In 2017, NB Inc.'s federal taxable income was $242,000. Compute the required installment payments of 2018 tax in each of the following cases:

NB’s 2018 taxable income is $593,000. Total installment payment = ??

NB’s 2018 taxable income is $950,000. Total installment payment = ??

NB’s 2018 taxable income is $1,400,000. Total installment payment = ??

1. Collect annual data to create data tables and graphs of the following:
a. growth rates of NGDP and RGDP for the years 2008-2018
b. CPI-All Urban Consumers (Current Series) and the inflation rate for the years 2008-2018
c. unemployment rate for the years 2008-2018
d. M1 and M2 for the years 2008-2018

Question 2                                                                                                           (Total: 38 marks)

Following are the account balances for the DC Company in 2018:

                                                                             Beginning of 2018             Ending of 2018

Direct materials inventory                         26,500                                   27,000

Work-in-process inventory                       30,500                                   28,400

Finished-goods inventory                          16,500                                   22,100

Purchases of direct materials                                                                   79,000

Direct manufacturing labor                                                                       24,500

Indirect manufacturing labor                                                                    18,600

Plant insurance                                                                                              7,900

Depreciation-plant, building, and equipment                                    11,800

Repairs and maintenance-plant                                                              3,500

Marketing, distribution, and customer-service costs                      87,900

General and administrative costs                                                           26,500

Required:

1. Prepare a schedule for the cost of goods manufactured for 2018.                   

1. Revenues for 2018 was $425,000. Prepare the income statement for 2018.                

LINEA-VERDE customized clothing line uses normal costing for its job-costing system, which has two direct costs: Direct materials and direct manufacturing labor; in addition to one indirect cost . During 2018 the following numbers were computed: Cost of finished goods manufactured was $4,050,000, Total Manufacturing cost was $4,150,000, Work-in-process Inventory on January 1, 2018, $220,000. as for Manufacturing overhead applied, it was $2,000,000 based on a rate of 1.75 times direct manufacturing labor costs.

A. Calculate Direct Manufacturing Labor Cost of 2018. Show all calculations.

B. Calculate the cost of Direct Materials used in 2018. Show all calculations.

C. Calculate the WIP ending balance on December 31, 2018.

D. Assuming 2018, is the first year of operation for LINEA-VERDE and the balance of Direct Materials on December 31, 2018 is one fourth of DIrect MAterials used for production during the year, HOW much Direct MAterials was purchased during 2018?

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax’s sales are for credit (no cash is collected at the time of sale). The company began 2018 with a refund liability of $300,000. During 2018, Halifax sold merchandise on account for $11,500,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $450,000 in sales for credit, with $250,000 of those being returns of merchandise sold prior to 2018, and the rest being merchandise sold during 2018. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year.

Required:
1. Prepare entries to (a) record actual returns in 2018 of merchandise that was sold prior to 2018; (b) record actual returns in 2018 of merchandise that was sold during 2018; and (c) adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year-end refund liability after the adjusting entry is recorded?

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with a refund liability of $380,000. During 2018, Halifax sold merchandise on account for $12,300,000. Halifax's merchandise costs it 70% of merchandise selling price. Also during the year, customers returned $603,000 in sales for credit, with $333,000 of those being returns of merchandise sold prior to 2018, and the rest being merchandise sold during 2018. Sales returns, estimated to be 5% of sales, are recorded as an adjusting entry at the end of the year.

Required:

1. Prepare entries to (a) record actual returns in 2018 of merchandise that was sold prior to 2018; (b) record actual returns in 2018 of merchandise that was sold during 2018; and (c) adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year-end refund liability after the adjusting entry is recorded?

Problem 5

Sage Corp. enters into a contract with a customer to build an apartment building for $1,069,900. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $153,300 to be paid if the building is ready for rental beginning August 1, 2018. The bonus is reduced by $51,100 each week that completion is delayed. Sage commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

(a) Determine the transaction price for the contract, assuming Sage is only able to estimate whether the building can be completed by August 1, 2018, or not (Sage estimates that there is a 70% chance that the building will be completed by August 1, 2018).

Transaction price: $__________

(b) Determine the transaction price for the contract, assuming Sage has limited information with which to develop a reliable estimate of completion by the August 1, 2018, deadline.

Transaction price: $__________

On June 1, 2018, DCI purchased a call option for $450, which gave it the right to buy 10,000 shares of iLines, Inc., for $54 each until December 1, 2018 . On that date, iLines’ shares were being traded for $52. On June 30, 2018, the option contract could be traded in the market at $96,000. On December 1, 2018, with the shares being traded at $70 each, DCI exercised the option and took delivery of the shares of iLines.

You are required to record all necessary entry/entries related to this option on:

a]   June 1, 2018 when DCI acquired the call option.

b]   June 30, 2018, when DCI closed its books of accounts.

c]   December 1, 2018 assuming DCI exercises the call option and takes delivery of the shares of iLynes.

d]   December 1, 2018, assuming DCI settles the call option for cash without taking delivery of the iLynes shares

NOTE:       Wherever no entry is needed, write "No entry necessary".

Paulson Company issues 6%, four-year bonds, on December 31, 2017, with a par value of $100,000 and semiannual interest payments.

     
Use the above straight-line bond amortization table and prepare journal entries for the following.

(a) The issuance of bonds on December 31, 2017.

(b) The first interest payment on June 30, 2018.

(c) The second interest payment on December 31, 2018.

Record the issue of bonds with a par value of $100,000 cash December 31, 2017.

Record the interest payment and amortization on June 30, 2018.

Record the interest payment and amortization on December 31, 2018.

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with a refund liability of $330,000. During 2018, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs it 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2018, and the rest being merchandise sold during 2018. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

Required:

1. Prepare entries to (a) record actual returns in 2018 of merchandise that was sold prior to 2018; (b) record actual returns in 2018 of merchandise that was sold during 2018; and (c) adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year-end refund liability after the adjusting entry is recorded?