and Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians’ Leasing purchased a lithotripter from Rand for $1,920,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2018. (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.)
| Lease Description: | |||
| Quarterly lease payments | $ | 115,119—beginning of each period | |
| Lease term | 5 years (20 quarters) | ||
| No residual value; no purchase option | |||
| Economic life of lithotripter | 5 years | ||
| Implicit interest rate and lessee's incremental borrowing rate | 8% | ||
| Fair value of asset | $ | 1,920,000 | |
Required:
1. How should this lease be classified by Mid-South
Urologists Group and by Physicians' Leasing?
2. Prepare appropriate entries for both Mid-South
Urologists Group and Physicians' Leasing from the beginning of the
lease through the second rental payment on April 1, 2018. Adjusting
entries are recorded at the end of each fiscal year (December
31).
3. Assume Mid-South Urologists Group leased the
lithotripter directly from the manufacturer, Rand Medical, which
produced the machine at a cost of $1.6 million. Prepare appropriate
entries for Rand Medical from the beginning of the lease through
the second lease payment on April 1, 2018.
Complete this question by entering your answers in the tabs below.
1. How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing?
|
Mid-South Urologists Group |
|
|
Physicians’ Leasing |
2. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2018. Adjusting entries are recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.)
Requested: Lessee Journal Entry
* Record Lease Jan 01, 2018
*Record Cash Payment Jan 01, 2018
*Record Cash Payment. April 01, 2018
Requested: Lesor Journal Entry
* Record Lease Jan 01, 2018
* Record cash received. Jan 01, 2018
* Record cash received. April 01, 2018
3. Requested: Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.6 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.)
* Record Lease Jan 01, 2018
* Record cash received. Jan 01, 2018
* Record cash received. April 01, 2018
In: Accounting
The 2019 list of the 15 largest banks in the world by assets:
| Asset Rank | Bank (Group) (NYSE Index) | Country | Total Assets, US $B | Balance Sheet |
| 1 | Industrial & Commercial Bank of China (ICBC) | China | 3,912.56 | 6/30/2019 |
| 2 | China Construction Bank Corp. (CICHY) | China | 3,382.42 | 6/30/2019 |
| 3 | Agricultural Bank of China (ACGBY) | China | 3,293.10 | 6/30/2019 |
| 4 | Bank of China | China | 3,241.97 | 6/30/2019 |
| 5 | Mitsubishi UFJ Financial Group (MUFG) | Japan | 2,846.07 | 6/30/2019 |
| 6 | JP Morgan Chase & Co (JPM) | USA | 2,727.38 | 9/30/2019 |
| 7 | HSBC Holdings (HSBC) | UK | 2,658.98 | 6/30/2019 |
| 8 | Bank of America (BAC) | USA | 2,395.89 | 9/30/2019 |
| 9 | China Development Bank (CDB) | China | 2,356.62 | 6/30/2019 |
| 10 | BNP Paribas | France | 2,332.68 | 6/30/2019 |
| 11 | Credit Agricole | France | 2,221.13 | 6/30/2019 |
| 12 | Citigroup (C) | USA | 1,988.23 | 9/30/2019 |
| 13 | Wells Fargo & Co (WFC) | USA | 1,923.39 | 9/30/2019 |
| 14 | Sumitomo Mitsui Financial Group (SMFG) | Japan | 1,861.61 | 6/30/2019 |
| 15 | Mizuho Financial Group (MFG) | Japan | 1,845.18 | 6/30/2019 |
A. Compute the median and the mean assets from this group.
B. Which of these two measures do you think is most appropriate for summarizing these data and why?
C. What is the value of Q2 and Q3?
D. Determine the 63rd percentile for the data.
E. Determine the 29th percentile for the data
F. Build a box plot for 2019 and compare with 2018.
For Part F: The 2018 list of the 15 largest banks in the world by assets:
| Asset Rank | Bank (Group) (NYSE Index) | Country | Total Assets, US $B | Balance Sheet |
| 1 | Industrial & Commercial Bank of China (ICBC) | China | 4,043.73 | 12/31/2018 |
| 2 | China Construction Bank Corp. (CICHY) | China | 3,390.17 | 12/31/2018 |
| 3 | Agricultural Bank of China (ACGBY) | China | 3,300.65 | 12/31/2018 |
| 4 | Bank of China | China | 3,104.71 | 12/31/2018 |
| 5 | Mitsubishi UFJ Financial Group (MUFG) | Japan | 2,805.07 | 3/31/2019 |
| 6 | JP Morgan Chase & Co (JPM) | USA | 2,622.53 | 12/31/2018 |
| 7 | HSBC Holdings (HSBC) | UK | 2,558.12 | 12/31/2018 |
| 8 | Bank of America (BAC) | USA | 2,354.98 | 12/31/2018 |
| 9 | China Development Bank (CDB) | China | 2,352.47 | 12/31/2018 |
| 10 | BNP Paribas | France | 2,345.79 | 12/31/2018 |
| 11 | Credit Agricole | France | 2,131.91 | 12/31/2018 |
| 12 | Citigroup (C) | USA | 1,917.38 | 12/31/2018 |
| 13 | Wells Fargo & Co (WFC) | USA | 1,895.88 | 12/31/2018 |
| 14 | Sumitomo Mitsui Financial Group (SMFG) | Japan | 1,836.09 | 3/31/2019 |
| 15 | Mizuho Financial Group (MFG) | Japan | 1,810.24 | 3/31/2019 |
In: Finance
Show all the steps
At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows:
| Category | Plant Asset |
Accumulated Depreciation and Amortization |
|||||
| Land | $ | 166,000 | $ | — | |||
| Buildings | 1,050,000 | 319,900 | |||||
| Machinery and equipment | 675,000 | 308,500 | |||||
| Automobiles and trucks | 163,000 | 91,325 | |||||
| Leasehold improvements | 198,000 | 99,000 | |||||
| Land improvements | — | — | |||||
Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
1. Prepare a schedule analyzing the changes in each of the
plant asset accounts during 2018. Do not analyze changes in
accumulated depreciation and amortization.
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In: Accounting
Charles Austin of the controller’s office of Cheyenne Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2018. Austin has compiled the information listed below.
| 1. | The company is authorized to issue 7,720,000 shares of $10 par value common stock. As of December 31, 2017, 1,930,000 shares had been issued and were outstanding. | |||||||||||||||||||||||||||||||||||||
| 2. |
The per share market prices of the common stock on selected dates were as follows. Price per Share July 1, 2017 $20.00 January 1, 2018 21.00 April 1, 2018 25.00 July 1, 2018 11.00 August 1, 2018 10.50 November 1, 2018 9.00 December 31, 2018 10.00
The following specific activities took place during 2018.
(a) Determine the number of shares used to compute basic earnings per share for the year ended December 31, 2018 (b) Determine the number of shares used to compute diluted earnings per share for the year ended December 31, 2018. (c) Compute the adjusted net income to be used as the numerator in the basic earnings per share calculation for the year ended December 31, 2018. |
In: Accounting
You have been assigned to examine the financial statements of Jones, Inc. for the year ended December 31, 2018. You discover the following situations in February 2019.
Jones, Inc. has not accrued salaries payable at the end of each of the last 2 years, as follows.
December 2016 6000
December 2017 0
December 2018 4,100
2. The physical inventory count has been incorrectly counted resulting in the following errors.
December 2016 Understated $12,000
December 2017 Understated $14,000
December 2018 No Error $0
3. The company received 24,000 from a customer on a special order on December 22, 2018. It was recorded as a sale on the ay the money was received. The merchandise arrived at Jones, Inc.’s of business on January 16, 2019 and shipped it to the customer on January 17, 2019. The inventory was not included in the ending inventory on December 31, 2018.
4. In 2018, the company sold equipment for $3,100 which originally cost $30,000 and had a book value of $4,000. the company recorded the following on the date of sale:
Cash 3,100
Equipment 3,100
5. At December 31, 2018 Jones Inc decided to change the depreciation method on its machinery from double declining balance to straight line. The machinery had an original cost $150,000 when purchased on January 1, 2016. It has 10 year useful life and no salvage value. Depreciation expense has been recorded each year including 2018 using double declining method.
6. In 2017 a competitor company filed a patent-patent-infringement suit against Jones, claiming damages of $150,000. During December 2018 the company’s legal counsel indicated that an unfavorable verdict is probably and estimated to be a loss of $135,000. The company has not reflected or disclosed this situation in the financial statements.
7. A $24,000 insurance premium paid of July 1, 2017 for a policy that expires on June 30, 2019, was charged to Prepaid Insurance. The trial balance at 12/31/18 shows the $24,000 in the Prepaid Insurance account.
8. A trademark was acquired at the beginning of 2016 for $40,000. The trademark was expensed when purchased. The trademark should be amortized over 10 years.
9. Commisions on sales have been entered when paid. Commissions payable on December 31 of each year were:
2016 1,400
2017 800
2018 1,120
10. A relatively small number of machines have been shipped on consigment. These transactions have been recorded as ordinary sales and billed as such. On December 31 of each year, machines billed and in the hands of consignees amounted to:
2016 none
2017 none
2018 4,800
11. Reported Net Income is
2016 815,000
2017 760,000
2018 890,000
The inventory was properly included in the inventory on the Balance Sheet at December 31
Instructions
Assume the trial balance has been prepared but the books HAVE NOT been closed for 2018. Prepare journal entries showing adjustments that are required. (Ignore income tax)
Assume the trial balance has been prepared but the books HAVE been closed for 2018. Prepare journal entries showing the adjustments that are required. (Ignore income tax)
In: Accounting
Circle the correct answer symbol
1. installment sales for 2018 is $600,000 and cost of goods sold $300,000 while the installment sales in 2019 is $1,000,000 and cost of goods sold $800,000, cash collection from 2018 sales was $400,000 in 2018 and $200,000 in 2019, cash collection from 2019 sales was $500,000 in 2019 and $500,000 in 2020, using installment sales method compute gross profit rate for two years sales?
a.
2018 is 50% and 2019 is 20%.
b.
2018 is 20% and 2019 is 50%.
c.
2018 is 50% and 2019 is 50%.
d.
2018 is 20% and2019 is 20%.
2. Imar Construction company signed a contract to build new bridge at a contract price of $5,000,000 and total estimated cost of $4,000,000 the project will be completed within 4 years, the cost incurred to date for each period is, first year $1,000,000- second year $2,500,000- third year $3,200,000 and fourth year $4,100,000 while the estimasted cost to,complete the project for each each period is, first year $3,000,000- second year $1,700,000- third year $1,000,000 and fourth year is $0, based on above question and using Cost recover method, what is the gross profit recognized in second year?
a.
$226,190.
b.
$476,190.
c.
$250,000.
d.
0
3. installment sales for 2018 is $600,000 and cost of goods sold $300,000 while the installment sales in 2019 is $1,000,000 and cost of goods sold $800,000, cash collection from 2018 sales was $400,000 in 2018 and $200,000 in 2019, cash collection from 2019 sales was $500,000 in 2019 and $500,000 in 2020, using cost recovery method compute gross profit realized in 2018?
a.
$100,000.
b.
$300,000.
c.
$150,000.
d.
$200,000.
4. estimated cost of $4,000,000 the project will be completed within 4 years, the cost incurred to date for each period is, first year $1,000,000- second year $2,500,000- third year $3,200,000 and fourth year $4,100,000 while the estimasted cost to, complete the project for each each period is, first year $3,000,000- second year $1,700,000- third year $1,000,000 and fourth year is $0, based on above question and using percentage of completion method, what is the required journal entry in first year?
a.
Debit Construction Expense $3,0000,000, debit construction in process $1,000,000, credit construction revenue $5,000,000.
b.
Debit Construction Expense $1,0000,000, debit Unralized GP $250,000, credit construction revenue $1,250,000.
c.
Debit Construction Expense $1,0000,000, debit construction in process $250,000, credit construction revenue $1,250,000.
d.
Debit Construction Expense $3,0000,000, debit construction in process $900,000, credit construction revenue $5,000,000.
5. installment sales for 2018 is $600,000 and cost of goods sold $300,000 while the installment sales in 2019 is $1,000,000 and cost of goods sold $800,000,cash collection from 2018 sales was $400,000 in 2018 and $200,000 in 2019,cash collection from 2019 sales was $500,000 in 2019 and $500,000 in 2020, using cost recovery method compute unrealized gross profit in 2019?
a.
$150,000.
b.
$200,000.
c.
$300,000.
d.
$100,
In: Accounting
The unadjusted trial balance of the Manufacturing Equitable at
December 31, 2018, the end of its fiscal year, included the
following account balances. Manufacturing’s 2018 financial
statements were issued on April 1, 2019.
| Accounts receivable | $ | 95,750 |
| Accounts payable | 37,600 | |
| Bank notes payable | 667,000 | |
| Mortgage note payable | 1,442,000 | |
Other information:
The bank notes, issued August 1, 2018, are due on July 31, 2019, and pay interest at a rate of 12%, payable at maturity.
The mortgage note is due on March 1, 2019. Interest at 11% has been paid up to December 31 (assume 11% is a realistic rate). Manufacturing intended at December 31, 2018, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $442,000 in cash on the principal balance and refinanced the remaining $1,000,000.
Included in the accounts receivable balance at December 31, 2018, were two subsidiary accounts that had been overpaid and had credit balances totaling $19,050. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases.
On November 1, 2018, Manufacturing rented a portion of its factory to a tenant for $26,400 per year, payable in advance. The payment for the 12 months ended October 31, 2019, was received as required and was credited to rent revenue.
Required:
1. Prepare any necessary adjusting journal entries
at December 31, 2018, pertaining to each item of other information
(a–d).
2. Prepare the current and long-term liability
sections of the December 31, 2018, balance sheet.
Requirement 1:
a) Record the bank notes, issued August 1, 2018, are due on July 31, 2019, and pay interest at a rate of 12%, payable at maturity.
b) Record the mortgage note is due on March 1, 2019. Interest at 11% has been paid up to December 31 (assume 11% is a realistic rate). Manufacturing intended at December 31, 2018, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $442,000 in cash on the principal balance and refinanced the remaining $1,000,000.
c) Record included in the accounts receivable balance at December 31, 2018, were two subsidiary accounts that had been overpaid and had credit balances totaling $19,050. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases.
d)
Record on November 1, 2018, Manufacturing rented a portion of its factory to a tenant for $26,400 per year, payable in advance. The payment for the 12 months ended October 31, 2019, was received as required and was credited to rent revenue.
Requirement 2:
Prepare the current and long-term liability sections of the December 31, 2018, balance sheet.
Balance Sheet (partial)
At December 31, 2018
Current Liabilities:
Total Current Liabilities:
Long- Term Liabilities:
In: Accounting
The following is a mock-up of a Nginx web server access log. There are a few entries that might indicate someone is searching for an attack vector. Write a command that will do all of the wollowing;
access.log
10.10.38.12 - - [25/Aug/2018:00:13:00] "GET https://picard.zone/index.html (Links to an external site.) HTTP/1.1 200 Mozilla/.05" 12.10.38.12 - - [25/Aug/2018:00:14:18] "GET https://picard.zone/catalog.html (Links to an external site.)?id=5 200 Mozilla/5.0" 64.34.88.11 - - [25/Aug/2018:00:15:20] "GET https://picard.zone/catalog.html (Links to an external site.)?id=30 200 Mozilla/5.0" 51.85.91.44 - - [25/Aug/2018:00:16:33] "GET https://picard.zone/ (Links to an external site.)specials/coupon.php 500 Mozilla/5.0" 1.1.1.1 - - [25/Aug/2018:00:16:40] "GET https://picard.zone/ (Links to an external site.)specials/.htaccess 500 Mozilla/5.0" 1.1.1.1 - - [25/Aug/2018:00:16:44] "GET https://picard.zone/ (Links to an external site.)specials/.settings 500 Mozilla/5.0" 192.168.1.100 - - [25/Aug/2018:00:16:50] "GET https://picard.zone/ (Links to an external site.)specials/wp.conf 500 Mozilla/5.0" 192.168.1.100 - - [25/Aug/2018:00:16:55] "GET https://picard.zone/ (Links to an external site.)specials/../settings.py 500 Mozilla/5.0" 4.2.2.2 - - [25/Aug/2018:00:16:58] "GET https://picard.zone/ (Links to an external site.)specials/php.ini 500 Mozilla/5.0" 11.22.33.44 - - [25/Aug/2018:00:17:42] "GET https://picard.zone/ (Links to an external site.)finish.php 200 Mozilla/5.0" 12.34.56.87 - - [25/Aug/2018:00:18:01] "GET https://picard.zone/ (Links to an external site.)settings.html 200 Mozilla/5.0" 12.34.56.87 - - [25/Aug/2018:00:19:12] "GET https://picard.zone/catalog.html (Links to an external site.)?id=5 200 Mozilla/5.0" 12.34.56.87 - - [25/Aug/2018:00:20:11] "GET https://picard.zone/ (Links to an external site.)privacy.py 200 Mozilla/5.0" 10.10.38.12 - - [25/Aug/2018:00:13:38] "GET https://picard.zone/index.html (Links to an external site.) HTTP/1.1 404 Mozilla/.05"
HINT: The lines you are interested in are in
bold; lines 5 to 9.
HINT: In your terminal, create a new file called
'access.log' and copy-paste the above lines into it
HINT: You will likely need to use; cut, uniq and
grep in your command
In: Computer Science
On January 4, 2018, Runyan Bakery paid $324 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to excercise significant influence over Lavery's operations. Runyan chose the fair value option to account for this investment. Runyan received dividends of $2.00 per share on December 31, 2018, and Lavery reported net income of $160 million for the year ended December 31, 2018. The market value of Lavery's common stock at December 31, 2018 was $31 per share. On the purchase date, the book value of Lavery's net assets was $800 million and:
a. The fair value of Lavery's depreciable assets, with an average remaining useful life of six years, exceeded their book value by $80 million.
b. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. Required:
1-a. Prepare all appropriate journal entries related to the investment during 2018, assuming Runyan accounts for this investment under fair value option, and accounts for the Lavery investment in a manner similar to what it would use for securities for which there is not specific influence.
(Record the purchase of Lavery stock for $324 million) (Record Runyan share of Lavery's $160 mil net income)
(Record the receipt of cash dividends of $2 per share on 10 mil shares)
(Record any nec. entry related to depreciation. The fair value of Lavery's depreciable assets, with an average remaining useful life of six years, exceeded their book value by $80 mil) (Record any nec. adj entry to correctly report the investment on the balance sheet. The market value of Lavery's common stock at Dec 31 2018 was $1 per share)
1-b Calculate the effect of these journal entries on 2018 net income, and the amount at which the investment is carried in the December 31, 2018, balance sheet.
(Effect on net income)
(Investment)
2-a Prepare all appropriate journal entries related to the investment during 2018, assuming Runyan accounts for this investment under the fair value option, but uses equity method accounting to account for Lavery's income and dividends, and then records a fair value adjustment at the end of the year that allows it to comply with GAAP.
(Record the purchase of Lavery Labeling stock for $324 mil)
(Record Runyan's share of Lavery's $160 mil net income)
(Record the receipt of cash dividends of $2 per share on 10 mil shares)
(Record any nec entry to related depreciation. The fair value of Lavery's depreciable assets, with an avg remaining useful life of six years, exceeded their book value by $80 mil) (Record any nec adj entry to correctly report the investment on the bal sheet. The market value of Lavery's common stock at Dec 31, 2018 was $1 per share)
2-b Calculate the effect of these journal entries on 2018 net income, and the amount at which the investment is carried in the December 31, 2018, balance sheet.
(Calculate the effect of these journal entries on 2018 net income, and the amount at which the investment is carried in the Dec 31, 2018 balance sheet)
(net income) (Investment)
In: Accounting
SUPPLEMENTAL PROBLEM 19-1 (req. 1, 2, 3)
International Roofing Systems (IRS) Company began operations several years ago. At the end of 2017, the only existing temporary differences were the difference described in (e) and (f) below (hint: this creates balances at the end of 2017 in the deferred tax balance sheet accounts). In addition, there are four other tax differences arising in 2018 and 2019. These differences are as follows:
(a) Interest revenue earned on an investment in tax-exempt municipal bonds is $34,000 each year.
(b) In 2018, pretax financial income includes payments of fines for polluting of $100,000.
(c) IRS began franchising its business at the beginning of 2018 and collected $30,000 of franchise fees for services to be rendered in the initial year and over the next several years. Franchise fees are reported when collected for tax purposes. For financial reporting purposes, franchise fees are recognized as revenue when services related to the franchise agreement are provided; these amounts are $20,000 in 2018 and $4,000 in 2019.
(d) At July 1, 2018, IRS purchased a subsidiary that resulted in an amount of $600,000 being assigned to goodwill. For tax purposes, the goodwill is amortized and deducted over a 15-year period on a straight-line basis. For financial reporting purposes, goodwill is not amortized, but is required to be tested for impairment; at the end of 2018, IRS determined that goodwill is not impaired, but at the end of 2019, IRS determined that the goodwill has an impairment loss of $45,000.
(e) Several years ago, IRS purchased equipment at a cost of $200,000. For financial accounting purposes, straight-line depreciation over the estimated useful life of 10 years is used. For tax purposes, the MACRS system is used and the equipment falls in the 7-year recovery class. As of the end of 2017, the accounting basis for the carrying value was $120,000 and the tax basis was $62,480. For 2018 and 2019, the MACRS rates for depreciation are 8.93% and 8.92%, respectively.
(f) IRS has a defined benefit pension plan for its employees. For financial reporting purposes, the accrual basis is used and for tax purposes, pension costs are deducted as funding contributions to the plan are paid. As of the end of 2017, pension expense for financial reporting has been $200,000 greater than funding contributions. Pension expense for financial reporting purposes is $42,000 in 2018 and $50,000 in 2019, and the amount deducted for tax purposes is $2,000 in 2018 and $5,000 in 2019.
Additional information:
ü Pretax financial income $180,000 for 2018 and $210,000 for 2019.
ü The enacted tax rate, effective in 2018, is 25%.
ü As of the end of each year, management estimates that it is more likely than not that future deductible amounts will not be realized as follows: 2017: $10,000; 2018: $12,000; 2019: $15,000
REQUIRED:
(1) Complete year-by-year schedules through 2019 for each temporary difference showing the book amount, tax amount, current year taxable (deductible) amount, and future taxable (deductible) amount; note that for (e) and (f), you will need to start your schedule with the future taxable (deductible) amount as of the end of 2017.
(2) Prepare schedules to reconcile between pretax financial income and taxable income for 2018 and 2019. Classify the tax differences as permanent or temporary.
(3) Prepare journal entries to record the current portion of income tax expense for 2018 and 2019.
In: Accounting