Mortgage Loan Analysis: A resident in Victoria is planning to buy a new house in March 2018. The sale price of the house is $336,000. He plans to pay 20% down payments and borrow additional 80% from Wells Fargo with a 30-year, 4.375% fixed-rate mortgage loan. He is expected to pay an equal MONTHLY payment starting from April 2018 for a total of 30 years.

(1) Calculate the required monthly mortgage payment for Mr. Davidson.

(2) Construct the 2018~2047 amortization table for Mr. Davidson.

(1)   Mr. Davidson should prepare his 2018 tax filings in early 2019. Please compute the total mortgage interest payments which he can use for his 2018 tax deductions.

Need step by step help on how to solve this on excel!

The Young Company enters into a long-term project to build a new office building. The Contract price is $9,000,000 and Young expects to complete the project in three years. Young gives you the following information for the first two years regarding the project:

Required:

1.    Prepare the journal entries to record the above information for both 2017 and 2018 under the percentage of-completion method.

2.    What items would be disclosed on the Company’s December 31, 2018 balance sheet?

Prat Corp. started the 2018 accounting period with $31,000 of assets (all cash), $12,500 of liabilities, and $16,000 of common stock. During the year, the Retained Earnings account increased by $16,550. The bookkeeper reported that Prat paid cash expenses of $31,500 and paid a $3,100 cash dividend to the stockholders, but she could not find a record of the amount of cash that Prat received for performing services. Prat also paid $5,500 cash to reduce the liability owed to the bank, and the business acquired $6,900 of additional cash from the issue of common stock.

a-1. Prepare an income statement for the 2018 accounting period. a-2. Prepare a statement of changes in stockholders’ equity for the 2018 accounting period. a-3. Prepare a period-end balance sheet for the 2018 accounting period. a-4. Prepare a statement of cash flows for the 2018 accounting period.

2. At the end of 2018, Builders Inc. has one project underway to build a warehouse. The project was begun in early 2017. The contract amount is $50,000,000 and the project is expected to be completed in late 2019. Data on this project are presented below:

Costs incurred in 2017 $8,000,000

Billings in 2017 $6,000,000

Estimated cost to complete at 12/31/17 $32,000,000

Additional costs incurred in 2018 $19,000,000

Billings in 2018 $15,000,000

Estimated cost to complete at 12/31/18 $18,000,000

Required:

1) For the Percentage of Completion Method, prepare the journal entries to record (a) the costs incurred, (b) the billings, and (c) recognition of any revenue or expense for both 2017 and 2018.

2) For the Percentage of Completion Method, present the income statement and balance sheet disclosure that would be required for 2017 and 2018.

Wolverine Company maintains a defined benefit pension with First Hartford Trust. Below are the balances reported by First Hartford on January 1, 2018.

Plan Benefit Obligation $720,000

Plan Asset $660,000

At the beginning of 2018, First Hartford informed Wolverine that its assumptions for the last five years have been off slightly, and they need to deposit an additional $210,000. Other matters for 2018 are:

The settlement rate is 10%

The current service cost is $80,000

Expected earnings are 8%

Actual earnings are $60,000

Prior service cost amortization is $25,000

First Hartford Trust paid retirement benefits of $35,000

Wolverine funded the plan $90,000

1. Prepare the pension worksheet for 2018.

2. Prepare the pension expense summary journal entry for 2018.

Prat Corp. started the 2018 accounting period with $30,000 of assets (all cash), $12,000 of liabilities, and $15,000 of common stock. During the year, the Retained Earnings account increased by $16,050. The bookkeeper reported that Prat paid cash expenses of $31,000 and paid a $3,000 cash dividend to the stockholders, but she could not find a record of the amount of cash that Prat received for performing services. Prat also paid $4,500 cash to reduce the liability owed to the bank, and the business acquired $6,600 of additional cash from the issue of common stock.

1. a-1. Prepare an income statement for the 2018 accounting period.
2. a-2. Prepare a statement of changes in stockholders’ equity for the 2018 accounting period.
3. a-3. Prepare a period-end balance sheet for the 2018 accounting period.
4. a-4. Prepare a statement of cash flows for the 2018 accounting period.

A consigned to B on 1st January 2018, 600 bales of cotton costing Tk.120 per bale. Freight charges incurred on the consignment were Tk.6,000. A drew a bill on B for Tk.45,000 payable on 30th June,2018 which B accepted. The bill was discounted by A with his banker on 1st March,2018 at 10% p.a. B rendered account to A on 31st March 2018 showing sales of 300 bales for Tk.90,000 and selling expenses of Tk.5000. B’s commission was 10%. On this date B remitted to A the net amount due to him. On 31st May 2018, B sold the balance stock for Tk.40,000 after incurring expenses of Tk.5,000. He remitted Tk.28,000 to A, the balance being treated as commission earned by him.

Pass journal entries in the books of A

On May 1, 2017, Hobart Mfg. Co. purchased a drill press at a cost of $36,000. The drill press is expected to last 10 years and have a residual value of $6,000. During its 10-year life, the equipment is expected to produce 500,000 units of product. In 2017, 2018 and 2019, 25,000 75,000 and 84,000 units, respectively, were produced.

REQUIRED: (Show Your Work)

(a) Compute depreciation for 2017 and 2018, assuming the straight-line method is used.

(b) Compute depreciation for 2017, 2018, 2019 and 2020, assuming the double-declining-balance method is used.

(c) Compute depreciation for 2017, 2018, 2019 and 2020, assuming the sum-of-the-years'-digits method is used.

(d) Compute depreciation for 2017, 2018, and 2019, assuming the units-of-production method is used.

Hawkins Corporation began construction of a motel on March 31, 2018. The project was completed on April 30, 2019. No new loans were required to fund construction. Hawkins does have the following two interest-bearing liabilities that were outstanding throughout the construction period:

$5,300,000, 6% note
$12,820,000, 10% bonds

Construction expenditures incurred were as follows:

The company’s fiscal year-end is December 31.

Required:
Calculate the amount of interest capitalized for 2018 and 2019. (Round weighted average interest rate to 2 decimal places and final answers to the nearest whole dollar.)

Thank you in advance!