ACC 309 Final Project Student Workbook
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Southern New Hampshire University *
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Course
309
Subject
Accounting
Date
Jun 7, 2024
Type
xlsx
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37
Uploaded by AmbassadorAardvark805
Southern New Hampshire University
ACC309 - Intermediate Accounting III
1.
1.
1.
Prepare adjusting entries for:
Unrealized loss
tax issues
2
Calculate pension payouts
2
3
3
Prepare adjusting entries for:
Capital leases
Pension payouts
4
MILESTONE 1 (Due in Module 3)
MILESTONE 2 (Due in Module 5)
F
Calculate capital lease obligations
See rubric for written portion of Milestone 1.
See rubric for written portion of Milestone 2.
Adjusting entries
Adjusting entries
Capital Leases
Capital Leases
Instructions Milestone 1
Instructions Milestone 1
Instructions Milestone 2
Instructions Milestone 2
Pensions
Pensions
Adjusting entries
Adjusting entries
Prepare adjusting entries for:
Patent Major repair capitalization
Complete adjusted trial balance
FINAL PROJECT (Due in Module 7)
Prepare revised financial statements
Prepare a statement of comprehensive income - include on the revised income statement
Determine the impact of expansion options on earnings per share
See rubric for written portion of the final project.
Adjusting Entries
Adjusting Entries
Instructions Final Project
Instructions Final Project
Adjusted Trial Balance
Adjusted Trial Balance
Statements
Revised Financial Statements
Earnings per Share
Earnings per Share
Southern New Hampshire University
ACC309 - Intermediate Accounting III
IMPORTANT NOTE:
Use the data from this Milestone and begin working on your final presentation due in Week 7
ITEMS TO COMPLETE FOR THIS MILESTONE:
GENERAL
In preparation of the annual audit, prepare appropriate adjusting entries and post to the trial balan
ADJUSTING ENTRIES
Prepare adjusting entries for unrealized loss
Prepare adjusting entries for tax issues
FINANCIAL INFORMATION FOR THIS MILESTONE
Comprehensive income items
INSTRUCTIONS FOR MILESTONE 1 (Due Week 3)
Make sure to completely review
the Rubric for Milestone 1
MANAGEMENT BRIEF - Prepare i
n a Word document - see the rubric for milestone 1
A.
Identify sources of other comprehensive income
not included in net income. B.
Explain
rationale for
the inclusion as comprehensive income
(as opposed to net income) of nondisclo
C.
Evaluate impacts of company goals and finances for their implications on stockholder equity
, using fin
D.
Evaluate impacts of company goals and finances for their implications on retained earnings per share
E.
Explain the impact of issuing preferred stock or debt for determining changes to equity structures. F.
Assess the impact of changes to current tax structure
for articulating changes relevant to the compan
·
Marketable securities on the balance sheet at a cost of $5,500,000 are available-for-sale
·
Market value at the balance sheet date is $5,235,00
·
Prepare the adjusting entry to record the unrealized loss and include in comprehensive incom
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Tax information and implications Potentially Dilutive Securities
The company is adding two storefront locations and launching a new marketing campaign
·
$1,500 in meal and entertainment expenses show as a permanent difference for tax. This ite
·
The company uses straight line depreciation for book and MACRS depreciation for the tax retu
·
MACRS depreciation was $209,301 higher than book. The tax associated with book dep
·
There have been recent tax structure changes the could impact the company.
Peyton Approved has bee
pretax income (20% Federal, 5%
Peyton has the following potential dilutive securities:
$4,000,000 in bonds payable 10%, 20 year. Every $1,000 bond can convert to 5 sh
Preferred Stock. Every share issued can convert to 1 share of common stock.
Expansion
Plans
1)
Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is currently
2)
Issue an additional $1,000,000 of 8% convertible bonds (same terms as the existing issue) 3)
$500,000 each of preferred stock and bonds
nce workbook (red tab)
osure within notes. nancial information to support claims. e
, using financial information to support claims. ny. me
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n, which is estimated to bring in 20,000 new customers over the next six months. The co
em was not previously included in the income tax calculation. Prepare the necessary adjusting e
urn
preciation was previously recorded to income tax expense and current income tax payabl
en a C Corp since the beginning of these changes. Peyton provides for taxes at 25% of % state).
hares of common stock.
y outstanding)
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ompany expects this expansion will require an additional $1,000,000 of capital and genera
entry.
le. Prepare the adjusting entry for the deferred tax.
ate an additional $600,000 of after-tax profit. The financing options are:
PEYTON APPROVED
TRIAL BALANCE
As of December 31, 2017
Dr Cr Cash
1,488,999.34 Marketable Securities
5,500,000.00 Accounts Receivable
7,092,495.88 Baking Supplies
1,605,098.52 Merchandise Inventory
128,152.63 Prepaid Rent
71,877.07 Prepaid Insurance
207,834.14 Misc. Supplies
17,647.42 Land
250,000.00 Building
1,250,000.00 Baking Equipment
2,254,140.00 Accumulated Depreciation
328,282.00 Patent
Accounts Payable
1,555,212.85 Wages Payable
250,203.31 Interest Payable
21,888.22 Current Portion of Bonds Payable
1,000,000.00 Income Taxes Currently Payable
1,042,118.16 Accrued Pension Liability
Accrued Employees Health Insurance
Lease Liability
Deferred Tax Liability
Bonds Payable
4,000,000.00 Preferred Stock
500,000.00 Common Stock
1,750,000.00 Beginning Retained earnings
2,213,122.59 Dividends - Preferred
50,000.00 Dividends - Common
5,250,000.00 Bakery Sales
33,881,157.15 Merchandise Sales
124,795.80 Cost of Goods Sold - Baked
10,954,907.36 Cost of Goods Sold - Mercha 88,994.79 Rent Expense
1,576,731.95 Wages Expense
2,604,526.23 Misc. Supplies Expense
263,224.56 Repairs and Maintenance
47,353.05 Business License Expense
211,757.65
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Misc. Expense
141,171.08 Depreciation Expense
634,520.00 Insurance Expense
112,937.69 Advertising Expense
160,413.49 Interest Expense
484,703.27 Telephone Expense
50,821.34 Pension Expense
Retired Employees Health Ins.
Patent Amortization
Unrealized Gain/(Loss) on Marketable Securities Held for Sale
Income Taxes
4,168,472.62 Deferred Tax Expense
46,666,780.08 46,666,780.08 (1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Adjusting entries Dr Cr Dr Cr 1,488,999.34 265,000.00 5,235,000.00 7,092,495.88 1,605,098.52 128,152.63 71,877.07 207,834.14 17,647.42 250,000.00 1,250,000.00 106,589.40 2,387,729.40 27,000.00 328,282.00 50,000.00 2,500.00 47,500.00 1,555,212.85 250,203.31 21,888.22 1,000,000.00 375.00 1,042,493.16 107,041.70 107,041.70 43,718.91 43,718.91 106,589.40 106,589.40 - 52,325.25 52,325.25 4,000,000.00 500,000.00 1,750,000.00 2,213,122.59 50,000.00 5,250,000.00 33,881,157.15 124,795.80 10,954,907.36 88,994.79 20,000.00 1,556,731.95 2,604,526.23 263,224.56 27,000.00 20,353.05 211,757.65
50,000.00 91,171.08 20,000.00 654,520.00 112,937.69 160,413.49 484,703.27 50,821.34 107,041.70 107,041.70 43,718.91 43,718.91 2,500.00 2,500.00 - 265,000.00 265,000.00 - 375.00 4,168,847.62 52,325.25 52,325.25 674,550.26 674,550.26 46,976,830.34 46,976,830.34 To record an unrealized loss on marketable securities of $265,000 milestone 1 To adjust income taxes to correct the effective rate for $375 milestone 1 To record deferred taxes for the difference between book & MACRS milestone 1 depreciation for $52,325.25 To record pension expense & liability for $107,041.70 milestone 2 To record health insurance expense & liability for $43,718.91 milestone 2 To record a leased asset & the liability for $106,589.40 milestone 2 To capitalize the repair of the packing machine for $27,000 final To record the cost of a patent & expenses final Cost of the patent - $50,000 Patent amortization - $2,500
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Southern New Hampshire University
ACC309 - Intermediate Accounting III
IMPORTANT NOTE:
Use the data from this Milestone and begin working on your final presentation due in Week 7
ITEMS TO COMPLETE FOR THIS MILESTONE:
GENERAL
CAPITAL LEASES
Calculate capital lease obligations
Prepare appropriate adjusting entries
PENSION PAYOUTS
Calculate pension liability
Calculate health insurance liability
ADJUSTING ENTRIES
Prepare adjusting entries for capital lease obligations
Prepare adjusting entries for pension payouts
INSTRUCTIONS FOR MILESTONE 2 (Due Week 5)
Make sure to completely review
the Rubric for Milestone 2
In preparation of the annual audit, make calculations (green tab) and prepare appropriate adjusting entri
workbook (red tab)
MANAGEMENT BRIEF - Prepare i
n a Word document - see the rubric for milestone 2
A.
Explain the implications of capital lease
based on how it relates to the company’s equipment usage. B.
Explain how postretirement plans will impact the company financially in the short and long term, usin
accounting workbook to support claims.
FINANCIAL INFORMATION FOR THIS MILESTONE
Postretirement Benefits Leases
Peyton Approved has revised its postretirement plan. It will now provide health insurance to retired employ
requested that you report the short- and long-term financial implications of this. ·
The company is currently employing 60, and actuaries estimate that the company has a pensio
·
The estimated cost of retired employees’ health insurance is $43,718.91. ·
Prepare adjusting entries for the pension liability and the health insurance liability
·
Six ovens were rented on December 31, with $20,000 charged to rent expense. The lease runs interest rate of 5%. At the end of the 6 years, Peyton will own them. Make any necessary adjustin
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ies and post to the trial balance ng examples from the HOME
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yees. Management has on liability of $107,041.70. for 6 years with an implicit ng entries.
Capital Leases
Annual cost
$20,000 Total Years
6
Year
Lease Payment
Discount Rate Present Value Interest Payment 1
$ 20,000.00 $ 20,000.00 2
$ 20,000.00 0.95 $ 19,047.60 952.40 3
$ 20,000.00 0.90703 $ 18,140.60 1849.4
4
$ 20,000.00 0.86384 $ 17,276.80 2723.2
5
$ 20,000.00 0.8227 $ 16,454.00 3,546.00 6
$ 20,000.00 0.78353 $ 15,670.60 4,329.40 $ 106,589.60 13,400.40 Pension payouts
·
The company is currently employing 60, and actuaries estimate that the co
·
The estimated cost of retired employees’ health insurance is $43,718.91.
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ompany has a pension liability of $107,041.70. HOME
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Southern New Hampshire University
ACC309 - Intermediate Accounting III
IMPORTANT NOTE:
This page contains new information the must be included in the final project but has not been in milesto
ITEMS TO COMPLETE FOR THIS MILESTONE:
GENERAL
ADJUSTING ENTRIES
Prepare appropriate adjusting entries for patent
Prepare appropriate adjusting entries for capitalization of machine repair
ADJUSTED TRIAL BALANCE
Prepare the adjusted trial balance
REVISED FINANCIAL STATEMENTS
Prepare a revised income statement - include comprehensive income
Prepare a revised retained earnings statement
Prepare a revised balance sheet
EARNINGS PER SHARE
Determine the impact on earnings per share caused by each expansion plan option
INSTRUCTIONS FOR FINAL (Due Week 7)
Make sure to completely review
the Rubric for Final Project
In preparation of the annual audit, prepare appropriate adjusting entries and post to the trial balance wo
adjusted trial balance and the preliminary 2017 statements (yellow tabs) to prepare revised financial statemen
Calculate the impact on earnings per share that the expansion options will cause. (Orange tabs)
NOTES TO THE FINANCIAL STATEMENTS - Prepare in a Word document - see the rubric for final project
FINANCIAL INFORMATION FOR THIS MILESTONE
Stockholder Equity / Earnings per share
Other Items
A. Compose appropriate footnotes within a statement of comprehensive income in accordance wit
standards, such as GAAP, International Financial Reporting Standards, and SEC, as applicable. MANAGEMENT BRIEF - Prepare in a Word document - see the rubric for final project
I.
Evaluate the company’s current performance based on the outcomes of relevant ratio analysis. J.
Discuss types of accounting changes encountered and when retrospective and prospective approache
K.
Predict the
impact of new credit policies
or a change in product or markets based on relevant ratio an
L.
Discuss relevant accounting standards
for informing the company’s financial reporting strategies. M.
Explain how the
four-step process
was used for effectively correcting and reporting errors in the revis
Peyton Approved prides itself on transparency with shareholders and investors. The company has added tw
launched a new marketing campaign, which is estimated to bring in 20,000 new customers over the next 6 mo
The company expects this expansion will require an additional $1,000,000 of capital and generate an additio
profit. The options are: 1)
Issuing an additional $1,000,000 of 10%, 100-par convertible preferred stock (same class as is current
2)
Issue an additional $1,000,000 of 8% convertible bonds (same terms as the existing issue) 3)
$500,000 each of preferred stock and bonds ·
On December 31, 20XX, the company repaired a packaging machine at cost of $27,000.00. It is
extend the life of the machine by four years. No depreciation is necessary this year. ·
The company spent $50,000 to obtain and defend a patent for its formula for dog treats. The p
and provides 20 years of protection. The $50,000 amount was incorrectly charged to Misc. Expense
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one 1 or milestone 2
orkbook (red tab). Use the nts that are audit ready. HOME
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ith applicable accounting es
should be used. nalysis. sion process. wo storefront locations and onths. onal $600,000 of after-tax tly outstanding) s expected that the repair will patent took effect on 1/1/20XX e
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Assets
Liabilities and Owners' Equity
Current Assets:
Current Liabilities:
Cash
1,488,999.34
Accounts Payable
1,555,212.85
Marketable Securities
5,500,000.00
Wages Payable
250,203.31
Accounts Receivable
7,092,495.88
Interest Payable
21,888.22
Baking Supplies
1,605,098.52
Current Portion of Bonds Payable
1,000,000.00 Merchandise Inventory
128,152.63
Income taxes currently payable
1,042,118.16 Prepaid Rent
71,877.07
Prepaid Insurance
207,834.14
Misc. Supplies
17,647.42
Total Current Assets
16,112,105.00
Total Current Liabilities
3,869,422.54 Long Term Liabilities:
Long Term/Fixed Assets:
Bonds Payable 10%, 20 year
4,000,000.00 Land
250,000.00 Building
1,250,000.00 Baking Equipment
2,254,140.00
Total Long Term Liabilities:
4,000,000.00 Accumulated Depreciation
-328,282.00
Net Fixed assets
3,425,858.00 Total Liabilities:
7,869,422.54 Preferred Stock - (10,000 authorized,
500,000.00 5,000 issued, 10%, $100 par value)
Common Stock - (2,000,000 shares
1,750,000.00 authorized, 1,750,000 issued, $1 par)
Retained Earnings
9,418,540.46 Total Equity
11,668,540.46 Total Assets:
19,537,963.00 Total Liabilities & Equity
19,537,963.00
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Bakery Sales
$ 33,881,157.15 Merchandise Sales
124,795.80 Total Revenues
34,005,952.95 Cost of Goods Sold - Baked
10,954,907.36 Cost of Goods Sold - Merchandise
88,994.79 Total Cost of Goods Sold
11,043,902.15 Gross Profit
22,962,050.80 Operating Expenses:
Rent Expense
1,576,731.95 Wages Expense
2,604,526.23 Misc. Supplies Expense
263,224.56 Repairs and Maintenance
47,353.05 Business License Expense
211,757.65 Misc. Expense
141,171.08 Depreciation Expense
634,520.00 Insurance Expense
112,937.69 Advertising Expense
160,413.49 Interest Expense
484,703.27 Telephone Expense
50,821.34 Total Operating Expenses:
6,288,160.31 Earnings before Income Tax
16,673,890.49 Income Taxes 4,168,472.62 Net Income 12,505,417.87
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Peyton Approved
Statement of Retained Earnings
For Year Ended 12/31/20XX
Beginning Balance:
$ 2,213,122.59 plus Net Income 12,505,417.87 less Dividends: Preferred 50,000.00 Common
5,250,000.00 Ending Balance
$ 9,418,540.46 $ 9,418,540.46
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Peyton Approved
Income Statement
For Year Ended 12/31/20XX
Bakery Sales
$ 33,881,157.15 Merchandise Sales
$ 124,795.80 Total Revenues
$ 34,005,952.95 Cost of Goods Sold - Baked
$ 10,954,907.36 Cost of Goods Sold - Merchandise
$ 88,994.79 Total Cost of Goods Sold
$ 11,043,902.15 Gross Profit
$ 22,962,050.80 Operating Expenses:
Rent Expense
$ 1,556,731.95 Wages Expense
$ 2,604,526.23 Misc. Supplies Expense
$ 263,224.56 Repairs and Maintenance
$ 20,353.05 Business License Expense
$ 211,757.65 Misc. Expense
$ 91,171.08 Depreciation Expense
$ 654,520.00 Insurance Expense
$ 112,937.69 Advertising Expense
$ 160,413.49 Interest Expense
$ 484,703.27 Telephone Expense
$ 50,821.34 Pension Expense
$ 107,041.70 Retired Employees Health Ins.
$ 43,718.91 Patent Amortization
$ 2,500.00 Total Operating Expenses:
$ 6,364,420.92 Operating Income
$ 16,597,629.88 Income Taxes
$ 4,168,847.62 Deferred tax Expense
$ 52,325.25 Total Tax Expense
$ 4,221,172.87
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Net Income
$ 12,376,457.01 Unrealized Gain/(Loss) on Marketable Secur
$ 265,000.00 Comprehensive Income
$ 12,111,457.01
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Peyton Approved
Statement of Retained Earnings
For Year Ended 12/31/20XX
Beginning Balance:
plus Comprehensive Income less Dividends: Preferred
Common
Ending Balance
0
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$ 2,213,122.59 $ 12,111,457.01 $ 50,000.00 $ 5,250,000.00 $ 9,024,579.60 HOME
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Peyton Approved
Balance Sheet
As of December 31, 20XX
Assets
Current Assets:
Cash
1,488,999.34
Accounts
Marketable Securities
5,235,000.00
Wages P
Accounts Receivable
7,092,495.88
Interest P
Baking Supplies
1,605,098.52
Current P
Merchandise Inventory
128,152.63
Income ta
Prepaid Rent
71,877.07
Accrued P
Prepaid Insurance
207,834.14
Accrued E
Misc. Supplies
17,647.42
Lease Lia
Contingen
Deferred Total Current Assets
15,847,105.00 Long Term/Fixed Assets:
Bonds Pa
Land
250,000.00
Building
1,250,000.00
Baking Equipment
2,387,729.40
Accumulated Depreciati
328,282.00
Net Fixed assets
3,559,447.40 Patent Net of Amortization
47,500.00 Preferred
5,000 Common
authori
Retained Total Assets:
19,454,052.40
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Liabilities and Owners' Equity
Current Liabilities:
s Payable
1,555,212.85
Payable
250,203.31
Payable
21,888.22
Portion of Bonds Payable
1,000,000.00
axes currently payable
1,042,493.16
Pension Liability
107,041.70
Employees Health Insuran
43,718.91
ability
106,589.40
nt Liability - Lawsuit
0.00
Tax Liability
52,325.25
Total Current Liabilities
4,179,472.80
Long Term Liabilities:
ayable 10%, 20 year
4,000,000.00
Total Long Term Liabiliti
4,000,000.00
Total Liabilities:
8,179,472.80
d Stock - (10,000 authorized
500,000.00
issued, 10%, $100 par value)
n Stock - (2,000,000 shares
1,750,000.00
ized, 1,750,000 issued, $1 par)
Earnings
9,024,579.60 Total Equity
11,274,579.60 Total Liabilities & Equity
19,454,052.40 HOME
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Peyton Approved
Earnings per Share
For Year Ended 12/31/20XX
Net Income
12,376,457.01 Less: Preferred Dividends
50,000.00 Earnings Available to Common Shareholde 12,326,457.01 Common Shares Outstanding
2,000,000 Basic EPS
6.16
If all preferred shares are converted:
Net Income
12,376,457.01 Additional Common Shares
500,000 Common Shares Outstanding after convers
2,500,000 EPS if preferred shares converted
4.95 Preferred shares are antidilutive
If all bonds are converted:
Net Income
12,376,457.01 Less: Preferred Dividends
50,000.00 Add back interest on bonds, net of income 1,000,000.00 Earnings Available to Common Shareholde 13,326,457.01 Additional Common Shares
2,000,000 Common Shares Outstanding after convers
4,000,000 Fully diluted EPS
3.33 Peyton plans to raise $1,000,000 million of additional capital for the coming year
that it will enable them to earn an additional $600,000 after tax. What would be t
earnings per share if the raise the $1,000,000 by:
a) issuing 10,000 share of 10% $100 par value convertible preferred st
can be coverted into 10 shares of Peyton common stock?
b) issuing $1,000,000 of 8% convertible bond, each $1,000 bond can b
5 shares of Peyton common stock?
c) $500,000 of each of the above?
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Net Income
600,000.00 Less: Preferred Dividends
100,000.00 Earnings Available to Common Shareholde 500,000.00 Common Shares Outstanding
100,000.00 Basic EPS
5.00 a
If all preferred shares are converted:
Net Income
600,000.00 Additional Common Shares
100,000.00 Common Shares Outstanding after convers
200,000.00 EPS if preferred shares converted
3.00 Preferred shares are antidilutive
b
If all bonds are converted:
Net Income
600,000.00 Less: Preferred Dividends
- Add back interest on bonds, net of income 48,000.00 Earnings Available to Common Shareholde 648,000.00 Additional Common Shares
5,000.00 Common Shares Outstanding after convers
105,000.00 6.17
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r. They anticipate
the impact on
tock, where share
be converted into?
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On January 1, 2019, Bridgeport Ic., a construction company, leased an excavator from Leaselt Inc. The lease terms are as follows:
Annual lease payments of $26,900 at the beginning of each year for five years
At the end of the lease term the asset reverts back to the lessor and the residual value guarantee is $8,100
The incremental borrowing rate is 7% and the implicit rate in the lease is 6% (known by the lessee)
Bridgeport Inc. has a December 31 year end
Prepare the journal entries for 2019 for Bridgeport Inc. Assume Bridgeport follow IFRS. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. Round factor values to 5 decimal places,
e.g. 1.25124. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)
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Listed below are 15 terms followed by a list of phrases that describe or characterize each of the terms. Match each
phrase with the correct term.
TERM
1. Interest expense
2. Disclosure only
3. Lessor's gross investment
4. Lessee's lease payments
5. Lessor's net investment
6. Initial direct costs
7. Operating lease
8. Bargain purchase option
9. Depreciable assets
10. Loss to lessee
PHRASE
Periodic rent payments plus excess
guaranteed residual value.
Deducted in lessor's computation of
lease payments.
Leasehold improvements.
Cash paid to satisfy residual value
guarantee.
Sales-type lease selling expense.
Depreciation longer than lease term.
Sale-leaseback as operating lease.
PV of lease payments plus PV of residual
value.
Future lease payments in each of the
next five years.
Periodic rent payments plus residual
value.
Lease payments plus guaranteed residual
value.
11. Finance lease expense
12. PV of bargain purchase
option price
13. Title transfers to lessee Nonlease payments.
14. Loan…
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Access the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ) Required: Determine the specific citation for accounting for each of the following items: 1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed. 2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities. 3. Accounting for the revenue from separately priced extended warranty contracts. 4. The criteria to determine if an employer must accrue a liability for vacation pay.
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Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:Determine the specific citation for accounting for each of the following items:1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed.2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities.3. Accounting for the revenue from separately priced extended warranty contracts.4. The criteria to determine if an employer must accrue a liability for vacation pay
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Question related to financial Accounting
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On January 1, 2022, Ivanhoe Inc., a construction company, leased an excavator from Oriole inc. The lease terms are as follows:
Annual lease payments of $26.900 at the beginning of each year for five years
At the end of the lease term the asset reverts back to the lessor and the residual value guarantee is $8.100
The incremental borrowing rate is 7% and the implicit rate in the lease is 6% (known by the lessee)
Ivanhoe Inc. has a December 31 year end
•
•
.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE.
Prepare the journal entries for 2022 for Ivanhoe Inc. Assume Ivanhoe Inc. follows IFRS. (List all debit entries before credit entries. Credit
account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.
Round factor values to 5 decimal places, e.g. 1.25124. If no entry is required, select "No entry" for the account titles and enter O for the
amounts)
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How would each of the following items be reported on the balance sheet?
Item
Reported on
(a)
Accrued vacation pay.
select a balance sheet section Current AssetsCurrent LiabilityCurrent Liability or Long-term LiabilityFootnote DisclosureLong-term InvestmentsProperty, Plant and EquipmentStockholders' Equity
(b)
Estimated taxes payable.
select a balance sheet section Current AssetsCurrent LiabilityCurrent Liability or Long-term LiabilityFootnote DisclosureLong-term InvestmentsProperty, Plant and EquipmentStockholders' Equity
(c)
Service warranties on appliance sales.
select a balance sheet section Current AssetsCurrent LiabilityCurrent Liability or Long-term LiabilityFootnote DisclosureLong-term InvestmentsProperty, Plant and EquipmentStockholders' Equity
(d)
Bank overdraft.…
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I need answer correct
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When a lessee makes periodic cash payments for a finance lease, which of the following accounts is increased?
A.Lease Liability
B.Lease Rental Expense
C.Right-of-Use Asset
D.Interest Expense
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Under ASC Topic 840 and IFRS 16, FASB and IASB revised lease accounting rules to address off-balance sheet financing.
True or False
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(e) What was the amount of restoration cost recognised in profit or loss during the current reporting period?
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Part 1: New Lease Accounting – using IFRS 16 Leases Effect Analysis.
Which payments are to be included in the measurement of lease assets and lease liabilities? Also, discuss the pros and cons of excluding the following payments from the measurement. - Variable lease payments linked to future use or sales - Optional payments relating to lease-extension option when a lessee is not reasonably certain to exercise the option.
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Question related to Financial Accounting: How do
executory costs affect capital lease classification
tests?
A. Include in minimum lease payments
B. Add to lease liability only
C. Capitalize as separate asset
D. Exclude from payment calculations
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When a lessor receives cash on an operating lease, which of the following accounts is increased?
A. Lease Payable
B. Interest Revenue: Leases
C. Lease Receivable
D. Rent Revenue
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Discuss the financial statement disclosure requirements for all leases entered into by the lessor.
Essay Toolbar navigation
BIUS ==
ווין
IVI
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!!!
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Financial Accounting MCQ
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Can you please match the correct term to its definition
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X Co. can deduct life insurance premiums paid providing:
O the life insurance policy is required as security on a loan from a financial institution
O the company paid the life insurance policy within the year
O the premium paid is for insurance on the president of X Co
O the premium paid is reasonable in terms of cost
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2. Which of the following best describes the accounting for assurance-type warranty costs? *
1 point
a. Expensed when paid.
b. Expensed when warranty claims are certain.
c. Expensed based on estimate in year of sale.
d. Expensed when incurred.
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- i.4arrow_forward8 Record depreciation for Winn. 9 Record the lease payment for Winn. 10 Record the amortization of the right-of-use asset for Winn. 11 Record depreciation for Winn. Note : = journal entry has been entered Record entry Clear entry it Credit View general journalarrow_forwardOn January 1, 2019, Bridgeport Ic., a construction company, leased an excavator from Leaselt Inc. The lease terms are as follows: Annual lease payments of $26,900 at the beginning of each year for five years At the end of the lease term the asset reverts back to the lessor and the residual value guarantee is $8,100 The incremental borrowing rate is 7% and the implicit rate in the lease is 6% (known by the lessee) Bridgeport Inc. has a December 31 year end Prepare the journal entries for 2019 for Bridgeport Inc. Assume Bridgeport follow IFRS. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275. Round factor values to 5 decimal places, e.g. 1.25124. If no entry is required, select "No entry" for the account titles and enter O for the amounts.)arrow_forward
- Listed below are 15 terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. TERM 1. Interest expense 2. Disclosure only 3. Lessor's gross investment 4. Lessee's lease payments 5. Lessor's net investment 6. Initial direct costs 7. Operating lease 8. Bargain purchase option 9. Depreciable assets 10. Loss to lessee PHRASE Periodic rent payments plus excess guaranteed residual value. Deducted in lessor's computation of lease payments. Leasehold improvements. Cash paid to satisfy residual value guarantee. Sales-type lease selling expense. Depreciation longer than lease term. Sale-leaseback as operating lease. PV of lease payments plus PV of residual value. Future lease payments in each of the next five years. Periodic rent payments plus residual value. Lease payments plus guaranteed residual value. 11. Finance lease expense 12. PV of bargain purchase option price 13. Title transfers to lessee Nonlease payments. 14. Loan…arrow_forwardAccess the FASB Accounting Standards Codification at the FASB website ( asc.fasb.org ) Required: Determine the specific citation for accounting for each of the following items: 1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed. 2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities. 3. Accounting for the revenue from separately priced extended warranty contracts. 4. The criteria to determine if an employer must accrue a liability for vacation pay.arrow_forwardAccess the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:Determine the specific citation for accounting for each of the following items:1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed.2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities.3. Accounting for the revenue from separately priced extended warranty contracts.4. The criteria to determine if an employer must accrue a liability for vacation payarrow_forward
- Question related to financial Accountingarrow_forwardOn January 1, 2022, Ivanhoe Inc., a construction company, leased an excavator from Oriole inc. The lease terms are as follows: Annual lease payments of $26.900 at the beginning of each year for five years At the end of the lease term the asset reverts back to the lessor and the residual value guarantee is $8.100 The incremental borrowing rate is 7% and the implicit rate in the lease is 6% (known by the lessee) Ivanhoe Inc. has a December 31 year end • • . Click here to view the factor table PRESENT VALUE OF AN ANNUITY DUE. Prepare the journal entries for 2022 for Ivanhoe Inc. Assume Ivanhoe Inc. follows IFRS. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275. Round factor values to 5 decimal places, e.g. 1.25124. If no entry is required, select "No entry" for the account titles and enter O for the amounts)arrow_forwardHow would each of the following items be reported on the balance sheet? Item Reported on (a) Accrued vacation pay. select a balance sheet section Current AssetsCurrent LiabilityCurrent Liability or Long-term LiabilityFootnote DisclosureLong-term InvestmentsProperty, Plant and EquipmentStockholders' Equity (b) Estimated taxes payable. select a balance sheet section Current AssetsCurrent LiabilityCurrent Liability or Long-term LiabilityFootnote DisclosureLong-term InvestmentsProperty, Plant and EquipmentStockholders' Equity (c) Service warranties on appliance sales. select a balance sheet section Current AssetsCurrent LiabilityCurrent Liability or Long-term LiabilityFootnote DisclosureLong-term InvestmentsProperty, Plant and EquipmentStockholders' Equity (d) Bank overdraft.…arrow_forward
- I need answer correctarrow_forwardWhen a lessee makes periodic cash payments for a finance lease, which of the following accounts is increased? A.Lease Liability B.Lease Rental Expense C.Right-of-Use Asset D.Interest Expensearrow_forwardUnder ASC Topic 840 and IFRS 16, FASB and IASB revised lease accounting rules to address off-balance sheet financing. True or Falsearrow_forward
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