FIN 550 Discussion Module 8 Financial Options

Your firm has been engaged to examine the financial statements of Buffalo Corporation for the year 2020. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2015. The client provides you with the information. Buffalo CorporationBalance SheetDecember 31, 2020 Assets   Liabilities Current assets   $1,899,000   Current liabilities   $956,000 Other assets   5,138,660   Long-term liabilities   1,471,000         Stockholders’ equity   4,610,660     $7,037,660       $7,037,660   An analysis of current assets discloses the following.       Cash (restricted in the amount of $298,000 for plant expansion)   $582,000   Investments in land   187,000   Accounts receivable less allowance of $30,000   487,000   Inventories (LIFO flow assumption)   643,000     $1,899,000       Other assets include:       Prepaid expenses   $62,000   Plant…

Your firm has been engaged to examine the financial statements of Teal Corporation for the year 2020. The bookkeeper who maintains the financial records has prepared all the unaudited financial statements for the corporation since its organization on January 2, 2015. The client provides you with the information. Teal CorporationBalance SheetDecember 31, 2020 Assets   Liabilities Current assets   $1,888,000   Current liabilities   $970,000 Other assets   5,114,480   Long-term liabilities   1,471,000         Stockholders’ equity   4,561,480     $7,002,480       $7,002,480   An analysis of current assets discloses the following.       Cash (restricted in the amount of $301,000 for plant expansion)   $582,000   Investments in land   185,000   Accounts receivable less allowance of $29,000   479,000   Inventories (LIFO flow assumption)   642,000     $1,888,000       Other assets include:       Prepaid expenses   $62,000   Plant and…

Subject: accounting

ABC Inc. has a single wholly-owned American subsidiary called US1 based in Los Angeles, California, which was acquired January 1, 2020. US1 submitted its financial statements for 2020 to ABC. Selected exchange rates in effect throughout 2020 are shown below: January 1, 2020: December 31, 2020: Average for 2020: Date of Purchase of Inventory on Hand: US $1- CDN $0.815 US $1 CDN $0.8176 CDN $0.825 CDN $0.83 US $1- US $1 = Date Dividends were declared: US $1 = CDN $0.8125 US1 financial results for 2020 were as follows: US1 Financial Statements at December 31, 2020 (in U.S. dollars) Income Statement: Sales $5.000,000 $3,500,000 Cost of Sales Depreciation Expense

The University of Saint Augustine Philippines (USAP) was a domestic educational institution established in 1432. It is the first to offer Accountancy, Law, and Medicine in Asia. It has produced many distinguished alumni, including presidents, statesmen, and saints. For the taxable year ending December 31, 2025, the University of Saint Augustine Philippines had the following results of operations: Gross Receipts From tuition fees 14,000,000 From rentals From sale of school merchandise 2,500,000 6,300,000 22,800,000 13,450,000 9,350,000 5,240,000 4.110,000 Total gross receipts Less: Cost of Services Gross Profit Less: Operating expenses Net Income Included in the operating expenses is a full-year depreciation expense in the amount of P1,000,000 for a newly acquired building with a useful life of five (5) years. The entire gross receipts were used for the acquisition of a land for the expansion of the educational institution. If University of Saint Augustine Philippines is a proprietary…

Required information [The following information applies to the questions displayed below.] The accounting records of Jamaican Importers, Incorporated, at January 1, 2024, included the following: Assets: Investment in IBM common shares Less: Fair value adjustment $ 1,445,000 (155,000) No changes occurred during 2024 in the investment portfolio. $ 1,290,000 Required: 1. Prepare appropriate adjusting entry(s) at December 31, 2024, assuming the fair value of the IBM common shares was $1,199,000. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record the fair value adjustment assuming the fair value of the IBM common shares was $1,199,000. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal

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The University of Saint Augustine Philippines (USAP) was a domestic educational institution established in 1432. It is the first to offer Accountancy, Law, and Medicine in Asia. It has produced many distinguished alumni, including presidents, statesmen, and saints. For the taxable year ending December 31, 2025, the University of Saint Augustine Philippines had the following results of operations: Gross Receipts From tuition fees From rentals From sale of school merchandise Total gross receipts Less: Cost of Services Gross Profit Less: Operating expenses Net Income 14,000,000 2,500,000 6,300,000 22,800,000 13,450,000 9,350,000 5,240,000 4,110,000 Included in the operating expenses is a full-year depreciation expense in the amount of P1,000,000 for a newly acquired building with a useful life of five (5) years. The entire gross receipts were used for the acquisition of a land for the expansion of the educational institution. If University of Saint Augustine Philippines is a proprietary…

The fiscal year-end for the Northwest Distribution Corporation is December 31. The company’s 2021 financial statements were issued on March 15, 2022. The following events occurred between December 31, 2021, andMarch 15, 2022.1. On January 22, 2022, the company negotiated a major merger with Blandon Industries. The merger will be completed by the middle of 2022.2. On February 3, 2022, Northwest negotiated a $10 million long-term note with the Credit Bank of Ohio. The amount of the note is material.3. On February 25, 2022, a flood destroyed one of the company’s manufacturing plants causing $600,000 of uninsured damage.Required:Determine whether each of these events should be disclosed with the 2021 financial statements of Northwest Distribution Corporation.

[The following information applies to the questions displayed below.] During 2023, your clients, Mr. and Mrs. Howell, owned the following investment assets: Investment Assets Purchase Date Acquired Price Broker's Commission Paid at Time of Purchase 300 shares of IBM common (NYSE: IBM) 11/22/2020 $ 10,380 $ 100 200 shares of IBM common (NYSE: IBM) 4/3/2021 43,280 300 3,000 shares of Apple 12/12/2021 150,000 1,300 preferred (NASDAQ:AAPL) 2,100 shares of Cisco common (NASDAQ: CSCO) 8/14/2022 52,800 550 420 shares of Vanguard mutual fund 3/2/2023 15,000 No-load fund* *No commissions are charged when no-load mutual funds are bought and sold. Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund in 2023 and to reinvest in municipal bonds. The following investment assets were sold in 2023: The Howells received a Form 1099-B from the Vanguard mutual fund reporting a $900 long- term capital gain distribution. This distribution…

Subject: accounting

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Ch. 29. In 2021, Google, a company that specializes in internet-related service, acquired Fitbit, the fitness tracking company, to bolster its wearable capabilities. Google paid shareholders $7.25 per share in cash. This is an example of which of the following? Group of answer choices merger horizontal acquisition vertical acquisition conglomerate acquisition

[The following information applies to the questions displayed below.] The accounting records of Jamaican Importers, Incorporated, at January 1, 2024, included the following: Assets: Investment in IBM common shares Less: Fair value adjustment $ 1,545,000 (165,000) $ 1,380,000 No changes occurred during 2024 in the investment portfolio. 2. Prepare appropriate adjusting entry(s) at December 31, 2024, assuming the fair value of the IBM common shares was $1,390,000. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record the fair value adjustment assuming the fair value of the IBM common shares was $1,390,000. Note: Enter debits before credits.

Exercise 12-8 (Algorithmic) (LO. 7) Cherry Corporation, a calendar year C corporation, is formed and begins business on 10/1/2019. In connection with its formation, Cherry incurs organizational expenditures of $53,700. Round the per month amount to two decimal places. Round your final answer to the nearest dollar. Determine Cherry Corporation's deduction for organizational expenditures for 2019.