. You are the accountant for Auxerre, and you have to prepare the journal for income taxes. You have gathered the following information for 2020:

1. Deferred tax liability, January 1, 2020, $40,000.
2. Deferred tax asset, January 1, 2020, $0.
3. Taxable income for 2020, $127,000.
4. Cumulative temporary difference on December 31, 2020, giving rise to future taxable amounts, $220,000.
5. Cumulative temporary difference on December 31, 2020, giving rise to future deductible amounts, $35,000.
6. There is one permanent difference between taxable and pretax financial income due to a $5,000 fine imposed by OSHA.
7. The tax rate is 40% for all years.
8. The company is expected to operate profitably in the future.

Prepare the journal entry to record income taxes for 2012.

Introduction

The course project is a series of elements where you will examine the current standing of an organization’s compensation system. In the final element of the training program, you will provide recommendations to the organization on how the compensation program can be improved.

Directions

Students will conduct an analysis on the current state of the compensation system and address the current pay structure used. Reference should be made to job-based and person-based structure. Analysis should reference sources of information for job analysis, job evaluation, pay design, and pay levels.

The body of the paper will be 4-5 pages. This does not include extraneous pages like title page, reference page, appendices. APA formatting standards are required. A minimum of 5 scholarly resources need to be used. An example of a scholarly resource can be an interview with an HR professional or a peer reviewed article from a Park University Library Journal Database. Course materials and personal experience do not count. A formal third person tone is required.

Supplemental information (e.g. worksheets that are currently being used) can be presented in Appendices but do not count toward the body of the paper.

Note: Recommendations should not be made at this point – you will make these in Unit 8. This is an analysis of current standing. Keep in mind however, if an organization doesn’t have a set structure, the paper doesn’t end at that point. Student needs to include a discussion of the different methods that could be used. Again, recommendations will be made

Please also include at least 5 references

The cash flow statement below is extracted from a company.

Required:

Using your own words, discuss the following relationships

a) between net income, working capital from operations, and cash flow from operations for the three years, and

b) between cash flows from operating, investing, and financing activities for the three years.

On December 31, 2020, Iva Majoli Company borrowed $62,092 from Paris Bank, signing a 5-year, $100,000 zero-interest-bearing note. The note was issued to yield 10% interest. Unfortunately, during 2022, Majoli began to experience financial difficulty. As a result, at December 31, 2022, Paris Bank determined that it was probable that it would receive back only $75,000 at maturity. The market rate of interest on loans of this nature is now 11%.

1.Instructions: Complete the note amortization table.

2. Instructions: Journalize the transactions for the note origination and interest recognition for the first 2 years.

3. Recalculate the carrying value of the note pursuant to the events that occurred on December 31, 2022.

4. Instructions: Prepare the journal entry to record the note impairment.

Instructions: Provide the net realizable presentation of the notes receivable as it would appear on the December 31, 2022 balance sheet.

On August 1, 2019, ABC Co. borrowed $10,000 on a one-year Note Payable with an interest rate of 12% per year.

a) What is the adjusting journal entry on November 30, 2019 to record the relevant expense for the month of November?

b) When the December 31, 2019 adjusting journal entry is made, a balance sheet account is impacted. Select the name of this account. Also, on January 1, 2020, after making the December 31 adjusting journal entry, what is the balance of this account?

c) As of August 1, 2020, after paying off the loan with interest, what is the total amount of interest expense the company will have recorded for 2020 and the total cash paid for interest in 2020? Do not include the $10,000 principal repayment.

d) If the company incorrectly recognized interest expense for August 2019 through July 2020 at the time cash was paid rather than when the expense was incurred, what would be the impact on the 2019 and 2020 income statements?

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Question 2415 pts

Note: There are 5 parts to this question (3 points each).

Capital expenditures are added to the balance sheet as assets and (usually) are expensed over time. Revenue expenditures are expensed in the period in which the cost is incurred. Select the appropriate accounting treatment under GAAP for each equipment-related expenditure below by classifying it as a capital expenditure or a revenue expenditure.

A company purchased equipment on January 1, 2017 for $102,000. The equipment has an estimated residual value of $6,000 and an estimated useful life of 8 years. The company uses the straight-line method to depreciate the equipment and makes the relevant adjusting entry at the end of each month.

a) What is the annual depreciation for the equipment?

b) In general, what is the journal entry to record depreciation? (Ignore the amount.)

c) What is the value of the Accumulated Depreciation--Equipment account on January 1, 2019?

d) What is the book value of the equipment on January 1, 2019?

e) On January 1, 2019, the company sells the equipment for $85,000 cash. What is the gain or loss on the sale of the equipment?

On January 1, 2020, Agent Z Company entered into a lease with Overlord Company for a new equipment.
The lease stipulates that annual payments of P1,000,000 will be made for five years starting December
31, 2020.
Agent Z Company guaranteed a residual value of P474,060 at the end of the 5-year period. The
equipment will revert to the lessor at the lease expiration. The implicit rate for the lease is 16% after
considering the guaranteed residual value. The economic life of the equipment is 10 years.
Questions:
1. How much is right-of-use asset account on January 1, 2020?
2. The carrying amount of lease liability on December 31, 2021 is
3. What is the carrying amount of right-of-use asset on December 31, 2022?
4. How much is the gain or loss on finance lease to be recognized at the end of the lease term?

Recording Asset Retirement Obligation

BPP Company maintains underground storage tanks for its operations. A new storage tank was installed and made ready for use at a cost of $400,000 on January 1, 2020. The useful life is estimated at 15 years, at which time the company is legally required to remove the tank and restore the area at an estimated cost of $40,000. The appropriate discount rate for the company is 12%.

Answer the following questions, rounding your answers to the nearest whole number.

a. Record the storage tank asset and the related asset retirement obligation on January 1, 2020.

b. Record any required adjusting entries on December 31 2020.

c. Assume that on December 31, 2035, the tank is safely removed at a cost of $46,000. Record the required journal entry.

Profit Center Responsibility Reporting for a Service Company

Thomas Railroad Company organizes its three divisions, the North (N), South (S), and West (W) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31:

The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer’s Department. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the railroad cars inventories. It makes sure the right freight cars are at the right place at the right time. The Treasurer’s Department conducts a variety of services for the company as a whole. The following additional information has been gathered:

Required:

1. Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations.

2. What is the profit margin of each division? Round to one decimal place.

Identify the most successful region according to the profit margin.

3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?

The method used to evaluate the performance of the divisions should be reevaluated.

A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets).

A better divisional performance measure would be the residual income (income from operations less a minimal return on divisional assets).

None of these choices would be included.

All of these choices (a, b & c) would be included.

Profit CenterResponsibility Reporting for a Service Company

Thomas Railroad Company organizes its three divisions, the North (N), South (S), and West (W) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31:

The company operates three service departments: the Dispatching Department, the Equipment Management Department, and the Treasurer’s Department. The Dispatching Department manages the scheduling and releasing of completed trains. The Equipment Management Department manages the railroad cars inventories. It makes sure the right freight cars are at the right place at the right time. The Treasurer’s Department conducts a variety of services for the company as a whole. The following additional information has been gathered:

Required:

1. Prepare quarterly income statements showing income from operations for the three regions. Use three column headings: North, South, and West. Do not round your interim calculations.

2. What is the profit marginof each division? Round to one decimal place.

Identify the most successful region according to the profit margin.

3. What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?

The method used to evaluate the performance of the divisions should be reevaluated.

A better divisional performance measure would be the rate of return on investment (income from operations divided by divisional assets).

A better divisional performance measure would be the residual income (income from operations less a minimal return on divisional assets).

None of these choices would be included.

All of these choices (a, b & c) would be included.