Packard Corporation began a new development project in 2020. The project reached technological feasibility on September 1, 2021, and was available for release to customers at the beginning of 2022. Development costs incurred prior to September 1, 2021, were $4,650,000, and costs incurred from September 1 to the product release date were $1,950,000. The 2022 revenues from the sale of the new software were $3,200,000, and the company anticipates additional revenues of $12,800,000. The economic life of the software is estimated at three years. Amortization of the software development costs for the year 2022 would be:

Multiple Choice

• $392,500.

• $1,550,000.

• $650,000.

• $2,200,000.

During the year, Jumping Jacks, paid cash to purchase land. reported in the statement of cash flows?  How would Jumping Jacks report this on the statement of cash flows?

Hoola Hoops is preparing a Cash Flow Statement for the fiscal year ended September 30, 2020.  Which of the following transactions affects Hoola Hoops’ Cash Flows?

Bravo Company prepared a Cash Flow Statement that included the following information. Cash from operating activities was $39,000, cash used for investing activities was ($59,000) and the net change in cash was $70,000, Based on this information what was cash from/used for financing activities?

It is August 2020. You are calculating the monthly paycheck, including employee withholding, and employer payroll related expenses for Bonnie Bigwig. Her pay through July is $110,000. Her August gross pay $20,000. Her Federal income tax withholding is at the 25% rate, her state withholding is at the 5% rate. (Ignore local income tax.) Her health insurance (all paid by the company) is $1,500 / month. She contributes $1,000 / month to the United Way. Give the journal entry to pay Bonnie. Also, give the journal entry to record the employer payroll related expenses.

Lewis Company adopted the dollar-value LIFO method of inventory valuation on 12/31/18. Its inventory at that date was $320,000 and the relevant price index was 100.

What will Lewis report as inventory at the end of 2019, 2020, 2021, and 2022 using dollar-value LIFO?

The records of Earthly Goods provided the following information for the year ended December 31, 2020.

Required:
1. Prepare an estimate of the company’s year-end inventory by the retail method. (Round all calculations to two decimal places.)

Under the assumption the company took a year-end physical inventory at marked selling prices that totalled $1,674,800, prepare a schedule showing the store’s loss from theft or other causes at cost and at retail.

Horizon Inc. sells prepaid telephone cards to customers. Horizon then pays the telecommunications company, V-Mobile, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Horizon sells $6,000 of prepaid cards in January 2020. It then pays V-Mobile based on usage, which turns out to be 60% in February and 40% in March. The total payment by Horizon for V-Mobile lines over the 2 months is $4,000.

A. Prepare the journal entries necessary for January and February

B. Compute the revenue, costs and net income Horizon will report in January, February, and March

Dustin, who is 48 years old, works for Pinnacle Inc., with a salary of $300,000, a car allowance, and a very nice expense account. Pinnacle is a Fortune 1,000 company that sponsors a defined benefit plan that pays 2 percent times years of participation times the average of the three final years of compensation. In addition, Pinnacle sponsors a 401(k) / profit sharing plan and contributes 18% of employees salary to the profit sharing plan. There is no additional match. If the ADP of the NHCEs is 3%, what is the maximum that Dustin can defer this year (2020)?

a. $5,700

b. $14,250

c. $17,100

d. $19,500

Dustin, who is 48 years old, works for Pinnacle Inc., with a salary of $300,000, a car allowance, and a very nice expense account. Pinnacle is a Fortune 1,000 company that sponsors a defined benefit plan that pays 2 percent times years of participation times the average of the three final years of compensation. In addition, Pinnacle sponsors a 401(k) / profit sharing plan and contributes 18% of employees salary to the profit sharing plan. There is no additional match. If the ADP of the NHCEs is 3%, what is the maximum that Dustin can defer this year (2020)?

a. $5,700

b. $14,250

c. $17,100

d. $19,500

On January 1, 2016, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2020, for $103,604.79 minus debt issuance costs of $3,000. The bonds carry a stated rate of interest of 13% payable annually on December 31 and were issued to yield 12%. The company uses the effective interest method of amortization to amortize any discounts or premiums and the straight-line method to amortize the debt issuance costs.

Required: Prepare the journal entries to record the issuance of the bonds, all the interest payments, premium amortizations, debt issuance cost amortizations, and the repayment of the bonds.

On January 1, 2019, Calvert Company issues 10%, $200,000 face value bonds for $207,259.79, a price to yield 8%. The bonds mature on December 31, 2020. Interest is paid semiannually on June 30 and December 31.

Required: