Liang Company began operations on January 1, 2016. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. 2016 Sold $1,353,200 of merchandise (that had cost $984,100) on credit, terms n/30. Wrote off $18,100 of uncollectible accounts receivable. Received $669,300 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 1.20% of accounts receivable will be uncollectible. 2017 Sold $1,599,900 of merchandise (that had cost $1,307,500) on credit, terms n/30. Wrote off $27,000 of uncollectible accounts receivable. Received $1,308,600 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 1.20% of accounts receivable will be uncollectible. Required: Prepare journal entries to record Liang’s 2016 and 2017 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest dollar amount.)

i. Cheaper manufacturing company developed the following data:

Beginning work in process inventory $6000

Direct material used 360,000

Actual overhead 420,000

Overhead applied 405,000

Total manufacturing cost 960,000

Ending work in process 45,000

How much are the direct labour costs for the period?

a. $175,000

b. $195,000

c. $200,000

d. $180,000

ii. What is the production cost report used for?

a. It is an external report provided to shareholders.

b. It shows costs charged to a department and costs accounted for.

c. It shows equivalent units of production but not physical units.

d. It shows the basis on which overhead is allocated.

iii. use the following information: At January 1, 2016, Jake, Inc. has beginning inventory of 4,000 surfboards. Jake estimates it will sell 15,000 units during the first quarter of 2016, with a 10% increase in sales each quarter. Jake’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each surfboard costs $200 and is sold for $250.

How many units should Jake produce during the first quarter of 2016?

a. 15,125

b. 15,0000

c. 12,500

d. 11,000

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $856,000 in cash to the owners of Taylor to acquire these shares. In addition, the remaining 20 percent of Taylor shares continued to trade at a total value of $214,000 both before and after Miller’s acquisition.

On January 1, 2016, Taylor reported a book value of $752,000 (Common Stock = $376,000; Additional Paid-In Capital = $112,800; Retained Earnings = $263,200). Several of Taylor’s buildings that had a remaining life of 20 years were undervalued by a total of $100,300.

During the next three years, Taylor reports income and declares dividends as follows:

Determine the appropriate answers for each of the following questions:

As of December 31, 2017, Miller’s Buildings account on its separate records has a balance of $1,004,000 and Taylor has a similar account with a $376,500 balance. What is the consolidated balance for the Buildings account? What is the balance of consolidated goodwill as of December 31, 2018?

Use the following information to answer the next __3__ questions.

Clover Leaf Auto Parts had 500,000 shares of common stock authorized when it started business Jan. 1, 2016. During 2016 the following transactions occurred.

      January 1     Sold 300,000 shares of common stock.

      April 1        Issued 10,000 new shares of common stock.

      July 1          Declared and issued a 10% stock dividend.

      August 1      Purchased 6,000 shares of treasury stock.

10. How many new shares of common stock were issued in the July 1 stock dividend? and at what dollar amount per share would the shares be recorded?

            Number of Shares            Dollar amount

      a.       30,000 shares                    par value

      b.      31,000            shares               market value

      c.       30,000 shares               market value    

      d.      80,000 shares                   par value

11. At December 31, 2016, how many shares of common stock were issued? and how many outstanding?

            Shares Issued                  Shares Outstanding

      a.        331,000                            325,000           

      b.       310,000                           304,000

      c.       890,000                            884,000

      d.       341,000                           335,000

Goodwill

Stillman Company is considering purchasing EKC Company. EKC's balance sheet at December 31, 2016, is as follows:

At December 31, 2016, Stillman discovered the following about EKC:

No allowance for uncollectible accounts has been established. An allowance of $4,500 is considered appropriate.

The LIFO inventory method has been used. The FIFO inventory method would be used if EKC were purchased by Stillman. The FIFO inventory valuation of the December 31, 2016, ending inventory would be $199,000.

The fair value of the property, plant, and equipment (net) is $720,000.

The company has an unrecorded patent that is worth $100,000.

The book values of the current liabilities and bonds payable are the same as their market values.

Required:

1. Compute the value of the goodwill if Stillman pays $1,265,500 for EKC.

$

2. Why would the book value of a company's identifiable net assets differ from its market value?

Below are the past two years of financials for Field of Dreams, LLC:

INCOME STATEMENT:

BALANCE SHEET AS OF 12/31/2017:

What is the net increase in cash and marketable securities for 2017? (Refer to the Statement of Cash Flows)

Portillo Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 £10 par ordinary shares. At no time has Portillo issued any potentially dilutive securities. Listed below is a summary of Portillo’s ordinary share activities.
1. Number of ordinary shares issued and outstanding at December 31, 2014 2,400,000
2. Shares issued as a result of a 10% share dividend on September 30, 2015 240,000
3. Shares issued for cash on March 31, 2016 2,000,000
Number of ordinary shares issued and outstanding at December 31, 2016 4,640,000
4. A 2-for-1 share split of Portillo’s ordinary shares took place on March 31, 2017
Required:
a. Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2015
b. Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2016
c. Compute the weighted-average number of ordinary shares used in computing earnings per ordinary share for 2017

Need the calculations and working of each part.

Assume that at the beginning of 2015 Fast Delivery purchased a used Jumbo 747 aircraft at a cost of $55,200,000. Fast Delivery expects the plane to remain useful for five years ​(6,800,000 ​miles) and to have a residual value of $5,200,000. Fast Delivery expects to fly the plane 835,000 miles the first​ year, 1,225,000 miles each year during the​ second, third, and fourth​ years, and 2,290,000 miles the last year.

1. Compute Fast Delivery​'s depreciation for the first two years on the plane using the following​ methods:

a. ​Straight-line method

b. ​Units-of-production method​ (round depreciation per mile to the closest​ cent)

c. ​Double-declining-balance method

2. Show the​ airplane's book value at the end of the first year under each depreciation method.

Answers:

A. Using the straight-line method, depreciation is $_________ for 2015 and $__________ for 2016.

B. Using the units-of-production method, depreciation is $__________ for 2015 and $__________ for 2016

C. Using the doubling-decling-balance method, depreciation is $_________ for 2015 and $________ for 2016

2.  

(A) Corporation acquired 20,000 of the 100,000 outstanding common shares of (B) Company on January 1, 2016, for a cash consideration of $200,000. During 2016, (B) Company had net income of $120,000 and paid dividends of $80,000. At the end of 2016, shares of (B) Company were trading for $11 each. During 2017, (B) Company had a loss of $60,000 and paid dividends of $40,000. Income for the first half of the year was $80,000 and the loss in the second half of the year was $140,000. The dividends were paid on June 30. On July 2, 2017, (A) Corporation sold 5,000 shares of (B) Company for a consideration of $12 per share. At the end of 2017, the share price of (B) Company had fallen to $6 per share. The average of market analysts' forecasts was that the share price could be expected to rise to $8 per share over the next five years. (Assume that the future recoverable value of the shares is assessed to be $8 per share.)​

Provide journal entries for (A) Corporation for all transactions relating to its investment in (B) Company for the year 2017 if it accounts for its investment in (B) Company using the equity method. ​

During 2016 (its first year of operations) and 2017, Batali Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2018, Batali decided to change to the average method for both financial reporting and tax purposes.

Income components before income tax for 2018, 2017, and 2016 were as follows ($ in millions):

Dividends of $26 million were paid each year. Batali’s fiscal year ends December 31.

Required:
1. Prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (Ignore income taxes.)
2. Prepare the 2018–2017 comparative income statements.
3. & 4. Determine the balance in retained earnings at January 2017 as Batali reported using FIFO method and determine the adjustment of balance in retained earnings as on January 2017 using average method instead of FIFO method.