3.On October 1, 2018, Pastina signed a $57,000 note that requires interest to paid annually on September 30 at 12% and will have principal due in 10 years.

Note: Enter debits before credits.

4.On March 1, 2018, the company lent $27,000. The note required principal and interest at 8% be paid on February 28, 2019.

5.On April 1, 2018, the company paid $6,840 for a two-year fire insurance policy and debited the entire amount to insurance expense.

Note: Enter debits before credits.

6.Supplies on hand at December 31, 2018 were $700.

Note: Enter debits before credits.

Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $90 million of 6% bonds, dated January 1, on January 1, 2018. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $73 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 $80 million.

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

(TCO C) What are intangible assets?

How are limited-life intangibles accounted for subsequent to acquisition?

On January 1, 2018, Molden Co. signed an agreement to operate as a franchisee of Mold Removal Co. for an initial franchise fee of $100,000. The agreement provides that the fee is not refundable and no future services are required of the franchisor. The agreement also provides that 5% of the Revenue from the franchise must be paid to the franchisor annually. Molden's revenue from the franchise for 2018 was $1,800,000. Molden estimates the useful life of the franchise to be 10 years.

Instructions:

1. Show a schedule of what should be shown in the Intangible Assets Section of Molden's Balance Sheet at December 31, 2018. Show supporting computations in good form.

2. Show a schedule showing all the expenses resulting from these transactions that would appear on Molden's Income Statement for the year ended December 31, 2018. Show supporting computations please.

(TCO C) What are intangible assets? How are limited-life intangibles accounted for subsequent to acquisition? On January 1, 2018, Molden Co. signed an agreement to operate as a franchisee of Mold Removal Co. for an initial franchise fee of $100,000. The agreement provides that the fee is not refundable and no future services are required of the franchisor. The agreement also provides that 5% of the Revenue from the franchise must be paid to the franchisor annually. Molden's revenue from the franchise for 2018 was $1,800,000. Molden estimates the useful life of the franchise to be 10 years. Instructions: 1. Show a schedule of what should be shown in the Intangible Assets Section of Molden's Balance Sheet at December 31, 2018. Show supporting computations in good form. 2. Show a schedule showing all the expenses resulting from these transactions that would appear on Molden's Income Statement for the year ended December 31, 2018. Show supporting computations please.

Purkerson, Smith, and Traynor have operated a bookstore for a number of years as a partnership. At the beginning of 2018, capital balances were as follows:

Due to a cash shortage, Purkerson invests an additional $16,000 in the business on April 1, 2018.

Each partner is allowed to withdraw $1,000 cash each month.

The partners have used the same method of allocating profits and losses since the business's inception:

• Each partner is given the following compensation allowance for work done in the business: Purkerson, $10,000; Smith, $26,000; and Traynor, $6,000.
• Each partner is credited with interest equal to 10 percent of the average monthly capital balance for the year without regard for normal drawings.
• Any remaining profit or loss is allocated 2:3:5 to Purkerson, Smith, and Traynor, respectively. The net income for 2018 is $38,000. Each partner withdraws the allotted amount each month.

What are the ending capital balances for 2018?

Calculate the Cash Flow from Operating Activities for 2018

On January 1, 2017, Alison, Inc., paid $85,700 for a 40 percent interest in Holister Corporation’s common stock. This investee had assets with a book value of $256,000 and liabilities of $83,500. A patent held by Holister having a $9,800 book value was actually worth $20,300. This patent had a six-year remaining life. Any further excess cost associated with this acquisition was attributed to goodwill. During 2017, Holister earned income of $48,000 and declared and paid dividends of $16,000. In 2018, it had income of $52,000 and dividends of $21,000. During 2018, the fair value of Allison’s investment in Holister had risen from $99,100 to $105,100.

a. Assuming Alison uses the equity method, what balance should appear in the Investment in Holister account as of December 31, 2018?

b. Assuming Alison uses fair-value accounting, what income from the investment in Holister should be reported for 2018?

Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $250 million of 8% bonds, dated January 1, on January 1, 2018. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $228 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 $240 million. Required: 1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). 4-a. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet? 4-b. Prepare any entry necessary to achieve this reporting objective. 5. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment?

What is the Exponentially Smoothed Forecast for year 5?

What is the trend for year 2?

What is the trend for year 3?

What is the adjusted exponentially smoothed forecast for year 3?

What is the trend for year 4?

What is the adjusted exponentially smoothed forecast for year 4?

What is the forecast for year 5 using linear regression.

Coyote Manufacturing bought a machine for $90,000 on April 1, 2018. To install the machine Coyote Manufacturing spent $10,000. It was estimated that the useful life be 4 years or 1,000,000 machine-hours. And the residual value at the end of the useful life be $4,000. Number of hours that the machine has been used or will be used are as follows: 2018 2019 2020 2021 2022 70,000 hours 240,000 290,000 230,000 170,000 Instructions: 1. Prepare journal entries for the purchase of the truck on April 1, 2018. 2. Compute depreciation expenses on the machine for the years ending on December 31 of 2018 and 2019 using following methods; 1) Straight-line method, 2) Activity based method, 3) Sum-of-the-years'-digit, 4) Double declining method. 3. Coyote sold this machine for $50,000 on January 1, 2020 - Prepare any necessary journal entries for this sale using Sum-of-years’-digit method