Please prepare accounting entries or answer the questions asked for the following independent situations: 1. Diamond...

Please prepare accounting entries or answer the questions asked for the following independent situations: 1. Diamond Company owns 40% of the stock of Silver Company. On January 1, 2019, Silver reports total income of $4,000,000. On June 1, 2019, Silver pays total dividends to its shareholders of $1,000,000. Prepare the necessary accounting entries for Diamond. 2. May Company purchased a bond issued by August Company on September 1, 2019 for $1,000,000. The bond is properly classified as Trading. On December 31, 2019, the market price of the bond is $1,100,000. Prepare the appropriate adjusting entry for May Company. 3. Strong Company has a temporary difference of $5,000,000 that properly gives rise to a deferred tax liability. The tax rate is 30%. Accordingly, Strong records a DTL of $1,500,000 on its books. What would the result be if Congress were to lower the tax rate to 20% assuming the temporary difference still exists. 4. Briefly distinguish a contract asset from a contract liability.

Expert Solution

ekkarill92 answered 1 year ago

Problem Five Please prepare accounting entries or answer the questions asked for the following independent situations:...

Problem Five Please prepare accounting entries or answer the questions asked for the following independent situations: 1. Diamond Company owns 40% of the stock of Silver Company. On January 1, 2019, Silver reports total income of $4,000,000. On June 1, 2019, Silver pays total dividends to its shareholders of $1,000,000. Prepare the necessary accounting entries for Diamond. 2. May Company purchased a bond issued by August Company on September 1, 2019 for $1,000,000. The bond is properly classified as Trading....

Please prepare accounting entries or answer the questions asked for the following independent situations (SHOW ALL...

Please prepare accounting entries or answer the questions asked for the following independent situations (SHOW ALL WORK): Diamond Company owns 40% of the stock of Silver Company. On January 1, 2019, Silver reports total income of $4,000,000. On June 1, 2019, Silver pays total dividends to its shareholders of $1,000,000. Prepare the necessary accounting entries for Diamond. May Company purchased a bond issued by August Company on September 1, 2019 for $1,000,000. The bond is properly classified as Trading. On...

question 1 Prepare the journal entries for the following independent situations: a) Records Plus paid for...

question 1 Prepare the journal entries for the following independent situations: a) Records Plus paid for several patents on January 1, 2020 for a total price of $300,000. The patents have a legal life of 25 years and are expected to provide revenues for the next 12 years. Record the purchase on January 1, 2020 and the annual depreciation on December 31, 2020. b) January 1, 2020, PG Mower Ltd. paid $800,000 to acquire Garden Man Ltd. Garden Man had...

Answer the questions asked about each of the factual situations. 1. Alatorre purchased a patent from...

Answer the questions asked about each of the factual situations. 1. Alatorre purchased a patent from Vania Co. for $1,715,300 on January 1, 2012. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2022. During 2014, Alatorre determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated...

Following the Nurses code of ethics please answer the following questions given two situations. SAM is...

Following the Nurses code of ethics please answer the following questions given two situations. SAM is a 14 year old hospitalized for relapse of leukemia after bone marrow transplant. The family has been told his condition is terminal, there is nothing to do except keep him comfortable. His mother is distant, uncommunicative, rarely visits. When visiting she doesn’t touch SAM or speak to him. She sits in a chair and reads books. The staff call a family meeting, the mother...

GOVERNMENTAL ACCOUNTING: Prepare the journal entries for the following (note-the bureau is an enterprise fund) 1....

GOVERNMENTAL ACCOUNTING: Prepare the journal entries for the following (note-the bureau is an enterprise fund) 1. The board of the Bureau of Electricity and Water apporved the construction of a new office building. The construction, including planning and architect fees, was estimated to be $900,000 2. In July, the office building contract was signed for the amount of $865,000 3. In October, the Bureau's office construction was completed. Of the contracted amount from above, a portion was paid but the...

The following three separate situations require adjusting journal entries to prepare financial statements as

Question: The following three separate situations require adjusting journal entries to prepare financial statements asof April 30. For each situation, present both:∙ The April 30 adjusting entry.∙ The subsequent entry during May to record payment of the accrued expenses.Entries can draw from the following partial chart of accounts: Cash; Accounts Receivable; PrepaidInterest; Salaries Payable; Interest Payable; Legal Services Payable; Unearned Revenue; Revenue; SalariesExpense; Interest Expense; Legal Services Expense; Depreciation Expense.a. On April 1, the company retained an attorney for a...

Please answer the following questions a) What is Encryption in accounting information system and what are...

Please answer the following questions a) What is Encryption in accounting information system and what are the steps in the encryption and decryption process? b) What are the factors that influnces encryption strength? c) What types of encryption systems and the advantages and disadvantages , risks and their primay uses in information systems? d) How does hashing, digital signatures, and virtual private networks process in encryption?

Please answer the following questions: Q1 Trendy Coats is looking at financials to prepare end of...

Please answer the following questions: Q1 Trendy Coats is looking at financials to prepare end of year reports. It purchases cotton to make their coats. Actual quantity of pounds purchased was 8,000 pounds. Standard quantity was 10,000 pounds. Actual price per pound was $1.25. Standard price per pound was $1.05. What is Trendy Coats’ materials price variance? a. ($1,600) Favorable; they paid a price higher than what was expected. b. $10,000 Unfavorable; they paid a price higher than what was...

Three independent situations follow. Answer the questions at the end of each situation. Mozart Inc., sold...

Three independent situations follow. Answer the questions at the end of each situation. Mozart Inc., sold $3 million of 10-year, 10% bonds at 104 on January 1, 2008. The bonds were dated January 1, 2008, and pay interest on July 1 and January 1. If Mozart uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2008, and December 31, 2008. Spigolo Ltd., issued $600,000 of 10-year, 9%...

Question