On January 1, 2018, the Mason Manufacturing Company began
construction of a building to be used as its office headquarters.
The building was completed on September 30, 2019.
Expenditures on the project were as follows:
| January 1, 2018 | $ | 1,500,000 | |
| March 1, 2018 | 1,200,000 | ||
| June 30, 2018 | 1,400,000 | ||
| October 1, 2018 | 1,200,000 | ||
| January 31, 2019 | 360,000 | ||
| April 30, 2019 | 693,000 | ||
| August 31, 2019 | 990,000 | ||
On January 1, 2018, the company obtained a $4,000,000 construction
loan with a 14% interest rate. The loan was outstanding all of 2018
and 2019. The company’s other interest-bearing debt included two
long-term notes of $1,000,000 and $4,000,000 with interest rates of
10% and 12%, respectively. Both notes were outstanding during all
of 2018 and 2019. Interest is paid annually on all debt. The
company’s fiscal year-end is December 31.
Required:
1. Calculate the amount of interest that Mason
should capitalize in 2018 and 2019 using the specific interest
method.
3. Calculate the amount of interest expense that
will appear in the 2018 and 2019 income statements.
Calculate the amount of interest that Mason should capitalize in 2018 and 2019 using the specific interest method and interest expense that will appear in the 2018 and 2019 income statements. (Enter your answers in dollars.)
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2.
What is the total cost of the building? (Enter your answer in dollars.)
In: Accounting
Assume that the following data relative to Kane Company for 2018
is available:
| Net Income | $2,790,000 | |||||
| Transactions in Common Shares | Change | Cumulative | ||||
| Jan. 1, 2018, Beginning number | 680,000 | |||||
| Mar. 1, 2018, Purchase of treasury shares | (66,600) | 613,400 | ||||
| June 1, 2018, Stock split 2-1 | 613,400 | 1,226,800 | ||||
| Nov. 1, 2018, Issuance of shares | 234,000 | 1,460,800 | ||||
| 6% Cumulative Convertible Preferred Stock | ||||||
| Sold at par, convertible into 200,000 shares of common (adjusted for split). | $1,000,000 | |||||
| Stock Options | ||||||
| Exercisable at the option price of $25 per share. Average market price in 2018, $30 (market price and option price adjusted for split). | 81,000 | shares |
1. Compute weighted average shares outstanding for 2018.
2. Compute the basic earnings per share for 2018.
3. Compute the diluted earnings per share for 2018.
In: Accounting
At the beginning of 2018, the aggregate output in Atlantis was $15 billion and the population was 3 million. During 2018, aggregate output rose by 3.5%, the population rose by 2.5%, and the aggregate price level remained constant. For all calculations, calculate to 2 decimal places.
a) What was the aggregate output per capita in Atlantis at the beginning of 2018?
b) What was aggregate output in Atlantis at the end of 2018?
c) What was the population in Atlantis at the end of 2018?
d) What was aggregate output per capita in Atlantis at the end of 2018?
e) What was the annual growth rate of per capita output in Atlantis during 2018?
In: Economics
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Explanation of a "non-contractual promise." |
10.0 pts |
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This criterion is linked to a Learning Outcome Example of an "enforceable non-contractual promise." |
5.0 pts |
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This criterion is linked to a Learning Outcome Example of an "unenforceable non-contractual promise." |
In: Operations Management
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions): Information Provided by Pension Plan Actuary:
Projected benefit obligation as of December 31, 2017 = $2,600.
Prior service cost from plan amendment on January 2, 2018 = $800 (straight-line amortization for 10-year average remaining service period).
Service cost for 2018 = $600.
Service cost for 2019 = $650
Discount rate used by actuary on projected benefit obligation for 2018 and 2019 = 10%.
Payments to retirees in 2018 = $460.
Payments to retirees in 2019 = $530.
No changes in actuarial assumptions or estimates. Net gain—AOCI on January 1, 2018 = $350.
Net gains and losses are amortized for 10 years in 2018 and 2019
Information Provided by Pension Fund Trustee: Plan asset balance at fair value on January 1, 2018 = $1,900.
2018 contributions = $620.
2019 contributions = $670.
Expected long-term rate of return on plan assets = 12%.
2018 actual return on plan assets = $170.
2019 actual return on plan assets = $220.
Required
: 1. Calculate pension expense for 2018 and 2019.
2. Prepare the journal entries for 2018 and 2019 to record pension expense.
3. Prepare the journal entries for 2018 and 2019 to record any gains and losses and new prior service cost.
4. Prepare the journal entries for 2018 and 2019 to record the cash contribution to plan assets and benefit payments to retirees.
In: Accounting
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions):
Information Provided by Pension Plan Actuary:
Projected benefit obligation as of December 31, 2017 = $1,850.
Prior service cost from plan amendment on January 2, 2018 = $550 (straight-line amortization for 10-year average remaining service period).
Service cost for 2018 = $550.
Service cost for 2019 = $600.
Discount rate used by actuary on projected benefit obligation for 2018 and 2019 = 10%.
Payments to retirees in 2018 = $410.
Payments to retirees in 2019 = $480.
No changes in actuarial assumptions or estimates.
Net gain—AOCI on January 1, 2018 = $245.
Net gains and losses are amortized for 10 years in 2018 and 2019.
Information Provided by Pension Fund Trustee:
Plan asset balance at fair value on January 1, 2018 = $1,400.
2018 contributions = $570.
2019 contributions = $620.
Expected long-term rate of return on plan assets = 12%.
2018 actual return on plan assets = $120.
2019 actual return on plan assets = $170.
Required: 1. Calculate pension expense for 2018 and 2019. 2. Prepare the journal entries for 2018 and 2019 to record pension expense. 3. Prepare the journal entries for 2018 and 2019 to record any gains and losses and new prior service cost. 4. Prepare the journal entries for 2018 and 2019 to record the cash contribution to plan assets and benefit payments to retirees.
In: Accounting
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions): Information Provided by Pension Plan Actuary: Projected benefit obligation as of December 31, 2017 = $2,450. Prior service cost from plan amendment on January 2, 2018 = $750 (straight-line amortization for 10-year average remaining service period). Service cost for 2018 = $590. Service cost for 2019 = $640. Discount rate used by actuary on projected benefit obligation for 2018 and 2019 = 10%. Payments to retirees in 2018 = $450. Payments to retirees in 2019 = $520. No changes in actuarial assumptions or estimates. Net gain—AOCI on January 1, 2018 = $265. Net gains and losses are amortized for 10 years in 2018 and 2019. Information Provided by Pension Fund Trustee: Plan asset balance at fair value on January 1, 2018 = $1,800. 2018 contributions = $610. 2019 contributions = $660. Expected long-term rate of return on plan assets = 12%. 2018 actual return on plan assets = $160. 2019 actual return on plan assets = $210. Required: 1. Calculate pension expense for 2018 and 2019. 2. Prepare the journal entries for 2018 and 2019 to record pension expense. 3. Prepare the journal entries for 2018 and 2019 to record any gains and losses and new prior service cost. 4. Prepare the journal entries for 2018 and 2019 to record the cash contribution to plan assets and benefit payments to retirees.
In: Accounting
The Kollar Company has a defined benefit pension plan. Pension
information concerning the fiscal years 2018 and 2019 are presented
below ($ in millions):
Information Provided by Pension Plan Actuary:
Information Provided by Pension Fund Trustee:
Required:
1. Calculate pension expense for 2018 and 2019.
2. Prepare the journal entries for 2018 and 2019 to record pension
expense.
3. Prepare the journal entries for 2018 and 2019 to record any
gains and losses and new prior service cost.
4. Prepare the journal entries for 2018 and 2019 to record the cash
contribution to plan assets and benefit payments to
retirees.
In: Accounting
The Kollar Company has a defined benefit pension plan. Pension information concerning the fiscal years 2018 and 2019 are presented below ($ in millions): Information Provided by Pension Plan Actuary: Projected benefit obligation as of December 31, 2017 = $3,500. Prior service cost from plan amendment on January 2, 2018 = $700 (straight-line amortization for 10-year average remaining service period). Service cost for 2018 = $660. Service cost for 2019 = $710. Discount rate used by actuary on projected benefit obligation for 2018 and 2019 = 10%. Payments to retirees in 2018 = $520. Payments to retirees in 2019 = $590. No changes in actuarial assumptions or estimates. Net gain—AOCI on January 1, 2018 = $380. Net gains and losses are amortized for 10 years in 2018 and 2019. Information Provided by Pension Fund Trustee: Plan asset balance at fair value on January 1, 2018 = $2,500. 2018 contributions = $680. 2019 contributions = $730. Expected long-term rate of return on plan assets = 12%. 2018 actual return on plan assets = $230. 2019 actual return on plan assets = $280. Required: 1. Calculate pension expense for 2018 and 2019. 2. Prepare the journal entries for 2018 and 2019 to record pension expense. 3. Prepare the journal entries for 2018 and 2019 to record any gains and losses and new prior service cost. 4. Prepare the journal entries for 2018 and 2019 to record the cash contribution to plan assets and benefit payments to retirees.
In: Accounting
The Kollar Company has
a defined benefit pension plan. Pension information concerning the
fiscal years 2018 and 2019 are presented below ($ in
millions):
Information Provided by Pension Plan Actuary:
Information Provided by Pension Fund Trustee:
Required:
1. Calculate pension expense for 2018 and
2019.
2. Prepare the journal entries for 2018 and 2019
to record pension expense.
3. Prepare the journal entries for 2018 and 2019
to record any gains and losses and new prior service cost.
4. Prepare the journal entries for 2018 and 2019
to record the cash contribution to plan assets and benefit payments
to retirees.
In: Accounting