Felton J. (SSN 322-95-1426, born 5/26/1973) and Mary I. Smith (SSN 236-09-2784, born 6/7/1976) are married and live at 22 Fancy Avenue, Richmond, VA 23240. Felton is a computer programmer and Mary is a school clerk. They have three children - Peter, Marie, and Martin. Felton and Mary provided all of the support for their children. Peter (SSN 091-46-5912), born 5/26/2000) is a full-time college student and worked at a pet store part-time where he earned $5,100. Marie (SSN 233-12-6464, born 2/10/2003) is a full-time high school student and worked at a supermarket earning $2,100. Peter and Marie had no other income. Martin (SSN 131-44-2687, born 7/4/2010) had no income.
The Smiths paid $3,200 to Genesis Learning Center for Martin’s after school program. The EIN is 20-6548732 and it is located at 35 Lilly Drive, Richmond VA 23241. They received ordinary interest of $59.40 from Bank of Richmond. Felton earned $31,200 and paid Federal Income tax of $2,260. Mary earned $20,400 and paid $986 in Federal Income Tax. In addition, they run a lawn mowing business that yielded gross receipts of $6,500 and had the following expenses: maintenance, $250; advertising, $75; supplies, $750; and fuel, $275. The business uses the cash basis for accounting purposes and the Smiths both materially participated in its operation.
The Smiths filed a joint return in 2016 and had itemized deductions of $13,850. Their 2016 state income tax deduction was $2,990. In 2017, the Smiths paid the following expenses:
Dental bills $ 415
Mortgage Interest $ 7,850
Real estate taxes $1,850
Home Insurance Premiums $ 2,100
Medical bills $ 825
Hearing aid (Marie) $ 225
Goodwill contribution (clothing FMV) $ 180
Toothpaste and other toiletries $ 115
Athletic club membership $ 650
Family health insurance $1,350
Cash donated to a Church $ 580
Prescription drugs $ 195
Personal property taxes $ 405
Back brace (Peter) $ 185
Junior Sluggers baseball league $ 20
Prepare the Smith’s Income Tax Return for 2019.
In: Accounting
1)
Calculation of ending retained earnings
The records of Biloxi Corp. for calendar 2020 reflected the following correct pre-tax amounts: gain from discontinued operations, $50,000; cash dividends declared and paid, $45,000; retained earnings, January 1, 2020, $275,000, correction of accounting error, $35,000 debit; income before income taxes and before discontinued operations, $165,000. The average income tax rate of 40% applies to all items except the dividends.
Instructions
Calculate the December 31, 2020 ending balance of retained earnings.
2)
Statement of financial position presentation
The following statement of financial position was prepared by the bookkeeper for Badger Corp. at December 31, 2020.
Badger Corp.
Statement of Financial Position
December 31, 2020
Cash $ 90,000 Accounts payable $75,000
Accounts receivable (net) 52,200 Long-term liabilities 110,000
Inventories 57,000 Shareholder's equity 208,500
Investments 76,300
Equipment (net) 86,000
Patents 32,000
$393,500 $393,500
The following additional information is provided:
1. "Cash" includes prepaid insurance of $9,400; as well, a bank overdraft of $1,500 has been deducted.
2. The net accounts receivable balance includes:
(a) accounts receivable–debit balances $62,000;
(b) accounts receivable–credit balances $5,000;
(c) allowance for doubtful accounts $4,800.
3. Inventories do not include goods costing $5,000 shipped out on consignment. Receivables of $5,000 were recorded on these goods.
4. Investments include investments in common shares, trading $24,000 and long-term $43,300, and franchises $9,000.
5. Equipment costing $8,000 with accumulated depreciation $6,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
Instructions
Prepare a statement of financial position in good form (shareholders' equity details can be omitted.)
In: Accounting
15. A Pew Poll in 2010, found that 50% of adults aged 25-29 had access to only a cell phone, while 40% had access to both a cellphone and landline and 10% had access to only a landline. We wish to conduct a Goodness of Fit Test to see if the results of a poll of a random sample of 130 adults aged 25-29 are significantly different from the 2010 poll results.
The random sample of 130 adults found that 69 had access to only a cell phone, 39 had access to only a landline, and 22 had access to both types of phones.
Which of the following are the correct null and alternative hypothesis for this test?
| A. |
Ho: p = 0.50 Ha: p =/= 0.50 |
|
| B. |
Ho: The distribution is the same as in 2010. Ha: The distribution is different than in 2010. |
|
| C. |
Ho: The distribution is different than in 2010. Ha: The distribution is the same as in 2010. |
|
| D. |
Ho: pcell=0.33 , pboth=0.33, pland=0.33 Ha: pcell=0.50 , pboth=0.40, pland=0.10 |
16. A Pew Poll in 2010, found that 50% of adults aged 25-29 had access to only a cell phone, while 40% had access to both a cellphone and landline and 10% had access to only a landline. We wish to conduct a Goodness of Fit Test to see if the results of a poll of a random sample of 130 adults aged 25-29 are significantly different from the 2010 poll results. The table below presents the observed results.
| Cell only | Landline Only | Both | |
| Observed | 69 | 39 | 22 |
| Expected |
Compute the expected count for the "BOTH" cell.
17. A Pew Poll in 2010, found that 50% of adults aged 25-29 had access to only a cell phone, while 40% had access to both a cellphone and landline and 10% had access to only a landline. We wish to conduct a Goodness of Fit Test to see if the results of a poll of a random sample of 130 adults aged 25-29 are significantly different from the 2010 poll results.
The random sample of 130 adults found that 69 had access to only a cell phone, 39 had access to only a landline, and 22 had access to both types of phones.
The chi-square statistic was calculated as 9.73 and has a p-value of 0.0077.Using α=0.01 what can you conclude?
| A. |
There is enough evidence that the distribution is different than in 2010. |
|
| B. |
There is enough evidence that the distribution is the same as in 2010. |
|
| C. |
There is not enough evidence that the distribution is different than in 2010. |
|
| D. |
There is not enough evidence the distribution is the same as in 2010. |
18. According to the CDC 2.8% of high school students currently use electronic cigarettes. A high school counselor is concerned that the use of e-cigs at her school is higher.
A test of the following hypothesis Ho: p = 0.028 Ha: p > 0.028 is conducted using a random sample of 50 students at this school and the null hypothesis is rejected. What conclusion can the counselor make?
| A. |
There is not enough evidence that the percent of students using e-cigs is higher than2.8%. |
|
| B. |
There is not enough evidence that the percent of students using e-cigs is 2.8%. |
|
| C. |
There is enough evidence that the percent of students using e-cigs is higher than2.8%. |
|
| D. |
There is enough evidence that the percent of students using e-cigs is 2.8%. |
In: Math
|
In the R-L circuit below, a resistor R (8.0 Ω) is connected in series to an inductor L (24.0 mH) and a battery ε (12.0 V). When the circuit is closed, current grows with time. (a) What is the time constant of the circuit? (b) What is the current in the circuit at one time constant? (c) What is the maximum magnetic energy in the circuit? (d) At what time after closing the switch will the magnetic energy be 50% of the maximum magnetic energy? |
|||||
In: Physics
| Blackwell Company's income statement for 2020 consisted of: | ||||||||
| Revenues | 1,220,000 | |||||||
| Cost of goods sold | 627,000 | |||||||
| Operating expenses | 295,000 | |||||||
| Depreciation expense | 60,000 | |||||||
| Interest expense | 26,000 | |||||||
| Gain on the sale of machinery | (12,000) | |||||||
| Loss on the sale of investments | 8,000 | 1,004,000 | ||||||
| Income before income tax | 216,000 | |||||||
| Income tax expense | 40,000 | |||||||
| Net income | 176,000 | |||||||
| Blackwell's comparative balance sheet information for 2020 included: | ||||||||
| 12/31/20 | 12/31/19 | |||||||
| Accounts receivable | 268,000 | 257,000 | ||||||
| Accounts payable | 47,000 | 42,000 | ||||||
| Income taxes payable | 17,000 | 13,500 | ||||||
| Interest payable | 9,000 | 7,500 | ||||||
| Bonds payable | 500,000 | 500,000 | ||||||
| Discount on bonds payable | 26,000 | 28,000 | ||||||
| Prepare the Cash flows from operating activities section of Blackwell's 2020 Statement of Cash Flows using the indirect method | ||||||||
| and the required disclosures for interest and income tax expense. | ||||||||
In: Accounting
| Blackwell Company's income statement for 2020 consisted of: | ||||||||
| Revenues | 1,220,000 | |||||||
| Cost of goods sold | 627,000 | |||||||
| Operating expenses | 295,000 | |||||||
| Depreciation expense | 60,000 | |||||||
| Interest expense | 26,000 | |||||||
| Gain on the sale of machinery | (12,000) | |||||||
| Loss on the sale of investments | 8,000 | 1,004,000 | ||||||
| Income before income tax | 216,000 | |||||||
| Income tax expense | 40,000 | |||||||
| Net income | 176,000 | |||||||
| Blackwell's comparative balance sheet information for 2020 included: | ||||||||
| 12/31/20 | 12/31/19 | |||||||
| Accounts receivable | 268,000 | 257,000 | ||||||
| Accounts payable | 47,000 | 42,000 | ||||||
| Income taxes payable | 17,000 | 13,500 | ||||||
| Interest payable | 9,000 | 7,500 | ||||||
| Bonds payable | 500,000 | 500,000 | ||||||
| Discount on bonds payable | 26,000 | 28,000 | ||||||
| Prepare the Cash flows from operating activities section of Blackwell's 2020 Statement of Cash Flows using the indirect method | ||||||||
| and the required disclosures for interest and income tax expense. | ||||||||
In: Accounting
(NOL Carryforward, Valuation Account Needed)
Topper Company reported the following pretax financial income (loss) for the years 2018 through 2022:
2018 $ 70,000
2019 45,000
2020 (260,000)
2021 90,000
2022 215,000
Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 30% for 2018 through 2020, and 20% for 2021 and thereafter.
Instructions
(a) Prepare the journal entries for the years 2018 through 2022 to record income tax expense, income tax payable (refund- able), and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that 60 percent of the benefits of the loss carryforward will not be realized.
(b) Prepare the income tax section of the 2020 income statement beginning with the line “Income (loss) before income taxes.”
In: Accounting
AX Development Ltd purchased land on 1 April 2016 at a cost of $3 000 000. The cost model was used for the land.
On 31 March 2017, AX Development Ltd switched to the revaluation model for the land. A revaluation was performed on the 31 March 2017; this resulted in a downward revaluation of $400 000 for the land.
On the 30 September 2018, the fair value of the land was reassessed by an independent valuer to be $3 600 000.
On the 31 March 2020, the fair value of the land was reassessed by an independent valuer to be $2 950 000.
Required:
(i) Prepare the journal entry at 31 March 2017 to recognise the first revaluation of the land.
State the carrying amount of the land, after the revaluation, as at 31 March 2017
(ii) Prepare the journal entry at 30 September 2018 to recognise the second revaluation of the land.
(iii) Prepare the journal entry at 31 March 2020 to recognise the third revaluation of the land.
State the carrying amount of the land, after the revaluation, on 31 March 2020.
In: Accounting
Little Deer Industries gathered the following year-end data (in thousands) for 2010 and 2009:
|
2010 |
2009 |
|
|
Current Assets |
$525 |
$465 |
|
Long-Term Assets |
885 |
585 |
|
Current Liabilities |
385 |
385 |
|
Long-Term Liabilities |
575 |
575 |
|
Owners' Equity |
575 |
265 |
|
Net Sales |
975 |
775 |
|
Gross Margin |
485 |
365 |
|
Net Income |
255 |
100 |
The gross margin percentage for 2010 was:
A) 35.0%
B) 45.1%
C) 49.7%
D) 52.3%
In: Accounting
Assume that a typical consumer's basket consists of 10 lbs of beef and 20 lbs of chicken. also assume that 2011 is used as the base year in the CPI calculation. Use the data below to answer the following two questions.
a. Calculate the CPI in years 2010, 2011, and 2012
b. Calculate the inflation rate between 2010 and 2011 and between 2011 and 2012.
|
Year |
Beef price/lb |
Chicken price/lb |
|
2010 |
$4 |
$4 |
|
2011 |
$5 |
$5 |
|
2012 |
$9 |
$6 |
In: Economics