Pharoah Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2020.

The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $117,800. The company’s actual funding (contributions) of the plan in 2020 amounted to $254,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,178,000 on January 1, 2020. Assume no benefits paid in 2020.

- Determine the amounts of the components of pension expense that should be recognized by the company in 2020. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).

- Prepare the journal entry to record pension expense and the employer’s contribution to the pension plan in 2020

- Indicate the pension-related amounts that would be reported on the income statement partial, comprehensive income statement, and the balance sheet partial for Pharoah Company for the year 2020.

The following inventory transactions took place near December 31, 2019, the end of the Dixon Company’s fiscal year-end:

1. On December 27, 2019, merchandise costing $2,000 was shipped to the Myers Company on consignment. The shipment arrived at Myers’s location on December 29, but none of the merchandise was sold by the end of the year. The merchandise was included in the 2019 ending inventory.
2. On January 5, 2020, merchandise costing $8,000 was received from a supplier and recorded as a purchase on that date and not included in the 2019 ending inventory. The invoice revealed that the shipment was made f.o.b. destination on December 28, 2019.
3. On December 29, 2019, the company shipped merchandise costing $12,000 to a customer f.o.b. destination. The goods, which arrived at the customer’s location on January 4, 2020, were included in Dixon’s 2019 ending inventory. The sale was recorded in 2020.
4. Merchandise costing $4,000 was received on December 28, 2019, on consignment from the Haskins Company. A purchase was recorded and the merchandise was included in 2019 ending inventory.
5. Merchandise costing $6,000 was received and recorded as a purchase on January 8, 2020. The invoice revealed that the merchandise was shipped from the supplier on December 28, 2019, f.o.b. shipping point. The merchandise was not included in 2019 ending inventory.

Which of the five situations above was accounted for correctly by Dixon Company?

Cascade Company was started on January 1, Year 1, when it acquired $160,000 cash from the owners. During Year 1, the company earned cash revenues of $90,400 and incurred cash expenses of $62,500. The company also paid cash distributions of $7,000. Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.)

a. Cascade is a sole proprietorship owned by Carl Cascade.

Complete this question by entering your answers in the tabs below.

• Inc Stmt
• Stmt of Changes
• Bal Sheet
• Cash Flows

Cascade Company was started on January 1, Year 1, when it acquired $153,000 cash from the owners. During Year 2, the company earned cash revenues of $93,300 and incurred cash expenses of $69,700. The company also paid cash distributions of $14,000. Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.)

c. Cascade is a corporation. It issued 10,000 shares of $11 par common stock for $153,000 cash to start the business.

Income Stmt

Capital Stmt

Stmt of changes in equity

Balance Sheet

Stmt of cash flows

April

Date

1 Acquired $55000 to establish the company, $33,000 from an initial investment through the issue of common stock to themselves and $22,000 from a bank loan by signing a note. The entire note is due in five years and has a 7 per cent annual interest rate. Interest is payable in cash on March 31 of each year.

1 Paid $42000 (represents 3 months) in advance rent for a one-year lease on kitchen space.

1 Paid $35000 to purchase a refrigerator. The refrigerator is expected to have a useful life of five years and a salvage value of $5000 at the end of 5 years.

6 Purchased supplies for $500 for cash.

9 Received $700cash as an advance payment from a client to be served in May.

10 Recorded sales to customers. Cash receipts were $700, and invoices for sales on account were $1500.

15 Paid $1460 cash for employees semi-monthly salaries.

16 Collected $400 from accounts receivable.

23 Received monthly utility bills amounting to $340. The bills are to be paid in May.

25 Paid advertising expense for advertisements run during April, $260.

30 Recorded services to customers. Cash receipts were $1300 and invoices for services on account were $1800.

30 Paid $1460 cash for employees salaries.

Additional information provided by the Supreme Caterers for the end of April

1 Counted the supplies inventory on hand, $55.

Required:

1 Record the transactions for April in general journal.

2 Open general ledger accounts, using the T-accounts provided, and post the general journal entries to the ledger.

3 Record and post the appropriate adjusting entries.

4 Prepare an adjusted trial balance.

5 Prepare an income statement, statement of retained earnings, and balance sheet for April

Newcomb Manufacturing Company was started on January 1, 2018, when it acquired $5,000 cash from the issue of common stock. During the first year of operation, $1,600 of direct raw materials was purchased with cash, and $1,200 of the materials was used to make products. Direct labor costs of $2,000 were paid in cash. Newcomb applied $1,280 of overhead cost to the Work in Process account. Cash payments of $1,280 were made for actual overhead costs. The company completed products that cost $3,200 and sold goods that had cost $2,400 for $4,000 cash. Selling and administrative expenses of $960 were paid in cash.

Prepare T-accounts and record the events affecting Newcomb Manufacturing. Include closing entries.

Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet.

Blooming Flower Company was started in Year 1 when it acquired $60,700 cash from the issue of common stock. The following data summarize the company’s first three years’ operating activities. Assume that all transactions were cash transactions.

Required
Prepare an income statement (use multistep format) and balance sheet for each fiscal year. (Hint: Record the transaction data for each accounting period in T-accounts before preparing the statements for that year.)
  

Cascade Company was started on January 1, Year 1, when it acquired $160,000 cash from the owners. During Year 1, the company earned cash revenues of $90,400 and incurred cash expenses of $62,500. The company also paid cash distributions of $7,000. Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.)

c. Cascade is a corporation. It issued 11,000 shares of $9 par common stock for $160,000 cash to start the business.

Complete this question by entering your answers in the tabs below.

• Inc Stmt
• Stmt of Changes
• Bal Sheet
• Cash Flows