At December 31, 2017, Hyasaki Corporation has the following account balances: Bonds payable, due January 1, 2026 $2000000 Discount on bonds payable 88000 Interest payable 80000 Show how the above accounts should be presented on the December 31, 2017, balance sheet, including the proper classifications.

On January 2, 2019, Twilight Hospital purchased a $100,000 special radiology scanner from Bella Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner. Annual operating costs with this scanner are $105,000.

Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2019 from Bella Inc. was a mistake. He points out that Dyno has a scanner that will save Twilight Hospital $25,000 a year in operating expenses over its 3-year useful life. Jacob notes that the new scanner will cost $110,000 and has the same capabilities as the scanner purchased last year. The hospital agrees that both scanners are of equal quality. The new scanner will have no disposal value. Jacob agrees to buy the old scanner from Twilight Hospital for $50,000.

Your answer is correct.

If Twilight Hospital sells its old scanner on January 2, 2020, compute the gain or loss on the sale.

Gain on saleLoss on sale

$

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Prepare an incremental analysis of Twilight Hospital. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column, enter net income increases as positive amounts and decreases as negative amounts. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Retain
ScannerReplace
ScannerNet Income
Increase
(Decrease)

Annual operating costs$$$

New scanner cost

Old scanner salvage

   Total$$$

Should Twilight Hospital purchase the new scanner on January 2, 2020?

How do I fill out form 1040, schedule 1, schedule D, form 8949, schedule e, and form 8582?

Comprehensive Problem 4-2B

In 2018, Professor Patricia (Patty) Pâté retired from the Palm Springs Culinary Arts Academy (PSCAA). She is a single taxpayer and is 62 years old. Patty lives at 98 Colander Street, Apt. 206D, Henderson, NV 89052. Professor Pâté's Social Security number is 565-66-9378. In 2018, Patty had just a few months of salary from her previous job:

Patty owns a rental condo located at 392 Spatula Way, Mount Charleston, NV 89124. The condo rented for 60 days of 2018 for $850 a month but a mold problem was discovered in the condo, her renters moved out, and she was unable to rent the apartment after the repairs (although she vigorously pursued new tenants). Patty actively manages the property herself. The following are the related expenses for the rental house:

The condo was purchased on August 31, 1979. Professor Pâté handles all rental activities (e.g., rent collection, finding tenants, etc.) herself.

In 2018, Patty sold her beloved home for almost 30 years for $380,000 on February 27, 2018. Her basis in the home was $120,000 and she acquired the home sometime in July of 1988 (she could not remember the day).

Required:
Complete Form 1040 and the schedules and forms provided for Patty.

• The taxpayer had health coverage for the entire year.
• The taxpayer does not want to make a contribution to the presidential election campaign.
• Do not complete Form 4562 for reporting depreciation.
• Make realistic assumptions about any missing data.
• If an amount box does not require an entry or the answer is zero, enter "0".
• If required, round amounts to the nearest dollar.
• Enter all amounts as positive numbers except for the following special instructions: If required, on Form 1040, line 17 and on Schedule E, on lines 21, 25, and 26, use the minus sign to indicate a loss. On Form 8582, if required, use the minus sign to enter a "loss" as a negative number on the lines 1d and 4. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts.

Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.

Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.

At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:

Required:

1. Complete the following:

a. Compute the unit product cost under absorption costing.

b. What is the company’s absorption costing net operating income (loss) for the quarter?

c. Reconcile the variable and absorption costing net operating income (loss) figures.

3. During the second quarter of operations, the company again produced 33,050 units but sold 38,050 units. (Assume no change in total fixed costs.)

a. What is the company’s variable costing net operating income (loss) for the second quarter?

b. What is the company’s absorption costing net operating income (loss) for the second quarter?

c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.

When are sellers from online auction sites required to pay income tax? Please provide and discuss an example.

A city maintains the following funds:

1. General

2.Special Revenue

3.Capital projects

4.Debt service

5.Enterprise

6.Internal service

7. Permanent (trust)

8. Agency

For each of the following transactions, indicate the fund in which each transaction would most likely be recorded:

a.The city collects $3million of taxes on behalf of the country in which it is located

b.It spends $4 million to pave city streets, using the proceeds of a city gasoline tax dedicated for road and highway improvements

c. It receives a contribution of $5 million. Per the stipulation of the donor, the money is to be invested in marketable securities, and the interest from the securities is to be used to maintain a city park.

d.It collects $800,000 in landing fees at the city airport

e.It earns $200,000 on investments set aside to make principal payments on the city's outstanding bonds. The bonds were issued to finance improvements to the city's tunnels and bridges.

f.It pays $4 million to a contractor for work on one of the bridges

g.It pays $80,000 in wages and salaries to police officers

h. It purchases from an outside supplier $40,000 of stationary that it will sell to its various operating departments

Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $500,000, and factory payroll cost in April is $385,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $26,000; factory rent, $38,000; factory utilities, $24,000; and factory equipment depreciation, $56,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $660,000 cash in April. Costs of the three jobs worked on in April follow.

1. Materials purchases (on credit).
2. Direct materials used in production.
3. Direct labor paid and assigned to Work in Process Inventory.
4. Indirect labor paid and assigned to Factory Overhead.
5. Overhead costs applied to Work in Process Inventory.
6. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.)
7. Transfer of Jobs 306 and 307 to Finished Goods Inventory.
8. Cost of goods sold for Job 306.
9. Revenue from the sale of Job 306.
10. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)

2. Prepare journal entries for the month of April to record the above transactions.

Accounting profit includes “profits as shown on a company’s financial statements,” and it takes into consideration explicit costs, while economic profit is a broader measure of profit that includes the recognition of both explicit and implicit costs (like the cost of equity capital) (Froeb et al., 2018). A specific value to review to determine a firm's accounting profit is net income, which is referred to as “the bottom line” by accountants. A net income value can be found on a firm’s income statement. (Note that income statements for publicly traded firms within the United States can be found for free through an internet search.) A positive net income value would indicate that the firm is indeed generating accounting profit, while a negative net income value would indicate that the firm is not generating accounting profit. Economic profit is harder to measure since it also includes implicit costs, some of which can be difficult to measure since they are not necessarily easy to quantify. _____________________ 1. Select a U.S. publicly traded company. What level of net income did the firm achieve during the last year or period that you found (the value should be from the last 18 months)? Did the firm earn an accounting profit? Explain. 2. Assume the firm was unable to earn an economic profit? What does this mean for the firm you selected? 3. Explain why it is important for any firm to earn both an accounting profit and economic profit, and why any firm that only earns an accounting profit will likely not stay in business very long.

Super Speed Motor Co. assembles motors of sport cars. It jobs costing system has two direct cost categories (direct materials and direct labors) and one indirect cost pool (manufacturing overhead allocated at a budgeted rate per machine hour.)   The budgeted manufacturing overhead was $800,000 and the budgeted machine hours 200,000. The following data (in thousands) pertain to January 2020:

1. Direct materials and supplies purchased on account …………………………………    22

2. Direct materials used …………………………………………………………………    19

3. Indirect materials issued to various production departments …………………… …        2

4. Direct manufacturing labor paid…….……………………………………………….      20

5. Indirect manufacturing labor incurred by various departments ……………………..        8

6. Manufacturing overhead was incurred as follows:

           Depreciation ………………………………………………………………………..     2

            Expired insurance ………………………………………………………………….      1

            Miscellaneous manufacturing overhead ……………………………………….…..     4

7. Completed jobs and transferred to the warehouse…………………………………..       54

8. Credit sales …………………………………………………………………………        63

1. Cost of goods sold ………………………………………………………………….       50

10. Used machine hours during January………….……………………………………      4 hours

Required:

1. Prepare general journal entries to summarize January transactions.
2. As your final entry, dispose of the month end over or under allocated manufacturing overhead as a direct write off to Cost of Goods Sold.

Kingbird Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2017. Jim Alcide, controller for Kingbird, has gathered the following data concerning inventory.

At May 31, 2017, the balance in Kingbird’s Raw Materials Inventory account was $485,520, and Allowance to Reduce Inventory to Market had a credit balance of $27,470. Alcide summarized the relevant inventory cost and market data at May 31, 2017, in the schedule below.

Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Kingbird’s May 31, 2017, financial statements for inventory at lower-of-cost-or-market as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Assume Garcia uses LIFO inventory costing.

(a1) Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2017.

(a2) For the fiscal year ended May 31, 2017, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market.

Occurrence- transactions, and event that have been recorded have occurred and pertain to the entity

Completeness- all transactions and events that should have been recorded have been recorded

If assets, liabilities, or equity are not complete balances may be understated or overstated

With regard to the answer, what might be the reasons why when performing balances managements, one can find that:

Assets > Liabilities+Stockholders equity ? In your answer provide specific examples and ways to mitigate the errors.

Issue Price

The following terms relate to independent bond issues:

1. 430 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
2. 430 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
3. 810 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
4. 2,110 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments

Use the appropriate present value table:

PV of $1 and PV of Annuity of $1

Required:

Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.

Compare and contrast the narrative style of Notes from the Underground and Pointed Roofs Richardson and Dostoyevsky.