(NOL Carryforward, Valuation Account Needed)
Topper Company reported the following pretax financial income (loss) for the years 2018 through 2022:
2018 $ 70,000
2019 45,000
2020 (260,000)
2021 90,000
2022 215,000
Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 30% for 2018 through 2020, and 20% for 2021 and thereafter.
Instructions
(a) Prepare the journal entries for the years 2018 through 2022 to record income tax expense, income tax payable (refund- able), and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that 60 percent of the benefits of the loss carryforward will not be realized.
(b) Prepare the income tax section of the 2020 income statement beginning with the line “Income (loss) before income taxes.”
In: Accounting
Carla Company has the following two temporary differences
between its income tax expense and income taxes payable.
|
2020 |
2021 |
2022 |
|||||||
| Pretax financial income |
$864,000 |
$949,000 |
$920,000 |
||||||
| Excess depreciation expense on tax return |
(30,800) |
(41,000) |
(9,600) |
||||||
| Excess warranty expense in financial income |
20,900 |
10,500 |
8,300 |
||||||
| Taxable income |
$854,100 |
$918,500 |
$918,700 |
||||||
The income tax rate for all years is 20%.
Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, 2021, and 2022.
Indicate how deferred taxes will be reported on the 2022 balance sheet. Carla’s product warranty is for 12 months.
Prepare the income tax expense section of the income statement for 2022, beginning with the line “Pretax financial income.”
In: Accounting
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In: Accounting
Bonita Company sells 8% bonds having a maturity value of $1,420,000 for $1,312,340. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1.
Determine the effective-interest rate. (Round answer to 0 decimal places, e.g. 18%.)
| The effective-interest rate | % |
eTextbook and Media
Set up a schedule of interest expense and discount amortization under the effective-interest method. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 38,548.)
|
Schedule of Discount Amortization |
||||||||
|
|
Interest |
Interest |
Discount |
Carrying |
||||
| Jan. 1, 2020 | $ | $ | $ | $ | ||||
| Dec. 31, 2020 | ||||||||
| Dec. 31, 2021 | ||||||||
| Dec. 31, 2022 | ||||||||
| Dec. 31, 2023 | ||||||||
| Dec. 31, 2024 | ||||||||
In: Accounting
In: Operations Management
Question 1:
Part A: Financial Management
(a) Which business form has the following characteristics:
|
Trust |
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Corporation |
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Sole Trader |
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|
Partnership |
(b) If you buy shares of Coca-Cola on the secondary market,
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You buy the shares from the Federal Reserve. |
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You buy the shares from another investor who decided to sell the shares. |
||
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Coca-Cola receives the money because the company has issued new shares. |
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You buy the shares from the New York Stock Exchange. |
(c) Jennifer is your oldest child. Tomorrow is her 6th birthday. You plan to set up a savings plan for Jennifer's university education. You will deposit $4,000, tomorrow and every year up to and including her 17th birthday. How much will be available to Jennifer on her 18th birthday? Assume the relevant interest rate is 3.3% per year. Write your answer to the nearest cent.
In: Finance
HealthNut University’s Benefit Program
This activity is important because as a manager, you must be able to determine the most effective benefits to provide to your employees. There are many variables that impact the effectiveness of employee benefits. Evaluating your employees’ preferences, needs, the industry best practices and what the organization can afford are just a few.
The goal of this activity is to demonstrate your understanding of the various types of benefits available to offer employees as well as the regulations that may apply in your organization.
Read the case of the new benefit program at HealthNut University and select the best option for each scenario provided.
The employees at HealthNut University (HNU) have not seen a change in their benefits offered in several years. Meanwhile, the organization is experiencing unprecedented growth in the demand for its services thereby needing to ensure they are able to retain their valuable employees. HNU currently has 482 employees when combining administration, staff, and faculty members in the United States. Mr. Reuben, the Director of HR, has received approval to create a new benefit program for the employees.
Mr. Reuben begins by collecting both benchmark data from the industry best practices as well as conducting a survey of its current employees to identify what they value in a benefit program. While Mr. Reuben understands he will not be able to provide for every need, he knows the options need to be narrowed down to those the company’s employees desire the most.
The survey revealed the employees greatly value time off in various forms as well as an interest in long term benefits. Therefore, in addition to ensuring HealthNut University offers the legally mandated benefits, Mr. Reuben begins creating the new benefit program for HNU.
One of the most important issues for Mr. Reuben to address beyond the desires of the employees for particular types of benefits is that of ensuring each benefit policy is legally compliant. Which law/regulation applies to the benefits the company may utilize?
In: Operations Management
If you are a diversified investor in Facebook, which of the following types of risk would you include in your discount rate?
In: Finance
Cookie Creations is gearing up for the winter holiday season.
During the month of December 2020, the following transactions
occur.
|
Dec. 1 |
Natalie hires an assistant at an hourly wage of $8 to help with cookie making and some administrative duties. | |
|---|---|---|
|
5 |
Natalie teaches the class that was booked on November 25. The balance outstanding is received. | |
|
8 |
Cookie Creations receives a check for the amount due from the neighborhood school for the class given on November 30. | |
|
9 |
Cookie Creations receives $750 in advance from the local school board for five classes that the company will give during December and January. | |
|
15 |
Pays the cell phone invoice outstanding at November 30. | |
|
16 |
Issues a check to Natalie’s brother for the amount owed for the design of the website. | |
|
19 |
Receives a deposit of $60 on a cookie class scheduled for early January. | |
|
23 |
Additional revenue during the month for cookie-making classes amounts to $4,000. (Natalie has not had time to account for each class individually.) $3,000 in cash has been collected and $1,000 is still outstanding. (This is in addition to the December 5 and December 9 transactions.) | |
|
23 |
Additional baking supplies purchased during the month for sugar, flour, and chocolate chips amount to $1,250 cash. | |
|
23 |
Issues a check to Natalie’s assistant for $800. Her assistant worked approximately 100 hours from the time in which she was hired until December 23. | |
|
28 |
Pays a dividend of $500 to the common shareholder (Natalie). |
The trial balance from November is shown below.
| COOKIE
CREATIONS INC. Trial Balance November 30, 2020 |
||||
| Debit | Credit | |||
| Cash | $340 | |||
| Accounts Receivable | 300 | |||
| Supplies | 220 | |||
| Prepaid Insurance | 1,200 | |||
| Equipment | 1,200 | |||
| Website | 600 | |||
| Accounts Payable | $650 | |||
| Unearned Service Revenue | 60 | |||
| Notes Payable | 2,000 | |||
| Common Stock | 800 | |||
| Service Revenue | 400 | |||
| Utilities Expense | 50 | |||
| $3,910 | $3,910 | |||
As of December 31, Cookie Creations’ year-end, the following
adjusting entry data are provided.
| 1. | A count reveals that $45 of brochures and posters (supplies) were used. | |
| 2. | Depreciation is recorded on the baking equipment purchased in November. The baking equipment has a useful life of 5 years. Assume that 2 months’ worth of depreciation is required. | |
| 3. | Amortization (which is similar to depreciation) is recorded on the website. (Credit the Website account directly for the amount of the amortization.) The website is amortized over a useful life of 2 years and was available for use on December 1. | |
| 4. | Interest on the 9% note payable is accrued. (Assume that 1.5 months of interest accrued during November and December.) | |
| 5. | One month’s worth of insurance has expired. | |
| 6. | Natalie is unexpectedly telephoned on December 28 to give a cookie class at the neighborhood community center on December 31. In early January Cookie Creations sends an invoice for $450 to the community center. | |
| 7. | A count reveals that $1,025 of baking supplies were used. | |
| 8. | A cell phone invoice is received for $75. The invoice is for services provided during the month of December and is due on January 15. | |
| 9. | Because the cookie-making class occurred unexpectedly on December 31 and is for such a large group of children, Natalie’s assistant helps out. Her assistant worked 7 hours at a rate of $8 per hour. | |
| 10. | An analysis of the unearned revenue account reveals that two of the five classes paid for by the local school board on December 9 still have not been taught by the end of December. The $60 deposit received on December 19 for another class also remains unearned. |
Using the information gathered from above and from the November
trial balance, do the following: journal Entry, Post December
Transactions, Prepare a trial balance at 12/31/2020, Prepare
adjusting entries for the month of December, post adjusting entries
for the month of December, prepare an adjusted trial balance as of
12/31/2020, prepare an income statement for the 2-month period
ending 12/31/2020, prepare a retained earning statement for the 2
month period ending 12/31/2020, prepare a classified balance sheet
as of 12/31/2020, prepare a closing entry as of December 31, 2020,
post closing entries as of 12/31/2020, and prepare a post closing
trial balance
In: Accounting
This needs to be a python3 code
Write a program that prompts the user like this: “Currency to
convert to U.S. dollars: e = Euros, c= Chinese Yuan, r = Indian
Rupees, b = Bitcoin: ”. Then depending on which letter the user
enters, the program displays “Amount of Euros/Yuan/Rupees/Bitcoin
to convert: ”. (Note: the second prompt should only name the one
currency the user asked to convert, not all four currencies.) After
the user enters the amount, the program displays “In U.S. dollars,
that is $N”, (N is the amount converted to U.S. dollars).
Conversion rates (from Google, Aug 25, 2019):
• 1 Euro = 1.11 US dollar • 1 Chinese yuan = 0.14 US dollar • 1
Indian rupee = 0.014 US dollar • 1 Bitcoin = 10283.00 US dollar
In: Computer Science