1. Stanford Company has contracted to build for the City of New London a new courthouse. The estimated cost of the project is $6,000,000, and the contract price is $9,000,000. The courthouse took three years to complete as follows:

                                                2018                       2019                       2020
Costs to date                      $1,500,000           $4,000,000           $6,200,000
Cost to complete             $4,500,000           $2,200,000           $0

Amounts billed to date $1,400,000           $5,800,000           $9,000,000
Amounts collected to date
                                             $1,300,000           $4,300,000           $9,000,000

Determine the gross profit to be recognized for

                                         2018                           2019                   2020

Record all journal entries necessary for 2018 below:

Assume that Stanford uses the completed contract method. Determine the amount of revenue and expense to be recognized in:
                                                2018                       2019                      2020

Super b ​Manufacturing, Inc., reported the following at December​ 31,2018​, and December​ 31, 2019​:

Super b Manufacturing has paid all preferred dividends only through 2015.

Requirement

Begin with 2018. Calculate the total amounts of dividends to both preferred and common stockholders for

2018 if total dividends are $50,000.

Data Table

a research and development project for a new product was initiated on 1 mac 2018 at monthly cost of rm300000. the reseach phase is from mac to may 2018.the development activities started on 1 june 2018 and able to demonstrate that the production process met the criteria for recognition of intangible asset only on 30 september 2018. the total reseach and development cost were incurred evenly every month and the project complete only in april 2019.no transaction have been recorded during the period in the book of accounts of the company. all cost incurred were pay by cheque..
which accounting stnadard is applicable and explain the appropriate accounting treatment. prepare the journal entries..

You are considering an investment in Fields and Struthers, Inc. and want to evaluate the firm’s free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $78 million, had a tax rate of 30 percent, and its depreciation expense was $9 million. Fields and Struthers’ gross fixed assets increased by $44 million from 2017 to 2018. The firm’s current assets increased by $32 million and spontaneous current liabilities increased by $22 million. Calculate Fields and Struthers’ operating cash flow for 2018. Calculate Fields and Struthers’ investment in operating capital for 2018. Calculate Fields and Struthers’ free cash flow for 2018.

At December 31, 2018, the financial statements of Hollingsworth Industries included the following:

Additional data:
The bonds payable were issued at par in 2016. The tax rate for 2018 was 40%.

Required:
Compute basic and diluted EPS for the year ended December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
  

Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, 2018:

During 2018, the machine produced 42,000 units and during 2019, it produced 44,000 units.

Required

Determine the amount of depreciation expense for 2018 and 2019 using each of the following methods:

[The following information applies to the questions displayed below.]

Three different companies each purchased trucks on January 1, 2018, for $72,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $7,000. All three trucks were driven 67,000 miles in 2018, 42,000 miles in 2019, 40,000 miles in 2020, and 62,000 miles in 2021. Each of the three companies earned $61,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation.

Answer each of the following questions. Ignore the effects of income taxes.

1. a-1. Calculate the net income for 2018? (Round "Per Unit Cost" to 3 decimal places.)

a-2. Which company will report the highest amount of net income for 2018?

• Company A

• Company B

• Company C

• All of the choices

Vernon Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing common stock. Vernon immediately purchased office furniture and manufacturing equipment costing $9,100 and $24,700, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,400 salvage value and an expected useful life of three years. The company paid $11,500 for salaries of administrative personnel and $15,800 for wages to production personnel. Finally, the company paid $10,720 for raw materials that were used to make inventory. All inventory was started and completed during the year. Vernon completed production on 4,100 units of product and sold 3,190 units at a price of $15 each in 2018. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.)

Required

1. Determine the total product cost and the average cost per unit of the inventory produced in 2018. (Round "Average cost per unit" to 2 decimal places.)

2. Determine the amount of cost of goods sold that would appear on the 2018 income statement. (Do not round intermediate calculations.)

3. Determine the amount of the ending inventory balance that would appear on the December 31, 2018, balance sheet. (Do not round intermediate calculations.)

4. Determine the amount of net income that would appear on the 2018 income statement. (Round your answer to the nearest dollar amount.)

5. Determine the amount of retained earnings that would appear on the December 31, 2018, balance sheet. (Round your answer to the nearest dollar amount.)

6. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet. (Round your answer to the nearest dollar amount.)

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 200 shares of preferred stock and 3,600 shares of common stock have been issued. The following transactions affect stockholders’ equity during 2018:

March 1 Issue 1,000 shares of common stock for $38 per share.

May 15 Purchase 600 shares of treasury stock for $31 per share.

July 10 Reissue 100 shares of treasury stock purchased on May 15 for $36 per share.

October 15 Issue 100 shares of preferred stock for $41 per share.

December 1 Declare a cash dividend on both common and preferred stock of $0.70 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.)

December 31 Pay the cash dividends declared on December 1.

Donnie Hilfiger has the following beginning balances in its stockholders’ equity accounts on January 1, 2018: Preferred Stock, $200; Common Stock, $36; Additional Paid-in Capital, $72,000; and Retained Earnings, $28,500. Net income for the year ended December 31, 2018, is $10,400.

Taking into consideration the beginning balances on January 1, 2018 and all the transactions during 2018, respond to the following for Donnie Hilfiger:

1. Prepare the stockholders’ equity section of the balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

2. Prepare the statement of stockholders’ equity for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

As of January 1, 2018, Room Designs, Inc. had a balance of $4,800 in Cash, $2,650 in Common Stock, and $2,150 in Retained Earnings. These were the only accounts with balances in the ledger on January 1, 2018. Further analysis of the company’s cash account indicated that during the 2018 accounting period, the company had (1) net cash inflow from operating activities of $5,250, (2) net cash outflow for investing activities of $13,300, and (3) net cash inflow from financing activities of $10,300. All revenue and expense events were cash events. The following accounts and balances represent the general ledger of Room Designs, Inc. as of December 31, 2018, before closing.

Required

a. Assume that the net cash inflow from financing activities of $10,300 was caused by three events. Based on the information above, identify these events and determine the cash flow associated with each event.

b. What did the company purchase that resulted in the cash outflow from investing activities?

c-1. Prepare an income statement for the year ended December 31, 2018.

c-2. Prepare a statement of changes in stockholders’ equity for the year ended December 31, 2018.

c-3. Prepare a balance sheet as of December 31, 2018.

c-4. Prepare a statement of cash flows for the year ended December 31, 2018.

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamental’s investments are large enough to exert significant influence on the investee. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017.

Required:
1. Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end.
2. Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments.