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DO ALL TRANSACTIONS FROM A TO N , I WILL LEAVE A THUMB DOWN AND REPORT YOU TO CHEGG IF YOU JUST DO A .

DO ALL TRANSACTIONS FROM A TO N, I WILL LEAVE A THUMB DOWN AND REPORT YOU TO CHEGG IF YOU JUST DO A. DO NOT DO A IF YOU JUST GONNA ANSWER A. AND DO NOT COPY THE ANSWERS FROM SIMILAR QUESTIONS!
a. Calculate bad debt
On December 31, after many attempts at collecting the outstanding balance of Copper Gallery, the controller decided to write off that balance.
Aylmer calculates bad debt on trade receivables only, not on project receivables. Bad debt is estimated to be:
0-30 days 1%
3160 days 5%
6190 days 7.5%
91120 days 10%
Over 120 days 15%
In the excel spreadsheet, see the tab labelled Trade Accounts Receivable Detail to perform any necessary calculations. Be sure to write off the balance of Copper Gallery referenced above before doing these calculations.
b. FV-NI Investments
At December 31,2023; the fair value of the short-term investments were:
Redemption Corp $12.63 per share
ALM Corp $23.98 per share
In the excel spreadsheet, see the tab FV-NI Investments to perform any necessary calculations.
c. Prepaid Insurance
The prepaid amount on the trial balance consists of a payment made to State Farm Insurance on October 1,2023. The policy lasts 18 months.
d. Inventory LCM
The company has the policy of stating all inventory on hand at the lower of cost and net
realizable value. The company uses the direct method for any adjustments to inventory.
NOTE on the income statement use Cost of Goods Sold from the trial balance - do not
calculate the cost of goods sold.
In the excel spreadsheet, see the tab Inventory Detail to perform any necessary calculations.
e. Record Depreciation on assets
Depreciate the fixed assets according to the schedule. Depreciation is calculated on an annual basis.
In the excel spreadsheet, see the tab Fixed Asset Details to perform any necessary calculations
f. Trade a vehicle
On December 31,2023(after depreciation was recorded); the company traded the Toro lawn mower which was acquired on February 1,2021(asset #2021-02) for a 2014 Ford F150. In addition to the trade, the company paid $6,000 cash for the new truck. The fair value of the Toro lawn mower on this date was $18,000. Assume that this transaction HAS commercial substance.
Once this new asset is purchased, do not depreciate it since it was purchased on the last day of the year.
In the excel spreadsheet, see the tab Fixed Asset Details to perform any necessary calculations; and update the schedule as needed.
g. Investments FV-OCI
On December 31,2023, the fair value per share of Hub Cap Company was $11.25 per share.
Aylmer decided to sell its shares in Hub Cap Company at that time (sale was not recorded on the trial balance).
h. Bank Loan
The loan for $8,000,000 was borrowed at January 1,2023. Interest on the bank loan is 2.75% annually. Interest has to be paid every January 2, so the first interest payment is due January 2,2024. No principal payments were made during the year. Of the bank loan, $2,000,000 is due June 30,2024 with the remainder due June 30,2029.
i. Notes Payable
This is a short-term note. The company borrowed money from JRT Investments on October 31,2023 for 3 months. The principle, along with interest is to be repaid on January 31,2024. The interest rate is 1.5%.
j. Long-term contracts
The company uses the percentage of completion method for recording long-term contracts. The company has two long-term contracts with details below provided for one of the projects.
Project 1- Downtown Hotel & Shopping Centre
Contract price is $20,000,000.
Expected completion date is in 2025
In the excel spreadsheet, see the tab Revenue Recognition to perform any necessary calculations related to the revenue earned on this project. The other project has already been accounted for properly and the accounting for Project 1s outstanding billings is already reflected in the unadjusted trial balance.
k. Accrue wages
Employees work Monday to Friday and employees are paid weekly. December 31,2023 is a Thursday. Assume that hourly employees work 8 hours per day and that there are 52 weeks a year for salaried employees.
In the excel spreadsheet, see the tab Payroll Details to perform any necessary calculations.
l. Intangible Assets
Amortize the intangibles according to the schedule. Amortization is recorded on an annual basis.
In the excel spreadsheet, see the tab Intangible Assets to perform any necessary calculations
m. Dividends
On December 31,2023 a dividend of $0.70 was declared to shareholders of record on January 10,2023 to be paid January 29,2024.
n. Taxes To be ignored for this project
REQUIRED:
1. Prepare journal entries and supporting schedules for the ALL OF THE transactions ABOVE (A->N).
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