Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2020. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather’s support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,110 to move their personal belongings, and she and Heather spent two days driving the 1,480 miles to Georgia. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full time in January and throughout the rest of the year at a nearby university. She was awarded a $3,150 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $6,100 in state income taxes and $13,150 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather: Insurance premiums $ 8,350 Medical care expenses $ 1,100 Prescription medicine $ 400 Nonprescription medicine $ 100 New contact lenses for Heather $ 200 Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $950 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn’t able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion. A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $2,200 of interest income from corporate bonds and $1,600 interest income from City of Denver municipal bonds. Overall, Reba’s stock portfolio appreciated by $12,600, but she did not sell any of her stocks. Heather reported $6,300 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heather’s only source of income for the year. Reba had $10,500 of federal income taxes withheld by her employer. Heather made $1,050 of estimated tax payments during the year. Reba did not make any estimated payments. Reba had qualifying insurance for purposes of the Affordable Care Act (ACA). a. Determine Reba’s federal income taxes due or taxes payable for the current year. Use Tax Rate Schedule for reference. (Do not round intermediate values. Leave no answer blank. Enter zero if applicable.)
In: Accounting
During 2020, Vaughn Furniture Company purchases a carload of
wicker chairs. The manufacturer sells the chairs to Vaughn for a
lump sum of $161,595 because it is discontinuing manufacturing
operations and wishes to dispose of its entire stock. Three types
of chairs are included in the carload. The three types and the
estimated selling price for each are listed below.
| Type | Number of Chairs | Estimated selling Price |
| lounge chair | 1,080 | $90 |
| armchair | 810 | 80 |
| straight chair | 1,890 | 50 |
During 2020, Vaughn sells 540 lounge chairs, 270 armchairs, and
324 straight chairs.
What is the amount of gross profit realized during 2020? What is
the amount of inventory of unsold straight chairs on December 31,
2020? (Round cost per chair to 2 decimal places, e.g.
78.25 and final answer to 0 decimal places, e.g.
5,845.)
In: Accounting
On January 1, 2020, Coronado Inc. had cash and common stock of
$60,530. At that date, the company had no other asset, liability,
or equity balances. On January 2, 2020, it purchased for cash
$20,760 of debt securities that it classified as
available-for-sale. It received interest of $4,100 during the year
on these securities. In addition, it has an unrealized holding gain
on these securities of $5,190 net of tax. Determine the following
amounts for 2020: (a) net income, (b) comprehensive income, (c)
other comprehensive income, and (d) accumulated other comprehensive
income (end of 2020).
| (a) | Net income | $enter net income in dollars | ||
| (b) | Comprehensive income | $enter comprehensive income in dollars | ||
| (c) | Other comprehensive income | $enter other comprehensive income in dollars | ||
| (d) | Accumulated other comprehensive income | $enter accumulated other comprehensive income in dollars |
In: Accounting
solve based calculation question
On 1 January 2019, Candid PLC Corporation applied for a patent, incurring legal costs of $32,000. In January 2020, Candid PLC incurred $14,000 of legal fees in a successful defense of its patent right. Consider the following independent situations.
a. Compute 2019 amortization, year-end book value, 2020 amortization, and year-end book value if the company amortizes the patent over 8 years.
b. Compute the 2020 amortization and the year-end book value, assuming that at the beginning of 2020, Candid PLC determines that the patent will provide no future benefits beyond December 31, 2022.
c. Compute the 2021 amortization and the year-end book value, assuming that at the beginning of 2021, based on new market research, Candid PLC determines that the recoverable amount of the patent is $24,000.
In: Accounting
he inventory of Sandhill Company on December 31, 2020, consists
of the following items.
|
Part |
Quantity |
Cost per |
Net Realizable |
||||||
|---|---|---|---|---|---|---|---|---|---|
| A419 | 4,600 | $11 | $19 | ||||||
| A435 | 3,910 | 8 | 6 | ||||||
| A545 | 9,292 | 7 | 11 | ||||||
| A615 | 6,900 | 10 | 7 | ||||||
| A721 | 10,120 | 9 | 10 | ||||||
| A885 | 12,880 | 15 | 18 | ||||||
| A999 | a | 8,464 | 6 | 1 | |||||
a Part No. A999 is obsolete and has a realizable value
of $1 each as scrap.
(a) Determine the inventory as of December 31,
2020, by the LCNRV method, applying this method to each
item.
| Inventory as of December 31, 2020 | $enter the dollar amount of inventory at December 31, 2017 |
(b) Determine the inventory by the LCNRV method,
applying the method to the total of the inventory.
| Inventory as of December 31, 2020 | $enter the dollar amount of inventory at December 31, 2017 |
In: Accounting
Cho Co. includes one coupon in each box of cereal it sells. In return for 5 coupons and $1, customers receive a Cho branded spoon that the company purchases for $2 each. Cho's experience indicates that 40 percent of the coupons will be redeemed. During 2019, 200,000 boxes of cereal were sold, 20,000 spoons were purchased, and 55,000 coupons were redeemed. During 2020, 280,000 boxes of cereal were sold, 25,000 spoons were purchased, and 90,000 coupons were redeemed. The premium payable account balance at the beginning of the 2019 fiscal year was $8,000. Determine the premium expense reported in the income statement and the ending premium liability balance reported in the balance sheet for 2019 and 2020.
2019 Premium Expense: $
2019 Ending Premium Liability: $
2020 Premium Expense: $
2020 Ending Premium Liability: $
In: Accounting
During 2018, Pina Inc., a furniture store, issued two different series of bonds, details of which follow:
First issue: 670 $100, 10% bonds, at par, each convertible into 6 common shares.
Second issue: 390 $100, 7% bonds, at par, each convertible into 3 common shares.
For the year ended December 31, 2020, the company had net income of $53,850. Throughout 2020, 2,500 common shares were outstanding; none of the bonds were converted or redeemed. The company’s tax rate was 19%. (For simplicity, ignore the requirement to record the debt and equity portions of the convertible bond separately).
1. Calculate basic earnings per share for the year ended December 31, 2020.
2. Calculate diluted earnings per share for the year ended December 31, 2020.
In: Accounting
| Discuss how the following affect Assets, Income, Liabilities, Common Stock and Retained Earnings on the end of 2019 financial statements (Increase by $x, Decreases by $x, or No Effect): |
| 1. In June 2019, $1000 of gift cards were sold. At the end of the year 2019, $200 has not been redeemed. |
| 2. On November 1st 2019, John paid $300 for a 12 month insurance policy, with it beginning on the same day, and he showed all of it as an expense. |
| 3. The water bill for November 2019 was $100 |
| 4. On December 1st 2019, a consulting contract was signed for work in 2020, with the work starting in January 2020, and gets paid $10000 March 1st 2020. |
| 5. A company pays employees on the first day of the month. This is for working the previous month. December 2019's salaries will be paid on Jan. 1st 2020 is $1200 |
In: Accounting
Blossom Company sells goods that cost $250,000 to Ayayai Company for $400,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $41,000. The fair value of the goods is $369,000. The goods were delivered on March 1, 2020. Installation is considered a separate performance obligation and was completed on June 18, 2020. Under the terms of the contract, Ayayai Company pays Blossom $250,000 upon delivery of the goods and the balance at the completion of the installation.
Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Blossom. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. 5,275.)
| Performance Obligation | When? | How much? | ||
|---|---|---|---|---|
|
Deliver goods |
choose a transaction date January 2, 2020March 1, 2020June 18, 2020 | $enter a dollar amount rounded to 0 decimal places | ||
|
Installation |
choose a transaction date January 2, 2020March 1, 2020June 18, 2020 | enter a dollar amount rounded to 0 decimal places | ||
|
Total |
$enter a total amount rounded to 0 decimal places |
eTextbook and Media
List of Accounts
Prepare the journal entries for Blossom on January 2, March 1, and June 18, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
|
Account Titles and Explanation |
Debit |
Credit |
||
|---|---|---|---|---|
|
choose a transaction date January 2, 2020June 18, 2020March 1, 2020 |
enter an account title |
enter a debit amount |
enter a credit amount |
|
|
enter an account title |
enter a debit amount |
enter a credit amount |
||
|
enter an account title to record sales |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record sales |
enter a debit amount |
enter a credit amount |
||
|
enter an account title to record sales |
enter a debit amount |
enter a credit amount |
||
| (To record sales) | ||||
|
choose a transaction date January 2, 2020June 18, 2020March 1, 2020 |
enter an account title to record cost of goods sold |
enter a debit amount |
enter a credit amount |
|
|
enter an account title to record cost of goods sold |
enter a debit amount |
enter a credit amount |
||
| (To record cost of goods sold) | ||||
|
choose a transaction date June 18, 2020January 2, 2020March 1, 2020 |
enter an account title |
enter a debit amount |
enter a credit amount |
|
|
enter an account title |
enter a debit amount |
enter a credit amount |
||
|
enter an account title |
enter a debit amount |
enter a credit amount |
In: Accounting
Assume that a parent company owns 80 percent of its subsidiary. The parent company uses the equity method to account for its investment in subsidiary. On January 1, 2012, the parent company issued to an unaffiliated company $1,000,000 (face value) 10 year, 10 percent bond payable for a $61,000 premium. The bonds pay interest in December 31 of each year. On January 1, 2015, the subsidiary acquired 40 percent of the bonds for $386,000. Both companies use straight-line amortization.
In preparing the consolidated financial statements for the year ended December 31, 2016, what is the consolidation entry adjustment?
In: Accounting