ACTG 1P71 Lecture Notes - Lecture 8: Sarah Khan

97 views2 pages

purplerabbit340

1 Apr 2016

School

Department

Course

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Lecture was cancelled due to alleged snow storm, notes are from monday"s lecture, thanks to sarah khan. Constructive dismissal e(cid:373)ployer does(cid:374)"t a(cid:272)tually ter(cid:373)i(cid:374)ate e(cid:373)ploy(cid:373)e(cid:374)t relatio(cid:374)ship (cid:271)ut they trigger the entitlement for reasonable notice or compensation. Employer has breached employee contract in a serious way (harassment or changes in employment relations(status, position or pay)) Just cause: employee engaged in misconduct that violated employee standards employer must prove that misconduct occurred and that the misconduct is reasonably serious enough. Employers can use defence that employee did not attempt to mitigate damages. Difference between employee & someone who provides a service (independent contractors) Entrepreneurs have a risk of profit or loss in comparison to an employee who takes a pay. How integrated is the individual to the business. Without cause get ter(cid:373)i(cid:374)atio(cid:374) pay (cid:449)hi(cid:272)h is e(cid:395)ual to a (cid:449)eek"s pay ti(cid:373)es e(cid:448)ery year they"(cid:448)e (cid:271)ee(cid:374) there for (cid:373)a(cid:454) Statutory pay minimum 34 weeks and max 24 months.

Related Questions

8. On February 1, 2015, Pat Weaver Inc. (PWI) issued 9%,$1,100,000 bonds for $1,400,000. PWI retired all of these bonds onJanuary 1, 2016, at 104. Unamortized bond premium on that date was$114,400. How much gain or loss should be recognized on this bondretirement?

$99,000 gain.
$126,000 gain.
$0 gain.
$70,400 gain.

9. TMC issued $90 million of its 12% bonds on April 1, 2016, at98 plus accrued interest. The bonds are dated January 1, 2016, andmature on December 31, 2035. Interest is payable semiannually onJune 30 and December 31. What amount did TMC receive from the bondissuance? (Do not round intermediate calculations.)

$88.20 million.
$90.90 million.
$85.50 million.
$92.70 million.

10. On September 1, 2016, Sam's Shoe Co. issued $460,000 of 9%bonds. The bonds pay interest semiannually on January 1 and July 1of each year. The bonds were sold at the face amount. How much cashdid Sam's receive upon sale of the bonds? (Do not roundintermediate calculations and round final answer to nearest wholedollar.)

$480,700.
$501,400.
$466,900.
$460,000.

11. Auerbach Inc. issued 6% bonds on October 1, 2016. The bondshave a maturity date of September 30, 2026 and a face value of $475million. The bonds pay interest each March 31 and September 30,beginning March 31, 2017. The effective interest rate establishedby the market was 8%.

Assuming that Auerbach issued the bonds for $410,447,453, whatinterest expense would it recognize in its 2016 income statement?(Do not round intermediate calculations and round final answer tonearest whole dollar.)

$0
$8,208,949
$16,417,898
$9,500,000

12. Auerbach Inc. issued 4% bonds on October 1, 2016. The bondshave a maturity date of September 30, 2026 and a face value of $370million. The bonds pay interest each March 31 and September 30,beginning March 31, 2017. The effective interest rate establishedby the market was 6%.

Assuming that Auerbach issued the bonds for $319,716,000, whatwould the company report for its net bond liability balance afterits first interest payment on March 31, 2017?

$324,098,960
$321,907,480
$317,524,520
$319,716,000

jadeelephant635

Chamberlain Enterprises Inc. reported the following receivablesin its December 31, 2016, year-end balance sheet:


Current assets:
Accounts receivable, net of $28,000 inallowance for uncollectible accounts	$	238,000
Interest receivable		10,700
Notes receivable		300,000

Additional Information:

1.	The notes receivable account consists of two notes, a $65,000note and a $235,000 note. The $65,000 note is dated October 31,2016, with principal and interest payable on October 31, 2017. The$235,000 note is dated June 30, 2016, with principal and 8%interest payable on June 30, 2017.

During 2017, sales revenue totaled $1,380,000, $1,300,000 cashwas collected from customers, and $26,000 in accounts receivablewere written off. All sales are made on a credit basis. Bad debtexpense is recorded at year-end by adjusting the allowance accountto an amount equal to 10% of year-end accounts receivable.

On March 31, 2017, the $235,000 note receivable was discountedat the Bank of Commerce. The bank's discount rate is 10%.Chamberlain accounts for the discounting as a sale.

Required:

Not including sales revenue, what revenue and expense amountsrelated to receivables will appear in Chamberlainâs 2017 incomestatement?

2. What amounts will appear in the 2017 year-end balance sheetfor accounts receivable (net)

3.	Calculate the receivables turnover ratio for 2017.(Round your answer to 1 decimal place.)

Jolis Company has provided information on the following items:

1.	A patent was purchased from Totley Company for $500,000 on January 1, 2015. At that time, Jolis estimated the remaining useful life to be 10 years. The patent was carried on Totleyâs books at $20,000 when it sold the patent.
2.	On March 2, 2016, a franchise was purchased from Unal Company for $240,000. In addition, 8% of the revenue from the franchise must be paid to Unal. Revenue earned during 2016 was $620,000. Jolis believes that the life of the franchise is indefinite and that the franchise is not impaired at the end of 2016.
3.	R&D costs were incurred as follows: (a) materials and equipment, $50,000; (b) personnel, $80,000; and (c) indirect costs, $40,000. The costs were incurred to develop a product that will go on sale in 2017 and will have an expected life of 5 years.
4.	A trade name had been purchased for a sugar substitute at the beginning of 2012 for $80,000. In January 2016, it was suspected that the product caused cancer. Its fair value was estimated to be zero and the trade name was abandoned.
5.	The company purchased the net assets of Lansing Company on September 1, 2016, for $950,000, and Lansing was liquidated. Lansing had the following book (fair) values: cash, $50,000 ($50,000); inventory, $150,000 ($160,000); property, plant, and equipment, $750,000 ($900,000); accounts payable, $75,000 ($75,000); and notes payable, $175,000 ($175,000). Any goodwill is not impaired at the end of 2016.

Required:

Prepare journal entries for Jolis for 2016. The company uses the straight-line method of amortization computed to the nearest month over the maximum allowable life. Assume that the company pays all costs in cash, unless otherwise indicated

coppersnake860

ACTG 1P71 Lecture Notes - Lecture 8: Sarah Khan

Document Summary

Get access

Related Documents

ACTG 1P71 Lecture Notes - Lecture 9: Wrongful Dismissal, Fiduciary, Independent Contractor

ACTG 1P71 Lecture Notes - Lecture 1: Mortgage Law, Feudalism, Trust Law

ACTG 1P71 Lecture Notes - Lecture 11: Income Statement, Derivative Suit, Fiduciary

Related Questions