Metlock Corporation was organized on January 1, 2017. It is authorized to issue 10,400 shares of 8%, $100 par value preferred stock, and 534,200 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year.

Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Computer Depot was incorporated on January 1st. The business maintains a retail personal computer replacement parts store, and also provides a full range of services, including computer diagnostic services, virus removal, hardware replacement, software installation and upgrades, and optimization services. The following transactions occurred during the first twelve months of operations: January 1st Common stock is issued in exchange for cash in the amount of ………….………….……………………… 350,000 February 8th The company purchases and pays for 300 units of computer replacement parts at a price of $25 per unit ………….. 7,500 March 1st The company pays cash for a one-year insurance policy in the amount of ……………….………………………..….. 10,752 March 31st Rent on a retail space for 12 months is paid in the amount of …..……….……………………………………… 10,512 April 1st Diagnostic tools and testing equipment with a useful life of 2 years is purchased for cash in the amount of …… 23,460 April 10th PC tuning supplies purchased on account in the amount of …………..…………………………………………… 4,250 May 15th The company purchases and pays for another 300 units of computer replacement parts at a price of $38 per unit ….. 11,400 May 30th PC repair services are performed on account in the amount of …………………………………………………………..………… 10,538 June 1st The company pays for advertisements to be run for the next 12 months in the amount of ………………………. 1,540 June 30th The company issues a 5-year bond with a face value of $100,000 and a stated annual rate of 8%. Interest is due on June 30th each year. The market rate is 6% on the date of issuance ……………………………. 100,000 July 25th Software installation & upgrade services are performed on account in the amount of …...……………………………..………… 10,759 July 31st 120 units of computer replacement parts are sold for $75 per unit with terms 2/10, n/30. The sale is recorded using the gross method in the amount of (see note c for cost flow assumptions) ……………………………………………………………………………………. 9,000 August 2nd Hardware replacement services are provided on account in the amount of ………………………………………………………………. 9,820 August 6th The company receives full payment from the customer for the July 31st sale ……………………………………… 7,350 September 15th Virus removal services are performed on account in the amount of ……………………..…………………………….………….. 6,295 September 29th Customer payments are received for services previously provided in the amount of ……………………………….. 1,520 October 13th 136 units of computer replacement parts are sold for $75 per unit with terms 2/10, n/30. The sale is recorded using the gross method in the amount of ………………………………………………………………………………………. 10,200 October 29th The company receives payment for half of the October 13th sale ……………………………………………………… 5,100 November 1st Equipment originally purchased on April 1st for $3,000 is sold for $1,500 cash November 15th A bookkeeper is hired to help the company with daily accounting taxes and annual tax preparation December 15th The bookkeeper is paid $4,500 for the previous month's services 4,500 Additional information: a. PC tuning supplies on hand at the end of the month are as follows: ……………………………………. 2,550 b. The year-end balance reported at the end of the year for the Allowance for Doubtful Accounts is estimated as 2.5% of outstanding receivables at the end of the year c. The Company uses a perpetual inventory system and accounts for costs using the Last-In-First-Out cost flow assumption. On December 31st, a count of ending inventory reveals that there are 344 units of computer replacement parts on hand. d. All revenue is recorded in the "Sales Revenue" account and reported net of cash discounts on the income statement. e. The effective interest method is used to amortize bond premiums and discounts f. Adjustments are made at the end of the year for prepaid insurance, rent, advertising, depreciation, and interest expense. g. The bookkeeper is paid a salary of $4,500 on the 15th of every month. h. The company declared dividends of $700 for the year i. Assume selling expenses include advertising and supplies expense. All other expenses, other than depreciation and interest expense, are considered general & administrative. REQUIRED: 1. Prepare journal entries for each transaction listed above (with descriptions). 2. Post journal entries to the general ledger accounts. 3. Prepare an unadjusted trial balance. 4. Prepare all necessary adjusting journal entries (with descriptions) and post to the general ledger. 5. Prepare an adjusted trial balance on December 31st. 6. Prepare closing entries, post to the general ledger, and carryforward balances to January 1st of the next year. 7. Prepare the following financial statements on December 31st (ignore income taxes): a. Income Statement (multi-step, see Example 5.2 in textbook) b. Statement of Stockholders' Equity c. Balance Sheet (classified) d. Statement of Cash Flows (indirect method) 8. Rename the excel file Lastname_PortfolioProject_Option1.xls and submit your completed project online.

A residence was constructed in 1986 for $72,000 on a lot that cost $14,000. Before the property was converted to rental use in the current year, a finished porch costing $8,000 was added and a $3,000 casualty loss was claimed. If the fair market value on the date of conversion to rental use was $84,000 ($74,000 for the house and $10,000 allocated for the land), what is the depreciable basis?

• A.$84,000
• B.$74,000
• C.$72,000
• D.$77,000

During the current year, Liquid Corporation, a calendar-year taxpayer, purchased and placed in service the following assets on the following dates:

The three assets are all 5-year property under MACRS. The Sec. 179 and bonus depreciation deductions were not elected. What is Liquid’s depreciation deduction?

• A.$1,720
• B.$3,440
• C.$6,880
• D.$3,640

Evaluate the role of Australian Securities Exchange (ASX) in assisting corporate governance in Australia?

Week 1 Assignment

Question 1

Ruddy Lewis operates a bike repair shop operating under the name R.L. Bike Repairs. The balances of his accounts on April 1 of the current year were as follows:

The following transactions were incurred for the month of April:

9. Inventory of supplies at end of the month (April 30) was $550

Theres an acctg problem( Ruddy Lewis..... ) my question is under the supplies column, you listed 650 under entry #9, entry for #9 should be 550.if we use 550 then problem doesnt balance.

pleas help

Inventory information for Part 311 of Oriole Corp. discloses the following information for the month of June.

Assuming that the periodic inventory method is used, compute the cost of goods sold and ending inventory under (1) LIFO and (2) FIFO.

Question Part Score

--/12

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?

Question Part Score

--/3

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?

Problem Two

Below you will find the adjusted trial balance for Black Eyed Peas. Complete the
Multiple-Step Income Statementand the Closing Entriesfor this business. Don’t forget
the double-underlines, $ signs, single-underlines, and all formatting conventionss.

You are getting ready to buy a 25-year-old apartment complex – If you want a 7% return on your investment what would you pay for the complex? Using the financials below what is the Gross Potential Income, Adjusted Gross Income, Total Expenses, NOI, Cash Flow, Loan to Value, and Debt Coverage Ratio. Answer all the same questions except you must have a 10% return? Show your work.

You are getting ready to buy a 25-year-old apartment complex – If you want a 7% return on your investment what would you pay for the complex? Using the financials below what is the Gross Potential Income, Adjusted Gross Income, Total Expenses, NOI, Cash Flow, Loan to Value, and Debt Coverage Ratio. Answer all the same questions except you must have a 10% return? Show your work.

You are getting ready to buy a 25-year-old apartment complex – If you want a 7% return on your investment what would you pay for the complex? Using the financials below what is the Gross Potential Income, Adjusted Gross Income, Total Expenses, NOI, Cash Flow, Loan to Value, and Debt Coverage Ratio. Answer all the same questions except you must have a 10% return? Show your work.

Basic Information:

100 units Built - 1994

Average Rent - $950/ unit/ mt. Taxes - $95,000/ yr.

Insurance - $25,000/ yr Debt Service – $35,000

Amortization – $3,000/ yr. Management – 5% of AGI

Vacancy – 7% Landscape –$30,000/ yr.

Maintenance – $120,000/ yr. Depreciation - $60,000

Pest Control - $4,000/ yr. Other Income - $5,000/yr.

Payroll - $125,000 Utilities - $18,000/ yr.

General & Admin - $40,000

Loan: $4,000,000 @ 6% – interest only for 5 years ($240,000 annual payment

The following errors were found when the new accountant at Headlands’s Motors was preparing the April 30 bank reconciliation.

Describe the impact of each of these items on the bank reconciliation.

Prepare the necessary journal entries to correct the accounts as you determined above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the above part.)

Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the month of March are as follows.

Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricycles. (Round answers to 0 decimal places, e.g. 2,520.)

Calculate the unit costs of production for materials and conversion costs for both the bicycles and the tricycles. (Round unit costs to 3 decimal places, e.g. 25.215.)

Calculate the assignment of costs to units transferred out and in process at the end of the accounting period for both the bicycles and the tricycles. (Round answers to 0 decimal places, e.g. 2,520.)

Bicycles

Tricycles

Prepare a production cost report for the month of March for the bicycles only. (Round unit costs to 3 decimal places, e.g. 25.123 and all other answers to 0 decimal places, e.g. 2,520.)

The following is a list of 10 control plans from Chapter 8. These are followed by a list of 10 B/AR/CR business process controls or deficiencies. Match the 10 B/AR/CR business process control plans with a pervasive control plan from Chapter 8 that could prevent the deficiencies noted in the preceding list or have an impact on the successful execution of the business process control.

Match letters A-J to numbers 1-10

Sales (10,000units) $ 70,000 Less variable costs (35,000) Contribution margin $ 35,000 Less fixed costs (32,500) Net income $ 2,500 Requirements: 1. Compute Break-even point in units and explain what the number that you calculated means. 2. Compute break-even point in sales volume (in dollar) and explain what the number that you calculated means. 3. How much sales should be in order to earn a before tax profit of $15000.

Tony and Suzie graduate from college in May 2018 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they’ll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts.
  
On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 20,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following business activities occur during July for Great Adventures.
  
Jul. 1 Sell $10,000 of common stock to Suzie.
Jul. 1 Sell $10,000 of common stock to Tony.
Jul. 1 Purchase a one-year insurance policy for $4,200 ($350 per month) to cover injuries to participants during outdoor clinics.
Jul. 2 Pay legal fees of $1,100 associated with incorporation.
Jul. 4 Purchase office supplies of $1,300 on account.
Jul. 7 Pay for advertising of $370 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $60 the day of the clinic.
Jul. 8    Purchase 10 mountain bikes, paying $11,200 cash.
Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,600 from 60 bikers. Tony conducts the mountain biking clinic.
Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $4,150.
Jul. 24 Pay for advertising of $840 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $120 in advance or $170 on the day of the clinic.
Jul. 30 Great Adventures receives cash of $8,400 in advance from 70 kayakers for the upcoming kayak clinic.

1. Record each transaction in July. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

What accounting treatment is required for convertible debt and why? What accounting treatment is required for debt issued with stock warrants and why?

At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book–tax difference of $75 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2018 is $180 million and the tax rate is 40%.

Required:
1. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized.
2. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized.

• Record valuation allowance for the end of 2018.