Dobbs Company issues 9%, two-year bonds, on December 31, 2018, with a par value of $104,000 and semiannual interest payments.

Use the above straight-line bond amortization table and prepare journal entries for the following.

Required:
(a) The issuance of bonds on December 31, 2018.
(b) The first through fourth interest payments on each June 30 and December 31.
(c) The maturity of the bonds on December 31, 2020.

On January 1, 2020, Winthrop Inc. entered into a lease agreement to lease equipment:

• 5-year lease term
• Annual lease payments are $10,000
• First payment is on January 1, 2020 and the other payments are on 31 December each year
• At the end of the lease the leased asset will revert to the lessor
• The asset’s economic life is estimated at 10 years
• Winthrop could have obtained equivalent financing from its bank at a rate of 5%
• Winthrop’s fiscal year end is December 31
• The equipment has a fair value of $70,000

Required:

1. Calculate the present value of the lease payments.
2. Prepare the amortization table.
3. Classify the lease agreement.
4. Prepare the journal entry(ies) for the lessee for the 2020 fiscal year related to the lease arrangement.

On January 1, 2020, Winthrop Inc. entered into a lease agreement to lease equipment:

• 5-year lease term
• Annual lease payments are $10,000
• First payment is on January 1, 2020 and the other payments are on 31 December each year
• At the end of the lease the leased asset will revert to the lessor
• The asset’s economic life is estimated at 10 years
• Winthrop could have obtained equivalent financing from its bank at a rate of 5%
• Winthrop’s fiscal year end is December 31
• The equipment has a fair value of $70,000

Required:

1. Calculate the present value of the lease payments.
2. Prepare the amortization table.
3. Classify the lease agreement.
4. Prepare the journal entry(ies) for the lessee for the 2020 fiscal year related to the lease arrangement.

If Susie earns $750,000 in taxable income, how much tax will she pay as a single taxpayer for year 2020? (Use tax rate schedule)

Marc, a single taxpayer, earns $60,000 in taxable income and $5,000 in interest from an investment in city of Birmingham Bonds. Using the U.S. tax rate schedule for year 2020, what is his average tax rate (rounded) & effective tax rate (rounded)

3. Jamie is single. In 2020 , she reported $100,000 of taxable income, including a long-term capital gain of $5,000. What is her gross tax liability, rounded to the nearest whole dollar amount? (Use the tax rate schedules,long term capital gains tax brackets)

Q. Baoshan Energy Ltd. in Shanghai, China, has a tank lorry that costed the company ¥300,000 when it was purchased on January 1, 2016. The vehicle has an estimated useful life of 10 years and no residual value. Baoshan uses straight-line method of depreciation on equipment. Baoshan decides to dispose the tank lorry and sells it to Pudong Oil & Gas Co. on August 31, 2020. (Currency in Chinese yuan, ¥)

Instructions:

A. What journal and T-account entries would Baoshan Energy make to record the sale of the tank lorry for ¥170,000 cash on August 31, 2020?

B. What journal and T-account entries would Baoshan Energy make to record the sale of the tank lorry for ¥100,000 cash on August 31, 2020?

On January 1, 2020 the Walker Manufacturing Company purchased 10% bonds having a maturity value of $100,000 due in 5 years. The bonds pay interest every January 1st. Walker paid a premium for the bonds in the amount of $7,985.10. As a result of paying the $7,985.10 premium, the bond investment provides Walker with an 8% yield. Required:

Prepare journal entries for the following dates:

1. January 1, 2020 when the bonds were purchased.

2. December 31, 2020 to record interest revenue and amortization.

3. January 1, 2021 to record the interest payment being received.

5. December 31, 2021 to record interest revenue and amortization.

5. January 1, 2022 to record the interest payment being received.

from the end of 2009 to the end of 2019, the size of the united states national debt held by the public grew from $6.8 trillion to $17.2 trillion. during the same period, the 10 year us treasury bond yield to maturity fell from 3.59% in december 2009 to 1.86% in december of 2019. explain how such an increase in the supply of government bonds can lead to a fall in the interest rate. second, consider that the 10 year bond rate has fallen further in 2020 to 0.68 percent on october 1, despite a further increase in the national debt ($20.5 trillion as of june 30, 2020) due to the decline in the economy and increase in federal government spending. why has this continued in 2020 during an economic crisis?

On January 1, 2020, Harrington Company has the following defined benefit pension plan balances.

The interest (settlement) rate applicable to the plan is 10%. On January 1, 2021, the company amends its pension agreement so that prior service costs of $500,000 are created. Other data related to the pension plan are as follows.

Prepare a pension worksheet for the pension plan for 2020 and 2021.

During 2020, Sheridan Company started a construction job with a contract price of $1,376,000. The job was completed in 2022. The following information is available. The contract is non-cancellable.

Calculate the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)