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 $6,000 in the business on April 1, 2018.

Each partner is allowed to withdraw $700 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, $15,000; Smith, $25,000; and Traynor, $8,000.

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 $29,000. Each partner withdraws the allotted amount each month.

What are the ending capital balances for 2018?

18) Kash n’ Karry issues $50 million of bonds on January 1, 2018 that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value 1/1/2018 $55,338,768 6/30/2018 2,000,000 1,936,857 63,143 55,275,625 12/31/2018 2,000,000 1,934,647 65,353 55,210,272.

1. Were the bonds issued at face amount, a discount, or a premium?

2. What is the original issue price of the bonds?

3. What is the face amount of the bonds?

4. What is the stated annual interest rate? (Hint: Be sure to provide the annual rate rather than the six month rate.)

5. What is the market annual interest rate? (Hint: Be sure to provide the annual rate rather than the six month rate.)

6. What is the total cash paid for interest assuming the bonds mature in 20 years?

On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 310,000 rubles in four months (on January 31, 2018) and receive $186,000 in U.S. dollars. Exchange rates for the ruble follow: Date Spot Rate Forward Rate (to January 31, 2018) October 1, 2017 $ 0.56 $ 0.60 December 31, 2017 0.59 0.62 January 31, 2018 0.61 N/A Sharp's incremental borrowing rate is 12 percent. The present value factor for one month at an annual interest rate of 12 percent (1 percent per month) is 0.9901. Sharp must close its books and prepare financial statements on December 31.

Prepare journal entries, assuming that Sharp entered into the forward contract as a fair value hedge of a firm commitment related to a 310,000 ruble sale that will be made on January 31, 2018. Include entries for both the firm commitment and the forward contract. The fair value of the firm commitment is measured by referring to changes in the forward rate.

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, $12,000; Smith, $28,000; and Traynor, $8,000.

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 3:3:4 to Purkerson, Smith, and Traynor, respectively. The net income for 2018 is $32,000. Each partner withdraws the allotted amount each month.

What are the ending capital balances for 2018?

At the beginning of 2018, Ace Company had the following portfolio of investments in available-for-sale debt securities (all of which were acquired at par value):

During 2018, the following transactions occurred:

Required:

Problem 16-5 Change in tax rate; record taxes for four years [LO16-1, 16-4, 16-5]

The DeVille Company reported pretax accounting income on its income statement as follows:
   

   
Included in the income of 2018 was an installment sale of property in the amount of $52,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $20,800 in 2019, $26,000 in 2020, and $5,200 in 2021.

Included in the 2020 income was $21,000 interest from investments in municipal bonds.

The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new tax legislation was passed reducing the tax rate to 25% for the years 2020 and beyond.

Required:
Prepare the year-end journal entries to record income taxes for the years 2018–2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Question 1: (B1, C3)

In 2017, Ahmad & Sons, a small environmental-testing firm, performed 12,200 radon tests for $290 each and 16,400 lead tests for $240 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 10% next year. However, awareness of radon-related health hazards is expected to result in a 6% increase in radon-test volume each year in the near future. Jim Rouse feels that if he lowers his price for lead testing to $230 per test, he will have to face only a 7% decline in lead-test sales in 2018.

Instructions:

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

2.         Prepare a 2018 sales budget for Ahmad & Sons assuming that Rouse lowers the price of a lead test to $230. Should Rouse lower the price of a lead test in 2018 if the company’s goal is to maximize sales revenue

Exercise 18-23

At the end of 2016, Concord Corporation reported a deferred tax liability of $43,000. At the end of 2017, the company had $245,000 of temporary differences related to property, plant, and equipment. Depreciation expense on this property, plant, and equipment has been lower than the CCA claimed on Concord’s income tax returns. The resulting future taxable amounts are as follows:

The tax rates enacted as of the beginning of 2016 are as follows: 32% for 2016 and 2017; 31% for 2018 and 2019; and 26% for 2020 and later. Taxable income is expected in all future years.

Calculate the deferred tax account balance at December 31, 2017.

Prepare the journal entry for Concord to record deferred taxes for 2017.

Early in 2018, after the 2017 financial statements were released, new tax rates were enacted as follows: 30% for 2018 and 28% for 2019 and later.
Prepare the journal entry for Concord to recognize the change in tax rates.

Assume the year end for Oblix Company is December 31. Selected transactions of fiscal year 2018 for Oblix Company are presented below. All accounts are in normal balance:

1. Beginning balance account receivable, $8,162; beginning balance allowance for doubtful accounts, $272.
2. Service revenue all on account, $75,906.
3. Collections on account, $74,628.
4. Write-offs of uncollectible accounts receivable, $200.
5. Recovered an account receivable that had been previously been written off, $100.
6. Aging schedule of accounts receivable at year-end:

Required:

1. Prepare the journal entry to write off uncollectible account receivable in 2018.

1. Prepare the journal entry to record recovery of uncollectible accounts receivable in 2018.

1. Prepare the journal entry of 2018 bad debt expenses.

I'd like to know how to solve 3 questions.