SPM 4723 Annotated Bibliography You second major proje.docx

SPM 4723
Annotated Bibliography
You second major project for the course will be an annotated
bibliography. Instead of writing a
paper, an annotated bibliography requires you to research a
particular legal topic or question, of
your choosing, in sports and find academic and law review
articles that address that topic. You
will develop a question about a legal topic in sports and find
seven law review articles to
summarize. Each article summary should be 300-350 words in
length and should both explain
the contents of the article and its relevance to your question or
topic. The summaries should be
written in your own words. You are required to select law
review articles using LexisNexis. The
format for the annotated bibliography is explained below.
Please put your topic as the title for your paper. Next, each
annotation should begin with the
APA citation for the article in bold print (do not include web
links), followed by a summary of

the article (300-350 words) explaining how it addresses your
question. The complete annotated
bibliography should be double-spaced, 12pt Times New Roman
font with one-inch margins. You
will be submitting it through Turnitin via Canvas, do not
include your name, course number,
date or UFID on your annotated bibliography (similar to the
case briefs). You should start each
annotation on a separate page, and please remember to begin
each annotation with the APA
citation for the article as instructed above. This assignment is
due on Wednesday, April 22nd.
1.Which of the following is not a key component of the
conceptual framework of accounting?
Select one:
a. internal users
b. the objective of financial reporting
c. cost constraint on useful financial reporting
d. elements of the financial statements
2.The balance sheet and income statement for Joe's Fish Hut are
presented below:
Joe's Fish Hut
Balance Sheet
As at December 31

2016
2015
ASSETS
Current Assets
Cash
$180,623
$60,300
Accounts receivable
$18,900
$14,200
Inventory
$23,600
$25,300
Total Current Assets
$223,123
$99,800
Property, plant & equipment
$129,000
$184,000
Less: Accumulated depreciation
$-26,900
$-21,600
TOTAL ASSETS
$325,223
$262,200
LIABILITIES AND EQUITY

Liabilities
Current Liabilities
Accounts payable
$28,000
$41,800
Current portion of bank loan
$9,500
$9,500
Total Current Liabilities
$37,500
$51,300
Non-current portion of bank loan
$71,000
$42,000
TOTAL LIABILITIES
$108,500
$93,300
Shareholders' Equity
Common shares
$80,000
$54,400
Retained earnings
$136,723
$114,500
TOTAL SHAREHOLDERS' EQUITY
$216,723
$168,900
TOTAL LIABILITIES AND EQUITY
$325,223
$262,200

Joe's Fish Hut
Income Statement
For the Year Ended December 31, 2016
Sales
$137,000
COGS
$83,200
Gross Profit
$53,800
Operating Expenses
Insurance Expense
$1,600
Rent Expense
$5,380
Salaries Expense
$5,150
Telephone Expense
$840
Interest Expense
$1,340
Depreciation Expense
$5,300
Total Operating Expenses
$19,610
Operating Profit Before Tax
$34,190
Income Tax Expense
$11,967
Net Profit (Loss)
$22,223
Complete the following ratio analysis.
Do not enter dollar signs or commas in the input boxes.Round
all answers to 2 decimal places.

a) Calculate the return on equity for 2016.
Return on Equity: Answer %
b) Calculate the return on assets for 2016.
Return on Assets: Answer %
c) Calculate the asset turnover ratio for 2016.
Asset turnover: Answer times
d) Calculate the current ratio for 2016.
Current Ratio: Answer
e) Calculate the quick ratio for 2016.
Quick Ratio: Answer
f) Calculate the debt to equity ratio for 2016.
Debt to Equity Ratio: Answer
g) Calculate the days sales outstanding ratio for 2016. Assume
all sales are credit sales.
Days sales outstanding: Answer days
h) Calculate the accounts receivable turnover for 2016. Assume
all sales are credit sales
Accounts Receivable turnover: Answer times
3. When investing, what is a debt instrument?
Select one:
a. lending cash to someone in order to receive interest income
b. buying shares of another organization
c. a strategic investment
d. an investment that is intended to be held for longer than one
year
4. The date on which the directors announce a future dividend
payment to shareholders is called the:

Select one:
a. date of record
b. dividend date
c. date of declaration
d. payment date
5. On February 1, 2016, Success Company accepted a six-month
note receivable as an extention of time for a balance of $15,000
owing from Climbing Company. The note has an annual interest
rate of 4%. Success Company has a June 30 year end.
Required
a) Prepare the appropriate journal entry for Success Company
when the note is signed.
Do not enter dollar signs or commas in the input boxes.
Date
Account Title and Explanation
Debit
Credit
Feb 1
AnswerAccounts PayableAccounts ReceivableAccumulated
DepreciationAdvertising ExpenseAllowance for Doubtful
AccountsBad Debt ExpenseCashInsurance ExpenseInterest
ExpenseInterest PayableInterest ReceivableInterest
RevenueNotes PayableNotes ReceivablePrepaid
InsurancePrepaid RentPrepaid Services
Answer
Answer

To convert accounts receivable to a note
b) Prepare the appropriate journal entry for the year-end
adjustment.
Round your answers to 2 decimal places.
Date
Debit
Credit
Jun 30
Answer
Answer
To accrue interest at year end
c) Climbing Company honoured the note. Prepare the

appropriate journal entry upon payment.
Round your answers to 2 decimal places.
Enter credit entries in alphabetical order.
Date
Debit
Credit
Aug 1
Answer
Answer
Answer

Answer
To receive note at maturity
6. On April 30, 2016, a company issued $630,000 worth of 7%
bonds at par. The term of the bonds is 8 years, with interest
payable semi-annually on October 31 and April 30. The year-
end of the company is November 30. Record the journal entries
related to interest for 2016 and 2017. Note that interest must be
accrued at the end of each year.
your answers to the nearest whole dollar.For transactions with
more than one debit, enter the debit accounts in alphabetical
order.
Date
Debit
Credit
Oct 31, 2016
AnswerAccounts PayableAccounts ReceivableAdvertising
ExpenseBonds PayableCashCommon SharesCost of Goods
SoldDiscount on BondsInterest ExpenseInterest PayableInterest
ReceivableInterest RevenueInventoryPremium on BondsPrepaid
RentRent ExpenseSalaries ExpenseSales RevenueSupplies
ExpenseTelephone ExpenseTravel ExpenseUnearned
RevenueUtilities Expense
Answer

Answer
Payment of bond interest
Nov 30, 2016
Answer
Answer

Accrued interest on bonds at year-end
Apr 30, 2017
Answer
Answer
Answer

Oct 31, 2017
Answer
Answer
Nov 30, 2017

Answer
Answer
Accrued interest on bonds at year-end
7. A $100,000 bond bears an interest rate of 6%. The bond was
issued at a price of $95,000. The actual amount of interest that
the bondholder would receive each year is:
Select one:
a. $5,700
b. $6,000
c. $100,000
d. $7,000
8. Liabilities are listed in order of:
Select one:
a. descending dollar balance
b. liquidity
c. due date
d. ascending dollar balance
9. What is the balance sheet called under IFRS guidelines?
Select one:
a. Statement of Account Balances
b. Statement of Cash Flows
c. Statement of Balance

d. Statement of Financial Position
10. Mirabella Manufacturing spent several years developing a
process for producing widgets. Its lawyer suggested patenting
the process. Accordingly, the company proceeded to obtain the
patent on January 1, 2016. The company paid $250,000 to the
lawyer plus $25,000 to the government for the patent. In
addition, other fees were incurred relating to the patent worth
$5,000.
Required
a) Prepare the journal entry to record the full cost of the patent.
Date
Debit
Credit
Jan 1
AmortizationAllowance for Doubtful AccountsAmortization
ExpenseBad Debt ExpenseBuildingCashEquipmentGain on
Disposal of AssetInventoryLandLoss on Disposal of
AssetMachine (New)Machine (Old)Notes PayableNotes
ReceivablePatentsTruck
Answer
Answer
Record the total relevant patent fees

b) The patent has an estimated life of 20 years. Prepare the
journal entry to record amortization for one year on December
31, 2016. Assume the straight-line method of depreciation is
used.
Round your answers to the nearest whole number.
Date
Debit
Credit
Dec 31
Answer
Answer
Record amortization for the year
11. Perform a horizontal analysis for Groff Inc. Use 2013 as the
base year.

your answers to 2 decimal places.
Groff Inc.
In Millions of Dollars
2016
2015
2014
2013
Revenue
$500
$326
$287
$197
Revenue Ratio
Answer%
Answer%
Answer%
Answer%
Net Income
$231
$223
$178
$99
Net Income Ratio
Answer%
Answer%
Answer%
Answer%
12. Bard Enterprises offered a customer a note for extended
payment on November 1, 2016. The $8,000 note was for 6
months at 5%. Bard Enterprises has a December 31 year end and
must accrue interest on that date. How much interest has
accrued on the note receivable on December 31, 2016?
Select one:

a. $200
b. $100
c. $67
d. $400
13. Under IFRS, which statement reconciles the opening balance
of various equity accounts with the closing balance of these
accounts?
Select one:
a. Statement of Changes in Equity
b. Cash Flow Statement
c. Statement of Owner's Equity
d. Balance Sheet
14. A customer that owes your company $6,000 for goods
purchased has gone bankrupt. What journal entry should your
company make to write-off this receivable?
Select one:
a. Debit Allowance for Doubtful Accounts $6,000, credit
Accounts Receivable $6,000
b. Debit Accounts Receivable $6,000, credit Allowance for
Doubtful Accounts $6,000
c. Debit Allowance for Doubtful Accounts $6,000, credit Cash
$6,000
d. Debit Cash $6,000, credit Accounts Receivable $6,000
15. A natural resource has a total cost of $1,200,000 and a
residual value of $200,000. It is expected to produce 5,000,000
units. The depletion per unit is:
Select one:
a. 24 cents per unit
b. $2 per unit
c. 4 cents per unit
d. 20 cents per unit
16. Last year, accounts payable was $49,000. This year accounts
payable is $9,000. Which of the following statements about the
statement of cash flow is correct?
Select one:
a. Cash has increased by $9,000 from financing activities

b. Cash has decreased by $40,000 from operating activities
c. Cash has decreased by $40,000 from financing activities
d. Cash has increased by $40,000 from operating activities
17. A natural resource has a total cost of $1,000,000 and a
residual value of $200,000. It is expected to produce 5,000,000
units. The depletion per unit is:
Select one:
a. 4 cents per unit
b. 20 cents per unit
c. 24 cents per unit
d. 16 cents per unit
18 . Chan-Nee Enterprises sells heavy-duty lawnmower
equipment. On May 16, 2017, they sold a lawnmower (on
account) for $41,000 which included a 4-year unlimited
warranty. The corporation's accountant estimates that $3,700
will be paid out in warranty obligations. The cost of goods sold
is $20,090. Assume Chan-Nee uses a perpetual inventory
system. Prepare the journal entries relating to these transactions
in the following order: the sales transaction, the cost of goods
sold transaction, and then the warranty transaction.
Date
Debit
Credit
May 16
Accounts PayableAccounts ReceivableAdvertising
ExpenseCashCommon SharesCost of Goods SoldEstimated
Warranty LiabilityInterest ExpenseInterest PayableInterest
ReceivableInterest RevenueInventoryLoan PayableNotes
PayablePrepaid RentRent ExpenseSalaries ExpenseSales
RevenueShareholders' LoanSupplies ExpenseTelephone
ExpenseTravel ExpenseUnearned RevenueUtilities
ExpenseWarranty Expense
Answer

Answer
To record the sale of the lawnmower
May 16
Answer

Answer
To record the sale of inventory
May 16
Answer
Answer
To accrue for estimated warranty costs
19. Sugar Company purchased 25% of Benjamin Company’s
400,000 common shares outstanding, on March 1, 2016. Sugar

Company paid $6.00 per share. Sugar Company is considered to
have significant influence over Benjamin Company and applies
the cost method for recording this investment. Sugar Company’s
year-end is on December 31. The company follows ASPE.
a) Prepare journal entry for the acquisition of Benjamin
Company’s common shares by Sugar Company.
b) Prepare journal entry for the $23,000 dividends received
from Benjamin Company on December 31, 2016.
c) On January 1, 2017, Sugar Company sold 10% of Benjamin
Company’s outstanding common shares for $7.00 per share.
Prepare the journal entry for this transaction.
Do not enter dollar signs or commas in the input boxes.For
transactions with more than one debit or more than one credit,
enter the accounts in alphabetical order.Round all answers to
the nearest whole number.
Date
Debit
Credit
Mar 1
AnswerAccounts PayableAccounts ReceivableCashCost of
Goods SoldDividend RevenueGain on Fair Value
AdjustmentGain on Sale of InvestmentInterest
ReceivableInterest RevenueInventoryInvestment in
AssociateLong-Term InvestmentLoss on Fair Value
AdjustmentLoss on Sale of InvestmentOCI - Gain on Fair Value
AdjustmentOCI - Loss on Fair Value AdjustmentPrepaid
RentRent ExpenseRevenue from Investments in AssociateSales
RevenueShort-Term Investment
Answer

Answer
To record acquisition of common shares
Dec 31
Answer

Answer
To record dividends received
Jan 1
Answer
Answer

Answer
To record sale of common shares
20. Determinable liabilities:
Select one:
a. are the first sign of trouble
b. are negotiable
c. are estimated
d. have a precise value
21 Which of the following is included in the equity section of a
partnership?
Select one:
a. Share Capital
b. Partner Retained Earnings
c. Partner Capital Account
d. Owners' Equity
22. The balance sheet and income statement for Joe's Fish Hut
are presented below:
Joe's Fish Hut
Balance Sheet
As at October 31
2016
2015
ASSETS
Current Assets

Cash
$137,192
$66,600
Accounts receivable
$20,900
$13,900
Inventory
$22,000
$28,500
Total Current Assets
$180,092
$109,000
Equipment(1)
$150,000
$176,000
Less: Accumulated depreciation
$-25,100
$-22,900
TOTAL ASSETS
$304,992
$262,100
LIABILITIES AND EQUITY
Liabilities
Current Liabilities
Accounts payable

$28,200
$39,600
Current portion of bank loan
$9,500
$9,500
Total Current Liabilities
$37,700
$49,100
Non-current portion of bank loan
$76,000
$45,000
TOTAL LIABILITIES
$113,700
$94,100
Shareholders' Equity
Common shares
$70,000
$52,100
Retained earnings(2)
$121,292
$115,900
TOTAL SHAREHOLDERS' EQUITY
$191,292
$168,000
TOTAL LIABILITIES AND EQUITY
$304,992
$262,100
Additional Information:1. Equipment
During 2016, equipment was sold for a gain of $6,700. The cash
proceeds from the sale totaled $32,700.
2. Retained Earnings
Joe's Fish Hut declared and paid $10,000 in dividends in 2016.

Joe's Fish Hut
Income Statement
For the Year Ended October 31, 2016
Sales
$137,000
COGS
$89,050
Gross Profit
$47,950
Operating Expenses
Depreciation Expense
$2,200
Other operating expenses
$28,770
Total Operating Expenses
$30,970
Operating Income
$16,980
Other Income
Gain on Sale of Equipment
$6,700
Net Income Before Tax
$23,680
Income Tax
$8,288
Net Income
$15,392
Create the cash flow statement using the indirect method.
Do not enter dollar signs or commas in the input boxes.Use the
negative sign for a decrease in cash.
Joe's Fish Hut
Cash Flow Statement
For the Year Ended October 31, 2016

Cash Flow from Operations
Net Income
Answer
Add: Depreciation
Answer
Less: Gain on sale of equipment
Answer
Change in Current Assets and Current Liabilities
Change in Accounts Receivable
Answer
Change in inventory
Answer
Change in Accounts Payable
Answer
Change in Cash Due to Operations
Answer
Cash Flow from Investing
Sale of equipment
Answer

Change in Cash Due to Investing
Answer
Cash Flow from Financing
Sale of common shares
Answer
Receipt of bank loan
Answer
Payment of cash dividend
Answer
Change in Cash Due to Financing
Answer
Net increase (decrease) in cash
Answer
Cash at the beginning of the year
Answer
Cash at the end of the year
Answer
23 Cost of goods sold, office supplies expense and depreciation
expense impact:
Select one:
a. profitability ratios
b. balance sheet ratios

c. debt-to-equity ratios
d. liquidity ratios
24 Controls related to non-current liabilities should ensure that:
Select one:
a. joint ventures, research and development partnerships and
operating leases are kept off the books
b. pension fund assets and liabilities are reported in footnote
form only
c. all future payments for interest and principal and made on
time
d. off-balance sheet financing is not disclosed in the financial
statements
25 Henge Inc. is planning to purchase $296,000 worth of 6-year
bonds issued by William Company, a publically traded company
in Ontario, on January 1, 2016 for $281,268. The interest rate of
the bonds is 5% annually; payments are made semi-annually on
June 30 and December 31 every year. The interest rate paid by
similar bonds is at 6% per year in the market. Henge Inc. has a
December 31 year-end.
Required
Prepare journal entries for the bonds’ acquisition, the first and
last interest payments and retirement of the bonds on January 1,
2022.
transactions that have 2 debits or 2 credits, enter the accounts in
alphabetical order.Round all answers to the nearest whole
number.
Date
Debit
Credit
Jan 1, 2016

Answer
Answer
To record purchase of bonds at discount
Jun 30, 2016
Answer

Answer
Answer
To record cash received and amortized discount
Dec 31, 2021

Answer
Answer
Answer
To record cash received and amortized discount
Jan 1, 2022

Answer
Answer
To record receipt of cash at maturity
26. Which of the following is an example of a typical method of
dividing earnings in a partnership?
Select one:
a. According to the drawings made by each partner
b. According to the capital contribution of each partner
c. First come first serve
d. Randomly
27. The bookkeeper of ABC Gym receives advanced

membership payments from customers and records it as revenue.
Which of the following principles did the bookkeeper violate?
Select one:
a. The consistency principle
b. The measurement principle
c. The disclosure principle
d. The revenue recognition principle
28. On September 1, 2017, Krazy Kitty Inc. declared $195,000
of dividends payable to shareholders on October 3, 2017. There
are 20,300 common shares worth $649,600 and 12,800, $0.50
cumulative preferred shares worth $665,600. No new shares
were issued during the year and dividends were last declared in
2013. The company had retained earnings of $2,827,000 at the
beginning of the accounting period and earned a net income of
$795,000 during the year. Write the journal entry to record the
declaration and subsequent payout of the dividends. The
company uses the cash dividends method to record dividends.
transactions that have 2 debits or credits, enter the accounts in
alphabetical order.
Date
Debit
Credit
Sep 1
ExpenseBuildingCashCash Dividends - CommonCash Dividends
- PreferredCommon Share Dividends DistributableCommon
SharesCost of Goods SoldDividends PayableIncome
SummaryInterest ExpenseInterest PayableInterest
ReceivableInterest RevenueInventoryLandLegal ExpensePrepaid
RentRent ExpenseRetained EarningsSalaries ExpenseSales
RevenueSupplies ExpenseTelephone ExpenseTravel
ExpenseUtilities Expense
Answer

Answer
Answer
Record dividend payable
Oct 3

Answer
Answer
Record payment of dividend declared on Sep 1

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