On July 15, 2018, the Nixon Car Company purchased 3,000 tires from the Harwell Company for $30 each. The terms of the sale were 2/10, n/30. Nixon uses a periodic inventory system and the net method of accounting for purchase discounts.

Required:
1. Prepare the journal entries to record the purchase on July 15 and payment on July 23, 2018.
2. Prepare the journal entry to record the payment on August 15, 2018.
3. If Nixon instead uses a perpetual inventory system, explain any changes to the journal entries created in requirements 1 and 2.

On July 15, 2018, the Nixon Car Company purchased 2,300 tires from the Harwell Company for $35 each. The terms of the sale were 4/10, n/30. Nixon uses a periodic inventory system and the net method of accounting for purchase discounts.

Required:
1. Prepare the journal entries to record the purchase on July 15 and payment on July 23, 2018.
2. Prepare the journal entry to record the payment on August 15, 2018.
3. If Nixon instead uses a perpetual inventory system, explain any changes to the journal entries created in requirements 1 and 2.

On January 1, 2018, Packard Corporation leased equipment to Hewlitt Company. The lease term is eight years. The first payment of $450,000 was made on January 1, 2018. Remaining payments are made on December 31 each year, beginning with December 31, 2018. The equipment cost Packard Corporation $2,400,000. The present value of the lease payments is $2,640,788. The lease is appropriately classified as a sales-type lease. Assuming the interest rate for this lease is 10%, what will be the balance reported as a liability by Hewlitt in the December 31, 2019, balance sheet?

a- $1,950,867

b- $1,509,854

c- $1,959,867

d- $1,705,854

On September 29, 2018, Susie bought office furniture for $150,000. She also bought business computers for $90,000 on October 1, 2018. On January 10, 2019, Susie placed all of the assets in service. Susie did not elect to expense any of the assets under § 179, did not elect straight-line cost recovery, and did not take additional first-year depreciation (if available). Determine the cost recovery deduction for the business assets for 2018

. a. $39,435.

b. $14,290.

c. $34,296.

d. $30,290.

e. $36,000.

show all work of how solution was achieved

The Scott Corporation has outstanding 10,000 shares of 10%, $50 par value, cumulative, nonparticipating preferred stock and 80,000 shares of $10 par value common stock. The board of directors voted to distribute $45,000 as dividends in 2017, $65,000 in 2018, and $85,000 in 2019. Compute the amounts below.

1. Total dividend paid to preferred stockholders in 2017.           _____
2. Total dividend paid to common stockholders in 2017.             _____
3. Total dividend paid to preferred stockholders in 2018.          _____
4. Total dividend paid to common stockholders in 2018.            _____
5. Total dividend paid to preferred stockholders in 2019.          ______

Total dividend paid to common stockholders in 2019.   

Lance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its inventory. Accounting records provide the following information:

Related retail price indexes are as follows:

Required:
Determine ending inventory and cost of goods sold.

The shareholders’ equity of MLS Enterprises includes $100 million of no par common stock and $200 million of 6% cumulative preferred stock. The board of directors of MLS declared cash dividends of $31 million in 2018 after paying $7 million cash dividends in both 2017 and 2016.

What is the amount of dividends common shareholders will receive in 2018?

Sheffield Inc. reports the following pretax income (loss) for both book and tax purposes.

The tax rates listed were all enacted by the beginning of 2018.

Prepare the journal entries for years 2018–2021 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized

Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $43,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $10,000. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,600.

Required:

1. Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during the year.

2. Prepare the year-end journal entry for depreciation in 2018. Assume that the company uses the sum-of-the-years' -digits method instead of the straight-line method.