accounting

accounting. accounting. East River Company owns a machine that is no longer working properly. The owner of the company believes the machine can be fixed, but s/he has decided to buy a new machine instead of fixing the one already in place in the factory. The machine is in a general ledger account, Machines, has an original cost of $180,000, and has accumulated depreciation of $93,200. Make the correct journal entry or entries under each of the following conditions. If no journal entry should be made, explicitly say that no journal entry should be made.
Part a. The company sells the machine for $86,800.
Part b. The company sells the machine for $102,900.
Part c. The company sells the machine for $42,000.
Part d. A potential buyer comes out to look at the machine, but when he takes a look at it, he has no further interest in buying it. There are no other potential buyers, and the company owner really needs the space for a new machine, so s/he simply pays someone to haul the machine off to the junkyard. For our purpose here, ignore the payment to the person or company who hauls the machine off to the junkyard. What (if any) is the appropriate entry to record the disposition of the machine?

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accounting

accounting

single entry

single entry. single entry. Hot and Sweaty doesn’t maintain a complete set of accounting records. However, he provided you with the following information:
Hot and Sweaty
Summarized Bank Account for the year ended 31st December 2020
2020
$
2020
$
Jan 01
Balance b/d
20,000
Wages and Salaries
35,000
Receipts from debtors
190,000
Drawings
4,650
Electricity
12,000
Insurance
6,000
Bank charges
900
Payment to creditors
92,500
General expenses
15,000
Telephone
8,000
Balance c/d
35,950
210,000
210,000
Dec 31 2019
Dec. 31 2020
$
$
Creditors
24,000
28,000
Prepaid telephone
1,000
1,400
Debtors
18,000
21,000
Insurance owing
5,000
8,000
Stock
14,000
27,000
General expenses owing
1,800
3,000
Motor van at a cost
35,000
35,000
Provision for depreciation on the motor van is to be based on 10% on the straight-line method.
Prepare for Hot and Sweaty the following:
Trading and Profit and Loss Account for the year ending 31st December 2020.
*HINT: Total Debtors and Total Creditors Accounts.
12 marks
Balance Sheet as at 31st December 2020.
8 marks

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single entry

single entry

Tax research memo

Tax research memo. Tax research memo. Please prepare a tax memo. I attached the question and an example and the rubric so you can confirm expectations before submission.
Alfonso Gore was a marketing entrepreneur that was involved with internet marketing very early on (in
fact, he was sometimes fond of saying that he “invented the internet”). Although his traditional business was associated with telemarketing and direct mail marketing, he established an internet marketing division and an e-commerce division in the mid-1990s. Each of these operated as a wholly owned subsidiary under his parent corporationGore marketing was formed as a domestic C corporation in 2009. The two subsidiaries, IMC and ISC, were formed in 2012 and operated as partnerships under the check the box elections. In 2019, IMC was growing and needed a capital injection to continue with its growth. In looking for companies to help with funding, IMC identified SPAC Inc. SPAC was just concluding a significant investment in another unrelated business that had not worked out and was sitting on about $6 million in cash, which was actually less than the SPAC preferred shareholders were entitled to receive should SPAC liquidate.During negotiations over a business combination involving IMC and SPAC, friction developed between SPAC’s preferred shareholders and Gordon Gecko, one of IMC’s partners. The other partners urged Mr. Gecko to withdraw from the business to allow the intended transaction to go forward, but they lacked the funds to buy out his interest. Negotiations ultimately coalesced around a plan under which a portion of SPAC’s remaining cash would be used to redeem Mr. Gecko’s interest in IMC and the remainder used as operating capital for the transferred business.The TransactionsThe transactions in issue were implemented by several agreements, all dated on or as of November 25, 2019, including the Joint Venture Agreement (JVA) among IMC, SPAC, and an acquisition subsidiary (Target Inc) of SPAC; and a Stock Repurchase Agreement between Target and IMC; and a Unit Purchase Agreement between IMC and Mr. Gecko.IMC’s Acquisition of the Transferred BusinessIMC’s business assets were delineated in the agreement as the “Acquired Assets”. The term “Acquired Assets” means all of the rights, titles and interests in and to all of the assets, properties and rights owned if used or developed, created or held for use in the operation by the IMC business unit, the www.internetmarketing.com domain name and content, and the IMC consulting business Gore MarketingInternet Marketing LLC (IMC)Internet Sales LLC (ISC)

(collectively, the “Business”), but excluding the Excluded Assets (cash, receivables and certain specified contracts). The agreements provide a nonexclusive list of assets and properties included in Acquired Assets, including all “Intellectual Property” (broadly defined) “used in or useful to the Business.” The list of Acquired Assets also includes “any and all permits, certificates, licenses, franchises and authorizations obtained from any federal, state, municipal or local government”, “any and all books, records and other information, data and documentation of the Business or otherwise if directly related to any of the Acquired Assets”, and “all equipment, furnishings, inventories of goods and office supplies, paper, pre-paid postage and materials related to the consulting business including, without limitation, those items set forth on Schedule 1.1(b) attached hereto.” Schedule 1.1(b) to the agreement includes an eight-page list of what appears to be computer equipment. It also lists several items of office furniture (chairs, file and storage cabinets, tables, a bookshelf and couch, trash cans) and equipment (mail sorter, refrigerator, and microwave oven).Target’s Acquisition of the Assets of the Transferred Business and SPAC stockThe JVA provided for the simultaneous occurrence of two events: (1) the merger of Target into SPAC, (with Target being the survivor) and (2) IMC’s contribution to Target of the Acquired Assets of the transferred business. The JVA defines the assets to be contributed as those pursuant to the Acquired Assets definition. In exchange for those assets, IMC was entitled to receive 4,999,000 shares of Target’s common stock.The merger of Target into SPAC was approved by a shareholder consent executed by one of SPAC’s common shareholders and six of its preferred shareholders, who together held stock with 67.5% of the voting rights of all of the SPAC stock. In the merger, the former holders of preferred stock in the SPAC exchanged that stock for 2,731,808 preferred shares in Target. Target received common stock in SPAC. SPAC’s previously outstanding common stock was canceled in the merger for no consideration. The JVA expresses the intent of the parties to that agreement that the merger of Target into SPAC “qualify as a reorganization within the meaning of Section 368(a) of the Code”. By contrast, the description of the expected Federal income tax consequences of the merger included in the Information Statement prepared in connection with the transaction states: “In general, the Merger will be treated as a non-taxable transaction to the stockholders under Section 351 of the Code.” The statement makes no mention of section 354, the nonrecognition rule that would apply to the exchange of SPAC preferred stock for Target’s common stock if that exchange were “in pursuance of a plan of reorganization”.Redemption of Common Stock of TargetThe Stock Repurchase Agreement provided for IMC’s sale of 1,875,000 of Target’s common shares back to Target in exchange for $3 million in cash, with $2.7 million to be paid at closing on November 25, 2019, and an additional payment of $300,000 to be made on January 3, 2021. The JVA required Target to “use commercially reasonable efforts to give effect to [its] repurchase of 1,875,000 shares of Common Stock pursuant to the Stock Repurchase Agreement promptly following the Effective Time.”Initial Stock Certificate Issued by Target to IMC

On November 25, 2019, Target issued a certificate to IMC representing 3,125,000 shares of Target’s common stock. The number of shares represented by that certificate equals the 1,000 shares that the JVA described as issued and outstanding before that agreement (a certificate for which apparently had not yet been issued), plus the 4,999,000 shares Target was required by the JVA to issue in exchange for the transferred assets, less the 1,875,000 shares redeemed under the Stock Repurchase Agreement.Redemption of Mr. Gecko’s Interest in IMCUnder the Unit Purchase Agreement, Mr. Gecko sold his interest in IMC back to the partnership (IMC) in exchange for the consideration IMC was entitled to receive in redemption of 1,875,000 shares of Target’s common stock–that is, an immediate payment of $2.7 million in cash and the partnership’s (IMC) assignment to Mr. Gecko of its right to the additional future cash payment. Shortly before the closing of the transactions in issue, IMC’s partners amended section 10.3(a) of the partnership’s Operating Agreement (captioned “Other Allocation Rules”) to add the proviso that, “to the extent that taxable income or gain is recognized by the Company by reason of the Company’s receipt of money or other property that is used to fund the redemption of a particular Member’s Units in the Company, the Company shall allocate such taxable income or gain to such redeemed member.”IMC’s operating agreement gave its managers broad discretion over the timing and amount of distributions by the partnership. But the managers were required to make distributions, to the extent of available cash, to allow members to pay tax on their shares of the partnership’s income (referred to as the Tax Distribution Amount). Paragraph 4.6(a) of the Unit Purchase Agreement provides:In addition to the Closing Payment, the Company shall distribute, if applicable, to the Seller [Mr. Gecko] the Tax Distribution Amount as contemplated by Section 4.4 of the Operating Agreement as in effect on the date hereof at the time specified therein, provided however, that any taxable income attributable to so-called “boot” under Section 351 of the Code recognized by the Company by reason of the Company’s contribution of certain assets and liabilities of the Company to Target in exchange for Target shares that is allocated to Seller pursuant to the Operating Agreement shall be disregarded for purposes of calculating the Tax Distribution Amount.Voting Rights of Target’s ShareholdersTarget’s certificate of incorporation, as amended on the date of closing of the transactions in issue, provided that each of Target’s common shares was entitled to one vote. Target’s preferred stock was convertible into its common stock, and the preferred stock carried voting rights equal to those of the common stock into which it was convertible. Under the initial conversion ratio, the 2,731,808 shares of preferred stock in Target issued to the former SPAC shareholders could be converted into 3,122,843 common shares of Target.Prof. Gill’s Summary1. SPAC formed Target2. SPAC merged into Target with Target survivinga. SPAC preferred shareholders received Target preferred stockb. SPAC common shareholders were cancelled and the common shareholders received nothingOn November 25, 2019, Target issued a certificate to IMC representing 3,125,000 shares of Target’s common stock. The number of shares represented by that certificate equals the 1,000 shares that the JVA described as issued and outstanding before that agreement (a certificate for which apparently had not yet been issued), plus the 4,999,000 shares Target was required by the JVA to issue in exchange for the transferred assets, less the 1,875,000 shares redeemed under the Stock Repurchase Agreement.Redemption of Mr. Gecko’s Interest in IMCUnder the Unit Purchase Agreement, Mr. Gecko sold his interest in IMC back to the partnership (IMC) in exchange for the consideration IMC was entitled to receive in redemption of 1,875,000 shares of Target’s common stock–that is, an immediate payment of $2.7 million in cash and the partnership’s (IMC) assignment to Mr. Gecko of its right to the additional future cash payment. Shortly before the closing of the transactions in issue, IMC’s partners amended section 10.3(a) of the partnership’s Operating Agreement (captioned “Other Allocation Rules”) to add the proviso that, “to the extent that taxable income or gain is recognized by the Company by reason of the Company’s receipt of money or other property that is used to fund the redemption of a particular Member’s Units in the Company, the Company shall allocate such taxable income or gain to such redeemed member.”IMC’s operating agreement gave its managers broad discretion over the timing and amount of distributions by the partnership. But the managers were required to make distributions, to the extent of available cash, to allow members to pay tax on their shares of the partnership’s income (referred to as the Tax Distribution Amount). Paragraph 4.6(a) of the Unit Purchase Agreement provides:In addition to the Closing Payment, the Company shall distribute, if applicable, to the Seller [Mr. Gecko] the Tax Distribution Amount as contemplated by Section 4.4 of the Operating Agreement as in effect on the date hereof at the time specified therein, provided however, that any taxable income attributable to so-called “boot” under Section 351 of the Code recognized by the Company by reason of the Company’s contribution of certain assets and liabilities of the Company to Target in exchange for Target shares that is allocated to Seller pursuant to the Operating Agreement shall be disregarded for purposes of calculating the Tax Distribution Amount.Voting Rights of Target’s ShareholdersTarget’s certificate of incorporation, as amended on the date of closing of the transactions in issue, provided that each of Target’s common shares was entitled to one vote. Target’s preferred stock was convertible into its common stock, and the preferred stock carried voting rights equal to those of the common stock into which it was convertible. Under the initial conversion ratio, the 2,731,808 shares of preferred stock in Target issued to the former SPAC shareholders could be converted into 3,122,843 common shares of Target.Prof. Gill’s Summary1. SPAC formed Target2. SPAC merged into Target with Target survivinga. SPAC preferred shareholders received Target preferred stockb. SPAC common shareholders were cancelled and the common shareholders received nothing

3. IMC transferred is business assets to Target in exchange for 4.999 million shares of Target common stock.4. Immediately after, IMC sold 1,875 million shares of Target it received in the deal to Target in exchange for cash ($2.7 million in 2019 and the rest in 2021).5. Target used this cash to redeem Gecko’s LLC units in IMC.]The 2019 partnership tax returns of IMC do not reflect any receipt from Target of $2.7 in proceeds that was received from Target as part of the redemption of Target stock. However, in both 2020 and 2021, Target included amortization of the boot portion of the gain that was added to the assets acquired as a result of the cash payment from Target to IMC. Lastly, Gecko reported a redemption gain (long-term capital) associated with his Target stock interests in 2019. Required:Based on the facts provided, prepare a tax research memo that determines whether Target is eligible for §351 treatment for this transaction or if they are required to maintain tax-free reorganization treatment under §368(a) as one of the agreements mentioned (assuming it even qualifies as a §351 or §368(a)). As a hint, you may want to consider the case Comm. v. National Alfalfa (417 US 134 (1974)). Please note that if the tax memo is not in the required format and/or contains very little analysis you will receive a zero (0) for the assignment. All good faith efforts are capable of receiving a minimum of 60% but less than a good faith effort will be awarded zero points.You will need to support your conclusion using primary sources of tax law. Your textbook is NOT primary authority nor are IRS Publications You must use proper citation form in your memo The form for this communication should be professional and in the form of a tax research memo (example posted on Canvas). Do yourself a favor and look at the grading rubric before you submit. This memo should be whatever length you feel is appropriate to resolve the issues. We do NOT use a bibliography or list of references in a tax research memo. We do not include Background in a tax memo. You will see that citations are within the text of the document in the example. Once a court case has been cited in full, it can be referred to using simply the name in italics.

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Tax research memo

Tax research memo

Accounting Question

Accounting Question. Accounting Question. Position 1: It is only necessary to understand how to use the technological tools to perform calculations.Position 2: It is important to understand the calculations for FV and PV of monetary sums.This is a juxtaposition discussion question. Choose a side. If you choose the green side, find material to support your response…but you also have to find a way to resolve the counter-side on RED. If you choose the red side, find sources to help support your position…but you also have to resolve the counter-side on GREEN.

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Accounting Question

Accounting Question

As mentioned in the syllabus, there will be a project assignment weighing 5%. This project requires you to complete

As mentioned in the syllabus, there will be a project assignment weighing 5%. This project requires you to complete. As mentioned in the syllabus, there will be a project assignment weighing 5%. This project requires you to complete. As mentioned in the syllabus, there will be a project assignment weighing 5%. This project requires you to complete a comprehensive accounting example as attached using Xero https://www.xero.com/ accounting software. Go to the website to set an account for each one of you and it will give you a one-month free trial. Create your own company that has assets, liabilities, owners’ equity, revenues, and expenses. Once you are done, print out your company’s income statement, balance sheet

login attached
make a new account if needed

As mentioned in the syllabus, there will be a project assignment weighing 5%. This project requires you to complete

As mentioned in the syllabus, there will be a project assignment weighing 5%. This project requires you to complete

A220/ACG2209-Principles of Financial Accounting for Managers

A220/ACG2209-Principles of Financial Accounting for Managers. A220/ACG2209-Principles of Financial Accounting for Managers. Provide a 200-to-400-word initial post identifying the process you would take to set up a home budget for your specific household. Explain the specific cost categories that you would identify in determining your breakeven point for your budget (where your income matches the expenses). and excel sheet attached

A220/ACG2209-Principles of Financial Accounting for Managers

A220/ACG2209-Principles of Financial Accounting for Managers

A220/ACG2209 Principles of Financial Accounting for Managers

A220/ACG2209 Principles of Financial Accounting for Managers. A220/ACG2209 Principles of Financial Accounting for Managers. Provide a 200-to-400-word initial post identifying the process you would take to set up a home budget for your specific household. Explain the specific cost categories that you would identify in determining your breakeven point for your budget (where your income matches the expenses). and attached excel sheet

A220/ACG2209 Principles of Financial Accounting for Managers

A220/ACG2209 Principles of Financial Accounting for Managers

ACC-201-R2871 Financial Accounting 21EW2

ACC-201-R2871 Financial Accounting 21EW2. ACC-201-R2871 Financial Accounting 21EW2. 8-2 Discussion: Professional Relevance of Financial AccountingWhile understanding the basics of financial accounting is certainly important for accountants, it is also an important skill to have in all types of professional fields. In this discussion, you will make connections between your chosen field and what you have learned about financial accounting in this course.
Address the following in your initial post:
Describe your current or aspiring professional identity, including your career and the field in which you work or hope to work.
Think about the types of financial transactions your chosen field is likely to generate and how they will need to be reported and accounted for by the business. Describe at least three examples of such transactions and how they affect the financial statements and the business in general.
Reflect on and comment about the importance of financial accounting in your field.
In response to at least two of your peers, discuss any similarities with the field you have chosen or the transactions that need accounting. Explain whether you agree with their assessment of the importance of accounting in their field and why.

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ACC-201-R2871 Financial Accounting 21EW2

ACC-201-R2871 Financial Accounting 21EW2

Tax research

Tax research. Tax research. You are part of the auditing staff at Willis, Willis, and Willis, CPAs. Starship Entertainment, Inc. (“Starship”), a client of your firm, is a private company that operates one cruise ship. Starship purchased the cruise ship with nonrecourse debt. The cruise ship has its own identifiable cash flows that are largely independent of the cash flows of other asset groups. In addition, there is a cash account directly related to the cruise ship.
Because of an increased presence of pirates (yes, pirates!) in the area in which the cruise ship operates, its operating performance has significantly declined, which has directly contributed to a decline in its overall fair value. During 2020, Starship’s annual operating cash flows from the cruise ship declined by 30 percent to $1.5 million, and its annual operating cash flows are expected to continue to decline in the future. Because of this decline in the cruise ship’s fair value and operating performance, Starships’ management is evaluating the following possible options for proceeding into 2021 and beyond:
Continue operating the ship in the current area.
Operate the ship in a new pirate-free area.
Operate the ship in the current area through December 31, 2021, then turn the ship over to the lender (have the lender foreclose on the ship on January 1, 2022). Since Starship will let the ship be foreclosed on January 1, 2022, no repairs or maintenance will be done during 2021 so the net cash flows from operations will be a bit higher than Option A.
The following table presents the management of Starship’s estimate of future cash flows from each of the alternatives. Management has also estimated how likely they are to follow alternative A, B or C.

Estimated Cash Flows
(in $ millions)
Option
Probability of Occurring
2021
2022
2023
2024
2025
Total
A
15%
$1.0
$0.9
$0.7
$0.7
$0.8
$4.1
B
25%
$0.6
$0.8
$1.1
$1.5
$1.9
$5.9
C
60%
$1.1
$3.1[1]
$4.2
Your firm has been engaged to audit the financial statements for the year ended December 31, 2020. The problems with the cruise ship were discussed during your meeting with management earlier this month. Since the events indicate that the carrying amount of the asset group may not be recoverable, a test for recoverability and possible asset impairment under is in order.
As of December 31, 2020, the cruise ship’s estimated fair value is $3.1 million, net book value is $4.8 million, and estimated remaining useful life is five years. In addition, the net carrying value of the nonrecourse debt is $4.0 million and there is $100,000 of cash in the bank account directly attributable to the cruise ship. These are the only assets you must consider. Starship has other lines of business but they are unrelated to the cruise line.
Note: The fact that the debt is nonrecourse means that, for purposes of estimating cash flow from the foreclosure, debt up to the fair value of the ship is included. Debt in excess of the fair value of the ship is not part of cash flows. Option C correctly shows cash flow for the foreclosure on January 1, 2022.
Required
You have been asked to prepare an Accounting Research Memo to Eve Chu, CPA, an audit partner at your firm. A copy of your memo should go to the Starship Entertainment, Inc. 2020 Audit File.
Be sure to include a discussion of the following in your memo:
What assets and liabilities should be included in the “asset group” as defined for purposes of performing the recoverability test?
How do the multiple operating scenarios impact the recoverability test? Hint: find the weighted average approach in the Codification topic.
What impact should the potential foreclosure and extinguishment of debt have on the cash flows used to perform the recoverability test?
Describe the impairment test and whether or not recognition of impairment is required. If so, how much is the impairment write-down? Which asset(s) will be adjusted?
[1] Properly includes the ship’s FMV of $3.1 million as cash flow. Cash flows from foreclosure of nonrecourse debt is limited to the FMV of the surrendered asset.

Tax research

Tax research

You are working for a local accountant during tax season and the accountant has asked you to help with

You are working for a local accountant during tax season and the accountant has asked you to help with. You are working for a local accountant during tax season and the accountant has asked you to help with. You are working for a local accountant during tax season and the accountant has asked you to help with the tax preparation needs of Palo Alto, Inc. Palo Alto is a newly formed hi-tech company that specializes in manufacturing security chips for credit cards. The controller of Palo Alto, Michael Smith, would like your help with the following:

Write a short report, 2-3 pages, evaluating the tax issues related to Palo Alto Inc. Be sure to include the reconcilaton form last week and the tax for Schedule M-1 found at irs.gov. Based on the book income to taxable income reconciliation you completed in week 2, and any feedback provided, use the attached spreadsheet to assist you filling out the IRS form for Palo Alto’s Schedule M-1.

You are working for a local accountant during tax season and the accountant has asked you to help with

You are working for a local accountant during tax season and the accountant has asked you to help with