An auditor discovered an error while conducting Black Inc.'s 2016 audit. No errors were corrected during 2015.

A 2 year insurance policy was purchased on April 30, 2015. This policy resulted in $24,000 being debited to Prepaid Insurance [On April 30, 2015]. However, no adjustmnet was made on December 31, 2015 or on December 31, 2016.

Required:

Prepare the appropriate journal entries. Assume the 2016 books have not been closed but the tax entries have been completed. The tax rate for all years is 40%. Apply US GAAP.

Make sure to record the appropriate entries regarding taxes.

Computing ROPI for Multiple Years
Use the following data to compute ROPI for Intel Corporation for 2016 through the terminal period. Assume that the company's weighted average cost of capital is 9%.

Round answers to the nearest whole number.

Broussard Skateboard's sales are expected to increase by 25% from $7.4 million in 2016 to $9.25 million in 2017. Its assets totaled $6 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 5%, and the forecasted payout ratio is 65%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.

Acura Company purchased a machine on January 1, 2016 for $625,000. The machine has a four year useful life and a salvage value of $20,000. The machine was depreciated using sum of the years digits. On January 1, 2018, two years later, it was determined they should have used straight line depreciation and decided to change to straight line. The useful life was also extended by three years, and the salvage value was reduced to $15,000. Profit for 2016 was $800,000 and for 2017 was $700,000 using sum of the years’ digits depreciation. Prior to depreciation expense in 2018, profits were $200,000. Determine the correct profits for 2016, 2017, 2018.

The following information is available for Marin Inc. for three recent fiscal years. 2017 2016 2015 Inventory $546,328 $571,700 $326,238 Net sales 1,934,372 1,695,980 1,327,594 Cost of goods sold 1,554,675 1,312,366 964,008 Calculate the inventory turnover, days in inventory, and gross profit rate for 2017 and 2016. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.) 2017 2016 Inventory Turnover times times Days in Inventory days days Gross Profit Rate % %

Taylor Company issued $100,000 of 13% bonds on January 1, 2016. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2018.

Required:

The Amada fund contains the three stocks listed below. The fund is comprised of 40% Canyon, 40% Zara, and 20% Junio.

a) Calculate the yearly returns of the portfolio, as well as its arithmetic and geometric average.

b) Assume you invested at the beginning of 2016, and sold at the end 2019 (so there was a four year holding period). Ignore all taxes. If you put $20,000 in this portfolio at the beginning of 2016, what was the value at the end of 2019? Show the steps of your work.

Metlock Corporation enters into a 6-year lease of equipment on December 31, 2016, which requires 6 annual payments of $37,100 each, beginning December 31, 2016. In addition, Metlock guarantees the lessor a residual value of $20,900 at the end of the lease. However, Metlock believes it is probable that the expected residual value at the end of the lease term will be $10,900. The equipment has a useful life of 6 years. Assume that for Lost Ark Company, the lessor, collectibility of lease payments is probable and the carrying amount of the equipment is $130,000. Prepare Lost Ark’s 2016 and 2017 journal entries, assuming the implicit rate of the lease is 10% and this is known to Metlock.

On January 1, 2016, a company pays $5,222,591 for a 5-year corporate bond with a face value of $5 million. The bond pays interest at 5 percent on December 31 of each

year, and the principal is due on December 31, 2020. The investment yields a 4 percent compound annual

return to maturity. The company classies the bond as a held-to-maturity investment.

Required

Prepare the journal entries to record the investment on January 1, 2016, receipt of the interest payments

on December 31 of each year 2016 through 2020, and receipt of the bond principal on December 31,

2020, using the effective interest method.

Broussard Skateboard's sales are expected to increase by 25% from $8.6 million in 2016 to $10.75 million in 2017. Its assets totaled $6 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 7%, and the forecasted payout ratio is 65%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.