Edible Chemicals Corporation owns a $2 million whole life insurance policy on the life of its CEO, naming Edible Chemicals as beneficiary. The annual premiums are $72,000 and are payable at the beginning of each year. The cash surrender value of the policy was $22,000 at the beginning of 2018.

1. & 2. Prepare the appropriate 2018 journal entries to record insurance expense and the increase in the investment assuming the cash surrender value of the policy increased according to the contract to $28,200. The CEO died at the end of 2018.

The reported net incomes for the first 2 years of Sandhill Co. were as follows: 2017, $169,000; 2018, $225,000. Early in 2019, the following errors were discovered. 1. Depreciation of equipment for 2017 was overstated by $7,900. 2. Depreciation of equipment for 2018 was understated by $15,400. 3. December 31, 2017 ending inventory was overstated by $20,300. 4. December 31, 2018 inventory was overstated by $28,300.

Prepare the correcting entry necessary when these errors are discovered. Assume that the books are closed.

A retail store specializing in home-appliances acquires a refrigerator from a domestic producer: the transaction costs 400€, and the shop pays it in full amount on December 15, 2017.

A client buys the refrigerator on January 5, 2018 for the total sum of 500€.

What is an impact on GDP of year 2017 of these transactions?

How is a purchase of refrigerator accounted for in the national accounts (GDP) of 2017?

What is an impact on GDP of year 2018 of these transactions?

How is a purchase of refrigerator accounted for in the national accounts (GDP) of 2018?

Filzen Company has a fiscal year end of December 31, 2018. On January 3, 2019 a fire destroys a factory that belongs to Filzen. The fire is not considered an extraordinary event because Filzen produces gun powder; however, it is considered to have a material effect on the financial position of the company. On February 3, 2019, it is determined that the fire has resulted in a $25,000,000 loss to Filzen. On March 31, 2019, Filzen issues it 2018 financial statements. How will the $25,000,000 loss be reported in the 2018 financial statements?

Trump Corporation sold $180,000 in inventory to Bannon Enterprises during 2017, for $270,000. Bannon resold $108,000 of this merchandise in 2017 with the remainder to be disposed of during 2018.

Required:

1. Assuming Trump owns 25% of Bannon and applies the equity method, prepare the journal entry Trump should have recorded at the end of 2017 to defer gross profit on intra-entity inventory sales.

2. What entry would trump record in 2018 assuming the remainder was disposed during 2018.

On April 1, 2018, JS Co. sold equipment to JL Co. Service in exchange for a zerointerest bearing note with a face value of €109,000, with payment due in 12 months. The cost of goods sold is € 58,000. The fair value of the equipment on the date of sale was €100,000.

A- Record the entry showing how much revenue should JS Co. record on April 1, 2018.

B- Record the entry showing how much revenue should it report related to this transaction on December 31, 2018.

Question No. 3 :

Alpha Company purchases 20 percent of Beta Company for $250,000 in cash. Alpha can exercise significant influence over the investee; thus, the equity method is appropriately applied. The acquisition is made on January 1, 2018. During 2018, Beta reports a net income of $187,500 and at year-end declares and pays a cash dividend of $75,000. Amortization associated with the purchase of this investment is $8,000 per year.

Required:

Prepare the journal entries for 2018 in the records of Alpha Company

Doyle Company issued $390,000 of 10-year, 9 percent bonds on January 1, 2018. The bonds were issued at face value. Interest is payable in cash on December 31 of each year. Doyle immediately invested the proceeds from the bond issue in land. The land was leased for an annual $56,500 of cash revenue, which was collected on December 31 of each year, beginning December 31, 2018.

A) Prepare the income statement, balance sheet, and statement of cash flows for 2018 and 2019.

On April 1, 2018, JS Co. sold equipment to JL Co. Service in exchange for a zero-interest bearing note with a face value of €109,000, with payment due in 12 months. The cost of goods sold is € 58,000. The fair value of the equipment on the date of sale was €100,000.

A- Record the entry showing how much revenue should JS Co. record on April 1, 2018.

B- Record the entry showing how much revenue should it report related to this transaction on December 31, 2018

1. How many times will the following crontab entry execute during January 2018?

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2. How many times will the following crontab entry execute during January 2018?

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3. List all of the dates the following crontab entry will execute during 2018 (this answer is a little tricky).

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