehensive income throughout the period. The company’s shares were trading for $11 at the end of 2016 and $12.50 at the end of 2017.

Required:

Prepare dated journal entries for Maui Enterprises for 2016 and 2017 to account for its investment in Wailea and any related income therefrom. Gains and losses are transferred from Accumulated Other Comprehensive Income to Retained Earnings when realized.

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CS106 Assignment Week 5 and Week 6

CS106 Assignment Week 5 and Week 6

The Internet, World Wide Web, and Security

Directions - Complete parts A, B, and C on one document and submit as an attachment to your instructor for grading.

Part A Matching: Complete the Key Term Matching exercises in Chapter 8, page 342 and Chapter 9, page 386.

Part B Short Answer: In order to promote creativity, the internet is designed to allow for anonymity. Discuss the pros and cons of allowing internet users to be remain anonymous (2-3 sentences each).

Part C Essay: Research two types of online communications used for professional networking.  Describe each type and discuss how people use these services at work (minimum 250 words).
By submitting this paper, you agree: (1) that you are submitting your paper to be used and stored as part of the SafeAssign™ services in accordance with the Blackboard Privacy Policy; (2) that your institution may use your paper in accordance with your institution’s policies; and (3) that your use of SafeAssign will be without recourse against Blackboard Inc. and its affiliates.

Assignment 2
Multimedia, the Web, and E-Commerce

Directions – Complete parts A and B on one document and submit as an attachment to your instructor for grading.

Part A Short Answer: Websites can contain a variety of multimedia elements. Discuss at least three of these multimedia elements (2-3 sentences each).

Part B Essay: Discuss the four different E-commerce business models. Provide examples for each business model. Describe any security issues associated with these models (minimum 250 words).
By submitting this paper, you agree: (1) that you are submitting your paper to be used and stored as part of the SafeAssign™ services in accordance with the Blackboard Privacy Policy; (2) that your institution may use your paper in accordance with your institution’s policies; and (3) that your use of SafeAssign will be without recourse against Blackboard Inc. and its affiliates.

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