Reference no: EM132817818
Question - The following selected transactions and events of Ashmore Ltd. Were completed during the accounting year just ended, 31 December 20X5. Interest rates reflect market rates unless indicated.
a. On 1 June, the company borrowed $54,000 in cash from the bank on a demand basis. The interest rate was 5% to be paid on the anniversary date of the loan.
b. Merchandise was purchased on account; a $20,000, one year 6% interest-bearing note, dated 1 April 20X5, was given to the supplier. Interest is paid when the amount is due on 1 April 20X6.
c. Merchandise was purchased on account; a two year, $18,000, 2% note dated 1 February 20X5 was given to the supplier. Interest is due annually on 1 February.
The going interest rate for this term and risk was 8%. Use the gross method to record the note payable.
d. A supplier delivered goods on account costing US$22,000. The exchange rate was US$1 = Cnd$0.96 at that time.
e. Ashmore has been sued by a customer for $450,000. The legal team confidently believes that there is an 85% chance that Ashmore will successfully defend itself.
f. New legislative requirements came into force at the beginning of this year regarding environmental remediation. Ashmore believes it will have to pay $90,000 in nine years time when the company vacates leased premises. The going interest rate for this term and risk was 8%.
g. Payroll records showed that the following amounts are unpaid: Gross wages $130,000; Income tax $33,000; EI $6,100; CPP $5,500; Union Dues $3,500.
h. The employer portion of EI and CPP are recorded.
i. Remittances were income tax, $31,350; EI $10,250; CPP $9,720; union dues $1,450.
j. Cash dividends declared but not yet paid were $23,500.
k. Accrue appropriate interest at 31 December, and adjust the foreign-denominated payable to the year-end rate, US$1=Cnd$0.94.
Give the entry or entries for each of the above transactions and events, if needed. (if not needed, explain why).
Prepare a list (title and amount) of the liabilities of Ashmore at 31 December 20X5.
What method shall be used by the franchisor to recognize
: Franchisor to Franchisee is unlikely but not remote, what method shall be used by the franchisor to recognize gross profit from initial franchise fee revenue?
|
How presented statement of financial position of Skysong
: Show how the information above should be presented on the statement of financial position of Skysong, Inc. at December 31, 2020
|
Determine what trade-in over-allowance granted to customer
: What was the trade-in over-allowance granted to the customer? Eveready spends P250 to recondition each unit traded in and then sells them at P3,250
|
Create a venn diagram to compare special considerations
: Create a Venn diagram to compare and contrast special considerations that should be addressed when working with families of students with special needs from.
|
Prepare a list of the liabilities of Ashmore
: A supplier delivered goods on account costing US$22,000. The exchange rate was US$1 = Cnd$0.96 at that time. Prepare a list of the liabilities of Ashmore
|
Overcoming a bottleneck operation by adding
: Markland Manufacturing intends to increase capacity by overcoming a bottleneck operation by adding new equipment. Two vendors have presented proposals. The fixe
|
How much is the realized gross profit on installment sales
: How much is the realized gross profit on installment sales during 2020? On November 1, 2020, Cebu Express Motors which maintains a perpetual inventory records
|
Find firm signature? dish
: Janelle? Heinke, the owner of? Ha'Peppas!, is considering a new oven in which to bake the? firm's signature? dish, vegetarian pizza. the Oven type A can handle
|
What is the appropriate cost for retained earnings
: The return on the S&P 500 index is 8.34%. What is the appropriate cost for retained earnings in determining the firm's cost of capital?
|