On January 1, 2017, Blue Company issued $1,810,000 face value, 7%, 10-year bonds at $1,943,218. This price resulted in a 6% effective-interest rate on the bonds. Blue uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1.

A. Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

B. Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2018. (Round answers to 0 decimal places, e.g. 125.)

C. Provide the answers to the following questions.

1. What amount of interest expense is reported for 2018? (Round answer to 0 decimal places, e.g. 125.)

2. The bond interest expense reported in 2018 would be (select an option: greater than, less than, same as) the amount that would be reported if the straight-line method of amortization were used.

Exercise 19-19 EPS; stock dividend; nonconvertible preferred stock; treasury shares; shares sold; stock options; convertible bonds [LO19-5,19-6, 19-7, 19-8, 19-9] On December 31, 2017, Berclair Inc. had 480 million shares of common stock and 5 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 $750 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).)

t year-end 2018, Wallace Landscaping’s total assets were $2.17 million, and its accounts payable were $505,000. Sales, which in 2018 were $2.8 million, are expected to increase by 15% 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 $405,000 in 2018, and retained earnings were $280,000. Wallace has arranged to sell $120,000 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 7%, and 60% of earnings will be paid out as dividends.

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. $

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. $

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

Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2018 through 2021 except for differences in depreciation on an operational asset. The asset cost $130,000 and is depreciated for income tax purposes in the following amounts:

  
The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes.
  
Income amounts before depreciation expense and income taxes for each of the four years were as follows.
   

  
Assume the average and marginal income tax rate for 2018 and 2019 was 30%; however, during 2019 tax legislation was passed to raise the tax rate to 40% beginning in 2020. The 40% rate remained in effect through the years 2020 and 2021. Both the accounting and income tax periods end December 31.
   
Required:
Prepare the journal entries to record income taxes for the years 2018 through 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Example of a Long-Term Goal: Beginning January 2020, contribute $600 per month (2,000 per year) to my Roth IRA for 40 years earning a rate of 8% per year for an ending balance of $518,113 on December 31, 2060. (This example used a time value of money calculation of N = 40, PMT = 2000, I = 8%)

Based upon this example, create two other long term goals.

5. In a certain market in the long-run, suppose the total cost function for each firm and potential entrant is given by TC = 5Q³ -10Q².+20Q. Market demand is given by D(P)= 2000 - 100P .

1) In equilibrium, how many units will each firm produce?

2) What is the market equilibrium price?

3) What is total market demand?

4) What is the equilibrium number of firms in the long-run?

a company in continuous production, which implements the FIFO method, provides the following data. The initial cost of inventory is $ 16,000 and the cost of the period is $ 54,000. inventory at the beginning 600 pieces and has absorbed 75% of the costs, unit produced 2000 pieces and inventory at the end 3200 pieces. Equivalent units are 2200 pieces. Find the percentage of inventory cost absorption at the end.

a. 29.2% b. 20.3% c. 27.4% d. 25.6%

The following data were collected about 10 houses that were sold in March in Crystal, KY.

At the 0.05 significance level, test the hypothesis that there is no significant relationship between square footage and selling price.

Critically evaluate DeBeers and its vision, value and ethics and its capability to successfully innovate. What is the current position in respect of their corporate social responsibility initiatives and are there any further actions that might be necessary for DeBeers to fulfill its corporate sustainability initiatives? Justify your position taken and provide supporting evidence from a range of external sources, including those of the company to support your academic argument. (Minimum 2000 words)