ABC Corp. provides its employees with a defined benefit pension plan. The company's actuary has provided you with the following information as of December 31, 2020: PBO $ 1,200,000 Fair Value Plan Assets 1,650,000 Current Service Cost 480,000 Interest Cost 48,000 PSC amortization 120,000 Expected and actual return on assets 165,000 In the past, contributions made to the pension plan have been equal to the pension expense for the corresponding year. The company has not made any contribution in 2020. In the statement of financial position as of December 31, 2020, ABC must report
a. a net pension asset of $ 1,650,000
b. a net pension debt of $ 78,000
c. a net pension debt of $ 450,000
d. a net pension asset of $ 450,000
In: Accounting
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In: Accounting
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In: Accounting
Dobbs Company issues 9%, two-year bonds, on December 31, 2018,
with a par value of $104,000 and semiannual interest
payments.
| Semiannual Period-End | Unamortized Discount | Carrying Value | ||||||
| (0) | 12/31/2018 | $ | 6,080 | $ | 97,920 | |||
| (1) | 6/30/2019 | 4,560 | 99,440 | |||||
| (2) | 12/31/2019 | 3,040 | 100,960 | |||||
| (3) | 6/30/2020 | 1,520 | 102,480 | |||||
| (4) | 12/31/2020 | 0 | 104,000 | |||||
Use the above straight-line bond amortization table and prepare
journal entries for the following.
Required:
(a) The issuance of bonds on December 31,
2018.
(b) The first through fourth interest payments on
each June 30 and December 31.
(c) The maturity of the bonds on December 31,
2020.
In: Accounting
In: Accounting
Q. Baoshan Energy Ltd. in Shanghai, China, has a tank lorry that costed the company ¥300,000 when it was purchased on January 1, 2016. The vehicle has an estimated useful life of 10 years and no residual value. Baoshan uses straight-line method of depreciation on equipment. Baoshan decides to dispose the tank lorry and sells it to Pudong Oil & Gas Co. on August 31, 2020. (Currency in Chinese yuan, ¥)
Instructions:
A. What journal and T-account entries would Baoshan Energy make to record the sale of the tank lorry for ¥170,000 cash on August 31, 2020?
B. What journal and T-account entries would Baoshan Energy make to record the sale of the tank lorry for ¥100,000 cash on August 31, 2020?
In: Accounting
On January 1, 2020 the Walker Manufacturing Company purchased 10% bonds having a maturity value of $100,000 due in 5 years. The bonds pay interest every January 1st. Walker paid a premium for the bonds in the amount of $7,985.10. As a result of paying the $7,985.10 premium, the bond investment provides Walker with an 8% yield. Required:
Prepare journal entries for the following dates:
1. January 1, 2020 when the bonds were purchased.
2. December 31, 2020 to record interest revenue and amortization.
3. January 1, 2021 to record the interest payment being received.
5. December 31, 2021 to record interest revenue and amortization.
5. January 1, 2022 to record the interest payment being received.
In: Accounting
During 2020, Sheridan Company started a construction job with a
contract price of $1,376,000. The job was completed in 2022. The
following information is available. The contract is
non-cancellable.
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Costs incurred to date | $344,000 | $709,500 | $920,200 | |||
| Estimated costs to complete | 516,000 | 236,500 | 0 | |||
| Billings to date (non-refundable) | 258,000 | 774,000 | 1,376,000 | |||
| Collections to date | 232,200 | 696,600 | 1,225,500 |
Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| 2020 | 2021 | 2022 | ||||
|---|---|---|---|---|---|---|
| Gross profit / (loss) | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
In: Accounting
During 2020, Skysong Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available.
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2020 |
2021 |
2022 |
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|---|---|---|---|---|---|---|
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Costs incurred to date |
$396,000 | $806,600 | $1,080,000 | |||
|
Estimated costs to complete |
594,000 | 283,400 | –0– | |||
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Billings to date |
301,000 | 892,000 | 1,590,000 | |||
|
Collections to date |
268,000 | 816,000 | 1,427,000 |
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
|
Gross profit recognized in 2020 |
$enter a dollar amount |
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|---|---|---|
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Gross profit recognized in 2021 |
$enter a dollar amount |
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Gross profit recognized in 2022 |
$enter a dollar amount |
eTextbook and Media
List of Accounts
Prepare all necessary journal entries for 2021
In: Accounting
Silvia is a teacher employed by SCHE Education at their Melbourne campus. She lives in Pakenham with her family on the outskirts Melbourne about 60 kilometres from the campus. Silvia only attends the campus on Thursdays and Fridays when she takes her classes and the remaining three days a week she works from home. She prefers to work from home because she dislikes the long commute and because she feels that she can research more effectively from home. She only sees students in her office at the campus on Thursdays and Fridays. All student contact on the other days is via email.
Silvia’s home office and work library occupies 20% of the total space in her home. Her outgoings in relation to her home for the current financial year are as follows:
Required:
Calculate how much of the above outgoings are a deductible expense for Silvia.
In: Accounting