PLEASE ANSWER STEP 2 ONLY

Preparing a Schedule of Cost of Finished Goods Manufactured, Cost of Goods Sold Schedule, and an Income Statement. Listed below is information related to Danbury Co’s manufacturing activities for the month of July 2016. Ending Balance Beginning Balance Materials Inventory $7,500 $ 6,000 Goods in Process Inventory 11,000 2,000 Finished Goods Inventory 10,000 9,000 During July 2016, Danbury Company purchased $20,000 of raw materials and incurred direct labor costs of $14,160. The company applies overhead at a rate of 50% of direct labor cost. General, selling and administrative costs amounted to $6,550, and the company sold 10,372 units of its product at a price of $5 each.  

A) Prepare Danbury’s schedule of cost of finished goods manufactured for July 2016.

B) Determine Danbury’s cost of goods sold during July 2016.

C) Prepare Danbury’s income statement for the month ended July 31, 2018 (ignoring interest expense and income taxes)

Betta Inc. has 100 shares outstanding. As of January 1, 2016 Betta had 200,000 earnings and profits from prior years. On June 30, 2016 Betta paid a dividend of 35 per share to all shareholders. Bob and his three brothers each owned 25 shares of Betta. Each invested $10,000 to start the company and made no further investment in Betta. In November 2016 Bob and his wife got divorced and he needed money to pay her settlement. To raise the cash needed bob sold 10 shares of Betta back to Betta as treasury stock. Betta gave Bob $65,000 in cash and the car he was driving, cost 62,000, fair market value, 38,000, basis $20,000.

On December 31, 2016 when Betta closed its books for the year there was a profit of $10,000.

Compute Bob’s treatment of the money he received and his basis in the remaining shares he owned.

E19-20.  

(Two Differences, One Rate, First Year)

(LO 1, 2, 4) The differences between the book basis and tax basis of the assets and liabilities of Castle Corporation at the end of 2016 are presented below.

It is estimated that the litigation liability will be settled in 2017. The difference in accounts receivable will result in taxable amounts of $30,000 in 2017 and $20,000 in 2018. The company has taxable income of $350,000 in 2016 and is expected to have taxable income in each of the following 2 years. Its enacted tax rate is 34% for all years. This is the company's first year of operations. The operating cycle of the business is 2 years.

Instructions

(a)  

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016.

(b)  

Indicate how deferred income taxes will be reported on the balance sheet at the end of 2016.

1. Winners industries perform adjusting entries every month, but close its accounts only at year-end. The Agency’s year –end adjusted trail balance dated December 31, 2016, appears below.

Prepare an income statement for the year ended December 31, 2016. Also prepare Winners industries balance sheet dated December 31, 2016.  Also prepare Winners industries balance sheet dated December 31, 2016.

1. On January 1, 2016, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $300 million cash. At the date of acquisition of the stock, Lake's net assets had a fair value of $900 million. Their book value was $800 million. The difference was attributable to the fair value of Lake’s buildings exceeding book value. Lake's net income for the year ended December 31, 2016, was $150 million. During 2016, Lake declared and paid cash dividends of $30 million. The buildings have a remaining life of 10 years. Cameron’s investment in Lake will affect Cameron’s 2016 net income by:

A. Increase net income by $30 million.

B. Increase net income by $28 million.

C. Increase net income by $18 million.

D. Increase net income by $12 million.

E.   There is no effect on net income.

** please show all the works **

The Eldorado Corporation's controller prepares adjusting entries only at the end of the fiscal year. The following adjusting entries were prepared on December 31, 2016: Debit Credit Interest expense 7,200   Interest payable 7,200 Rent expense 35,000   Prepaid rent 35,000 Interest receivable 500   Interest revenue 500 Additional information: The company borrowed $120,000 on March 31, 2016. Principal and interest are due on March 31, 2017. This note is the company's only interest-bearing debt. Rent for the year on the company's office space is $60,000. The rent is paid in advance. On October 31, 2016, Eldorado lent money to a customer. The customer signed a note with principal and interest at 6% due in one year. Required: Determine the following: What is the interest rate on the company's note payable? The 2016 rent payment was made at the beginning of which month? How much did Eldorado lend its customer on October 31?

II. Notes Payable. Rubio Company had the following borrowing activity. Rubio has a borrowing rate of 6 percent on its other debt.

A. On June 30, 2016, Rubio issued a non-interest bearing, 10 year note of $50,000 to acquire land for expansion.

1. Calculate the cash equivalent price of the land (assuming 6% is the market rate).

2. Prepare the journal entry to record the acquisition on June 30.

B. On January 1, 2016, Rubio acquired equipment by issuing an $80,000, 2 percent (low-interest bearing), 5 year note, with interest paid annually, starting December 31, 2016.

1. Calculate the cash equivalent price of the equipment (assuming 6% is the market rate).

2. Prepare the journal entry to record the acquisition on January 1.

3. Prepare the journal entry to record the interest payment on December 31, 2016, assuming the effective interest method.

Suppose you are given the following financial statement information for 2015 and 2016. Calculate the operating cash flows (OCF) for 2016.  (Enter a whole number).

1. Name 5 bacterial diseases and how we acquire them.

2. Name 5 viral diseases and how we acquire those diseases.

3. Name 5 fungal diseases and how we acquire them.

4. Name 5 protozoans diseases and how we acquire those.