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.

Tracy Company, a manufacturer of air conditioners, sold 260 units to Thomas Company on November 17, 2018. The units have a list price of $250 each, but Thomas was given a 20% trade discount. The terms of the sale were 2/10, n/30. Thomas uses a periodic inventory system.

Required:
1. & 2. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2018 and December 15, 2018 using the gross method of accounting for purchase discounts.
3. Repeat requirements 1 and 2 using the net method of accounting for purchase discounts.

Kyle, a single taxpayer, worked as a free-lance software engineer for the first three months of 2018. During that time, he earned $44,000 of self-employment income. On April 1, 2018, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Inc. From April through the end of the year, Kyle earned $178,000 in salary.

What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? (Round your intermediate calculations to the nearest whole dollar amount.)

Self Employement/FICA tax

THIS IS FOR 2018

1. Term BondCompany A issued an 8 year, $2,000,000 5% bond on Jan. 1, 2018. Interest is payable each December 31. The bond sold for $1,958,000. The issue costs were $30,000. The issue costs are merged with any discount or premium to calculate a single effective interest rate. 60% of the bonds are retired on April 1, 2021 at 101 plus accrued interest.Calculate the effective interest rate. Make all needed entries on January 1, 2018, December 31, 2018, April 1, 2021 and December 31, 2021. Include an amortization table for all years.

Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $58,000. 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 $2,200.

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.

Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $47,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $5,000. 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 $3,800.

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.

On January 1, 2018, Grumpy Contractors agreed to construct a building at a contract price of $5,000,000. Grumpy estimates that the project will be finished in 2020. Information related to the costs and billings for this contract are as follows:

Instructions:
Assuming the building was finished in 2020, calculate the gross profit that would be recorded for 2018, 2019 and 2020 using the:

a) Completed contract method.

b) Percentage of completion method.

Company A owns all of Company B’s common stock. in may 2018, A purchased 10,000 stuffed animal storage bean bag chairs for kids for $11 each and sold them to B for $20 each. For the B resold 7500 of the bean bag chairs to its retail customers for $28 each prior to the end of the 2018 fiscal year. For the B sold the remaining 2500 bean bag chairs in the spring of 2019. A and B use perpetual inventory system.

Prepare the elimination of intracompany sales consolidation entry that A would make when prepare its 2018 consolidated financial statement.

Wardell Company purchased a mainframe on January 1, 2016, at a cost of $48,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $3,000. 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 $1,200.

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.