Rippa Ltd was incorporated on 1 July 2017. The following transactions and events occurred during the year ended 30 June 2018:

1 Jul 2017: Rippa Ltd makes an offer to the public for investors to subscribe for 5,000,000 shares, at an issue price of $4.00 per share, with $2.50 payable on application, $1.00 being payable within one month of allotment, and $0.50 payable on a call to be made at a later date. The issue is underwritten at a commission of $12,000.

31 Jul 2017: Applications close, with applications received for 6,000,000 shares.

10 Aug 2017: 5,000,000 shares are allotted in proportion to the number of shares for which applications had been made. The surplus application money is offset against the amount payable on allotment.

12 Aug 2017: The underwriter’s commission is paid.

10 Sep 2017: All allotment money is received.

1 Feb 2018: The call is made, with money due by 28 February 2018.

28 Feb 2018: All call money is received except for holders of 40,000 shares who fail to meet the call.

20 Mar 2018: The shares on which call money was not received are forfeited and sold as fully paid. An amount of $3.20 is received for each share sold. Costs of the forfeiture and reissue amount to $4,000, and are paid.

25 Mar 2018: The balance of the Forfeited Shares Account is returned to the former shareholders.

Required:

i) Prepare the journal entries to record the transactions of Rippa Ltd up to and including that which took place on 25 March 2018. Show all relevant dates and narrations.

ii) After returning money to the former shareholders on 25 March 2018, one of the former shareholders has contacted you in relation to the amount of money that he received. He tells you that he paid the application money and allotment money for the shares that he had, so he should get an amount back of $3.50 per share. Explain why the amount returned to the former shareholders was not $3.50 per share, and prepare workings to show how the refund per share was calculated.

Problem 1. MACRS & Bonus Depreciation. “MMMM That’s Good, Inc.” (or MTG) owns a successful chain of over 150 casual dining restaurants nationwide. Please calculate the tax depreciation expense for 2018 for all of the assets listed below (which constitute all the new assets purchased or placed into service by MTG in 2018): (i) first using just MACRS AND then (ii) using Bonus Depreciation and MACRS.

(i) MTG purchases a building for a new restaurant on June 20, 2018 for $750,000. The land is worth $300,000. On September 15, 2018, MTG purchases new ovens/stoves, prep lines, refrigerators, and a dish washing machine (collectively the “Kitchen Equipment”) at a cost of $150,000. The restaurant is opened for business on September 30, 2018.

(ii) MTG updates its accounting and inventory management systems for 2015 by purchasing new computer hardware at a cost of $4,500 per store (total cost of $675,000). The computer equipment was all purchased on December 15, 2017 and placed into service on January 5, 2018.

(iii) In order to implement pilot testing for a new menu line at select locations, on December 3, 2018, MTG makes a bulk purchase of smoker machines for 30 of its restaurants at a cost of $25,000 each or a total cost of $750,000, and immediately installs the machines and begins use.

Problem 2.

IRC Section 179 & Elections. Assume MTG’s 179 deduction is not limited in 2018, but applying cost recovery using bonus depreciation pushes MTG into a tax loss and so management is looking to limit its total cost recovery to approximately $550,000. Please describe how you might utilize IRC section 179, bonus depreciation elections, & MACRS depreciation to achieve a total deduction for all cost recovery on new assets of $550,000 and then perform the calculation.

Problem 3.

Dispositions. Returning to the facts of Problem 1, if after the pilot testing MTG decided to sell all of the smoker machines on August 10, 2019 for $400,000, what would be the tax consequences including the amount and nature of any gain or loss?

Instructions:

Using Unix programming language and regular expressions,

1. how many unique ip addresses were seen note: we only want to look at ipv4 addresses
2. which was most commnly seen ip address
on the piece of access.log file below

66.249.75.132 - - [18/Jun/2018:06:41:00 -0500] "GET /~rcoleman/Common/History/Images/?C=N;O=D HTTP/1.1" 200 1976 "-" "Mozilla/5.0 (compatible; Googlebot/2.1; +http://www.google.com/bot.html)"
5.255.250.23 - - [18/Jun/2018:06:41:23 -0500] "GET /~rcoleman/Common/CodeVault/Code/DesignPatterns/Images/DP16-Builder.jpg HTTP/1.1" 304 182 "-" "Mozilla/5.0 (compatible; YandexImages/3.0; +http://yandex.com/bots)"
5.255.250.23 - - [18/Jun/2018:06:41:28 -0500] "GET /~rcoleman/CS121/CourseInfo/Images/WinExp.jpg HTTP/1.1" 304 180 "-" "Mozilla/5.0 (compatible; YandexImages/3.0; +http://yandex.com/bots)"
148.108.96.32 - - [18/Jun/2018:06:41:43 -0500] "GET /~rcoleman/Common/Basics/Images/ASCII_Table.jpg HTTP/1.1" 200 144715 "https://www.bing.com/" "Mozilla/5.0 (Windows NT 6.1; WOW64; rv:52.0) Gecko/20100101 Firefox/52.0"
5.255.250.23 - - [18/Jun/2018:06:42:41 -0500] "GET /~delugach/Courses/H399-01/License%20Agreement%20for%20Acrobat HTTP/1.1" 200 12667 "-" "Mozilla/5.0 (compatible; YandexBot/3.0; +http://yandex.com/bots)"
5.255.250.23 - - [18/Jun/2018:06:42:59 -0500] "GET /~rcoleman/Common/CodeVault/Code/DesignPatterns/Images/DP03-Decorator.jpg HTTP/1.1" 304 182 "-" "Mozilla/5.0 (compatible; YandexImages/3.0; +http://yandex.com/bots)"
49.36.1.71 - - [18/Jun/2018:06:43:22 -0500] "GET /favicon.ico HTTP/1.1" 301 4121 "https://www.cs.uah.edu/~rcoleman/Common/C_Reference/C++%20For%20DUMMIES.pdf" "Mozilla/5.0 (Windows NT 6.3; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3452.0 Safari/537.36"
148.253.182.198 - - [18/Jun/2018:06:44:00 -0500] "GET /~rcoleman/CS121/ClassTopics/Images/Operators02.jpg HTTP/1.1" 200 54617 "https://www.bing.com/" "Mozilla/5.0 (Windows NT 6.3; WOW64; Trident/7.0; rv:11.0) like Gecko"
49.36.1.71 - - [18/Jun/2018:06:43:21 -0500] "GET /~rcoleman/Common/C_Reference/C++%20For%20DUMMIES.pdf HTTP/1.1" 200 8103354 "https://www.google.co.in/" "Mozilla/5.0 (Windows NT 6.3; Win64; x64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/69.0.3452.0 Safari/537.36"
66.249.75.130 - - [18/Jun/2018:06:44:42 -0500] "GET /~rcoleman/Common/History/Images/Pic20_ABC.jpg HTTP/1.1" 304 181 "-" "Googlebot-Image/1.0"
179.7.54.141 - - [18/Jun/2018:06:44:53 -0500] "GET /~rcoleman/Common/C_Reference/C++%20For%20DUMMIES.pdf HTTP/1.1" 200 8085570 "-" "Dalvik/2.1.0 (Linux; U; Android 7.0; SM-J730GM Build/NRD90M)"
175.158.232.110 - - [18/Jun/2018:06:45:58 -0500] "GET /~rcoleman/CS121/ClassTopics/Images/CompSys10.jpg HTTP/1.1" 200 217846 "https://www.google.com.ph/" "Mozilla/5.0 (Windows NT 6.1; WOW64) AppleWebKit/537.36 (KHTML, like Gecko) Chrome/52.0.2743.116 Safari/537.36"
5.255.250.23 - - [18/Jun/2018:06:46:03 -0500] "GET /~rcoleman/Common/SoftwareEng/Images/UML_01.jpg HTTP/1.1" 304 181 "-" "Mozilla/5.0 (compatible; YandexImages/3.0; +http://yandex.com/bots)"
5.255.250.23 - - [18/Jun/2018:06:46:23 -0500] "GET /~dhardin/cs_100/Animations/frmMoveBall_GUI.frm HTTP/1.1" 200 2066 "-" "Mozilla/5.0 (compatible; YandexBot/3.0; +http://yandex.com/bots)"
216.244.66.197 - - [18/Jun/2018:06:47:14 -0500] "GET /robots.txt HTTP/1.1" 301 577 "-" "Mozilla/5.0 (compatible; DotBot/1.1; http://www.opensiteexplorer.org/dotbot, [email protected])"
157.55.39.241 - - [18/Jun/2018:06:47:37 -0500] "GET /~rcoleman/Common/Basics/Images/Pointers03.jpg HTTP/1.1" 200 76104 "-" "Mozilla/5.0 (compatible; bingbot/2.0; +http://www.bing.com/bingbot.htm)"
41.190.3.133 - - [18/Jun/2018:06:47:51 -0500] "GET /~rcoleman/Common/History/History.html HTTP/1.1" 200 9592 "http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=14&ved=0ahUKEwjNw_ODkt3bAhWkB8AKHfbUCMwQFghnMA0&url=http%3A%2F%2Fwww.cs.uah.edu%2F~rcoleman%2FCommon%2FHistory%2FHistory.html&usg=AOvVaw1na6HxGz_OCQSHXgI3jn1L" "Mozilla/5.0 (Windows NT 6.1; rv:36.0) Gecko/20100101 Firefox/36.0"
41.190.3.133 - - [18/Jun/2018:06:47:52 -0500] "GET /~rcoleman/Common/History/Images/Pic02_RomanAbacus.jpg HTTP/1.1" 200 43539 "http://www.cs.uah.edu/~rcoleman/Common/History/History.html" "Mozilla/5.0 (Windows NT 6.1; rv:36.0) Gecko/20100101 Firefox/36.0"
41.190.3.133 - - [18/Jun/2018:06:47:52 -0500] "GET /~rcoleman/Common/History/Images/Pic01_AncientTimes.jpg HTTP/1.1" 200 40097 "http://www.cs.uah.edu/~rcoleman/Common/History/History.html" "Mozilla/5.0 (Windows NT 6.1; rv:36.0) Gecko/20100101 Firefox/36.0"
41.190.3.133 - - [18/Jun/2018:06:47:52 -0500] "GET /~rcoleman/Common/History/Images/Pic03_JohnNapier.jpg HTTP/1.1" 200 39131 "http://www.cs.uah.edu/~rcoleman/Common/History/History.html" "Mozilla/5.0 (Windows NT 6.1; rv:36.0) Gecko/20100101 Firefox/36.0"
41.190.3.133 - - [18/Jun/2018:06:47:52 -0500] "GET /~rcoleman/Common/History/Images/Pic06_WilliamOughtred.jpg HTTP/1.1" 200 49153 "http://www.cs.uah.edu/~rcoleman/Common/History/History.html" "Mozilla/5.0 (Windows NT 6.1; rv:36.0) Gecko/20100101 Firefox/36.0"
41.190.3.133 - - [18/Jun/2018:06:47:52 -0500] "GET /~rcoleman/Common/History/Images/Pic05_SlideRule.jpg HTTP/1.1" 200 71314 "http://www.cs.uah.edu/~rcoleman/Common/History/History.html" "Mozilla/5.0 (Windows NT 6.1; rv:36.0) Gecko/20100101 Firefox/36.0"
41.190.3.133 - - [18/Jun/2018:06:47:53 -0500] "GET /~rcoleman/Common/History/Images/Pic04_NapiersBones.jpg HTTP/1.1" 200 53637 "http://www.cs.uah.edu/~rcoleman/Common/History/History.html" "Mozilla/5.0 (Windows NT 6.1; rv:36.0) Gecko/20100101 Firefox/36.0"

Milea Inc. experienced the following events in 2018, its first year of operations:

1. Received $14,500 cash from the issue of common stock.
2. Performed services on account for $45,000.
3. Paid the utility expense of $1,200.
4. Collected $30,150 of the accounts receivable.
5. Recorded $7,100 of accrued salaries at the end of the year.
6. Paid a $1,100 cash dividend to the stockholders.

2. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for the 2018 accounting period.

• Req B1
• Req B2
• Req B3
• Req B4

Prepare the income statement.

• Req B2
• Req B3
• Req B4

Prepare the statement of changes in stockholders’ equity.

Prepare the balance sheet.

Prepare the statement of cash flows for the 2018 accounting period. (Amounts to be deducted should be indicated with a minus sign.)

Exercise 17-16 Blue Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2017. The purchase price was $1,178,400 for 49,100 shares. Kulikowski Inc. declared and paid an $0.90 per share cash dividend on June 30 and on December 31, 2018. Kulikowski reported net income of $702,000 for 2018. The fair value of Kulikowski’s stock was $27 per share at December 31, 2018. Assume that the security is a trading security. Prepare the journal entries for Blue Inc. for 2017 and 2018, assuming that Blue cannot exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit (To record dividend.) (To record fair value.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare the journal entries for Blue Inc. for 2017 and 2018, assuming that Blue can exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit (To record dividend.) (To record revenue.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2018? What is the total net income reported in 2018 under each of these methods? Fair Value Method Equity Method Investment amount (balance sheet) $ $ Dividend revenue (income statement) Unrealized holding gain (income statement) Investment income (income statement)

Ivanhoe Ltd. purchased a new machine on April 4, 2014, at a cost of $188,000. The company estimated that the machine would have a residual value of $18,000. The machine is expected to be used for 10,000 working hours during its four-year life. Actual machine usage was 1,400 hours in 2014; 2,200 hours in 2015; 2,300 hours in 2016; 2,100 hours in 2017; and 2,000 hours in 2018. Ivanhoe has a December 31 year end.

Required information

[The following information applies to the questions displayed below.]

Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow.

Additional Information

1. Sales and production data for these first two years follow.

2. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $29 per unit product cost consists of the following.

3. Selling and administrative expenses consist of the following.

1. Prepare income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.)

2. Prepare a table as in Exhibit 6.12 to convert variable costing income to absorption costing income for both 2018 and 2019. (Loss amounts should be entered with a minus sign.)

During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to change to the average method for both financial reporting and tax purposes. Income components before income tax for 2018, 2017, and 2016 were as follows ($ in millions): 2018 2017 2016 Revenues $ 550 $ 520 $ 510 Cost of goods sold (FIFO) (59 ) (53 ) (51 ) Cost of goods sold (average) (88 ) (82 ) (78 ) Operating expenses (306 ) (302 ) (294 ) Dividends of $32 million were paid each year. Batali’s fiscal year ends December 31. Required: 1. Prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (Ignore income taxes.) 2. Prepare the 2018–2017 comparative income statements. 3. & 4. Determine the balance in retained earnings at January 2017 as Batali reported using FIFO method and determine the adjustment of balance in retained earnings as on January 2017 using average method instead of FIFO method.

__1__Prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (Ignore income taxes.) (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).)

__2__Prepare the 2018–2017 comparative income statements. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

__3__Determine the balance in retained earnings at January 2017 as Batali reported using FIFO method and determine the adjustment of balance in retained earnings as on January 2017 using average method instead of FIFO method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Melody Lane Music Company was started by John Ross early in 2018. Initial capital was acquired by issuing shares of common stock to various investors and by obtaining a bank loan. The company operates a retail store that sells records, tapes, and compact discs. Business was so good during the first year of operations that John is considering opening a second store on the other side of town. The funds necessary for expansion will come from a new bank loan. In order to approve the loan, the bank requires financial statements.

John asks for your help in preparing the balance sheet and presents you with the following information for the year ending December 31, 2018:

Cash receipts consisted of the following:
  

Cash disbursements were as follows:
  

The bank loan was made on March 31, 2018. A note was signed requiring payment of interest and principal on March 31, 2019. The interest rate is 10%.

The equipment and furniture were purchased on January 3, 2018, and have an estimated useful life of 5 years with no anticipated salvage value. Depreciation per year is $6,000.

Inventories on hand at the end of the year cost $110,000.

Amounts owed at December 31, 2018, were as follows:
  

Rent on the store building is $3,000 per month. On December 1, 2018, four months' rent was paid in advance.

Net income for the year was $86,000. Assume that the company is not subject to federal, state, or local income tax.

Three hundred thousand shares of no par common stock are authorized, of which 30,000 shares were issued and are outstanding.

Required:
Prepare a balance sheet at December 31, 2018.

Pina Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2017. The purchase price was $1,031,800 for 46,900 shares. Kulikowski Inc. declared and paid an $0.80 per share cash dividend on June 30 and on December 31, 2018. Kulikowski reported net income of $714,000 for 2018. The fair value of Kulikowski’s stock was $25 per share at December 31, 2018. Assume that the security is a trading security.

Prepare the journal entries for Pina Inc. for 2017 and 2018, assuming that Pina cannot exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit




















(To record dividend.)





(To record fair value.)
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT

Prepare the journal entries for Pina Inc. for 2017 and 2018, assuming that Pina can exercise significant influence over Kulikowski. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit




















(To record dividend.)





(To record revenue.)
SHOW LIST OF ACCOUNTS
LINK TO TEXT
LINK TO TEXT

At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2018? What is the total net income reported in 2018 under each of these methods?
Fair Value Method
Equity Method
Investment amount (balance sheet)
$
$
Dividend revenue (income statement)

Unrealized holding gain (income statement)

Investment income (income statement)