Part 1:

On January 1 2018, Louis Company issued bonds with a Par Value of $400,000. The coupon interest rate on the bond is 10%, and it has a maturity of 3 years.

Interest is paid semiannually on June 30^th and December 31 of each year.

Required:

Compute the value of the bond assuming the following market rates of interest:

                                                                                                            [5 points]

Part 2:

From part 1, using the effective interest method, show how the bond premium would be amortized over the life of the bond. Fill in the following table to do this. Please round any amounts to the nearest $.

Part 3:

Show journal entries for the premium bond for the following:

The issue of the bond on January 1^st, 2018

(ii)        The first and second interest dates (June 30^th, 2018 and December 31^st, 2018)

[10 points]

Case1

1)Express design Ltd provide $5000 of graphic design service to one of its clents with credit terms of net 30 days on 3 June 2018. Revenue are considered earned when the service are provided. This mean that on June 3 express design will recognize the revenues even if it will not receive money until 3^rd of the july

Required

identify which account are affected and explain how they are affected

Prepare journal entry for the transaction on 3 June 2018

2) Express Design also sells design product. It has just sold and shipped $11000 worth of design product using the terms FOB., shipping point on 10 June 2018. The cost of good sold for this sale is 80% of the sales amount

Required

calculate the cost of good sold

Prepare journal entry for the transaction on 10 June 2018

3 Express Design also sells design product. It has just sold and shipped $11000 worth of design product using the terms FOB., shipping point on 10 June 2018. The cost of good sold for this sale is 80% of the sales amount. The term of the sale is 2/10 net 30

Required

explain the credit terms 2/10, net 30

what is net amount due on 15 June 2018

what the net amount due on 15 July 2018

Jung & Newbicalm Advertising (JNA) recently hired a new creative director, Howard Rachell, for its Madison Avenue office in New York. To persuade Howard to move from San Francisco, JNA agreed to advance him $120,000 on April 30, 2018, on a one-year, 9 percent note, with interest payments required on October 31, 2018, and April 30, 2019. JNA issues quarterly financial statements on March 31, June 30, September 30, and December 31.

Prepare journal entries to record the note’s issuance, interest earned, and interest payments received for each quarter and on each payment date. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to whole dollar amount)

- Record the receipt of a note on April 30, 2018 for a $120,000 loan to the new creative director.

- Record the interest accrued on the note as of June 30, 2018.

- Record the interest accrued on the note as of September 30, 2018.

- Record the receipt of interest for the period ending October 31, 2018.

- Record the interest accrued on the note as of December 31, 2018.

- Record the interest accrued on the note as of March 31, 2019.

- Record the receipt of interest for the period ending April 30, 2019.

- Record the receipt of the principal on the note’s maturity date.

Brandlin Company of Anaheim, California, purchases materials from a foreign supplier on December 1, 2017, with payment of 31,000 korunas to be made on March 1, 2018. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2017, Brandlin enters into a forward contract to purchase 31,000 korunas on March 1, 2018. Relevant exchange rates for the koruna on various dates are as follows:

Brandlin’s incremental borrowing rate is 12 percent. The present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. Brandlin must close its books and prepare financial statements at December 31.

a-2.Assuming that the purchased parts became a part of the cost of goods sold in 2017, what is the impact on 2017 net income?
a-3.What is the impact on 2018 net income?
a-4.What is the impact on net income over the two accounting periods?

(Do not round intermediate calculations. In case of negative impact on income, answer should be entered with a minus sign.)

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An audit of the books of Grinch company was conducted for the year ending December 31, 2018. In examining the books, the auditor found that certain items had been overlooked or incorrectly recorded. These items are:

1. The company purchased a copyright in early 2016 for $60,000. The bookkeeper has not amortized the copyright. The useful life at purchase was 10 years.

2. During 2018, the company sold fully depreciated equipment that originally cost $25,000 (no salvage value). The company incorrectly recorded the sale as follows:

Cash                                        3,500

                                    Equipment                               3,500

3. A $12,000 insurance premium paid on January 1, 2017, for a policy that expires on December 31, 2019, was charged to insurance expense.

4. The company failed to accrue sales commissions payable of $3,000 at the end of 2017. It was therefore expensed at the beginning of 2018.

5. Also, at December 31, 2018, Grinch decided to change the depreciation method on its office equipment from double-declining balance to straight line. The equipment had an original cost of $40,000 when purchased on January 1, 201 It has a 10-year useful life and no salvage value. Depreciation expense recorded prior to 2018 under the double-declining balance method was $19,520. Grinch has already recorded 2018 depreciation expense of $4,096 using the double-declining balance method.

Instructions:

Prepare the journal entries necessary in 2018 to correct the books, assuming the books have not been closed. Ignore all tax effects.

Please show steps

National Orthopedics Co. issued 11% bonds, dated January 1, with a face amount of $700,000 on January 1, 2018. The bonds mature on December 31, 2021 (4 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. (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.)

Required:
1. Determine the price of the bonds at January 1, 2018.
2. Prepare the journal entry to record their issuance by National on January 1, 2018.
3. Prepare an amortization schedule that determines interest at the effective rate each period.
4. Prepare the journal entry to record interest on June 30, 2018.
5. Prepare the appropriate journal entries at maturity on December 31, 2021.

Schedule table:

Prepare an amortization schedule that determines interest at the effective rate each period. (Round final answers to the nearest whole dollar.)

Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2018 through 2021 except for differences in depreciation on an operational asset. The asset cost $210,000 and is depreciated for income tax purposes in the following amounts

: 2018 $ 69,300

2019 92,400

2020 31,500

2021 16,800

The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes. Income amounts before depreciation expense and income taxes for each of the four years were as follows. 2018 2019 2020 2021 Accounting income before taxes and depreciation $ 115,000 $ 135,000 $ 125,000 $ 125,000 Assume the average and marginal income tax rate for 2018 and 2019 was 30%; however, during 2019 tax legislation was passed to raise the tax rate to 40% beginning in 2020. The 40% rate remained in effect through the years 2020 and 2021. Both the accounting and income tax periods end December 31. Required: Prepare the journal entries to record income taxes for the years 2018 through 2021

1.Record 2018 income taxes.

2Record 2019

3.record 2020

4.record 2021

Note: Enter debits before credits.

Southern Atlantic Distributors began operations in January 2018 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2018, 30% in 2019, and 20% in 2020. Pretax accounting income for 2018 was $280,000, which includes interest revenue of $40,000 from municipal bonds. The enacted tax rate is 30%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2018. 2. What is Southern Atlantic’s 2018 net income?

Complete the following table given below to record income taxes in 2018. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

ournal entry worksheet

Record 2018 income taxes.

Note: Enter debits before credits.