Rocky Point Brewery (RPB) plans to file an initial public offering (IPO) in December 20X4. The IPO filing will include calendar year-end financial statements for 20X1, 20X2, and 20X3. Olsen & Alain, CPAs (O&A) has performed calendar year end audits of RPB since 20X0 and also helped RPB prepare monthly financial statements in accordance with AICPA independence rules. O&A terminated the accounting services in December 20X2. Which statement best describes why O&A may continue to perform RPB's audit when it files its IPO under SEC independence rules? a. O&A's fee for auditing the combined company will be less than 5% of its revenues. b O&A performed only permissible accounting services during the period covered by the financial statements. c. O&A will pay for an independent firm to reperform the accounting services for all periods in the filing. d. O&A will be independent under SEC independence rules for the most recent year included in the IPO filing.

Upon inception in 2019, AVX Corp. (AVX) set up its business in a small office building in Toronto and entered into an agreement with Executive Furniture Inc. to purchase office furniture for the building on a month-by-month basis (two sets of furniture per month), with the expectation that AVX would be hiring two new employees each month on average. As AVX experienced considerable growth throughout 2020, it hired 25 additional employees at the same time, and its office building was NO longer sufficient to meet its needs.   On December 15, 2020, AVX moved out of its original office building and into a new, larger office. Due to configurations in the new office, AVX had to purchase a different type of office furniture (including stand-up desks) for all of its employees.   AVX has been trying to negotiate with Executive Furniture Inc. to get out of the original purchase agreement, which requires AVX to pay $4,000 per month at the beginning of each month until December 2022, since AVX has…

The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020 and that Mulatto Company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following info.      Issued ________shares of common stock. Stock has par value of ___ per share and was issued at $____ per share. # of shares issued Par Value Issue price 100,000 $ 0.60 $ 30.00   Issued _______ shares of preferred stock at par value as payment in exchange for legal services.       # of shares issued 14,000      Exchanged ______ shares of common stock for land with an appraised value of $______ and a building with an appraised value of $_____.    # of shares issued…

Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.4 million cash on October 1, 2024, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries on October 1, 2024, to record (a) the…

Duakwanta is a listed company which manufactures personal computers (PCs). It is preparing its financial statements for the year ended 31 May 2019 and would like to seek advice on the following accounting issue: During the year, Duakwanta issued a debt finance to the financial markets to fund its expansion plans. This was a very significant debt issue for Duakwanta. After the issue, the market price of each block of debt on the market fell by approximately 10%. The financial press has stated that the reason for the fall is due to an increase in the company's credit risk, as the market players are worried by the size of the interest payments on Duakwanta's operating cash flows. Required: Advise the directors as to the financial reporting issues arising from the above scenario and explain the appropriate treatment in Duakwanta’s financial statements.

The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020 and that Mulatto Company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information: Issued 45,500 shares of common stock. Stock has par value of 0.30 per share and was issued at $30 per share. Issued 8, 000 shares of preferred stock at par value as payment in exchange for legal services. Exchanged 160,000 shares of common stock for land with an appraised value of $400,000.00 and a building with an appraised value of $650,000.00. Earned Net income $650,000.00 Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info…

B- Cell Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes B- Cell to issue 60,000 shares of 7%, $50 par value cumulative preferred stock and 100,000 shares of $1 par value common stock. During the first month, B- Cell completed the following transactions: a (Click the icon to view the transactions.) Read the reguirements. Requirement 1. Record the transactions in the general journal. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) More Info Requirements Oct. 2 Issued 21,000 shares of common stock for a building with a market value of $210,000. 1. Record the transactions in the general journal. 2. Prepare the stockholders' equity section of B- Cell's balance sheet at October 31, 2018. Assume B - Cell's net income for the month was $89,000. Oct. 6 Issued 950 shares of preferred stock for $90 per share. Oct. 9 Issued 14,000 shares of common stock for cash of…

The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020 and that Mulatto Company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. Issued 45,500 shares of common stock. Stock has par value of 0.30 per share and was issued at $30 per share. Issued 8, 000 shares of preferred stock at par value as payment in exchange for legal services. Exchanged 160,000 shares of common stock for land with an appraised value of $400,000.00 and a building with an appraised value of $650,000.00. Earned Net income $650,000.00 Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Prepare Mulatto…

A company prepares its financial statements according to International Financial Reporting Standards. During 2024 the company incurred $1,265,000 in research expenditures to develop a new product. An additional $776,000 in development expenditures were incurred after technological and commercial feasibility was established and after the future economic benefits were deemed probable. The project was successfully completed and the new product was patented before the end of the 2024 fiscal year. Sale of the product began in 2023. What amount of the above expenditures would be expensed in the 2024 income statement?