No profit is recognized related to inventory
Q: James Company purchased 100% of the outstanding stock of Hardware Corporation on July 1, 2016 for…
A: Consolidation: It implies to a process wherein the financials of the parent company and the…
Q: Which of the two plans it would suit you plus?
A: It has been given in the question that the deposit is to be for the years of only three years. So,…
Q: Required Information [The following information applies to the questions displayed below.] Caro…
A: The question is based on the concept of Cost Accounting.
Q: Prepare the necessary journal entries for the following dates for Rodney Inc.
A: Lets understand the basics. When notes payable received contain lessor interest rate than market…
Q: A bank offers a CD that pays a simple interest rate of 8.0%. How much must you put in this CD now…
A: Solution: Desired future value after 5 years = $2,500 Interest rate= 8% Period = 5 years
Q: Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $200,000 in return…
A: Adjusted tax basis refers to the cost basis of the asset which is adjusted for different events…
Q: Match each business that follows with the job cost system it would most likely utilize. Clear All…
A: Job order costing : in this costing cost is calculated for each job separately. Each job is…
Q: Ehrlich Corporation earned $360,000 during a period when it had an average of 100,000 shares of…
A: Introduction:- The following formula used as follows under:- Basic earnings per share = (Net income…
Q: PROBLEM SOLVING 1 Instruction: Show your solution in every problem that needs computation Number…
A: INCOME STATEMENT Income Statement is one of the important Financial statement of the Company. It…
Q: Brown purchases 30% of Orange Company on Jan. 1, 2016 for $300,000. This acquisition gave Brown the…
A: Significant Influence It refers to the power to participate in the financial and operating policy…
Q: On January 1, 2020, Sheridan Company leased equipment to Flynn Corporation. The following…
A: INTRODUCTION: Annual Rental Payments refers to the minimum rental payments for any Person or Persons…
Q: s 1. From the following trial balance prepare the final accounts Debit Balances Drawings Opening…
A:
Q: 08) Nina acquired a 75% controlling interest in Pinta in two stages. 1) In 2012, Nina acquired 15%…
A: According to the given question, we are required to compute the cost of investment that will be used…
Q: EPS with Convertible Bonds and Preferred Stock The Ehrlich Corporation issued 10-year, $5,000,000…
A: According to the given question, we are required to compute the earnings per share and diluted…
Q: not-for-profit organization
A: Non profit organizations are the organization that work for the society causes and not for the…
Q: 17) In 2011 Ace Inc. acquired a 100% equity interest in Beauty Co. for cash consideration of…
A: Combining the assets, liabilities, and other financial components of two or more entities into one…
Q: Jackson is 18 years old and has a dog-sitting business. Calculate the 2022 standard deduction…
A: The percentage of the income that is not taxed and can be utilized to lower the tax liability is…
Q: Scampini Technologies is expected to generate $100 million in free cash flow next year, and FCF is…
A: Answer : Stock value per share = Current total value / Share of stock outstanding Current total…
Q: down credit card 3. For Which credit card did you pay?, select 2100 VISA Credit Card 4. For How much…
A: Credit card is the facility given by bank to pay the expenses without having money in the bank…
Q: S McGuire Corporation began operations in 2013. The manufacturers and then sells to retail stores.…
A: Income statement for 2013 Statement of financial position as of December 31, 2013
Q: EJ-KD manufactures plastic cups that undergo two departments during the process (molding &…
A: Process costing system is a system used for standardized production processes. In the a process of…
Q: You own 1,000 shares of stock in Avondale Corporation. You will receive a $3.45 per share dividend…
A: Dividend refers to the amount of earnings that are distributed to the shareholders in proportion to…
Q: Oops, JAC forgot about taxes. Assume a tax rate of 21% Using information and your calculations…
A: Lets understand the basics. When target profit is given and we are required to calculate pre tax…
Q: Engr. Abcde buys a ring which costs P120,000 if paid in cash. It also available to purchase it eight…
A: Lets understand the basics. For calculating monthly installment, we need to use below formula.…
Q: Loan 48,000 for 3 years with a rate of 10%, What are the total finance charges? Use an Amortization…
A:
Q: $35,770. What liability should Fins report on its balance sheet as of December 31, 2021?
A: Liability that Fins should report on its balance sheet as on December 31,2021
Q: Morton Ltd. owns 60 percent of the voting shares of Salt Inc. and 40 percent of the voting shares of…
A: As per GAAP, there are three main types of investment accounting methods; investment in financial…
Q: Walmart does not issue its first-quarter report until after the second-quarter results are reported.…
A: 1)Timeliness
Q: Vito Yarwood practices medicine under the business title Vito Yarwood, M.D. During July, the medical…
A: JOURNAL ENTRY Journal entry is the Process of Recording Financial & Non Financial…
Q: Which of the following audit techniques would most likely provide an auditor with the least…
A: Effective Internal control will satisfy company objectives. Internal controls will identify and…
Q: The manufacturing concern has the following data available for the month of March 2020:Total…
A: Total Manufacturing Cost :— It is the total cost incurred in the manufacturing of product during the…
Q: Which of the following statements is not true? a. Tests of transactions are often performed…
A: In Auditing there are two types of procedures involved and are enumerated as below: a) Substantive…
Q: Payment of salaries
A: An internal service fund
Q: 18) Marie acquired a 100% shareholding in Luke for $500,000 when Luke's fair value of net assets was…
A: Impairment happens when the fair market value of a business asset falls below the asset's book value…
Q: 16) Rainbow Co. owns the following investment in other companies. Green Co. Red Co. Blue Co Select…
A: Consolidated accounts means the financial statements of group companies presented together by…
Q: Compute the use tax that Heliot owes to State H for the property purchased in S Pre credit use tax…
A: State H levies 6% use and sales tax. Sales Tax paid to other state can be claimed as credit while…
Q: nuary 1, 2021 with a rate of 10%
A: Interest expense is expense paid by the lessee to the lessor for the right to use the asset. It is…
Q: Use the 2016 marginal tax rates to compute the tax owed by a married couple filing jointly with a…
A: Tax owed refers to the tax liability which is the amount of payment owed through the business,…
Q: Year 2014 2015 2016 2017 2018 Totals Actual Sales in Gallons Weight 2016 2017 2018 424,000 425,000…
A: Every company has some goals, vision, and mission. There are some risks and uncertainties in…
Q: Selling price $ 30 Variable expense ratio 80% Fixed expenses $ 8,000 per month Unit sales 3,400…
A: Solution: Nos of units to be sold to achieve target profit = (Fixed costs + Target profit) / CM…
Q: Corporation Z purchased shares of Corporation W. In addition, Corporation Z purchased some put…
A: Put option is purchased when we expect fall in the price of underlying asset.
Q: The financial information below is for Mike Ross who teaches accounting on a part-time basis. He…
A: A person or corporation's "net worth" may be calculated by subtracting the value of their…
Q: Determine the direct materials price variance, direct materials quantity variance, and total direct…
A: Variance is difference between the budgeted and actual cost. It is calculated by management for…
Q: QUESTION 3 On 1 January 2022, Rodney Inc. provided services to Smith Co. in exchange for Smith’s…
A: .
Q: Following are income statements for Hossa Corporation for 20X1 and 20X2. Percentage of sales amounts…
A: Net Income is the difference between total revenue and total expenses of the company. Income…
Q: Answer the following transactions that occurred during August 2022 for Renwick & Co. Aug 2 –…
A: Net Method - Under Net Method of recording Accounts Receivable company need to book the receivables…
Q: m has a Taxable Income of $175,000 and is filing as a Widower. How much
A: There are different amount of taxes based on the amount of income and status of tax filing and also…
Q: Record the following transactions with a reference number that serves as a unique identifier for the…
A: Journal Entries - Journal entries are the primary records of the transactions entered into by the…
Q: Lemon Ltd has a December 31 year end. On January 1, 2018 Lemon acquires 4000 shares of Nike Inc at…
A: A journal entry is the act of keeping or producing records of any economic or non-economic…
Q: Presented below is information related to Anderson Company for 2022. Sales revenue…
A: According to the given question, we are required to prepare the income statement for the year ending…
A company located in the USA, which has the dollar as its functional currency, purchased inventory on February 1 in Vietnam for 10,000,000 dongs with a payment date of April 1. One dong can be exchanged for $0.01 on February 1, and one dong can be exchanged for $0.12 on April 1. On April 1, the company pays off the 10,000,000-dong debt from the purchase of inventory. When the US company presents its financial statements, which of the following statements is false?
- The business should file with the statement a gross profit of $110,000.
- No profit is recognized related to inventory
- A loss of $20,000 is reported as a result of accounts payable
- Cost of goods sold is reported at $120,000
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Jackson, a U.S. company, acquires a variety of raw materials from foreign vendors with amounts payable in foreign currency (FC). The company needs to acquire 20,000 units of raw materials, and the goods are expected to have a price of 100,000 FC. Assume that the inventory can be subsequently sold to U.S. customers for $160,000. Jackson is contemplating committing to the purchase of the inventory on September 1 with delivery on November 1. However, rather than making a commitment, the company could forecast a probable purchase of inventory with delivery on November 1. In either case, assume that on September 1 the company would either (a) acquire a forward contract to buy 100,000 FC with a forward date of November 1 or (b) acquire an option to buy FC in November at a strike price of $1.250. The option premium is expected to cost $2,100.Various spot rates, forward rates, and option values are as follows: Spot Rate Forward Rate forNovember 1 Time Value ofOption September 1 . . . .…On November 20, 20X5, Diamond Corporation, a calendar-year US corporation, had merchandise delivered from a vendor in France. The invoice was for 350,000 euro and was due January 20, 20X6. On December 13, 20X5, Diamond’s British division sold the merchandise and issued the customer an invoice for 400,000 pounds due February 13, 20X6. Both invoices were paid on their due date. Exchange rates were as follows: Date Euro British Pound November 20, 20X5 $1.1698 $1.6356 December 13, 20X5 1.1713 1.6317 December 31, 20X5 1.1684 1.6286 January 20, 20X6 1.1665 1.6334 February 13, 20X6 1.1652 1.6293 Record all journal entries related to the purchase and sales transactions in Diamond Corporation’s books on the following dates. Be sure to identify floating amounts with the proper foreign currency (i.e., €/euro or £/pound) for full credit. Hint - there are 6 journal entries. The journal entry dates are as follows: November 20, 20X5,…On November 20, 20X5, Diamond Corporation, a calendar-year US corporation, had merchandise delivered from a vendor in France. The invoice was for 350,000 euro and was due January 20, 20X6. On December 13, 20X5, Diamond’s British division sold the merchandise and issued the customer an invoice for 400,000 pounds due February 13, 20X6. Both invoices were paid on their due date. Exchange rates were as follows: Date Euro British Pound November 20, 20X5 $1.1698 $1.6356 December 13, 20X5 1.1713 1.6317 December 31, 20X5 1.1684 1.6286 January 20, 20X6 1.1665 1.6334 February 13, 20X6 1.1652 1.6293 Determine the net exchange gain/(loss) from the above purchase and sale transactions to be included in Diamond’s Income Statement for 20X5 and 20X6. Identify whether it is a gain or loss. 20X5 Income Statement 20X6 Income Statement
- On December 5, 20X8, Texas based Imperial Corporation purchased goods from a Saudi Arabian firm for 100,000 riyals (SAR), to be paid on January 10, 20X9. The transaction is denominated in Saudi riyals. Imperial's fiscal year ends on December 31, and its reporting currency is the U.S. dollar. The exchange rates are: December 5, 20X8 1 riyal = $ 0.265 December 31, 20X8 1 riyal = 0.262 January 10, 20X9 1 riyal = 0.264 Based on the preceding information, what journal entry would Imperial make on January 10, 20X9, to revalue foreign currency payable to equivalent U.S. dollar value?A. Accounts Payable (SAR) 300 Foreign Currency Transaction Gain 300 B. Accounts Payable (SAR) 100 Foreign Currency Transaction Gain 100 C. Foreign Currency Transaction Loss 100 Accounts Payable (SAR) 100D. Foreign Currency Transaction Loss 200 Accounts Payable (SAR) 200Boston Beanery, a U.S.-based company, establishes a branch in Great Britain in January of Year 1, when the exchange rate is US$1.30 per British pound (£). During Year 1, the British branch generates £5,000,000 of pretax income. On October 15, Year 1, £2,000,000 is repatriated to Boston Beanery and converted into U.S. dollars. Assume the effective income tax rate in Great Britain is 19 percent. Taxes were paid in Great Britain on December 31, Year 1. Relevant exchange rates for Year 1 are provided here (US$ per £): January 1 1.30 Average 1.40 October 15 1.45 December 31 1.50 Assume a U.S. tax rate of 21 percent. Required: Determine the amount of U.S. taxable income, U.S. foreign tax credit, and net U.S. tax liability related to the British branch (all in U.S. dollars).Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 119,000 pesos on credit. May 1 Sold 60 percent of the inventory for 99,000 pesos on credit. August 1 Collected 79,500 pesos from customers. September 1 Paid 69,500 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date U.S. Dollar per Peso March 1 $ 0.17 May 1 0.18 August 1 0.19 September 1 0.20 December 31 0.21 Assume that all receipts were converted into dollars as soon as they were received. Voltac will report each of the following accounts on its 2020 financial statements. Inventory $8,092 Cost of goods sold $12,138 Sales $17,820 Accounts receivable $4,095 Accounts payable $10,395 Cash $1,205 What are the corresponding journal entries?
- Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 112,000 pesos on credit. May 1 Sold 80 percent of the inventory for 92,000 pesos on credit. August 1 Collected 76,000 pesos from customers. September 1 Paid 66,000 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date U.S. Dollar per Peso March 1 $ 0.21 May 1 0.22 August 1 0.23 September 1 0.24 December 31 0.25 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, what amount will Voltac report on its 2020 financial statements? a. Inventory b.Cost of goods sold c. SalesVoltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 118,000 pesos on credit. May 1 Sold 80 percent of the inventory for 98,000 pesos on credit. August 1 Collected 79,000 pesos from customers. September 1 Paid 69,000 pesos to suppliers. Currency exchange rates for 1 peso for 2020 are as follows: Date U.S. Dollar per Peso March 1 $ 0.16 May 1 0.17 August 1 0.18 September 1 0.19 December 31 0.20 Assume that all receipts were converted into dollars as soon as they were received. For each of the following accounts, what amount will Voltac report on its 2020 financial statements? Voltac Corporation (a U.S.-based company) has the following import/export transactions denominated in Mexican pesos in 2020: March 1 Bought inventory costing 118,000 pesos on credit. May 1 Sold 80 percent of the inventory for 98,000 pesos on…Local Corp imported a heavy machine from the US for US$50,000 on October 10, 2019. A letter of credit was opened with a Makati branch based on the commercial invoice for US$50,000, on which Local Corpl made a 100% deposit cover based on the exchange rate of $1.00 to P27.50. Shipment of the heavy machine was effected on December 30, 2019, at which time the exporter collected the proceeds of the letter of credit when the prevailing exchange rate was $1.00 to P28.00. From the exchange rate fluctuation, Local Corp realized: Group of answer choices A. P25,000 gain B.P25,000 loss C. P5,000 gain D. No gain, No loss
- Selco, a U.S. Company, imports and exports tools, shop equipment, and industrial construction supplies. The company uses a periodic inventory system. During April the company entered into the following transactions. All rate quotations are direct exchange rates. April 3 Purchased power tools from a wholesaler in Japan, on account, at an invoice cost of 1,710,000 yen. On this date the exchange rate for the yen was $0.0076. 5 Sold hand tools on credit that were manufactured in the U.S. to a retail outlet located in West Germany. The invoice price was $3,300. The exchange rate for marks was $0.5962. 9 Sold electric drills on account to a retailer in New Zealand. The invoice price was 16,700 U.S. dollars and the exchange rate for the New Zealand dollar was $0.5891. 11 Purchased drill bits on account from a manufacturer located in Belgium. The billing was for 801,282 francs. The exchange rate for francs was $0.0312. 16 Paid 1,010,000 yen on account to the…Harris Incorporated had the following transactions: On May 1, Harris purchased parts from a Japanese company for a U.S. dollar–equivalent value of $7,000 to be paid on June 20. The exchange rates were May 1 1 yen = $0.0070 June 20 1 yen = 0.0075 On July 1, Harris sold products to a Brazilian customer for a U.S. dollar equivalent of $10,400, to be received on August 10. Brazil’s local currency unit is the real. The exchange rates were July 1 1 real = $0.20 August 10 1 real = 0.22 Required: Assume that the two transactions are denominated in U.S. dollars. Prepare the entries required for the dates of the transactions and their settlement in U.S. dollars. Assume that the two transactions are denominated in the applicable LCUs of the foreign entities. Prepare the entries required for the dates of the transactions and their settlement in the LCUs of the Japanese company (yen) and the Brazilian customer (real).On March 1, Pimlico Corporation (a U.S.-based company) expects to order merchandise from a supplier in Sweden in three months. On March 1, when the spot rate is $0.10 per Swedish krona, Pimlico enters into a forward contract to purchase 500,000 Swedish kroner at a three-month forward rate of $0.12. At the end of three months, when the spot rate is $0.115 per Swedish krona, Pimlico orders and receives the merchandise, paying 500,000 kroner. What amount does Pimlico report in net income as a result of this cash flow hedge of a forecasted transaction?a. $10,000 premium expense plus a $7,500 positive adjustment to net income when the merchandise is purchased.b. $10,000 Discount expense plus a $5,000 positive adjustment to net income when the merchandise is purchased.c. $2,500 premium expense plus a $5,000 negative adjustment to net income when the merchandise is purchased.d. $2,500 premium expense plus a $2,500 positive adjustment to net income when the merchandise is purchased.