On january 1, 2017 , Fro-yo Inc. began offering customers a cash rebate of $5 if the customer mails in 10 proof-of purchase labels from its frozen yogurt containers. Based on historical experience , the company estimates that 20% of the labels will be redeemed .During 2017, the company sold 5000000 frozen yogurt containers at $1 cash, per container .From these sales,800000 labels were redeemed in2017,150000 labels were redeemed in 2018, and the remaining labels were redeemed.
          Required :
1.Prepare the journal entries related to the sale of frozen yogurt and the cash rebate offer for 2017 and 2018.
2. Next level Assume that 300000 labels were redeemed in 2018. Prepare the journal entries related to the cash rebate offer for 2018.

ABC Construction Co. signed a $2,000,000 contract to construct an office building for the State of Arizona. The project will begin in 2017 and be completed in 2018. The cost of construction is expected to be $1,875,000.

Below is a summary of events for 2017 and 2018:

ABC Construction Co. recognizes revenue upon completion when accounting for long-term contracts.

a. Prepare all journal entries to record costs, billings, collections, and any profit recognition for ABC Construction Co. activities for 2017 only.

b. Prepare any journal entry needed for profit recognition only for ABC Construction Co. activities for 2018.

Following is information from Kaitlyn Company for the year ended December 31, 2018.

Direct labor $ 90,000
Operating and administrative expenses (costs) of sales ????
Net sales $ 520,000
Initial Inventories (None)
Direct Material Inventory-December 31, 2018 $ 55,000
Inventory of Work in process-December 31, 2018 $ 30,000
Inventory of finished goods- December 31, 2018 $ 4,000
Purchase of direct material ???
Direct material used $ 53,000
Indirect manufacturing costs ???
Total manufacturing costs incurred (in this period) ???
Cost of manufactured goods $ 245,000
Cost of sales ???
Gross margin (gain) ???
Net income (ignore taxes) $ 60,000

Calculate: operating and administrative expenses, purchase of direct materials, indirect manufacturing costs, total manufacturing costs, cost of sales and gross margin

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 6% bonds, dated January 1, on January 1, 2018. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $64 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $70 million.

Required:
1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate).
4. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet?
5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment?

Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2018. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $70 million.

Required:

1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate).

4. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet?

5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment?

Shown below in T-account format are the changes affecting the retained earnings of Brenner-Jude Corporation during 2018. At January 1, 2018, the corporation had outstanding 104.5 million common shares, $1.0 par per share. Retained Earnings ($ in millions) 80 Beginning balance Retirement of 4.5 million common shares for $24.0 million 2.60 70 Net income for the year Declaration and payment of a $0.26 per share cash dividend 26.00 Declaration and distribution of a 2% stock dividend 17.00 104.40 Ending balance Required: 1. Prepare the journal entries to record the transactions that affected Brenner-Jude's retained earnings during 2018 based on the information provided. 2. Prepare a statement of retained earnings for Brenner-Jude for the year ended 2018.

Comprehensive analysis of Wal-Mart and Target, compute the four ratios; current ratio, quick ratio, liabilities to equity, times earned.

Current Ratio                                 2018        2017

Walmart                                        0.75:1     0.86:1

Target                                           0.95:1     0.94:1

Quick Ratio                                  2018        2017

Walmart                                       0.20:1     0.21:1

Target                                          0.29:1     0.28:1

Total liabilities to equity            2018          2017

Walmart    1.62times 1.55times

Target 2.33times 2.41times   

Times interest earned                      2018              2017

Walmart                                     7.490.5times   9.659.5times

Target                                         6.475.5times 4.949.5times

-          Which company is more liquid? More solvent?

-          Compare the liabilities to equity ratio, do they differ from the each other and the industry? why?

-          Do the ratios change over time? Why?

The following information relates to the intangible assets of University Testing Services (UTS): a. On January 1, 2018, UTS completed the purchase of Heinrich Corporation for $3,510,000 in cash. The fair value of the net identifiable assets of Heinrich was $3,200,000. b. Included in the assets purchased from Heinrich was a patent valued at $82,250. The original legal life of the patent was 20 years; there are 12 years remaining, but UTS believes the patent will be useful for only seven more years. c. UTS acquired a franchise on July 1, 2018, by paying an initial franchise fee of $333,000. The contractual life of the franchise is 9 years. 1. Record amortization expense for the intangible assets at December 31, 2018. 2. Prepare the intangible asset section of the December 31, 2018, balance sheet.

Problem #3 Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $275 million of 9% bonds, dated January 1, on January 1, 2018. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 6%. The terms of the bonds is 10 years. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $300 million. Required:

1. Calculate the purchase price of the bonds.

2. Using the purchase price of the bond calculated in #1, prepare an amortization schedule for this bond.

3. Prepare the journal entries for:

a. January 1,2018

b. June 30, 2018

c. December 30, 2018

Rob operates a small plumbing supplies business as a sole proprietor. In 2018, the plumbing business has gross business income of $421,000 and business expenses of $267,000, including wages paid of $58,000. The business sold some land that had been held for investment generating a long-term capital gain of $15,000. The business has $300,000 of qualified business property in 2018. Rob's wife, Marie, has wage income of $250,000. They jointly sold stocks in 2018 and generated a long-term capital gain of $13,000. Rob and Marie have no dependents and in 2018, they take the standard deduction of $24,000.

The income threshold for QBI limitations starts at $315,000 for married filing jointly taxpayers.

a. What is Rob and Marie's taxable income before the QBI deduction?