Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $15 million and taxable income of $23 million for the year ended December 31, 2018. The 2018 tax rate is 40%. The only difference between accounting income and taxable income is estimated product warranty costs. Expected payments and scheduled tax rates (based on recent tax legislation) are as follows:

Required:
1. Determine the amounts necessary to record Allmond’s income taxes for 2018 and prepare the appropriate journal entry.

Determine the amounts necessary to record Allmond’s income taxes for 2018. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Enter all amounts as positive values.)

Record 2018 income taxes.

2. What is Allmond’s 2018 net income?

​​​​​​​Vibrant Company had $910,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $505,000 in each of those years. It also maintained a $210,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $190,000 rather than the correct $210,000.

1. Determine the correct amount of the company’s gross profit in each of the years 2016–2018.
2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.

Determine the correct amount of the company's gross profit in each of the years 2016−2018.

Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016−2018.

Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $139,107. (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.)

Prepare a lease amortization schedule and appropriate entries for Edison Leasing from the beginning of the lease through January 1, 2019. Edison’s fiscal year ends December 31.

1. 1/1/2018 Record the lease.

2. 1/1/2018 Record cash received

3. 4/1/2018 Record cash received.

4. 7/1/2018 Record cash received.

5. 10/1/2018 Record cash received.

6. 12/31/2018 Record interest receivable.

7. 1/1/2019 Record cash received.

Benjamin, Inc., operates an export/import business. The company has considerable dealings with companies in the country of Camerrand. The denomination of all transactions with these companies is alaries (AL), the Camerrand currency. During 2017, Benjamin acquires 22,000 widgets at a price of 8 alaries per widget. It will pay for them when it sells them. Currency exchange rates for 1 AL are as follows:

1. Assume that Benjamin acquired the widgets on December 1, 2017, and made payment on March 1, 2018. What is the effect of the exchange rate fluctuations on reported income in 2017 and in 2018?
2. Assume that Benjamin acquired the widgets on September 1, 2017, and made payment on December 1, 2017. What is the effect of the exchange rate fluctuations on reported income in 2017?
3. Assume that Benjamin acquired the widgets on September 1, 2017, and made payment on March 1, 2018. What is the effect of the exchange rate fluctuations on reported income in 2017 and in 2018?

(Input all amounts as positive values.)

Effect of Exchange Rate Fluctuations

a.2017

2018

b.2017

c.2017

2018

Comparative data for the “I Told You So Company” for the two-year period 2017-2018 are presented below.

1. compute profit margin just for 2018

2. compute asset turnover just for 2018

3. compute return on assets just for 2018 using the DuPont method

4. What is the price/earnings ratio at the end of 2018

Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017, and the increases or decreases in each account from 2017 to 2018. Also presented is selected income statement information for the year ended December 31, 2018, and additional information.

Additional information:

Accounts receivable relate to sales of merchandise.

During 2018, equipment costing $48,000 was sold for cash.

During 2018, bonds payable with a face value of $28,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.

Required:
Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2018. The following two responses are required for each item:

Determine the amount that should be reported in Del Conte's 2018 statement of cash flows.

Select the category (i.e., O - Operating activity, I - Investing activity and F - Financing activity) in which the amount should be reported in the statement of cash flows.

q.30

Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017, and the increases or decreases in each account from 2017 to 2018. Also presented is selected income statement information for the year ended December 31, 2018, and additional information.

Additional information:

1. Accounts receivable relate to sales of merchandise.
2. During 2018, equipment costing $78,000 was sold for cash.
3. During 2018, bonds payable with a face value of $58,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.

Required:
Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2018. The following two responses are required for each item:

1. Determine the amount that should be reported in Del Conte's 2018 statement of cash flows.
2. Select the category (i.e., O - Operating activity, I - Investing activity and F - Financing activity) in which the amount should be reported in the statement of cash flows.

don't forget to out category

Brokeback Towing Company is at the end of its accounting year, December 31, 2018. The following data that must be considered were developed from the company’s records and related documents:

1. On July 1, 2018, a two-year insurance premium on equipment in the amount of $800 was paid and debited in full to Prepaid Insurance on that date. Coverage began on July 1.
2. At the end of 2018, the unadjusted balance in the Supplies account was $1,200. A physical count of supplies on December 31, 2018, indicated supplies costing $400 were still on hand.
3. On December 31, 2018, YY’s Garage completed repairs on one of Brokeback’s trucks at a cost of $900. The amount is not yet recorded. It will be paid during January 2019.
4. On December 31, 2018, the company completed a contract for an out-of-state company for $8,050 payable by the customer within 30 days. No cash has been collected and no journal entry has been made for this transaction.
5. On July 1, 2018, the company purchased a new hauling van. Depreciation for July–December 2018, estimated to total $2,850, has not been recorded.
6. As of December 31, the company owes interest of $600 on a bank loan taken out on October 1, 2018. The interest will be paid when the loan is repaid on September 30, 2019. No interest has been recorded yet.
7. Assume the income after the preceding adjustments but before income taxes was $40,000. The company’s federal income tax rate is 15%. Compute and record income tax expense.

Required:

Indicate the accounting equation effects (amount and direction) of each adjusting journal entry. Provide an appropriate account name for any revenue and expense effects. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.)

Following are selected balance sheet accounts of Del Conte Corp. at December 31, 2018 and 2017, and the increases or decreases in each account from 2017 to 2018. Also presented is selected income statement information for the year ended December 31, 2018, and additional information.

Additional information:

1. Accounts receivable relate to sales of merchandise.
2. During 2018, equipment costing $78,000 was sold for cash.
3. During 2018, bonds payable with a face value of $58,000 were issued in exchange for property, plant, and equipment. There was no amortization of bond discount or premium.

Required:
Items 1 through 5 represent activities that will be reported in Del Conte's statement of cash flows for the year ended December 31, 2018. The following two responses are required for each item:

1. Determine the amount that should be reported in Del Conte's 2018 statement of cash flows.
2. Select the category (i.e., O - Operating activity, I - Investing activity and F - Financing activity) in which the amount should be reported in the statement of cash flows.