I have this assignment and I'm not sure how to do it. How can I get help with this?

ADM 2342X ASSIGNMENT NO. 2 2017 Spring/Summer Semester Due: July 15, 2017 NAME: ___________________________ STUDENT #: _________________ Instructions: This assignment must be typed on 8.5\" x11\" paper, one-side only, collated, and stapled. This assignment must also contain a signed Personal Ethics Statement. Late submissions will not be accepted under any circumstances. You are required to hand in your assignment in class on July 15, 2017. Question Marks 1 Inventory /20 2 Inventory /20 3 Investments /20 4 Investments /20 TOTAL /80 Statement of Academic Integrity Integrity is a basic value of our society and of the business world. Academic integrity is also a key value of the Telfer School of Management. To underline its importance, all assignments, reports, projects, or other work submitted in partial fulfillment of the requirements of a course at the Telfer School of Management must include on its front page an \"ethics statement\": Please note that any submission in a course (homework, assignment, report, etc) that does not include that signed \"ethics statement\" will not be corrected and will get a grade of zero. Personal Ethics Statement Concerning Telfer School Assignments Individual By signing this Statement, I am attesting to the fact that I have reviewed the entirety of the assignment and that I have applied all the appropriate rules of quotation and referencing in use at the Telfer School of Management at the University of Ottawa, as well as adhered to the fraud policies outlined in the Academic Regulations in the University's Undergraduate Studies Calendar. I further attest that I have knowledge of and have respected the \"Beware of Plagiarism\" brochure found on the Telfer School of Management's BlackBoard site. ________________ Signature ______________ Date ________________________________ Last Name (print), First Name (print) ______________ Student Number Question No. 1 (20 marks) Crossway Retail Limited (CRL) reported inventory of $689,600 and accounts payable to suppliers of $456,300 for the year ended December 31, 2016. CRL uses a periodic inventory system and uses the indirect (allowance) method for recording and reporting inventory when following the lower of cost and net realizable value standard. The $689,600 value of inventory above is the result of a physical count that was taken on the last day of the accounting period. The following seven items require further consideration and are not reflected in the values given above: (a) The inventory count took place on December 31. Late in the day on December 31, goods with a cost of $54,300 and a retail price of $98,500 were delivered to a customer. These goods had been counted earlier in the day and were included in the inventory count. CRL did not record the sale until January 3, 2017 due to the New Year's break. (b) Goods from a supplier, in transit on December 31, were neither counted nor recorded as a purchase and accounts payable as of December 31. The goods, with a cost of $37,500, legally belonged to CRL while they were in transit over the yearend. (c) Goods received from a supplier on December 30 were counted and included in inventory, but the invoice had not been recorded as a purchase or accounts payable by the end of December. The invoice was for $51,100. (d) On January 4, 2017, a $5,000 bill for freight for the month of December was received. The freight was for goods bought from a supplier and delivered to CRL's warehouse. None of these goods have been resold. (e) The inventory count was subsequently determined to include $21,900 of goods on consignment from a supplier. The goods have to be paid for only if they are sold to CRL's customers. (f) CRL had goods with a recorded cost of $12,700 that were properly recorded as a purchase and accounts payable, and counted in inventory. However, the goods were damaged and CRL entered into negotiations with the supplier that resulted in a discount of $4,000 off the price. The negotiations were completed in early January 2017. (g) The market value of the remaining inventory after any adjustments appropriate for items (a) to (f) above, was determined to be $605,000. The allowance to reduce inventory to net realizable value, unchanged for the end of the 2015 accounting period, was $32.200. Question No. 1 (continued) (20 marks) Required: (a) Set up two columns using the titles \"Inventory - Net\" and \"Accounts Payable\". Enter the preliminary balances given in the question on your first row ($689,600 for inventory and $456,300 for accounts payable). Analyze each of the seven items listed in the question and calculate the correct ending balances for inventory (net) and accounts payable as at December 31, 2016. (b) Compute the value of any loss on inventory due to decline in the net realizable value and prepare the corresponding year-end adjusting entry. Question No. 2 (20 marks) Burnley Company uses the periodic system of inventory and its accounting year-end is December 31. Consider each of the following independent scenarios: (i) Your analysis of inventory indicates that inventory at the end of 2016 was overstated by $27,000 due to an inventory count error. Inventory at the end of 20 13 was correctly stated. (ii) Invoices in the amount of $107,000 for inventory received in December 2016 were not entered on the books in 2016. They were recorded as purchases in January 2017 when they were paid. The goods were counted in the 2016 inventory count and included in ending inventory on the 2016 financial statements. (iii) Goods received on consignment amounting to $89,000 were included in the physical count of goods at the end of 2017 and included in ending inventory on the 2017 financial statements. Required: (a) For each of the above independent scenarios, indicate the effect of the error (if any) on: (a) (b) (c) (b) 2016 net income; 2017 net income; and 2017 ending retained earnings. For each of the above independent scenarios, provide the journal entry, if necessary, that should be recorded in 2017 to correct the error. Question No. 3 (20 marks) Curran Ltd. reported the following transactions and information regarding its investment in the shares of Arkell Corporation: October 15, 2014 purchased 3,000 shares at $42 per share plus $1,200 commissions; December 1, 2014 received $0.50 per share cash dividend; December 31, 2014 fair value is $38 per share; December 1, 2015 received $0.50 per share cash dividend; December 31, 2015 fair value is $45 per share; November 15, 2016 sold 1,000 shares at $41 per share less $450 commission; December 1, 2016 received $0.50 per share dividend; December 31, 2016 fair value is $40 per share. Required: Show the amounts and accounts that would be reported on the Income Statement and the Statement of Financial Position for 2014, 2015, and 2016 assuming the company uses: (i) (ii) (iii) the Cost Method; the FV-NI Method; the FV-OCI Method. Note: You may find the following tabular format useful for each of the three methods in organizing and presenting your answer. 2014 Income Statement: Statement of Financial Position: 2015 2016 Question No. 4 (20 marks) Costa Corporation (CC) is a public company which follows IFRS. On January 2, 2015, CC purchased as a strategic investment 75,000 of the 300,000 outstanding common shares of Bedford Company. At the time of acquisition, the shares of Bedford were trading on the Toronto Stock Exchange at $14.00 per share. CC appropriately uses the equity method to account for this investment. The following information was obtained: (a) The common shares of Bedford had a net book value of $11.00 per share on the date of acquisition. (b) The fair market value of all the assets and liabilities acquired was equal to the carrying value except for: (i) (ii) land which had a fair market value of $650,000 and a carrying value of $450,000 on the date of acquisition; and plant and equipment which had a fair market value of $400,000 and a carrying value of $150,000 on the date of acquisition. (c) CC estimates the remaining life of depreciable assets to be 20 years. CC uses the straight-line method of depreciation. (d) Bedford reported net income of $200,000 for the year ended December 31, 2015 which included a loss, net of tax, of $40,000 relating to discontinued operations. (e) During 2015, goodwill was evaluated as being impaired and a write-down of $5,625 was recorded. (f) On April 1, 2015 Bedford Company announced a 10% stock dividend which was distributed to shareholders on May 15, 2015. Required: (a) Calculate the cost attributed to goodwill included in the total investment cost of Costa Corporation on January 2, 2015. (b) Prepare a schedule which shows how the December 31, 2015 Statement of Financial Position valuation figure for the investment in Bedford would be reported. (c) Prepare all required journal entries on the books of Costa Corporation during 2015. (d) Prepare the journal entry to record the sale of the shares on January 2, 2016. Carry all intermediate calculations to two decimal places