2. No temporary differences existed at the beginning of 2018.
3. Pretax accounting income was $204 million and taxable income was $145 million for the year ended December 31, 2018. The tax rate is 40%.

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?
  

Paulson Company issues 6%, four-year bonds, on December 31, 2017, with a par value of $200,000 and semiannual interest payments.

  
Use the above straight-line bond amortization table and prepare journal entries for the following.

(a) The issuance of bonds on December 31, 2017.

(b) The first interest payment on June 30, 2018.

(c) The second interest payment on December 31, 2018.

Home Builders Inc. purchased a truck for $60,000 on January 1, 2018. It has an expected salvage value of $11,000 at the end of its seven-year useful life. How much is combined depreciation expense in 2018 and 2019 using straight-line depreciation? How much is depreciation expense in 2018 using double-declining balance depreciation? How much is depreciation expense in 2019 using double-declining balance depreciation? How much is depreciation expense in 2018 using sum-of-years digits depreciation? How much is depreciation expense in 2019 using sum-of-years digits depreciation?

• GEARING RATIO
• (2019)= 20.85
• (2018)=21.14

INTEREST COVER

(2019) =1O TIMES

(2018) =1O TIMES

• Investor ratio:

EPS=

(2019) = 52500290000/1=0.1810p

(2018) =36660240000/1=0.1527p

P/E=

(2019) =13.809 TIMES

(2018) =16.366 TIMES

Q1:---Based on the gearing and investor ratio you should give a constructive suggestion to the company about funding the machine using a bank loan ---

Advice Finance Manager of Greenwood Plc whether the organization is able to receive a loan or look for other options (specify clearly the available options, if any).

In 2018, Borland Semiconductors entered into the following capital transactions described below. In 2014, Borland had issued 100 million shares of its $1 par common stock at $24 per share.

Required:

Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following transactions:

On January 2, 2018, Borland reacquired 5 million shares at $22 per share.

On April 30, 2018, Borland reacquired 5 million shares at $26 per share.

On November 18, 2018, Borland sold 3 million shares at $32 per share.

On January 1, 2018, the Coldstone Corporation adopted the dollar-value LIFO retail inventory method. Beginning inventory at cost and at retail were $180,000 and $292,950, respectively. Net purchases during the year at cost and at retail were $736,000 and $911,000, respectively. Markups during the year were $9,000. There were no markdowns. Net sales for 2018 were $878,000. The retail price index at the end of 2018 was 1.05. What is the inventory balance that Coldstone would report in its 12/31/2018 balance sheet? (Do not round intermediate calculations.)

$267,960.

$201,882.

$334,950.

$255,200.

The following is a partial trial balance for the Green Star Corporation as of December 31, 2018:

110,000 shares of common stock were outstanding throughout 2018.

Required:
1. Prepare a single-step income statement for 2018, including EPS disclosures.
2. Prepare a multiple-step income statement for 2018, including EPS disclosures.

Cayman Inc. bought 30% of Maya Company on January 1, 2018 for $450,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $1,500,000. Maya began supplying inventory to Cayman as follows: Cost to Maya Transfer Price Amount Held by Cayman at Year-End 2018 $ 30,000 $ 45,000 $9,000 2019 $ 48,000 $ 80,000 20,000 Maya reported net income of $100,000 in 2018 and $120,000 in 2019 while paying $40,000 in dividends each year.

What is the balance in Cayman’s Investment in Maya account at December 31, 2018?

Amazon sells copiers that come with a 2-year warranty contract that requires them to fix any defects during the warranty period. During 2018, Amazon sells 600 copiers for $4,000 each. During 2018, Amazon spent $30,000 servicing these warranties. During 2019, Amazon spent $100,000 servicing these warranties.

a) Record any necessary journal entries related to the sale of the copiers and the warranties for both 2018 and 2019. Amazon estimates that the total cost of the 2-year warranties will be $150,000.

b) How would the liability related to these warranties be presented on the 2018 balance sheet?

On January 1, 2018, the Marjlee Company began construction of an office building to be used as its corporate headquarters. The building was completed early in 2019. Construction expenditures for 2018, which were incurred evenly throughout the year, totaled $9,900,000. Marjlee had the following debt obligations which were outstanding during all of 2018:

Required:
Calculate the amount of interest capitalized in 2018 for the building using the specific interest method.

The answer i got was $305,250 (incorrect)