On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,560,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $900,000, retained earnings of $450,000, and a noncontrolling interest fair value of $390,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing.

During the next two years, Smashing reported the following:

Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2017 and 2018, 40 percent of the current year purchases remain in Smashing's inventory.

A.Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2018.

B. Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing.

Tinkers, Evers and Chance are partners with capital balances of $75,000, $126,000, and $61,500, respectively on January 26, 2018. All nominal accounts have been adjusted and closed as of January 26, 2018. The partners share profits and losses according to the following percentages: 35% for Tinkers, 40% for Evers, and 25% for Chance. On January 26, 2018, Aparicio is to join the partnership upon contributing $67,500 in cash and some equipment with a book value of $14,500 and a fair value of $16,500 to the partnership, in exchange for a 20% interest in capital and a 20% interest in profits and losses. The existing assets of the original partnership are undervalued by $42,600, of which $31,500 relates to land and $11,100 relates to inventory. If necessary, the partnership will recognize goodwill. The original partners will share the balance of profits and losses in proportion to their original percentages.

REQUIRED:

1.Prepare the journal entries necessary to record the above events.

2. February 21, 2018

3. The partnership suffered a hurricane loss of $180,000. The partnership insurance policy includes a 15% deductible. How must of this loss should be absorbed by each partner.

On January 1, 2018, Allied Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2021, at which time possession of the leased asset will revert back to Allied. The equipment cost Allied $969,000 and has an expected useful life of five years. Allied expects the residual value at December 31, 2021, will be $313,000. Negotiations led to the lessee guaranteeing a $366,000 residual value.

Equal payments under the finance/sales-type lease are $213,000 and are due on December 31 of each year with the first payment being made on December 31, 2018. Karrier is aware that Allied used a 6% interest rate when calculating lease payments. (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 )
Required:
1. Prepare the appropriate entries for both Karrier and Allied on January 1, 2018, to record the lease.
2. Prepare all appropriate entries for both Karrier and Allied on December 31, 2018, related to the lease.

Consider a simple economy that produces two goods: pencils and envelopes. The following table shows the prices and quantities of the goods over a three-year period.

Use the information from the preceding table to fill in the following table.

From 2017 to 2018, nominal GDP   , and real GDP   .

The inflation rate in 2018 was   .

Why is real GDP a more accurate measure of an economy's production than nominal GDP?

Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes.

Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.

Real GDP is not influenced by price changes, but nominal GDP is.

Requirement 1. Assuming the preferred stock is​ cumulative, compute the amount of dividends to preferred stockholders and to common stockholders for

2018

and

2019

if total dividends are

$13,400

in

2018

and

$46,000

in

20192019.

Assume no changes in preferred stock and common stock in

2019

​(Assume all preferred dividends have been paid prior to

2018

Complete all input boxes. Enter a​ "0" for zero amounts. For the current year preferred​ dividend, be sure to enter the calculated dividend on the​ "current year​ dividend" line and the paid out dividend on the​ "total dividend to preferred​ stockholders" line.)

SouthernSouthern​'s

2018

dividend would be divided between preferred and common stockholders in this​ manner:

Subject: Accounting

On July 31, 2018 oxford Inc. purchased a machine by signing an 8-month $40,000 zero interest bearing promissory due March 31, 2019. The market rate of interest on similar notes is 6%. The machine will be depreciated using the double-declining method with a useful life of 10 years and salvage value of $ 3,000. Oxford has a 12/31 year-end.

1) prepare journal entry to record the purchase of the machine on July 31, 2018?

2a) In space provided blow, please prepare the necessary adjusting journal entry at December 31, 2018 related to the short term note?

2b) In space provided blow, please prepare the necessary adjusting journal entry at December 31, 2018 related to the machine?

3) prepare the journal entry when the note matures on March 31, 2019?

4a) Calculate the amount of depreciation Oxford would record on the machine during 2019 ( i.e., the second year the asset is being depreciate) ?

4b) What is the carrying value of the machine at December 31, 2019?

On January 1, 2018, Allied Industries leased a high-performance conveyer to Karrier Company for a four-year period ending December 31, 2021, at which time possession of the leased asset will revert back to Allied. The equipment cost Allied $956,000 and has an expected useful life of five years. Allied expects the residual value at December 31, 2022, will be $300,000. Negotiations led to the lessee guaranteeing a $340,000 residual value. (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.)

Equal payments under the finance/sales-type lease are $200,000 and are due on December 31 of each year with the first payment being made on December 31, 2018. Karrier is aware that Allied used a 5% interest rate when calculating lease payments.

Required:
1. Prepare the appropriate entries for both Karrier and Allied on January 1, 2018, to record the lease.
2. Prepare all appropriate entries for both Karrier and Allied on December 31, 2018, related to the lease.

On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,080,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $780,000, retained earnings of $330,000, and a noncontrolling interest fair value of $270,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing.

During the next two years, Smashing reported the following:

Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2017 and 2018, 40 percent of the current year purchases remain in Smashing's inventory.

Compute the equity method balance in Corgan's Investment in Smashing, Inc., account as of December 31, 2018.

Prepare the worksheet adjustments for the December 31, 2018, consolidation of Corgan and Smashing.

Tony Corporation began operations on January 1, 2018. The following transactions relating to stockholders’ equity occurred in the first two years of the company’s operations.

2018

Jan. 1 Authorized the issuance of 2 million shares of $5 par value common stock and 100,000 shares of $100 par value, 10% cumulative, preferred stock.

Jan. 2 Issued 200,000 shares of common stock for $12 cash per share.

Jan. 3 Issued 100,000 shares of common stock in exchange for a building valued at $820,000 and merchandise inventory valued at $380,000.

Jan. 4 Paid $10,000 cash to the company’s founders for organization activities.

Jan. 5 Issued 12,000 shares of preferred stock for $110 cash per share.

2019

June 4 Issued 100,000 shares of common stock for $15 cash per share.

Required:

1. Prepare journal entries to record these transactions.
2. Prepare calculation showing dividend allocations and dividends per share for 2018 and 2019 assuming Tony declares the following cash dividends: 2018, $50,000, and 2019, $300,000.

Endblast Productions showed the following selected asset balances on December 31, 2017:

¹Remaining estimated useful life is eight years with a residual value of $20,000; depreciated using the straight-line method to the nearest whole month.
²Total estimated useful life is 10 years with a residual value of $24,000; depreciated using the double-declining-balance method to the nearest whole month.

Required:
Prepare the entries for each of the following. (Round intermediate calculations to the nearest whole dollar.)

1. The land and building were sold on September 27, 2018, for $614,000 cash. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

1. Record the building depreciation for 2018.

2. Record the sale of land and building.

2. The equipment was sold on November 2, 2018, for $57,900 cash. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

1. Record the equipment depreciation for 2018.

2. Record the sale of equipment.