Wynn Sheet Metal reported an operating loss of $196,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 40%. Taxable income, tax rates, and income taxes paid in Wynn’s first four years of operation were as follows: Taxable Income Tax Rates Income Taxes Paid 2014 $ 78,000 30 % $ 23,400 2015 88,000 30 26,400 2016 98,000 40 39,200 2017 78,000 45 35,100 Required: 1. Complete the following table given below and prepare the journal entry to recognize the income tax benefit of the operating loss. Wynn elects the carryback option. 2. Show the lower portion of the 2018 income statement that reports the income tax benefit of the operating loss.

The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system.

Compute the following amounts for the month of May using T-accounts.

1. Cost of direct materials used.
2. Cost of direct labor used.
3. Cost of goods manufactured.
4. Cost of goods sold.*
5. Gross profit.
6. Overapplied or underapplied overhead.

  
*Do not consider any underapplied or overapplied overhead.

You take out a 25 year, $275, 000 mortgage with constant payments at the end of each month and i (12) = 6%. After 15 years, you wish to refinance the mortgage with a 10 year mortgage (also with constant payments at the end of each month) so that you pay $100 less each month than you originally were paying. Find the monthly nominal interest rate corresponding to this new mortgage

Howarth Manufacturing Company purchased a lathe on June 30, 2014, at a cost of $115,000. The residual value of the lathe was estimated to be $10,000 at the end of a five-year life. The lathe was sold on March 31, 2018, for $34,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service.

Required:
1. Prepare a schedule to calculate the gain or loss on the sale. (don't need)
2. Prepare the journal entry to record the sale.
3. Assuming that Howarth had instead used the sum-of-the-years’-digits depreciation method, prepare the journal entry to record the sale.

Waving Through the Window You and your two roommates are starting a window washing service to help put yourself through college. There are two other well-established window washing services in your area. Should you set your price higher or lower than that of the competition? Justify your answer. One roommate believes the most important objective in setting prices for the business is to generate a large profit, while keeping an eye on your competitors’ prices; the other roommate believes it is important to maximize sales and set prices according to what your customers expect to pay. Who is right and why? How do the number of competitors in the market in this situation affect YOUR pricing strategy?

What is the current financial situation of Tesla Motors (liquidity, debt, activity, etc.)?

List sites that you gathered the information from.

The "New Expenses" account is authorized by your manager. At the end of the period, you notice that there are several transactions under this account that you do not understand. Your manager is a no-nonsense type of person and does not like trivial and/or un-researched issues brought to her/his attention. What is your course of action?

On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $58,000. Residual value at the end of an estimated four-year service life is expected to be $10,000. The company expects the machine to operate for 15,000 hours. The machine operated for 3,600 and 4,400 hours in 2018 and 2019, respectively.

a. Calculate depreciation expense for 2018 and 2019 using straight line method. (don't need)
b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years'-digits method.

C. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.

d. Calculate depreciation expense for 2018 and 2019 using units-of-production method (using machine hours).
  

(Round "Depreciation per machine hour" answers to 2 decimal places.)

Redard Corporation Comparative Balance Sheets June 30, 2013 and June 30 2014 Assets 2013 2014 Cash 50,000 164,800 Accounts Receivable 230,000 195,200 Inventory 420,000 320,000 Prepaid Expenses 6,000 5,000 Furniture 144,000 148,000 Accumulated Depr - Furniture (24,000) (42,000) Total Assets 826,000 791,000 Liabilities & Stockholder’s Equity Accounts Payable 200,400 143,400 Income tax payable 7,400 4,400 Notes Payable (Long term) 20,000 40,000 Bond Payable 200,000 100,000 Common Stock $10 par value 200,000 240,000 Additional paid in capital 121,440 181,440 Retained Earnings 76,760 81,760 Total Liabilities & S/E 826,000 791,000 Redard Corporation Income Statement June 30, 2014 Sales 1,609,000 Cost of Goods Sold 1,127,800 Gross Profit 481,200 Operating Expenses 349,400 Operating Income 131,800 Gain on sale of furniture 7,000 Interest expense 23,200 Income before income taxes 115,600 Income tax expense 4,600 Net Income 111,000 Additional information: 1. Paid dividends of $6,000 2. Market price – $75.00

Find the following ratios for 2014:

Debt to Equity Ratio

Number of times interest Earned

Profit Margin

Assets Turnover

Return on Assets

Return on Equity

Earnings per Share

Price/Earnings Ratio

Dividend Yield

Entries and Schedules for Unfinished Jobs and Completed Jobs

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:

1. Materials purchased on account, $1,890.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$2,030		$2,240
   102	2,480		3,020
   103	1,640		1,480
   104	5,560		5,560
   105	3,530		4,230
   106	2,580		2,690
   For general factory use	690		3,320

3. Factory overhead costs incurred on account, $3,880.
4. Depreciation of machinery and equipment, $1,590.
5. The factory overhead rate is $45 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		22
   102		34
   103		15
   104		67
   105		38
   106		37
   Total		213

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $6,310; Job 102, $8,440; Job 105, $11,010.

Required:

1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month.

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

If a corporation had retained earnings of $10,000,000, what percentage of that total should they use to pay dividends to their shareholders? What factors should the management of the company consider?