Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2018, Lacy received the following information:

5. The comparative balance sheet for 2018 and 2017 for Samuel Corporation as well as additional     

           information concerning transactions and events during 2018 are presented below:      

Samuel Corporation

Balance Sheet

December 31, 2018 and 2017

                                                                                                                   2018                   2017  

         Cash                                                                                              $ 35,900            $ 10,200

         Accounts receivable (net)                                                                 48,300                20,300

         Inventory                                                                                          35,000                42,000

         Long-term investments                                                                              0                15,000

         Property, plant & equipment                                                           236,500              150,000

         Accumulated depreciation                                                               (37,700)              (25,000)

                                                                                                               $318,000            $212,500

         Accounts payable                                                                          $ 19,000            $ 26,500

         Accrued liabilities                                                                             19,000                17,000

         Long-term notes payable                                                                  70,000                50,000

         Common stock                                                                                130,000                90,000

         Retained earnings                                                                             80,000                29,000

                                                                                                               $318,000            $212,500

        Additional data:

        (a) Net income for the year 2018, $90,000.

        (b) Depreciation on plant assets for the year, $12,700.

        (c) Sold the long-term investments for $33,000.

      (d) Paid dividends of $39,000.

        (e) Purchased machinery costing $26,500, paid cash.

        (f) Purchased machinery and gave a $60,000 long-term note payable.

      (g) Paid a $40,000 long-term note payable by issuing common stock.

        Required:

        Using the indirect method, prepare a statement of cash flows for 2018 for Samuel Corporation.

Problem 19-18 EPS; stock options; nonconvertible preferred; convertible bonds; shares sold [LO19-4, 19-5, 19-6, 19-7, 19-8, 19-9]

At January 1, 2018, Canaday Corporation had outstanding the following securities:

720 million common shares
45 million 8% cumulative preferred shares, $50 par
4% convertible bonds, $4,500 million face amount, convertible into 90 million common shares

The following additional information is available:

On September 1, 2018, Canaday sold 81 million additional shares of common stock.

Incentive stock options to purchase 40 million shares of common stock after July 1, 2017, at $14 per share were outstanding at the beginning and end of 2018. The average market price of Canaday’s common stock was $20 per share during 2018.

Canaday's net income for the year ended December 31, 2018, was $1,524 million. The effective income tax rate was 40%.

Required:
1. & 2. Calculate basic and the diluted earnings per common share for the year ended December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Determine taxable income in each of the following independent cases. In all cases, the company was very profitable in all years prior to 2017 and it had retained earnings of $1,000,000 at the end of 2017.

1. In 2018, Company A has taxable income of $60,000 prior to consideration of any net operating loss. In 2017, the Company incurred a net operating loss of $10,000. They did not elect to waive the carryback period. Determine 2018 taxable income.

2. In 2018, Company B has taxable income of $50,000 prior to consideration of any net operating loss. In 2017, the Company incurred a net operating loss of $20,000. They elected to waive the carryback period. Determine 2018 taxable income.

3. In 2019, Company C has taxable income of $35,000 prior to consideration of any net operating loss. In 2018, the Company incurred a net operating loss of $30,000. Determine 2019 taxable income.

4. In 2019, Company D has taxable income of $35,000 prior to consideration of any net operating loss. In 2017, the Company incurred a net operating loss of $5,000. They elected to waive the carryback period. In 2018, the Company incurred a net operating loss of $40,000. Determine 2019 taxable income.

Monsters Inc began operations on January 1, 2017. The company employs 15 monsters whose jobs are to scare little children. They are paid eight-hour days and are paid hourly. Each employee earns 15 paid vacation days and 10 paid sick days annually. Vacation days may be taken immediately. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows:

Actual Hourly                      Vacation Days Used                      Sick Days Used

Wage Rate                            by Each Employee                         by Each Employee

2017   2018                           2017               2018                           2017               2018

$10     $11                             10                 15                             6                       8

Monsters Inc has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when they are earned and to accrue sick pay when it is earned.

1. Prepare journal entry(ies) to record the transactions related to vacation entitlement during 2017 and 2018.
2. Prepare journal entry(ies) to record the transactions related to sick days during 2017 and 2018.
3. Calculate the amounts of any liability for vacation pay and sick days that should be reported on the balance sheet at December 31, 2017 and 2018.

Teal Company offers an MP3 download (seven-single medley) as a premium for every 5 candy bar wrappers presented by customers together with $2.90. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.65. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2017 and 2018 are as follows. (All purchases and sales are for cash.)

Prepare the journal entries that should be made in 2017 and 2018 to record the transactions related to the premium plan of the Teal Company. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 1,525.)

Indicate the amounts for each accounts, and classifications of the items related to the premium plan that would appear on the balance sheet and the income statement at the end of 2017 and 2018.

On January 1, 2018, P acquired all of S's outstanding stock for $680,000 cash. At the date of acquisition, copyrights (with a 10-year remaining life) have a $450,000 book value but a fair value of $550,000. P company uses the equity method to account for its investment in S. Investment income is not included in P's Revenues.

Required:

a. As of December 31, 2018, what is the investment in S balance?

b. As of December 31, 2018, what is the consolidated copyright balance?

c. As of December 31, 2018, what is the consolidated Royalty Agreements balance?

d. As of December 31, 2018, what is the consolidated balance for goodwill?

e. For the year ending December 31, 2018, what is the consolidated net income?

roblem 5-3A Record transactions related to accounts receivable (LO5-3, 5-5) [The following information applies to the questions displayed below.] The following events occur for The Underwood Corporation during 2018 and 2019, its first two years of operations. June 12, 2018 Provide services to customers on account for $41,000. September 17, 2018 Receive $25,000 from customers on account. December 31, 2018 Estimate that 45% of accounts receivable at the end of the year will not be received. March 4, 2019 Provide services to customers on account for $56,000. May 20, 2019 Receive $10,000 from customers for services provided in 2018. July 2, 2019 Write off the remaining amounts owed from services provided in 2018. October 19, 2019 Receive $45,000 from customers for services provided in 2019. December 31, 2019 Estimate that 45% of accounts receivable at the end of the year will not be received. References Section BreakProblem 5-3A Record transactions related to accounts receivable (LO5-3, 5-5) 11.value: 0.27 pointsRequired information Problem 5-3A Part 1 Required: 1. Record transactions for each date

You are engaged to audit the Ferrick Corporation for the year ended December 31, 2018. Only merchandise shipped by the Ferrick Corporation to customers up to and including December 30, 2018, has been eliminated from inventory. The inventory as determined by physical inventory count has been recorded on the books by the company’s controller. No perpetual inventory records are maintained. All sales are made on an FOB–shipping point basis. You are to assume that all purchase invoices have been correctly recorded.

The following lists of sales invoices are entered in the sales journal for the months of December 2018 and January 2019, respectively.

Required:

Prepare necessary adjusting entries for the following events.

a. Record the adjusting entry for goods shipped on December 31,included in the physical inventory at the end of last fiscal year.

b. Record the sale of merchandise for sales invoice dated December 31, 2018 goods being shipped on December 13, 2018.

c. Record the sale of merchandise on December 29, 2018 goods being shipped on December 30, 2018.

d. Record the reversal of sale for sales invoice dated December 31, 2018 goods being shipped on January 9, 2018.

e. Record the shipment of merchandise to the consignee.

f. Record the sale of merchandise for sales invoice dated December 31, 2019 goods being shipped on December 30, 2019.

g. Record the sale of merchandise for sales invoice dated January 2, 2019 goods being shipped on January 2, 2019.

h. Record the sale of merchandise for sales invoice dated January 3, 2019 goods being shipped on December 31, 2019.

Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $440,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $615,000 and the fair value of the 20 percent noncontrolling interest was $110,000. No excess fair value over book value amortization accompanied the acquisition.

The following selected account balances are from the individual financial records of these two companies as of December 31, 2018:

Each of the following problems is an independent situation:

a. Assume that Protrade sells Seacraft inventory at a markup equal to 60 percent of cost. Intra-entity transfers were $99,000 in 2017 and $119,000 in 2018. Of this inventory, Seacraft retained and then sold $37,000 of the 2017 transfers in 2018 and held $51,000 of the 2018 transfers until 2019.
Determine balances for the following items that would appear on consolidated financial statements for 2018:

b. Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $59,000 in 2017 and $89,000 in 2018. Of this inventory, $30,000 of the 2017 transfers were retained and then sold by Protrade in 2018, whereas $44,000 of the 2018 transfers were held until 2019.
Determine balances for the following items that would appear on consolidated financial statements for 2018:

c. Protrade sells Seacraft a building on January 1, 2017, for $98,000, although its book value was only $59,000 on this date. The building had a five-year remaining life and was to be depreciated using the straight-line method with no salvage value.

Determine balances for the following items that would appear on consolidated financial statements for 2018:

a.Cost of goods sold: ?

Inventory: ?

Net income attributable to noncontrolling interest: ?

b.Cost of goods sold: ?

Inventory: ?

Net income attributable to noncontrolling interest: ?

c.Buildings (net): ?

Operating expenses: ?

Net income attributable to noncontrolling interest: ?