Colah Company purchased $1.8 million of Jackson, Inc., 8% bonds at par on July 1, 2018, with interest paid semi-annually. Colah determined that it should account for the bonds as an available-for-sale investment. At December 31, 2018, the Jackson bonds had a fair value of $2.08 million. Colah sold the Jackson bonds on July 1, 2019 for $1,620,000.

The purchase of the Jackson bonds on July 1.

Interest revenue for the last half of 2018.

Any year-end 2018 adjusting entries.

Interest revenue for the first half of 2019.

Any entries necessary upon sale of the Jackson bonds on July 1, 2019, including updating the fair-value adjustment, recording any reclassification adjustment, and recording the sale.

Required:
1. Prepare Colah’s journal entries for above transaction.
2. Fill out the following table to show the effect of the Jackson bonds on Colah’s net income, other comprehensive income, and comprehensive income for 2018, 2019, and cumulatively over 2018 and 2019.

Brief Exercise 4-4 (Algo) Multiple-step income statement [LO4-1, 4-3]

The following is a partial year-end adjusted trial balance.

Income tax expense has not yet been recorded. The income tax rate is 25%.

a. Determine the operating income (loss).
b. Determine the income (loss) before income taxes.
c. Determine the net income (loss).

Universal Calendar Company began the year with accounts receivable (net) and inventory balances of $270,000 and $50,000, respectively. Year-end balances for these accounts were $290,000 and $30,000, respectively. Sales for the year of $700,000 generated a gross profit of $220,000.

Calculate the receivables and inventory turnover ratios for the year.
  

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,072,000 $ 2,738,000 $ 2,849,000 Estimated costs to complete as of year-end 5,328,000 2,590,000 0 Billings during the year 2,160,000 2,650,000 5,190,000 Cash collections during the year 1,880,000 2,700,000 5,420,000 Westgate recognizes revenue over time according to percentage of completion. 5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.) 2021 2022 2023 Costs incurred during the year $ 2,072,000 $ 3,880,000 $ 4,140,000 Estimated costs to complete as of year-end 5,328,000 4,260,000 0

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

rev: 09_15_2017_QC_CS-99734

4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

Additional information

• There were no disposals of land or equipment during the year.
• A $30,000 loan was settled through the issue of ordinary shares. There were no other repayments of loans.
• Profit for the year was $120,000, interest expense was $14,000, and income tax expense was $41,000. There were no items of other comprehensive income.
• A $73,000 dividend was paid during the year.
• Sales revenue for the year was $300,000. There was no other revenue.

Required

Use the indirect method of presenting cash flows from operating activities and prepare a statement of cash flows in accordance with AASB 107/IAS 7 for the year ended 30 June 2018.

Clarks & Co. signed a contract on January 15, 2020 to provide Daisies Cake Factory with an
ingredient-weighing system for a price of $150,000. The system included finely tuned scales that
fit into Daisies automated line, Clarks proprietary software modified to allow the weighing
system to function in Dasies automated system, and a two-year contract to calibrate the
equipment and software on an as-needed basis. If Clark was to provide these goods or services
separately, it would charge $120,000 for the scales, $20,000 for the software, and $30,000 for the
calibration contract. Clark Company delivered and installed the equipment and software on
February 1, 2020, and the calibration service commenced on that date.

A. Assume that the scales, software and calibration service are all separate performance
obligations.

1. How much revenue will Clark recognize in 2020 for this contract?
2. Record in General Journal form the above transactions and required adjusting
entry at December 31, 2020.

B. Assume that the scales, software and calibration service are viewed as one performance
obligation. How much revenue will Clark recognize in 2020 for this contract?

the adjusted trial balance for china tea company at December 31 2018, is presented below
cash 11,300
account receivable 158,000
prepaid rent 5,800
inventory 33,000
equipment 380,000
accumulated depreciation- equipment 133,000
account payable.                                        38,000
notes payable- due in three months.      38,000
salaries payable.                                          4,800
interest payable                                          1,800
common stock.                                           240,000
retained earnings.                                      67,600
sales revenue.                                             480,000
costs of goods sold 220,000
salaries expense 128,000
rent expense 23,000
depreciation expense 38,000
interest expense 2,800
advertising expense 3,300
totals.                         1,003,200.               1,00,200
prepare the closing entries for china tea company for the year ended December 31 2018.(if no entry is required for a transaction/event select no journal entry required in the first account field.)
1record the entry to close the revenue accounts using the income summary.
2
record the entry to close the expense accounts using the income summary
3
record the entry to close the income summary account

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)