The Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,200,000. This cost included the following expenditures:

The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2019 and 2020.

In 2021, after the 2020 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company’s controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment.

Required:
1 & 2. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2021 and any 2021 journal entries related to the change in depreciation methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)

The Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,308,000. This cost included the following expenditures:

The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2019 and 2020.

In 2021, after the 2020 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company’s controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment.

Required:
1 & 2. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2021 and any 2021 journal entries related to the change in depreciation methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.) requirement 3 Record the 2021 adjusting entry for depreciation.

The Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,344,000. This cost included the following expenditures:

The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2019 and 2020.

In 2021, after the 2020 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company’s controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment.

Required:
1 & 2. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2021 and any 2021 journal entries related to the change in depreciation methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar.)

On January 1, 2018, Lawson Brothers Enterprises (LBE) granted restricted stock units (RSUs) representing 40 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $10 per share on the grant date. At the date of grant, LBE anticipated that 5% of the recipients would leave the firm prior to vesting. Ignore taxes.

Required:

1. Prepare the appropriate journal entry to record compensation expense on December 31, 2018. Show calculations.

2. Prepare the appropriate journal entry to record compensation expense on December 31, 2019. Show calculations.

3. During 2020 third year, LBE revised its estimate of forfeitures from 5% to 10%. Prepare the appropriate journal entry to record compensation expense on December 31, 2020. Show calculations.

4. Prepare the appropriate journal entry to record compensation expense on December 31, 2021. Show calculations.

Prepare all the necessary journal entries for the transactions listed above for Parker Corporation.

5. On December 1, 2018, Folks Wagon Company adopted a stock-option plan that granted options

to key executives to purchase 50,000 shares of the company’s $10 par value common stock. The

options were granted on January 1, 2019, and were exercisable 3 years after the date of grant if the

grantee was still an employee of the company. The options expired 5 years from the date of grant.

The option price was set at $35, and the fair value option-pricing model determines the total

compensation expense to be $450,000.

All of the options were exercised during the year 2022: 20,000 on February 23 when the market

price was $46, and 30,000 on August 8 when the market price was $85 a share.

a. Prepare the journal entries relating to the stock option plan for the years 2019, 2020, and 2021.

Assume that the employee performs services equally in 2019, 2020, and 2021.

b. Prepare the journal entries that record the two events of exercising the options in 2022

Consider a regenerative vapor power cycle with two feedwater heaters, a closed one and an open one, and reheat. Steam enters the first turbine stage at 12 MPa, 480°C, and expands to 2 MPa. Some steam is extracted at 2 MPa and fed to the closed feedwater heater. The remainder is reheated at 2 MPa to 440°C and then expands through the second-stage turbine to 0.3 MPa, where an additional amount is extracted and fed into the open feedwater heater operating at 0.3 MPa.

The steam expanding through the third-stage turbine exits at the condenser pressure of 20 kPa. Feedwater leaves the closed heater at 210°C, 12 MPa, and condensate exiting as saturated liquid at 2 MPa is trapped into the open feedwater heater. Saturated liquid at 0.3 MPa leaves the open feedwater heater. Assume all pumps and turbine stages operate isentropically.

Determine for the cycle:

(a) the heat transfer to the working fluid passing through the steam generator, in kJ per kg of steam entering the turbine.

(b) the percent thermal efficiency.

(c) the heat transfer from the working fluid passing through the condenser to the cooling water, in kJ per kg of steam entering the first-stage turbine.

Your friend Bob wants to starts an Italian restaurant and you decide to to invest in it. Bob has full discretion over establishing and managing the business. On January 1, 2010, you gave Bob $150,000 to start the business at the beginning of 2010 in exchange for 10,000 shares and 20,000 common stock, respectively. Bob has agreed to receive a starting salary of $80,000 per year. Bob decided to focus on catering to local corporation, so he rented a space off of 5th avenue on January 1,2010. He purchased equipment for $48,000 and a delivery truck for $60,000. In 2010 you decide to visit the restaurants to meet with Bob and discuss the results of your investment.

Bob: I've focused on selling to companies on credit, so they pay me later. I typically collect money within 30 days of making the sale. This year I sold $1,220,000 of food; as of year-end, I've only collected $1,100,000 of this amount and my customers still owe me the remainder. With the state of the current economy, I am worried about whether I'll be able to collect anywhere from $10,000 to $30,000 of what my customers still owe me. Throughout the year, I've also purchased baking and other supplies for the ship from various vendors . To receive quantity discounts and purchase the supplies for a slightly lower prices, I purchase more at a time. This year I purchased and received $1,010,000 of supplies. My vendors let me buy on credit and then pay them later. Thus I still owe my vendors $50,000. Currently, I have about $20,000 of supplies that I haven't used that are at the shop.

Bob continued:Business has been going well and I've been selling to a variety of places. I've put more miles on the delivery truck than I expected to, so it will only last another, 3 years. I will probably need to replace the equipment after another 2 years. The restaurant is in a great location, which I rent for $2,800 a month. However , to get that low rent, I had to sign a 3 year lease and must pay 3 months of rent at a time. At the end of December, I paid the landlord for rent through March 2011. I've also paid myself the $80,000 salary as we agreed. Currently, I have $60,000 in the bank.  

Based on what you know prepare a balance sheet, income statement and statement of cash flow for Bob.

Problem 17-06

Tamarisk Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date.

On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,040 shares of Patriot common stock were acquired at $56 per share on November 2, 2020. The December 31, 2020, fair values were Monty $114,890, Patriot $139,880, and Oakwood $186,000.

Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020. (Credit account titles are automatically indented when 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.)

The ledger of Port Hope Corporation at November 30, 2021, contains the following summary data:

Your analysis reveals the following additional information:

Prepare a multiple-step income statement for the year.

Prepare a statement of comprehensive income as a separate statement.