Mourinho Company is indebted to Guardiola Bank under a $550,000, 12%, three-year note dated December 31, 2018. Because of Morinho's financial difficulties developing in 2020, Mourinho owed accrued interest of $65,000 on the note at December 31, 2020. Under a troubled debt restructuring, on December 31, 2020, Guardiola agreed to settle the note and accrued interest for a building having a fair value of $410,000. The building has a cost of $820,000 and accumulated depreciation of $308,000. How much gain/loss on the disposition of land and on restructuring of debt should Mourinho record, respectively?

During 2020, Sandhill Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available.

Part 1

Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

9) For the 2019 tax returns, indicate when the statute of limitations expires and why. a. Phoenix filed his tax return on February 28, 2020. b. Jill and Randy filed their tax return on August 16, 2020. c. Although required to file, Catherine chose not to file a tax return this year because she was expecting a tax refund and could not pull together all the information needed to file the return. d. Jerry filed his tax return on May 22, 2020, but has accidentally underreported his taxable income by 30 percent.

Southern Corporation began operations in January 2019 and purchased a machine for $120,000 at that time. Southern uses straight-line depreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2019, 30% in 2020, and 20% in 2021. Pretax accounting income for 2020 – which is the SECOND year of using this machine – is $150,000, which includes interest revenue of $20,000 from municipal bonds. The enacted tax rate is 30% for all years. There are no other differences between accounting and taxable income.

Prepare the JE for 2020

Ajax Products, Inc., reported an excess of warranty expense over warranty deductions of $72,000 for the year ended December 31, 2020. This temporary difference will reverse in equal amounts of $24,000 in years 2021, 2022, and 2023. The enacted tax rates are as follows: 2020: 40%; 2021: 25%; 2022: 21%; 2023: 20%. The reporting for this temporary difference at December 31, 2020, would be a

Question 4 options:

The following are two independent situations.

For each independent situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Facts: On April 1, 2020, Foster Company purchased used equipment. The company recorded the cost of the equipment as $66,000. The company expected the equipment to last four years or 8,000 hours, with an estimated salvage value of $6,000 at the end of the useful life. The equipment was used 500 hours during 2020.

1. What amount of depreciation expense will Foster Company record in 2020 using the straight-line method of depreciation? Show your calculations.

2. What amount of depreciation expense will Foster Company record in 2020 using the units-of-activity method of depreciation? Show your calculations.

3. After reviewing Foster Company's records, regulators discover that the company improperly capitalized $10,000 of revenue expenditures in determining the cost of its equipment. Explain how Foster's error affects the company's financial statements if Foster uses straight-line depreciation

Flint Corp. sponsors a defined benefit pension plan for its employees. On January 1, 2020, the following balances relate to this plan.

As a result of the operation of the plan during 2020, the following additional data are provided by the actuary.

Using the data above, compute pension expense for Flint Corp. for the year 2020 by preparing a pension worksheet.

Prepare the journal entry for pension expense for 2020.

The City of Leonard decides to lease school desks for its school system rather than buy them because the lessor will do all scheduled maintenance. On January 1, 2020, the school system leases 5,000 school desks for four years. After that, they will be returned to the manufacturer. Payment will be $20 per desk per year with payments on January 1, beginning on January 1, 2020. The city does not know how the lessor determined the annual charge. The city has an annual incremental borrowing rate of 8 percent. The present value of an annuity due of $1 at an 8 percent annual rate for four periods is 3.5771.

1. Make the journal entries for the City of Leonard for 2020 and 2021 in preparing government-wide financial statements.
2. Make the journal entries for the City of Leonard for 2020 and 2021 in preparing fund financial statements for its governmental funds.