XYZ Co.’s summary balance sheets for 2017 and 2018 are below: XYZ Co. Balance Sheets 2017 2018

Cash 400,000 300,000

Accounts receivable 800,000 _________

(b) Net fixed assets 1,600,000 2,300,000 TOTAL ASSETS _________ _________

Accounts payable 250,000 300,000 Short-term debt 350,000 400,000

Long-term debt 800,000 800,000 Shareholders’ equity _________

(a) 1,500,000 TOTAL LIABIL. & SHAREHOLDER’S EQUITY _________ _________

Calculate the following: a) Shareholders’ equity in 2017

b) Accounts receivable in 2018

c) If XYZ Co. has a company policy to keep 100% of the net earnings (or net profits) at the end of each year as retained earnings, what was the net earnings in 2017?(Note: there is nothing missing or misleading in this question. The info on this page is sufficient to answer it.)

d) Did the liquidity of the firm get better or worse from 2017 to 2018? (2 pts) (Note: there is nothing missing or misleading in this question. The info on this page is sufficient to answer it.)

Rose, Inc. uses the dollar-value LIFO retail inventory method. For years ending 2015-2019 they counted the following dollar amounts for inventory at retail prices

2015 $124,000

2016 $138,600

2017 $157,500

2018 $149,240

2019 $155,700

As far as prices are concerned, the following year end price indexes were estimated as:

2015 1.00

2016 1.04

2017 1.10 (10 percent higher prices than in 2015)

2018 1.13

2019 1.15

The cost to retail percentage for those items added in each year were as follows – this means the comparison of purchases for cost versus retail has already been done and does not need to be repeated.

2015 60%

2016 61%

2017 62%

2018 63%

2019 62%

Required: Give the amounts that should be listed on the year-end balance sheet for each of the following years:

1. 2015

2. 2016

3. 2017

4. 2018

5. 2019

Use actual sales (revenue) data from previous 4 years to estimate sales using the linear trend function. Please show work in excel!!

On January 2, 2018, the Mulberry Street Corporation (a calendar year corporation) purchased heavy equipment in the amount of $550,000. It is expected to be used for 10 years, with a residual value at the end of that time of $70,000. Expenditures required to place the asset in service amounted to $120,000. The company also purchased a patent at a cost of $80,000 on July 1, 2018. It is expected to be used for six years, with no value at the end of that time. The management of Mulberry Street depreciates heavy equipment by the declining-balance method at 200 percent of the straight line. It amortizes intangible assets by the straight-line method.

1) Calculate depreciation and amortization for 2018 and 2019.

2) Prepare the journal entries for 2018 and 2019.

3) How much more depreciation was taken in the two years than if the company used straightline? What was the effect on the financial statements?

4) Prepare the plant and intangible assets section of Mulberry's balance sheet at the end of 2019.

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 $12,000 in the business on April 1, 2018.

Each partner is allowed to withdraw $900 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 20 percent of the average monthly capital balance for the year without regard for normal drawings.

Any remaining profit or loss is allocated 4:2:4 to Purkerson, Smith, and Traynor, respectively. The net income for 2018 is $28,000. Each partner withdraws the allotted amount each month.

What are the ending capital balances for 2018?

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: Year Straight Line SYD Difference 2016 $ 1,500 $ 2,727 $ 1,227 2017 1,500 2,455 955 $ 3,000 $ 5,182 $ 2,182 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.

Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $240 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 $219 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 $230 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?

Consider that 2018 was Rail Company's first year of operations. Rail reported $665,000 of total revenue for the twelve months ended 12/31/2018, and reported the following normal account balances as of 12/31/2018:

1 Accounts Payable $4,000 10 Note Payable $68,950

2 Accounts Receivable 50,000 11 Office Supplies 2,300

3 Accumulated Depreciation 84,070 12 Prepaid Advertising Expense 5,000

4 Cash 23,950 13 Prepaid Insurance Expense 3,300

5 Common Stock 172,500 14 Rent Payable 3,200

6 Dividends 50,000 15 Salaries Payable 5,200

7 Dividends Payable 5,500 16 Shop Supplies 5,800

8 Equipment 267,200 17 Utilities Payable 1,630

9 Land 35,000

Consider the above information and determine the amount of total expense incurred by Rail Company for the year ended 12/31/2018.

-Kathy is 60 years of age and self-employed. During 2018 she reported $100,000 of revenues and $40,000 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to a simplified employee pension (SEP) IRA for 2018? (Round your final answer to the nearest whole number)

A) $11,152.

B) $17,152.

C) $12,000

D) $55,000.

-Kathy is 60 years of age and self-employed. During 2018 she reported $500,000 of revenues and $100,000 of expenses relating to her self-employment activities. If Kathy has no other retirement accounts in her name, what is the maximum amount she can contribute to a simplified employee pension (SEP) IRA for 2018? (Round your final answer to the nearest whole number)

A) $55,000.

B) $61,000.

C) $77,337.

D) $369,400.