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

17.          Using the information below, fill in the Income Statement and Statement of Financial Position (template provided as Excel Spreadsheet).                                                                              

On 1 July 2018, Biotechnology Products commenced business.

On July 1, 2018 the financial position included:

• Assets of cash ($200,000) and laboratory equipment ($250,000).
• Liabilities of a loan for initial start up costs ($300,000)
• Owner’s equity in capital ($50,000)

During the year ended June 30, 2018, the company entered into the following transactions:

• Billed clients for $500,000 biotechnology related products.

• Rent of the premises used by the company was $30,000 per year.

• Paid $150,000 for research and development over the year. All of this was expensed.

• Lab equipment depreciated at 20% on cost.
• Paid wages of $180,000
• Paid interest on the loan of $15,000 ($25,000 of the principal was repaid)
• Paid 12 month insurance premium of $12,000 on 1 July 2018.
• Owner withdrew $50,000 in cash towards his living expenses.

osada Company acquired 7,000 of the 10,000 outstanding shares of Sabathia Company on January 1, 2016, for $840,000. The subsidiary’s total fair value was assessed at $1,200,000 although its book value on that date was $1,130,000. The $70,000 fair value in excess of Sabathia’s book value was assigned to a patent with a five-year remaining life.

On January 1, 2018, Posada reported a $1,085,000 equity method balance in the Investment in Sabathia Company account. On October 1, 2018, Posada sells 1,000 shares of the investment for $191,000. During 2018, Sabathia reported net income of $120,000 and declared dividends of $40,000. These amounts are assumed to have occurred evenly throughout the year.

How should Posada report the 2018 income that accrued to the 1,000 shares prior to their sale? (Do not round your intermediate calculations.)

What is the effect on Posada’s financial statements from this sale of 1,000 shares? (Do not round your intermediate calculations.)

osada Company acquired 7,000 of the 10,000 outstanding shares of Sabathia Company on January 1, 2016, for $840,000. The subsidiary’s total fair value was assessed at $1,200,000 although its book value on that date was $1,130,000. The $70,000 fair value in excess of Sabathia’s book value was assigned to a patent with a five-year remaining life. On January 1, 2018, Posada reported a $1,085,000 equity method balance in the Investment in Sabathia Company account. On October 1, 2018, Posada sells 1,000 shares of the investment for $191,000. During 2018, Sabathia reported net income of $120,000 and declared dividends of $40,000. These amounts are assumed to have occurred evenly throughout the year. How should Posada report the 2018 income that accrued to the 1,000 shares prior to their sale? (Do not round your intermediate calculations.) What is the effect on Posada’s financial statements from this sale of 1,000 shares? (Do not round your intermediate calculations.)

Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $51,000 in its bank account. The note has a 3-year term, compounds 6 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end

1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
2. Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.
3. If Cucina Corp.’s year-end were March 31, rather than December 31, prepare the adjusting journal entry would it make for this note on March 31, 2018?

Cucina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $68,000 in its bank account. The note has a 3-year term, compounds 5 percent interest annually, and requires an annual installment payment on December 31. Cucina Corp. has a December 31 year-end and adjusts its accounts only at year-end.

Required:

1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
2. Prepare the journal entries on (a) January 1, 2018, and December 31 of (b) 2018, (c) 2019, and (d) 2020.
3. If Cucina Corp.’s year-end were March 31, rather than December 31, prepare the adjusting journal entry would it make for this note on March 31, 2018?

1> For calendar year 2018, Sol Corp reported depreciation of $500,000 in its income statement. On its 2018 income tax return, Sol reported depreciation of $900,000. Sol's income statement also included $220,000 accrued warranty expense that will be deducted for tax purposes when paid. Sol's enacted tax rates are 35% for 2018 and 2019, and 30% for 2020 and 2021. The depreciation difference and warranty expense will reverse over the next three years as follows:

Depreciation Difference Warranty Expense

2019 160,000 50,000

2020 140,000 80,000

2021 100,000 90,000

Total 400,000 220,000

These were Sol's only temporary differences. What should be the deferred portion of its provision for income taxes should be in the King's 2018 income statement?

a) What is the account name for the deferred portion of the provision for income taxes?

b) What is the amount for the deferred portion of the provision for income taxes?

During 2016 and 2017, Faulkner Manufacturing used the sum-of-the-years’-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of 2018, Faulkner decided to change to the straight-line method for both financial reporting and tax purposes. A tax rate of 40% is in effect for all years.

For an asset that cost $16,000 with an estimated residual value of $1,000 and an estimated useful life of 10 years, the depreciation under different methods is as follows:

Required:
1. Prepare the journal entry that Faulkner will record in 2018 related to the change.
2. Suppose instead that Faulkner previously used straight-line depreciation and changed to sum-of-the-years’- digits in 2018. Prepare the journal entry that Faulkner will record in 2018 related to the change.

In 2017, McGrath & Sons, a small​ environmental-testing firm, performed 11,000 radon tests for $ 300 each and 15,600 lead tests for $ 220 each. Because newer homes are being built with​ lead-free pipes, ​ lead-testing volume is expected to decrease by 99​% next year.​ However, awareness of​ radon-related health hazards is expected to result in a 55​% increase in​ radon-test volume each year in the near future. Jim McGrath feels that if he lowers his price for lead testing to $200 per​ test, he will have to face only a 44​% decline in lead-test sales in 2018.

Prepare a 2018 sales budget for McGrath & Sons assuming that McGrath holds prices at 2017 levels.

Prepare a 2018 sales budget for McGrath & Sons assuming that McGrath lowers the price of a lead test to $200. Should McGrath lower the price of a lead test in 2018 if the​company's goal is to maximize sales​revenue?