Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2018 and 2019.* A consulting firm, engaged as actuary, recommends 5% as the appropriate discount rate. The service cost is $200,000 for 2018 and $290,000 for 2019. Year-end funding is $210,000 for 2018 and $220,000 for 2019. No assumptions or estimates were revised during 2018.

*We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn’t change, that also was the actual rate in 2019.

Required:

Calculate each of the following amounts as of both December 31, 2018, and December 31, 2019: (Enter your answers in thousands (i.e., 200,000 should be entered as 200).)

Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2018. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. The actual return was also 10% in 2018 and 2019.* A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is $150,000 for 2018 and $240,000 for 2019. Year-end funding is $160,000 for 2018 and $170,000 for 2019. No assumptions or estimates were revised during 2018.

*We assume the estimated return was based on the actual return on similar investments at the inception of the plan and that, since the estimate didn’t change, that also was the actual rate in 2019.

Required:

Calculate each of the following amounts as of both December 31, 2018, and December 31, 2019: (Enter your answers in thousands (i.e., 200,000 should be entered as 200).)

On 1 january 2018, Abc Co purchased assets of XYZ Co at auction for $1,560,000. An independent appraisal of the fair value of the assets acquired is listed below:

Land $171,600

Building $514, 800

Equipment $600,000

Inventories $429,000

On 1 september 2018, ABC Co exchanged land and cash of $8000 for a plant. The land had a book value of $55,000 and a fair value of $60,000. The exchange has commercial susbtance.

On 31 November 2018, ABC co sold equipment for $60,000. The old equipment cost $77,000 and had a book value of $55,000

Required:

I) Prepare the journal entry to record the purchase of the assets in 1 January 2018( show all the working)

II) Prepare the journal entry to record the exchange of assets in 1 September 2018( show all the working)

III) Prepare the journal entry to record the disposition of equipment in 31 November 2018( show all the working)

On January 1, 2018, Bishop Company issued 8% bonds dated January 1, 2018, with a face amount of $20.2 million. The bonds mature in 2027 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to the nearest whole dollar.)

Required:
1. Determine the price of the bonds at January 1, 2018.
2. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2018.
3. Prepare the journal entry to record interest on June 30, 2018, using the effective interest method.
4. Prepare the journal entry to record interest on December 31, 2018, using the effective interest method.

Notes receivable and notes payable

a)         On December 1, 2018, Hawkins, Inc. loaned money to a customer who signed a note having a face value of $16,200. The note is due on May 1, 2019 and does not specific an interest rate. Hawkins credited cash for $15,500 on December 1 as a result of the loan.

Required:

Prepare the entry on the books of Hawkins, Inc. to record the note-related activity on:

            December 1, 2018

            December 31, 2018

            May 1, 2019.

b)         On March 15, 2018, Powell Corp. borrowed money by signing a note having a face value of $28,500. The note is due on March 15, 2019 and does not specific an interest rate. Powell debited cash for $26,700 on March 15 as a result of the loan.

Required:

Prepare the entry on the books of Hawkins, Inc. to record the note-related activity on:

            March 15, 2018

            December 31, 2018

            March 15, 2019.

When Patey Pontoons issued a 6% bonds on January 1, 2018, with a face amount of 760,000, the market yield for bonds of similiar risk and maturity was 11%. The bonds mature December 31, 2021 (4 years). Interest is paid semiannually on June 30 and December 31.

1. Determine the price of the bonds at January 1, 2018

2. prepare the journal entry to record their issuance by Patey on January 1, 2018

3. Prepare an amortization schedule that determines interest at the effective rate each period

4. Prepare the journal entry to record interest on June 30, 2018

5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2018

6 What is the amount related to the bonds that Patey will report on its income statement for the year ended December 31, 2018

7 Prepare the appropriate journal entries at maturity on December 31, 2021

CircuitTown commenced a gift card program in January 2018 and sold $10,000 of gift cards in January, $15,000 in February, and $16,000 in March of 2018 before discontinuing further gift card sales. During 2018, gift card redemptions were $6,000 for the January gift cards sold, $4,500 for the February cards, and $4,000 for the March cards. CircuitTown considers gift cards to be “broken” (not redeemable) 10 months after sale.
  
Required:
1. How much revenue will CircuitTown recognize with respect to January gift card sales during 2018?
2. Prepare journal entries to record the sale of January gift cards, redemption of gift cards (ignore sales tax), and breakage (expiration) of gift cards.
3. How much revenue will CircuitTown recognize with respect to March gift card sales during 2018?
4. What liability for deferred revenue associated with gift card sales would CircuitTown show as of December 31, 2018?

Change in share price within 7 days of 7 May 2018 of Westpac: Track and report any change in Westpac company's share price within 7 days of 7 May 2018(provide evidence of this change tracking). Change in share price within 7 days of 7 February 2018 of Commonwealth: Track and report any change in Commonwealth share price within 7 days of 7 February 2018. What information in the half yearly financial report may have caused this change? If there is nothing in the report to warrant this share price change, then identify any market event that may be related to this share price change. Westpac's share price from 7 May to 10 May is 29.34 29.71 29.75 29.85. Commonwealth's share price from 7 February 2018 to 14 Feb 2018 is 76.99 76.51 76.25 76.25 76.25 75.88 76.30 73.98

he information that follows pertains to Esther Food Products:

At December 31, 2018, temporary differences were associated with the following future taxable (deductible) amounts:

No temporary differences existed at the beginning of 2018.

Pretax accounting income was $77,000 and taxable income was $20,000 for the year ended December 31, 2018.

The tax rate is 40%.

Required:
Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2018.
1.

Complete the following table given below to record income taxes for 2018. (Negative amounts should be entered with a minus sign.)

2. Record 2018 income taxes.

On January 1, 2018, HGC Camera Store adopted the dollar-value LIFO retail inventory method. Inventory transactions at both cost and retail, and cost indexes for 2018 and 2019 are as follows:

Required:
Estimate the 2018 and 2019 ending inventory and cost of goods sold using the dollar-value LIFO retail inventory method. (Do not round other intermediate calculations. Round your cost-to-retail percentage calculations to 2 decimal places and final answers to the nearest whole dollar.)