Sherrod, Inc., reported pretax accounting income of $74 million for 2021. The following information relates to differences between pretax accounting income and taxable income:

1. Income from installment sales of properties included in pretax accounting income in 2021 exceeded that reported for tax purposes by $7 million. The installment receivable account at year-end 2021 had a balance of $8 million (representing portions of 2020 and 2021 installment sales), expected to be collected equally in 2022 and 2023.
2. Sherrod was assessed a penalty of $3 million by the Environmental Protection Agency for violation of a federal law in 2021. The fine is to be paid in equal amounts in 2021 and 2022.
3. Sherrod rents its operating facilities but owns one asset acquired in 2020 at a cost of $68 million. Depreciation is reported by the straight-line method, assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight-line depreciation the next two years ($ in millions):

4. For tax purposes, warranty expense is deducted when costs are incurred. The balance of the warranty liability was $1 million at the end of 2020. Warranty expense of $3 million is recognized in the income statement in 2021. $2 million of cost is incurred in 2021, and another $3 million of cost anticipated in 2022. At December 31, 2021, the warranty liability is $2 million (after adjusting entries).
5. In 2021, Sherrod accrued an expense and related liability for estimated paid future absences of $14 million relating to the company’s new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years ($8 million in 2022; $6 million in 2023).
6. During 2020, accounting income included an estimated loss of $2 million from having accrued a loss contingency. The loss is paid in 2021, at which time it is tax deductible.

Balances in the deferred tax asset and deferred tax liability accounts at January 1, 2021, were $0.8 million and $1.5 million, respectively. The enacted tax rate is 25% each year.

1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)

Journal entry worksheet

2. What is the 2021 net income? (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50)

3.Show how any deferred tax amounts should be classified and reported in the 2021 balance sheet. (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50

preparing for your (future) child (or grandchild)’s college education. 20 years later from now, your (future) child will go to college. Currently, you’re considering two colleges for your (future) child (or grandchild).

1.       Please visit the website of each university and find tuition and related information. Use out-of-state tuition information. Make sure that you include accurate information and citation source (20 points).

2.       Using the tuition and related information in (1), you need to compound it at a reasonable "inflation" rate for education-related expenses for x number of years. I hope most of you are aware that educational inflation has been much higher than overall inflation in the economy, (You can find ‘tuition inflation’ statistics from the internet. Use google.com and search for tuition inflation or education inflation)

3.       After you calculate this projected cost, your next job is to find the annual deposit needed to accomplish the goal - meeting the educational expenses. You must assume the investment rate of return (You can use ‘savings account rate as your investment rate of return, for example). Recall the equations or time value of the money table we went over in class. You will choose the one that will give you the amount of the annual deposit

4.       What if you have $10,000 right now? How does this new information affect the previous answer in (3)? What’s new annual deposit amount you should make?

5.       Let’s assume that you just won the lottery. Rather than making equal annual payments, you decided to make one lump-sum deposit today to cover your child’s future college expense needs. There will be no additional deposit. How much should you make one lump-sum deposit today to accumulate projected college education expense you need in 20 years?

4. Looking at the University as an institution of higher learning over the past two decades. Do you think we have made significant progress as a university in a developing country? Why or Why not?    

The financial year for Crystal Catering Services ends on 30 June. After analysing the accounting records and other data for the business of Crystal Catering Services, the following information is made available for the year ended 30 June 2020.

• Crystal Catering Services sub-lets space in its building of $2,400 (excluding GST) per month. Crystal Catering Services has not received the rent for June 2020.
• Crystal Catering Services borrowed $15,000 from Metro Bank on 2 February 2020. The principal, plus 5% pa interest, is payable on 15 August. Accrued interest on 30 June has not been recorded.
• The sales assistant earns $130 per day. She will be paid on 3 July for the 5-day period ending 3 July 2020. Accrued wages for sales assistant on 30 June has not been recorded.
• On 18 May, Crystal Catering Services received an advance from a customer for services totalling $890 (plus GST). This was recorded in the unearned cleaning revenue. The services were provided on 26 June 2020.
• Crystal Catering Services purchased a 6-month insurance policy for $1,200 (plus GST) on 1 May 2020. The purchase of this was recorded by debiting Prepaid Insurance.
• Repairs to Crystal Jone’s, the owner of Crystal Catering Services, private motor vehicle of $620 was debited to the Vehicles expense account.

Required:

Using the information above, make the necessary adjusting entries for Crystal Catering Services for the year ended 30 June 2020.

Problem 13-12

Pronghorn Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Pronghorn uses two sales promotion techniques—warranties and premiums—to attract customers.

Musical instruments and sound equipment are sold with a 1-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 1% of sales.

The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music or sheet music. Customers may exchange 200 coupons and $20 for an MP3 player. Pronghorn pays $33 for each player and estimates that 50% of the coupons given to customers will be redeemed.

Pronghorn’s total sales for 2020 were $7,570,000—$5,898,000 from musical instruments and sound reproduction equipment and $1,672,000 from recorded music and sheet music. Replacement parts and labor for warranty work totaled $97,500 during 2020 ($45,000 of the work is related to pre-2020 sales). A total of 6,340 players used in the premium program were purchased during the year and there were 1,126,000 coupons redeemed in 2020.

The balances in the accounts related to warranties and premiums on January 1, 2020, were as shown below.

Pronghorn Music Emporium is preparing its financial statements for the year ended December 31, 2020. Determine the amounts that will be shown on the 2020 financial statements for the following.

The condensed financial statements of Oriole Company for the years 2019 and 2020 are presented as follows. (Amounts in thousands.)

Compute the following ratios for 2020 and 2019. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.)

The trial balance columns of the worksheet for Crane Company at June 30, 2020, are as follows

Other data:

please help me do an accurate worksheet.

I partiallyy did mine. but isn't adding up but it won't allow me to add because it says its too long.

The bank portion of the bank reconciliation for Sheridan Company at November 30, 2020, was as follows.

The adjusted cash balance per bank agreed with the cash balance per books at November 30.

The December bank statement showed the following checks and deposits.

The cash records per books for December showed the following.

The bank statement contained two memoranda:

At December 31, the cash balance per books was $14,295.20, and the cash balance per the bank statement was $19,714.60. The bank did not make any errors, but Langer Company made two errors.

The total payroll of Crane Company for the month of October, 2020 was $960000, of which $170000 represented amounts paid in excess of $119500 to certain employees. $604000 represented amounts paid to employees in excess of the $7400 maximum subject to unemployment taxes. $170000 of federal income taxes and $17200 of union dues were withheld. The state unemployment tax is 1%, the federal unemployment tax is .8%, and the current F.I.C.A. tax is 7.65% on an employee’s wages to $119500 and 1.45% in excess of $119500. What amount should Crane record as payroll tax expense?

The trial balance columns of the worksheet for Cullumber Company at June 30, 2020, are as follows.

Other data:

Complete the worksheet.