During 2018, Angel Corporation had 900,000 shares of common stock and 50,000 shares of 6% preferred stock outstanding. The preferred stock is not convertible. Angel declared and paid cash dividends of $300,000 and $150,000 to common and preferred shareholders, respectively, during 2018. On January 1, 2017, Angel issued $2,000,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into 10 common shares. Angels net income for the year ended December 31, 2018, was $6 million. The income tax rate is 20%. What is Angel's basic earnings per share for 2018, rounded to the nearest cent? What will Angel report as diluted earnings per share for 2018, rounded to the nearest cent?
In: Accounting
The Bradford Company issued 12% bonds, dated January 1, with a face amount of $96 million on January 1, 2018. The bonds mature on December 31, 2027 (10 years). For bonds of similar risk and maturity, the market yield is 14%. 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.) Required: 1. Determine the price of the bonds at January 1, 2018. 2. to 4. Prepare the journal entry to record their issuance by The Bradford Company on January 1, 2018, interest on June 30, 2018 and interest on December 31, 2018 (at the effective rate).
In: Accounting
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Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $244,000; Costs = $144,000; Other expenses = $7,900; Depreciation expense = $18,000; Interest expense = $13,200; Taxes = $21,315; Dividends = $10,000. In addition, you’re told that the firm issued $4,700 in new equity during 2018 and redeemed $3,200 in outstanding long-term debt. |
| a. |
What is the 2018 operating cash flow? (Do not round intermediate calculations.) |
| b. | What is the 2018 cash flow to creditors? (Do not round intermediate calculations.) |
| c. | What is the 2018 cash flow to stockholders? (Do not round intermediate calculations.) |
| d. | If net fixed assets increased by $30,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.) |
In: Finance
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Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $235,000; Costs = $141,000; Other expenses = $7,900; Depreciation expense = $14,600; Interest expense = $14,900; Taxes = $19,810; Dividends = $12,000. In addition, you’re told that the firm issued $6,400 in new equity during 2018 and redeemed $4,900 in outstanding long-term debt. |
| a. |
What is the 2018 operating cash flow? (Do not round intermediate calculations.) |
| b. | What is the 2018 cash flow to creditors? (Do not round intermediate calculations.) |
| c. | What is the 2018 cash flow to stockholders? (Do not round intermediate calculations.) |
| d. | If net fixed assets increased by $25,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.) |
In: Finance
On January 2, 2018, Baltimore Company purchased 18,000 shares of the stock of Towson Company at $12 per share. Baltimore obtained significant influence as the purchase represents a 35% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $19,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $55,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased to $18 per share at the end of the year. Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.)
In: Accounting
On January 4, 2018, Runyan Bakery paid $362 million for 10
million shares of Lavery Labeling Company common stock. The
investment represents a 30% interest in the net assets of Lavery
and gave Runyan the ability to exercise significant influence over
Lavery's operations. Runyan chose the fair value option to account
for this investment. Runyan received dividends of $4 per share on
December 15, 2018, and Lavery reported net income of $340 million
for the year ended December 31, 2018. The market value of Lavery's
common stock on December 31, 2018, was $33 per share. On the
purchase date, the book value of Lavery's net assets was $990
million and:
The fair value of Lavery's depreciable assets, with an average remaining useful life of [a(27)] years, exceeded their book value by $90 million.
The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill.
Required:
1-a. Prepare all appropriate journal entries
related to the investment during 2018, assuming Runyan accounts for
this investment under the fair value option, and accounts for the
Lavery investment in a manner similar to what it would use for
securities for which there is no significant influence.
1-b. Calculate the effect of these journal entries
on 2018 net income, and the amount at which the investment is
carried in the December 31, 2018, balance sheet.
2-a. Prepare all appropriate journal entries
related to the investment during 2018, assuming Runyan accounts for
this investment under the fair value option, but uses equity method
accounting to account for Lavery’s income and dividends, and then
records a fair value adjustment at the end of the year that allows
it to comply with GAAP.
2-b. Calculate the effect of these journal entries
on 2018 net income, and the amount at which the investment is
carried in the December 31, 2018, balance sheet.
In: Accounting
On January 4, 2018, Runyan Bakery paid $326 million for 10
million shares of Lavery Labeling Company common stock. The
investment represents a 30% interest in the net assets of Lavery
and gave Runyan the ability to exercise significant influence over
Lavery's operations. Runyan chose the fair value option to account
for this investment. Runyan received dividends of $4 per share on
December 15, 2018, and Lavery reported net income of $160 million
for the year ended December 31, 2018. The market value of Lavery's
common stock at December 31, 2018, was $30 per share. On the
purchase date, the book value of Lavery's net assets was $810
million and:
The fair value of Lavery's depreciable assets, with an average remaining useful life of [a(27)] years, exceeded their book value by $40 million.
The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill.
Required:
1-a. Prepare all appropriate journal entries
related to the investment during 2018, assuming Runyan accounts for
this investment under the fair value option, and accounts for the
Lavery investment in a manner similar to what it would use for
securities for which there is not significant influence.
1-b. Calculate the effect of these journal entries
on 2018 net income, and the amount at which the investment is
carried in the December 31, 2018, balance sheet.
2-a. Prepare all appropriate journal entries
related to the investment during 2018, assuming Runyan accounts for
this investment under the fair value option, but uses equity method
accounting to account for Lavery’s income and dividends, and then
records a fair value adjustment at the end of the year that allows
it to comply with GAAP.
2-b. Calculate the effect of these journal entries
on 2018 net income, and the amount at which the investment is
carried in the December 31, 2018, balance sheet.
In: Accounting
The problem to be resolved:
Baltic Supplies Unadjusted Trial Balance as at December 31st, 2018 is as follows:
Account Name Debit Credit
Cash 620,000
Accounts Receivable 410,000
Merchandise Inventory 480,000
Store supplies 144,800
Prepaid Insurance expense 840,000
Building and equipment 2,000,000
Accumulated depreciation-Building and equipment 976,000
Accounts Payable 680,000
Traveling expense payable -
unearned sales revenue 450,000
Note payable-Long term 213,800
Baltic capital 1,700,000
Baltic withdrawal 35,000
Sales revenue earned 2,550,500
sales discount 45,100
Sales returns allowance 62,500
Cost of Goods sold 401,000
Salaries expense 430,000
telephone expense 85,000
Depreciation expense- Building and equipment -
Insurance expense 630,000
store supplies expense 130,000
electricity expense 105,000
Bad debt expense 65,400
Travelling expense 25,000
Interest expense 61,500
The following additional information was made available at December 31, 2018
Required:
In: Accounting
Assume Nortel Networks contracted to provide a customer with Internet infrastructure for $2,450,000. The project began in 2018 and was completed in 2019. Data relating to the contract are summarized below: 2018 2019 Costs incurred during the year $ 336,000 $ 1,870,000 Estimated costs to complete as of 12/31 1,344,000 0 Billings during the year 446,000 1,710,000 Cash collections during the year 268,000 1,795,000 Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming Nortel recognizes revenue over time according to percentage of completion. 4. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming this project does not qualify for revenue recognition over time.
Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming Nortel recognizes revenue over time according to percentage of completion
Compute the amount of revenue and gross profit or loss to be recognized in 2018 and 2019 assuming this project does not qualify for revenue recognition over time.
Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming Nortel recognizes revenue over time according to percentage of completion.
Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2018 assuming this project does not qualify for revenue recognition over time.
In: Accounting
On January 1, 2018, Nath-Langstrom Services, Inc., a computer
software training firm, leased several computers under a two-year
operating lease agreement from ComputerWorld Leasing, which
routinely finances equipment for other firms at an annual interest
rate of 4%. The contract calls for four rent payments of $14,500
each, payable semiannually on June 30 and December 31 each year.
The computers were acquired by ComputerWorld at a cost of $99,000
and were expected to have a useful life of Five years with no
residual value. Both firms record amortization and depreciation
semi-annually. (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.)
Required:
Prepare the appropriate entries for both the lessee and the lessor
from the beginning of the lease through the end of 2018.
a. record the beginning of the lease for Nath-Langstrom Services (Jan 1, 2018)
b. record the lease payment and interest expense for Nath-Langstrom Services (Jun 30. 2018)
c. record the amortization expense for Nath-Langstrom Services. (Jun 30, 2018)
d. record the lease payment and interest expense for Nath-Langstrom Services.(Dec 31, 2018)
e. record the amortization expense for Nath-Langstrom Services. (Dec 31)
f. record the lease revenue received by ComputerWorld Leasing (Jun 30. 2018
g. record the Depreciation expense for ComputerWorld Leasing. (Jun 30, 2018)
h. record the lease revenue received by ComputerWorld Leasing. (dec 31, 2018)
i. record the Depreciation expense for ComputerWorld Leasing. (Dec 31, 2018)
I was given wrong answer last time I asked. So please can someone help me ):
In: Accounting