All of this is due by 10 pm im stuck

(a) Miller, Ltd. estimates the cost of its physical inventory at March 31 for use in an interim financial statement. The gross profit percentage is 20%. The following account balances are available:

Inventory, March 1 Purchases

Sales during March

$220,000 164,000 350,000

What is estimate of the cost of inventory reported on the statement of financial position as at March 31? (4 marks)

(b) The following information is available for the Stuart Company:

Allowance for doubtful accounts at December 31, 20x7 Credit sales during 20x8

Accounts receivable deemed worthless and written off during 20x8

$ 6,000 cr. 400,000

8,000

As a result of a review and aging of accounts receivable in early January 20x9, however, it has been determined that an allowance for doubtful accounts of $4,800 is needed at December 31, 20x8. What amount should Stuart record as "bad debt expense" for the year ended December 31, 20x8? (3 marks)

(c) Zahn Corp.'s comparative balance sheet at December 31, 20x5 and 20x4,

reported accumulated depreciation balances of $800,000 and $600,000 respectively. Property with a cost of $50,000 and a carrying (net book value) amount of $40,000 was the only property sold in 20x5. What is the amount of depreciation expense for 20x5? (3 marks)

(d) On June 30, 20x5, the Lanz Corporation purchased 1,600 shares of James Inc. for $36 per share. Dividends and share prices for James for 20x5 and 20x6 are as

follows:

Dividend per share paid Dec 31, 20x5 $1.50 Dec 31, 20x6 0

Fair Value per Share $42 33

Assuming that Lanz classifies the shares as FVTOCI, prepare the journal entries at December 31, 20x5 and 20x6. (3 marks)

1. (e)Rice Co. was incorporated on January 1, 20x1, with $500,000 from the issuance of common stock and borrowed funds of $75,000. During the first year of operations, net income was $25,000. On December 15, Rice paid a $2,000 cash dividend. No additional activities affected owners' equity in 20x1. At December 31, 20x1, Rice's liabilities had increased to $94,000. In Rice's December 31, 20x1, balance sheet, total assets should be reported at what amount? (4 marks)
2. (f)On January 1, 20x7, Murphy Construction Company entered into a 4-year service contract for the total price of $3,600,000. You have the following information for the first two years of the contract:

20x7

Costs incurred during the year $960,000 Estimated costs to complete 2,240,000

20x8

$910,000 1,530,000

What is the revenue and profit or loss that will be realized on this contract in 20x8? (5 marks)

Problem 2: (10 marks) (18 minutes)

Atlantic Company adjusts and closes its books each December 31. It is now December 31, 20x5, and the adjusting entries are to be made. You are requested to prepare the adjusting entry that should be made for each of the following items (note that the original entries have been made, i.e. you do not need to provide the original entry):

1. The company paid an 18 month insurance premium in advance on March 1, 20x5, amounting to $15,600, which was debited to prepaid insurance.
2. The company rented a warehouse on September 30, 20x5, for two years. It had to pay the full amount of rent for the full two year term in advance on September 30, amounting to $15,000, which was debited to rent expense.
3. The company made large sale and received a 7% note from a customer with a face amount of $100,000. The note was dated August 1, 20x5; the principal plus the interest is payable one year later. Notes receivable was debited, and sales revenue was credited on the date of sale, August 1, 20x5.
4. On February 1, 20x5, the company took out a $200,000, 6% bank loan. On that date, cash was debited and bank loan payable credited for $200,000. The loan is payable on February 1, 20x6, for the face amount of $200,000 plus interest for one year.
5. The Office Supplies account balance at January 1, 20x5 was $6,900. During the year, a total of $20,500 of office supplies were purchased and debited to the office supplies account. At year-end, an inventory count showed that $5,600 of office supplies were on hand.

Problem 3: (13 marks) (24 minutes)

The Iris Corporation had the following Shareholders' Equity section as at December 31, 20x4:

Preferred Shares, $7, noncumulative, 100,000 shares outstanding

Common shares, 5,000,000 shares issued and outstanding Retained earnings

The following transactions took place in 20x5.

$10,000,000 24,000,000 8,000,000 $42,000,000

1. (1)Issued 1,000,000 common shares for total cash consideration of $6,000,000.
2. (2)Issued 500,000 common shares for total cash consideration of $3,400,000.
3. (3)Repurchased and cancelled 100,000 common shares at $12 per share.
4. (4)Issued 50,000 common shares for a land and building. An independent appraisal of the
5. land and building indicated that the market value was $100,000 for the land and $350,000
6. for the building.
7. (5)Split the common stock 2:1.
8. (6)Declared the dividends on preferred shares.
9. (7)Declared a $0.50 dividend on common shares.

Required -

Prepare the journal entries to record these transactions. Round any unit amounts to two decimals.

Problem 4: (11 marks) (20 minutes)

On January 2, 20x0, Chegal Ltd. purchased equipment for $100,000. Chegal had to spend an additional $10,000 for transportation and $15,000 for installation of the equipment. Assume that all of these were paid in cash. The equipment is expected to produce a total of 100,000 widgets over its life of 5 years. The residual value expected at the end of 5 years is $25,000. During 20x0, Chegal produced 19,000 widgets.

Required -

1. Prepare the journal entry to record the acquisition of the equipment on January 2, 20x0.
2. Prepare the journal entry at December 31, 20x0 to record the depreciation using the units-
3. of-production method.

Items c, d and e do not require journal entries

c. Assume Chegal uses the straight-line method of depreciation. Calculate the depreciation expense for the year ended December 31, 20x0.

1. Assume Chegal uses the diminishing balance method of depreciation at a rate of 40%. Calculate the depreciation expense for the year ended December 31, 20x0, 20x1, 20x2 and 20x3.
2. Assume that the straight-line method is used and that the equipment is disposed of on December 31, 20x2 for $52,000. Calculate the gain or loss on disposal on sale of equipment. Depreciation expense for the year ended December 31, 20x2 has been recorded.

Problem 5: (6 marks) (11 minutes)

On December 31, 20x1, the Hanlon Corporation took out a 4%, $500,000 bank loan. The loan is repayable over 3 years at equal annual repayments of $180,174 on December 31 of each year. The first payment is due on December 31, 20x2 and the last payment is due on December 31, 20x4.

Required -

1. Prepare an amortization schedule for this loan
2. Prepare the journal entry at December 31, 20x3 to record the annual payment.

Problem 6: (10 marks) (18 minutes)

The following is a partial balance sheet for Douglas Inc. for 20x5 and 20x6:

20x6

Cash $ 99,000 Receivables 53,000 Inventory 101,000

20x5

$ 51,000 39,000 118,000 9,000 350,000 (125,000)

$ 56,000 22,000

Prepaid expenses

Property, Plant and Equipment (PPE) Accumulated depreciation

Accounts payable Retained earnings

Additional Information -

6,000 420,000 (110,000)

$ 51,000 43,000

1. The Accumulated Depreciation account has been credited for the depreciation expense for the period. The depreciation expense amounted to $25,000 and is included in operating expenses. One asset was disposed of during the year. The original cost of the asset sold was $100,000. The asset had a net book value of $60,000 on the date of sale.
2. The Retained Earnings account has been charged for dividends and credited for the net income for the year.

The income statement for 20x6 is as follows:

Sales (all on credit) Cost of goods sold Gross profit

Operating expenses Operating income

Loss on sale of PPE Interest expense

Net income before taxes Income tax expense

Net income

Required -

$660,000 363,000 297,000 177,000 120,000

12,000 8,000 100,000 45,000 $ 55,000

Calculate the following sections of the statement of cash flow: (a) Cash flow from operations using indirect method.

(b) Cash flow from investing