The insurance premium outstanding on January 1, 2018, covers the period January 1 through August 31, 2018. The insurance premium of $9300 recorded in August covers the period of September 1, 2018 thru August 31, 2019. Prepaid Insurance Balance on 1/1/2018 is $3220. 11/30 Balance is $11,020. What is the adjusting journal on 12/31/18?

Cheyenne Corp. enters into a contract with a customer to build an apartment building for $995,600. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $145,500 to be paid if the building is ready for rental beginning August 1, 2018. The bonus is reduced by $48,500 each week that completion is delayed. Cheyenne 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 Cheyenne is only able to estimate whether the building can be completed by August 1, 2018, or not (Cheyenne estimates that there is a 70% chance that the building will be completed by August 1, 2018). (If answer is 0, please enter 0. Do not leave any fields blank.)

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

On January 1, 2018, the Haskins Company adopted the dollar-value LIFO method for its one inventory pool. The pool’s value on this date was $850,000. The 2018 and 2019 ending inventory valued at year-end costs were $897,000 and $972,000, respectively. The appropriate cost indexes are 1.04 for 2018 and 1.08 for 2019.
Required:
Complete the below table to calculate the inventory value at the end of 2018 and 2019 using the dollar-value LIFO method. (Round "Year end cost index" to 2 decimal places. Round other final answer values to the nearest whole dollars.

On January 1, 2018, Pet Friendly Stores adopted the retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows: 2018 2019 Cost Retail Cost Retail Beginning inventory $ 140,000 $ 200,000 Purchases 440,000 594,000 $ 680,000 $ 854,000 Purchase returns 3,500 4,350 3,200 4,550 Freight-in 6,600 5,000 Net markups 5,450 9,800 Net markdowns 4,300 7,000 Net sales to customers 480,000 702,000 Sales to employees (net of 20% discount) 19,200 19,200 Normal spoilage 2,900 4,000 Price Index: January 1, 2018 1.00 December 31, 2018 1.25 December 31, 2019 1.25 Required: 1. Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail method. 2. Estimate the 2018 ending inventory and cost of goods sold using the average cost retail method. 3. Estimate the 2018 ending inventory and cost of goods sold using the conventional retail method.

Use the following set of information to prepare a pension worksheet. Also, make the appropriate journal entry to record pension expense for 2018. Hayworth Inc. has the following information related to its defined-benefit pension plan :

Projected Benefit Obligation, 1/1/2018 (before amendment) $675,000

Accumulated Benefit Obligation, 1/1/2018 (before amendment) 475,000

Vested Benefit Obligation, 1/1/2018 (before amendment) 375,000

Pension Assets, 1/1/2018 525,000

Service Cost 90,000

Settlement rate 6%

Expected rate of return on plan assets 10%

Actual return on plan assets 30,000

Benefits paid to retirees 72,000

Contributions to plan 80,000

Amortization of prior service costs 20,000

On 1/1/2018, Hayworth Inc. grants prior service benefits having a present value of 100,000

Unamortized Gain, 1/1/2018 100,000

Average service life of all employees 10 years

Unamortized Prior Service Cost (OCI), 1/1/2018 150,000

Samantha Dolan operates a small consulting business as a sole proprietor. During 2018, she has the following transactions related to the business:

1. Calculate the net income or loss from Samantha’s business using the accrual method of accounting

2. Calculate the net income or loss from Samantha’s business using the cash method of accounting.

3. What accounts for the difference in the two net incomes and how does this benefit or cause a problem for a trade or business?

Note from instructor: I would just use both as displayed. I think they’re just trying to make you take into account multiple line items like you will in real life (but they would probably be named differently).

How do the all events and economic performance requirement apply to the

following transactions by an accrual basis taxpayer?

a. The company guarantees its products for six months. At the end of 2018, customers

had made valid claims for $600,000 that were not paid until 2019. Also,

the company estimates that another $400,000 in claims from 2018 sales will be

filed and paid in 2019.

b. The accrual basis taxpayer reported $200,000 in corporate taxable income for

2018. The state income tax rate was 6%. The corporation paid $7,000 in estimated

state income taxes in 2018 and paid $2,000 on 2017 state income taxes

when it filed its 2017 state income tax return in March 2018. The company filed

its 2018 state income tax return in March 2019 and paid the remaining $5,000

of its 2018 state income tax liability.

c. An employee was involved in an accident while making a sales call. The company

paid the injured victim $15 ,000 in 2018 and agreed to pay the victim

S 15,000 a year for the next nine years.

The statement of profit or loss for Blue Cross (Pty) Ltd for the financial year ended 28 February 2019 is as follows:

R

Sales (note 1) 2000 000

Cost of sales (800 000)

Gross profit 1200 000

Salaries (450 000)

Depreciation (note 3) (100 000)

Repairs (15 000)

Profit from the sale of machinery (note 4) 30 000

Local dividends received 35 000

Interest received 28 000

Profit before tax 728 000

Note 1

Blue Cross (Pty) Ltd received a payment in advance of R40 000 from a customer. At year-end the goods still had to be delivered to the customer. This amount has not yet been recognised as revenue for accounting purposes.

Note 2

Blue Cross (Pty) Ltd entered into learnership agreements that qualify for allowances in terms of s 12H. The allowance amounts to R60 000.

Note 3

The equipment qualified for an accelerated allowance of R150 000 in terms of s 12C during the 2019 year of assessment.

Note 4

The machinery was sold for R320 000 on 30 August 2018. The recoupment of allowance for tax purposes amounted to R20 000. A capital gain of R50 000 arose on the disposal.

Statutory tax rate is 28%

Calculate the normal taxable payable by Blue Cross (Pty) Ltd for year of assessment ended on 28 February 2019.