At year-end 2018, Wallace Landscaping’s total assets were $2.12 million, and its accounts payable were $395,000. Sales, which in 2018 were $2.5 million, are expected to increase by 25% in 2019. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $460,000 in 2018, and retained earnings were $255,000. Wallace has arranged to sell $105,000 of new common stock in 2019 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2019. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 6%, and 55% of earnings will be paid out as dividends.

1. What was Wallace's total long-term debt in 2018? Do not round intermediate calculations. Round your answer to the nearest dollar.
   $  

   What were Wallace's total liabilities in 2018? Do not round intermediate calculations. Round your answer to the nearest dollar.
   $  

2. How much new long-term debt financing will be needed in 2019? (Hint: AFN - New stock = New long-term debt.) Do not round intermediate calculations. Round your answer to the nearest dollar.
   $  

On November 10, 2018, Kane Co. sold inventory to a customer in a foreign country. Kane agreed to accept 80,000 local currency units (LCU) in full payment for this inventory. Payment was to be made on February 1, 2019. On December 1, 2018, Kane entered into a forward exchange contract wherein 80,000 LCU would be delivered to a currency broker in two months. Any contract discount or premium is amortized using the straight-line method. The spot rates and forward rates on various dates were as follows:

Date	Rate Description	Exchange Rate
November 10, 2018	Spot Rate	1 LCU = $0.34
December 1, 2018	Spot Rate	1 LCU = $0.31
	2-Month Forward Rate	1 LCU = $0.29
December 31, 2018	Spot Rate	1 LCU = $0.28
	1-Month Forward Rate	1 LCU = $0.27
February 1, 2019	Spot Rate	1 LCU = $0.26

The company's borrowing rate is 12%. The present value factor for one month is .9901.

Required:

A. Assume this hedge is designated as a cash flow hedge. Prepare the journal entries relating to the transaction and the forward contract.

B. Assume this hedge is designated as a fair value hedge. Prepare the journal entries relating to the forward contract.

C. What are the differences between a foreign currency forward contract and a foreign currency option? Consider contractual terms and accounting requirements in your response.

Wang Company began operations on January 1, 2018, by issuing common stock for $70,000 cash. During 2018, Wang received $88,000 cash from revenue and incurred costs that required $65,000 of cash payments. Prepare a GAAP-based income statement and balance sheet for Wang Company for 2018, for the below scenario:

a. Wang is a promoter of rock concerts. The $65,000 was paid to provide a rock concert that produced the revenue.

b. Wang is in the car rental business. The $65,000 was paid to purchase automobiles. The automobiles were purchased on January 1, 2018, and have five-year useful lives, with no expected salvage value. Wang uses straight-line depreciation. The revenue was generated by leasing the automobiles.

c. Wang is a manufacturing company. The $65,000 was paid to purchase the following items:

(1) Paid $10,000 cash to purchase materials that were used to make products during the year.

(2) Paid $20,000 cash for wages of factory workers who made products during the year.

(3) Paid $5,000 cash for salaries of sales and administrative employees.

(4) Paid $30,000 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year life and a $6,000 salvage value. The company uses straight-line depreciation.

(5) During 2018, Wang started and completed 2,000 units of product. The revenue was earned when Wang sold 1,500 units of product to its customers.

On December 31, 2017, Berclair Inc. had 540 million shares of common stock and 4 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $900 million. The income tax rate is 40%.

Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2013. The options are exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share.

In 2014, $62.5 million of 8% bonds, convertible into 6 million common shares, were issued at face value.

Required:

Compute Berclair’s basic and diluted earnings per share for the year ended December 31, 2018. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

*Last person told me the diluted is 1.56 but that is WRONG. I need the correct answer, PLEASE*

Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $125,370. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Related Information:
Lease term	2 years (8 quarterly periods)
Quarterly rental payments	$16,500 at the beginning of each period
Economic life of asset	2 years
Fair value of asset	$125,370
Implicit interest rate	6%
(Also lessee’s incremental borrowing rate)

Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern from the beginning of the lease through January 1, 2019. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis. (Enter your answers in whole dollars and not in millions. Round your intermediate and final answers to nearest whole dollar. Enter all amounts as positive values.)

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	Payment Date Lease Payments Effective Interest Decrease in Balance Lease Balance 01/01/2018 04/01/2018 07/01/2018 10/01/2018 01/01/2019 04/01/2019 07/01/2019 10/01/2019 Total

Merrill Lynch is a large securities firm which uses the accrual method of accounting in accordance with Generally Accepted Accounting Principles. Merrill Lynch executes stock trades and performs settlement functions. Settlement functions include recording the sale and confirming it with the customer. Trades made on December 28, 2017, until the end of the month are not settled until mid-January of 2018. Merrill Lynch netted $100,000,000 of sales commissions from these trades in late December 2017. Since the security is not credited to the customer’s account until settlement date, Merrill Lynch wants to report the Revenue on their 2017 Income Statement but wants to declare the income on the tax return for 2018 because it coincides with the settlement dates in 2018. Taxpayer does not receive the money until January 2018. Draft a written memo to the client addressing the following research issues: Merrill Lynch contacts you for guidance on this issue. Should the revenue be reported in 2017 or 2018 for financial statement reporting purposes? Why? Please site the specific guidance you followed in response to your research question. The primary issue you should research is whether an accrual basis securities firm has gross income under sec. 451(a) on the trading date or the next year on the settlement date when all the work is performed, payment is due, and money received?

On June 30, 2018, Georgia-Atlantic, Inc., leased a warehouse facility from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $604,355 over a five-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Georgia-Atlantic’s incremental borrowing rate is 10%, the same rate IC uses to calculate lease payment amounts. Depreciation is recorded on a straight-line basis at the end of each fiscal year. The fair value of the warehouse is $4.9. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:

1. Determine the present value of the lease payments at June 30, 2018 that Georgia-Atlantic uses to record the right-of-use asset and lease liability.

2. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2018?

3. What pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2018? (For all requirements, enter your answers in whole dollars and not in millions. Round your final answer to nearest whole dollar.)

On January 1, 2018, Johnsonville Enterprises, Inc. acquired 80 percent of Stayer Company’s outstanding common shares in exchange for $3,000,000 cash. The price paid for the 80 percent ownership interest was proportionately representative of the fair value of all of Stayer’s shares. At acquisition date, Stayer’s books showed assets of $4,200,000 and liabilities of $1,600,000. The recorded assets and liabilities had fair values equal to their individual book values except that a building (10-year remaining life) with book value of $195,000 had an appraised fair value of $345,000. Stayer’s books showed a $175,500 carrying amount for this building at the end of 2018. Also, at acquisition date Stayer possessed unrecorded technology processes (zero book value) with an estimated fair value of $1,000,000 and a 20-year remaining life. For 2018 Johnsonville reported net income of $650,000 (before recognition of Stayer’s income), and Stayer separately reported earnings of $350,000. During 2018, Johnsonville declared dividends of $85,000 and Stayer declared $50,000 in dividends. Compute the amounts that Johnsonville Enterprises should report in its December 31, 2018, consolidated financial statements for the following items: A. Stayer's building (net of accumulated depreciation) B. Stayer's technology processes (net of accumulated amortization C. Net income attributable to the noncontrolling interest D. Net income attributable to controlling interest E. Noncontrolling interest in Stayer

Green Advertising Services

Adjusted Trial Balance

December 31, 2018

Balance

Account Title

Debit

Credit

Cash

$14,000

Accounts Receivable

15,800

Office Supplies

6,500

Land

18,400

Building

47,900

Accumulated Depreciation—Building

$36,100

Furniture

19,600

Accumulated Depreciation—Furniture

14,100

Accounts Payable

10,600

Salaries Payable

7,200

Unearned Revenue

16,000

Common Stock

30,000

Retained Earnings

31,400

Dividends

18,300

Service Revenue

49,800

Salaries Expense

28,600

Supplies Expense

8,400

Depreciation Expense—Building

2,900

Depreciation Expense—Furniture

1,300

Advertising Expense

13,500

Total

$195,200

$195,200

Requirement 2. Prepare the statement of retained earnings for the year ending December 31,2018.

​(Use a minus sign or parentheses to show a net​ loss.)

	Green Advertising Services
	Statement of Retained Earnings
	Year Ended December 31, 2018
Retained Earnings, January 1, 2018
Retained Earnings, December 31, 2018

Requirement 3. Prepare the classified balance sheet as of December31,2018.

Use the account form.

Begin by preparing the asset section of the balance sheet and then prepare the liabilities and​ stockholders' equity sections. ​(If a box is not used in the balance​ sheet, leave the box​ empty; do not select a label or enter a zero. Abbreviation​ used: Accum.​ = Accumulated.)

		Green Advertising Services
		Balance Sheet
		December 31, 2018
Assets
	Less:
	Less:

Liabilities
Stockholders' Equity

On June 30, 2018, Georgia-Atlantic, Inc., leased a warehouse facility from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $545,554 over a four-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Georgia-Atlantic’s incremental borrowing rate is 8%, the same rate IC uses to calculate lease payment amounts. Depreciation is recorded on a straight-line basis at the end of each fiscal year. The fair value of the warehouse is $3.8. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the present value of the lease payments at June 30, 2018 that Georgia-Atlantic uses to record the right-of-use asset and lease liability. 2. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2018? 3. What pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2018? (For all requirements, enter your answers in whole dollars and not in millions. Round your final answer to nearest whole dollar.)