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!

The information that follows pertains to Richards Refrigeration, Inc.:

1. At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following:

2. No temporary differences existed at the beginning of 2018.
3. Pretax accounting income was $210 million and taxable income was $145 million for the year ended December 31, 2018. The tax rate is 30%.

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

At the end of 2017, Payne Industries had a deferred tax asset account with a balance of $21 million attributable to a temporary book-tax difference of $60 million in a liability for estimated expenses. At the end of 2018, the temporary difference is $40 million. Payne has no other temporary differences. Taxable income for 2018 is $140 million and the tax rate is 35%.

Payne has a valuation allowance of $4 million for the deferred tax asset at the beginning of 2018.

Required:
1. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that the deferred tax asset will be realized.
2. Prepare the journal entry(s) to record Payne’s income taxes for 2018, assuming it is more likely than not that one-fourth of the deferred tax asset will ultimately be realized.

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.

: 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.