The prepaid insurance account has an unadjusted balance of $46,000 at December 31,

2018, the end of Hanson Company's accounting year. Insurance expense has a $12,000 balance

at the same point in time. The following policies are in effect at December 31, 2018:

Policy Date Policy Total Premium

Type Acquired Term Paid when acquired

Liability 1-31-17 2 years $48,000

Auto 6-30-18 2 years 9,000

Business interruption 8-1-18 1 year 840

1. Determine the adjusted balance in prepaid insurance at December 31, 2018.

2. Determine the amount of total insurance expense (you need not separate the expense

by policy type) to report on the income statement for the year ended December 31,

2018.

The following trial balance was extracted from the books of Mike Karuvadu on 31 Dec 2018. From it and the note inventory, prepare his Statement of Profit or Loss for the year ending 31 Dec 2018 and a Statement of Financial Position as at that date:

                                                                                                Dr                    Cr

                                                                                                $                      $

Sales                                                                                                                216,420

Purchases                                                                                109,680

Inventory: 1 Jan 2018                                                             10,410

Carriage outwards                                                                  2,115

Carriage inwards                                                                     1,840

Return inwards                                                                       5,900

Return outwards                                                                                             6,720

Salaries and wages                                                                  42,800

Motor expenses                                                                       1,912

Rent                                                                                        7,800

Sundry expenses                                                                     1,318

Motor vehicles                                                                        15,400

Fixtures and fittings                                                                1,912

Accounts receivable                                                                24,200

Accounts payable                                                                                            19,100

Cash at bank                                                                           5,100

Cash in hand                                                                           1,240

Drawings                                                                                 30,440

Capital                                                                                     ________        19,827_

                                                                                                262,067           262,067

Inventory at 31 Dec 2018 was $11,290

In 2018, Western Transport Company entered into the treasury stock transactions described below. In 2016, Western Transport had issued 280 million shares of its $1 par common stock at $28 per share. Required: Prepare the appropriate journal entry for each of the following transactions: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) On January 23, 2018, Western Transport reacquired 20 million shares at $31 per share. On September 3, 2018, Western Transport sold 2 million treasury shares at $32 per share. On November 4, 2018, Western Transport sold 2 million treasury shares at $29 per share.

Manufacturing costs for Davenport Company during 2018 were as follows:

Note: The pre-determined overhead rate is 0.87 (87%) of direct labor cost.

Required:

1. Prepare a Cost of Goods Manufactured report.

2. Prepare a Partial Income Statement if sales revenue was $1,370,000 and operating expenses were $270,000 for 2018.

The following summary transactions occurred during 2018 for Bluebonnet Bakers:

The balance of cash and cash equivalents at the beginning of 2018 was $30,000.

Required:
Prepare a statement of cash flows for 2018 for Bluebonnet Bakers. Use the direct method for reporting operating activities. (Amounts to be deducted should be indicated with a minus sign.)
  

On December 1, 2017, ABC Company paid its vendor $24,000 for its annual license, which covers the twelve-month period beginning on January 1, 2018. Assume ABC Company prepares monthly financial statements at the end of each calendar month.

1. What journal entry should ABC Company record on December 1, 2017?

2. What journal entry should ABC Company record for the accounting license for the month ending January 31, 2018?

For questions 3-4, assume now the same factors as above, but ABC Company did not pay the license vendor until February 1, 2018.

3. What is the journal entry that should be recorded as of December 31, 2017?

4. What is the journal entry that should be recorded as of January 31, 2018?

Milani, Inc., acquired 10 percent of Seida Corporation on January 1, 2017, for $187,000 and appropriately accounted for the investment using the fair-value method. On January 1, 2018, Milani purchased an additional 30 percent of Seida for $640,000 which resulted in significant influence over Seida. On that date, the fair value of Seida's common stock was $2,060,000 in total. Seida's January 1, 2018 book value equaled $1,910,000, although land was undervalued by $132,000. Any additional excess fair value over Seida's book value was attributable to a trademark with an 8-year remaining life. During 2018, Seida reported income of $258,000 and declared and paid dividends of $101,000. Prepare the 2018 journal entries for Milani related to its investment in Seida.

At December

31, 2018 before any year-end adjustments, the Accounts Receivable balance of Daulat Inc is $300,000. Credit sales for the 2018 are $900,000, and allowance for bad debt has a $10,000 beginning credit balance. Daulat Inc prepares the following aging schedule for accounts receivable

(age, amount, estimated uncollectible)

0-30 Days

$150,000

1%

31- 60 Days

$100,000

4%

61 -90 Days

$40,000

10%

Over 90 Days

$10,000

40%

1.

Calculate the balance in the allowance for bad debt on December 31, 2018 assuming Daulat Inc estimates that 2% of credit sales will be uncollectible

2.

What is the bad debt expense for 2018 assuming Daulat Inc uses the aging of accounts method

At the end of 2019, Headland Company has $174,800 of cumulative temporary differences that will result in reporting the following future taxable amounts.

Tax rates enacted as of the beginning of 2018 are:

Headland’s taxable income for 2019 is $310,600. Taxable income is expected in all future years.

(a) Prepare the journal entry for Headland to record income taxes payable, deferred income taxes, and income tax expense for 2019, assuming that there were no deferred taxes at the end of 2018.

(b) Prepare the journal entry for Headland to record income taxes payable, deferred income taxes, and income tax expense for 2019, assuming that there was a balance of $21,600 in a Deferred Tax Liability account at the end of 2018