Walter's Inc. began operations on January 15, 2018, and had the following transactions in trading securities during 2018 and 2019:

March 1, 2018 Purchased 500 shares of Apex, Inc. common stock at $11 per share, plus a commission of $300

April 1, 2018 Purchased 1,000 shares of Basic Corp. preferred stock at $4 per share, plus a commission of $500.

June 1, 2018 Received dividends of $1 per share on the Apex stock and $2 per share on the Basic stock

December 31, 2018 Determined that the fair market values per share were $13 for the Apex sstock and $2 for the Basic stock.

February 15, 2019 Sold 500 shares of the Basic stock for $3 per share, less commissions of $200.

June 1, 2019 Received dividends of $1 per share on the Apex stock and $2 per share on the Basic stock

November 20, 2019 Purchased 800 share of Cargo, Inc. common stock for $7 per share, plus a commission of $400.

December 31, 2019 Determined that the fair market values per share were $14 for the Apex stock, $3 for the Basic stock, and $8 for the Cargo stock.

REQUIRED:

Prepare all of the journal entries required to account for Walter's transactions in the trading securities for the years 2018 and 2019.

Bethesda Mining Company reports the following balance sheet information for 2018 and 2019.

BETHESDA MINING COMPANY Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 55,526 $ 70,205 Accounts payable $ 188,922 $ 196,611 Accounts receivable 63,281 83,639 Notes payable 84,020 135,588 Inventory 121,382 186,805 Total $ 272,942 $ 332,199 Total $ 240,189 $ 340,649 Long-term debt $ 235,000 $ 171,750 Owners’ equity Common stock and paid-in surplus $ 220,000 $ 220,000 Accumulated retained earnings 170,594 206,478 Fixed assets Net plant and equipment $ 658,347 $ 589,778 Total $ 390,594 $ 426,478 Total assets $ 898,536 $ 930,427 Total liabilities and owners’ equity $ 898,536 $ 930,427 Calculate the following financial ratios for each year:

a. Current ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Quick ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Cash ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) d. Debt-equity ratio and equity multiplier. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) e. Total debt ratio. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a. 2018 current ratio times 2019 current ratio times b. 2018 Quick ratio times 2019 Quick ratio times c. 2018 Cash ratio times 2019 Cash ratio times d. 2018 Debt-equity ratio times 2018 Equity multiplier times 2019 Debt-equity ratio times 2019 Equity multiplier times e 2018 Total debt ratio times 2019 Total debt ratio times

Information pertaining to Noskey Corporation’s sales revenue follows:

Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month’s projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price.

Required:

Determine for Noskey:

1. Budgeted cash collections in December 2018 from November 2018 credit sales.

2. Budgeted total cash receipts in January 2019.

3. Budgeted total cash payments in December 2018 for inventory purchases.

Information pertaining to Noskey Corporation’s sales revenue follows: November 2018 (Actual) December 2018 (Budgeted) January 2019 (Budgeted) Cash sales $ 80,000 $ 100,000 $ 60,000 Credit sales 240,000 360,000 180,000 Total sales $ 320,000 $ 460,000 $ 240,000 Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month’s projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price. Required: Determine for Noskey: 1. Budgeted cash collections in December 2018 from November 2018 credit sales. 2. Budgeted total cash receipts in January 2019. 3. Budgeted total cash payments in December 2018 for inventory purchases.

In 2017, the Redsox Inc. was formed. The corporate charter authorizes 1,000,000 shares of $5 par value, noncumulative, nonparticipating preferred stock, and issuance of 5,000,000 shares of common stock carrying a $1 par value. Balance sheets are prepared quarterly.

On January 2, 2018, all 1,000,000 shares of preferred stock are issued at $20 per share. Also on January 2, 3,000,000 shares of the common stock are issued in exchange for cash at an average price of $10 per share. Net income for the first quarter was $1,000,000.

During the 2^nd and 3^rd quarters, the Redsox Inc. participated in three treasury stock transactions:

Net income for the second and third quarter was $3,000,000 in total.

On October 15, 2018, Board of Directors approves a 2-for-1 stock split to replace its $1 par value common stock with a new common stock issue having a $0.50 par value. That is, the shareholders will receive two shares of the $0.50 par stock in exchange for each share of the $1 par stock they own. The $1 par stock will be collected and destroyed.

On November 5, 2018, the Redsox Corporation declares a $0.05 per share cash dividend on common stock and a $0.25 per share cash dividend on preferred stock. Payment is scheduled for December 1, 2018, to shareholders of record on November 15, 2018.

On December 14, 2018, the Redsox Corporation declares and issues a 1% stock dividend. At the date of declaration, the common stock was selling in the open market at $10 per share.

Net income for the fourth quarter was $2,000,000.

Required:

Prepare journal entries for stock related transactions (i.e., issuance, repurchase, and dividends).

Prepare the December 31, 2018, shareholders’ equity section of the balance sheet for the Redsox Corporation.

Depletion

On January 2, 2016, Spring Company purchased land for $480000, from which it is estimated that 370000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $69000, after which it could be sold for $35000.

During 2016, Spring mined 71000 tons and sold 60000 tons. During 2017, Spring mined 91000 tons and sold 82000 tons. At the beginning of 2018, Spring spent an additional $80000, which increased the reserves by 56000 tons. In 2018, Spring mined 135000 tons and sold 134000 tons. Spring uses a FIFO cost flow assumption.

Required:

If required, round your final answers to the nearest dollar and round the depletion rate per ton to the nearest cent.

1. Calculate the depletion included in the income statement and ending inventory for 2016, 2017, and 2018. Round the depletion rate to the nearest cent. If required, round the final answers to the nearest dollar.

2. Complete the natural resources section of the balance sheet on December 31, 2016, 2017, and 2018, assuming that an accumulated depletion account is used. Round the depletion rate per to the nearest cent. If required, round the final answers to the nearest dollar.

3. Assume Whistler's discount rate was 8%. What is the balance in the asset retirement obligation at 2016, 2017, and 2018? If required, round your answers to the nearest dollar.

4. Linkin Log opened a real estate leasing business on January 1, 2018 of the current year. During the year, the following transactions occurred and were recorded in the company's books:

1. John Link, owner, invested $225,000 cash to start the business Linkin Log.
2. John Link bought a commercial building for $125,000 on March 1, 2018. The property was comprised of building of $100,000 and land of $25,000.  The building is depreciable over a 25 year life for GAAP and a 40 year life for tax.
3. The company paid $5,000 cash to rent office space for the 2018 year.
4. The company received $36,000 in rent which represented payment under the lease on the property. The payment was for the rental period from January 1 – December 31, 2018.
5. The company paid $1,200 for a maintenance contract under which services were rendered during the year.
6. The company received $3,000 of rent which represented payment under the lease on the property. The payment was for the rental period from January 1 – January 31, 2019.
7. The company paid cash of $1,500 for utilities for 2018 bills.
8. The company paid 2018 property taxes in the amount of $10,000 on July 1, 2018 and the company also paid for 2019 property taxes in the amount of $3,500 on December 15, 2018.

9. The company paid interest expense of $3,000 on its outstanding debt during 2018.  Accrued, unpaid interest through the end of the year, December 31, 2018, was an additional $300.
10. John Link withdrew $5,000 for his personal use from the company.

Based on the information above, GAAP net income as computed using the accrual method of accounting, should be:

_____________________

Based on the information above, taxable net income as computed using the accrual method of accounting, should be:

_____________________

Based on the information above, net operating income (NOI) for GAAP as computed under the accrual method of accounting should be:

_____________________

Based on the information above, net income as computed under the cash method of accounting (i.e. not under GAAP) should be:

_____________________

Depletion On January 2, 2016, Salt Company purchased land for $490000, from which it is estimated that 350000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $90000, after which it could be sold for $36000. During 2016, Salt mined 85000 tons and sold 73000 tons. During 2017, Salt mined 111000 tons and sold 112000 tons. At the beginning of 2018, Salt spent an additional $80000, which increased the reserves by 70000 tons. In 2018, Salt mined 144000 tons and sold 138000 tons. Salt uses a FIFO cost flow assumption. Required: If required, round your final answers to the nearest dollar and round the depletion rate per ton to the nearest cent. 1. Calculate the depletion included in the income statement and ending inventory for 2016, 2017, and 2018. Round the depletion rate to the nearest cent. If required, round the final answers to the nearest dollar. 2016 Depletion deducted from income $ Depletion included in inventory $ 2017 Depletion deducted from income $ Depletion included in inventory $ 2018 Depletion deducted from income $ Depletion included in inventory $ 2. Complete the natural resources section of the balance sheet on December 31, 2016, 2017, and 2018, assuming that an accumulated depletion account is used. Round the depletion rate per to the nearest cent. If required, round the final answers to the nearest dollar. Salt Company Balance Sheet (partial) December 31, 2016 - 2018 December 31, 2016 Mineral ore resources $ Less: Accumulated depletion $ December 31, 2017 Mineral ore resources $ Less: Accumulated depletion $ December 31, 2018 Mineral ore resources $ Less: Accumulated depletion $ Feedback 3. Assume Whistler's discount rate was 9%. What is the balance in the asset retirement obligation at 2016, 2017, and 2018? If required, round your answers to the nearest dollar. Salt Company Asset retirement obligation 2016 - 2018 December 31, 2016 $ December 31, 2017 $ December 31, 2018 $ Feedback Check My Work

Why is the mechanical strength of the HAZ next to the fusion line of a non-heat treatable

       aluminum alloy much lower than that of the base metal?

Why does the mechanical strength of the HAZ of a non-heat treatable aluminum alloy

       increase with distance from the fusion line?