Creating Journals And Balance Sheet For Loki Corporation - 2750 Words

Financial Accounting, Creating Journals And Balance Sheet For Loki Corporation (Coursework Sample) Content: Unit 7 ExercisesWorth 3% of total grade.Due no later than 11:00 PM Atlantic Time on Saturday of Unit 7 * This assignment is subject to the Late Submission penalty policy, namely 5% per day for three days. * This page will close and will not allow further submissions after this Late Submission period has expired. * In the event of an emergency situation preventing you from submitting within this time frame, special permission must be obtained from your instructor. Documentation substantiating emergency is required. In such a circumstance, if the extension is granted, the professor will reopen the submission function for you on an individual basis. * Please do not email your submissions to your professor, either before or after the due date; all coursework should be submitted through the online course (Moodle).Students are to complete the exercises in Word (or some other compatible word processor) and submit to the submission link below.Question 1:Loki Corporation earne d net income of $70,000 during the year ended December, 31 2016. On December 15, Loki had declared the annual cash dividend on its $0.50 preferred shares (10,000 shares issued for $100,000) and a $0.60 per share cash dividend on its common shares (25,000 shares issued for $50,000). Loki then paid the dividends on January 4, 2017.Journalize the following for Loki Corporation. 1 Declaring the cash dividends on December 15, 2016Date Account name Debit credit Dec 15th 2016 Retained earnings 50000 + 30000 = 80000 Dividends payable 80000 2 Paying the cash dividends on January 4, 2017.Date Account name Debit credit Jan 4th 2017 Dividends payable 80000 cash 80000 Did Retained Earnings increase or decrease during 2016? If so, by how much?Increase in retained earnings = net income retained earnings= 70,000 80,000 = -10,000The retained earnings decreased by 10,000Question 2:IMA Believer Corps balance sheet reported the following shareholders equity as of December 31, 2016:Shar e Capital: Preferred shares, $100 stated value; $5 cumulative, 10,000 shares authorized, 10,000 issued $1,000,000 Common shares 200,000 shares authorized, 50,000 shares issued 500,000 Total share capital $2,500,000 Retained earnings 500,000 Total shareholders equity $3,000,000 Assuming there are 3 years dividends in arrears (including that of the current year), determine (1) preferred equity and (2) book value per share of common shares.1.Preferred equity =2.Book value per share of common shares = (stakeholders equity- preferred stock )/ average shares outstanding =Question 3:Settlers of Catan Co is authorized to issue an unlimited number of common shares and 10,000 preferred shares. During its first year, the business completed the following share issuance transactions:July 19: Issued 10,000 common shares for cash of $6.50 per share.Oct 3: Issued 500, $1.50 preferred shares for $50,000 cash.Oct 11: Received inventory valued at $11,000 and equipment with fair value of $8,500 for 3,300 common shares.Requirements: 1 Journalize the transactions. Explanations are not required.Date Account name Debit credit July 19th Cash 65000 Common stock 10000 Paid in capital in excess 55000 Oct 3rd Inventory 11000 Equipment 8500 Common shares 19500 2 Prepare the shareholders equity section of Settlers of Catan Cos balance sheet. The ending balance of Retained Earnings is a deficit of $42,000.Catan CorporationBalance SheetAs at Oct 12th, 2017Current assetsliabilitiesCash 65000amount payable 55000Stock 10000Fixed assets stakeholders equityInventory 11000common shares 19500Equipment 85000retained earnings42000Total assets 171000 Total shareholders equity 116500Total shareholders equity and liability 171000Question 4:Given the following information for Victory Stables, calculate their return on assets, return on equity and comment on the use of these ratios (why would we use them, what do they tell us).Net income $5 0,000 Interest expense 8,500 Income tax expense 15,250 Preferred dividends 2,500 Beginning of the Year End of the Year Current assets $62,000 $82,000 Current liabilities 25,000 55,000 Plant and equipment 300,000 350,000 Long-term liabilities 50,000 75,000 Common shareholders equity 125,000 225,000 Preferred shareholders equity 60,000 85,000 Return on assets = net income/total assets= 50000/432000= 0.116Return on equity = net income/equity= 50000/310000= 0.1613The ratios are used to show how profitable a company is relative to its total assets or equity.Question 5:Multigrain Health Foods Inc. is authorized to issue 5,000,000 common shares. In its initial public offering during 2010, Multigrain issued 500,000 common shares for $7.00 per share. Over the next year, Multigrains share price increased and the company issued 400,000 more shares at an average price of $8.50.During the next seven years, from 2010 to 2016, Multigrain earned net income of $920,000 and declared and paid cash di vidends of $140,000. A 10% stock dividend was distributed to the shareholders in 2016 on the shares outstanding. The market price was $8.00 per share when the stock dividend was distributed. At December 31, 2016, the company has total assets of $14,500,000 and total liabilities of $6,820,000.Show the computation of Multigrains total shareholders equity at December 31, 2016. Present a detailed computation of each element of shareholders equity.Shareholders equity = common shares + preferred shares + additional paid in capital + retained earnings treasury stock=EvaluationFinancial Accounting focuses heavily on finding solutions to numerical problems. With that in mind, most units will include a number of problems. For each problem, you will need to provide more than a simple numerical response. Your solutions should thoroughly address the issue and present the findings in a meaningful format similar to those developed within the chapters and as part of th e review exercises solutions. Part value may be assigned for incorrect responses providing evidence of understanding of the principles exist.Case Analysis #4 * Due no later than 11:00 PM Atlantic Time on Sunday of Units 7 * Assignment value: 6% * This assignment is subject to the Late Submission penalty policy, namely 5% per day for three days. * This page will close and will not allow further submissions after this Late Submission period has expired. * In the event of an emergency situation preventing you from submitting within this time frame, special permission must be obtained from your instructor. Documentation substantiating emergency is required. In such a circumstance, if the extension is granted, the professor will reopen the submission function for you on an individual basis. * Please do not email your submissions to your professor, either before or after the due date; all coursework should be submitted through the online course (Moodle).Objectives: * to develop an ability to identify and assume an assigned role; * to be able to identify and rank the importance of explicit issues; * illustrate the importance of hidden (undirected) issues that arise from a detailed analysis; * to identify accounting issues (GAAP/IFRS compliance issues), assess their implications, generate alternatives, and provide recommendations within the bounds of GAAP/IFRS to meet the clients needs; * to examine how accounting standards impact financial measures (ratios, covenants, etc); and * to prepare a coherent report and integrated analysis that meets specific user needs.Instructions:In order to complete your case analysis successfully, items you should consider are as follows: * identify the role you are playing; * assess the financial reporting landscape, considering the user needs, constraints, and business environment; * identify the issues; * analyze the issues (qualitatively and quantitatively); and * provide a recommendation for each issue identified in the case.An ave rage grade will come from you answering all questions with basic coverage and accuracy, showing all your work. Additional points come from including greater detail, astute, informed commentary where appropriate and connections to readings and other content.Respond in a single Word doc (or comparable text editor).The Royal Pets Hotel and SpaBackgroundYou are an Analyst for the professional service firm, BUSI 1043 LLP. Your firm specializes in providing a wide variety of internal business solutions for different clients. One of the major partners at your accounting firm, Justin Medakiewicz, has just dropped of a mountain of files and other paper work on your desk with a note at the top marked urgent. As a result, you put your other work aside and begin to sift through the information.Additional ...