Dobbs Company issues 6%, two-year bonds, on December 31, 2019, with a par value of $106,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying Value (0) 12/31/2019 $ 6,120 $ 99,880 (1) 6/30/2020 4,590 101,410 (2) 12/31/2020 3,060 102,940 (3) 6/30/2021 1,530 104,470 (4) 12/31/2021 0 106,000 Use the above straight-line bond amortization table and prepare journal entries for the following. Required: (a) The issuance of bonds on December 31, 2019. (b) The first through fourth interest payments on each June 30 and December 31. (c) Record the maturity of the bonds on December 31, 2021
In: Accounting
At the end of 2019, Headland Company has $174,800 of cumulative
temporary differences that will result in reporting the following
future taxable amounts.
| 2020 |
$58,100 |
|
| 2021 |
48,000 |
|
| 2022 |
38,500 |
|
| 2023 |
30,200 |
|
|
$174,800 |
Tax rates enacted as of the beginning of 2018 are:
| 2018 and 2019 | 40 | % | |
| 2020 and 2021 | 30 | % | |
| 2022 and later | 25 | % |
Headland’s taxable income for 2019 is $310,600. Taxable income is
expected in all future years.
(a) Prepare the journal entry for Headland to
record income taxes payable, deferred income taxes, and income tax
expense for 2019, assuming that there were no deferred taxes at the
end of 2018.
(b) Prepare the journal entry for Headland to
record income taxes payable, deferred income taxes, and income tax
expense for 2019, assuming that there was a balance of $21,600 in a
Deferred Tax Liability account at the end of 2018
In: Accounting
Presented below are two independent situations. Answer the question at the end of each situation.
1. During 2020, Salt-n-Pepa Inc. became involved in a tax dispute with the IRS. Salt-n-Pepa Inc. believe it is probable that the company will lose this dispute and have to pay the IRS $900,000. How should Salt-n-Pepa Inc. report this contingency as of December 31st, 2020 (fiscal year end)? If needed, prepare the journal entry for Salt-n-Pepa Inc.
|
Debit |
Credit |
|
2. Etheridge Inc. had a manufacturing plant in Sudan, which was destroyed in the civil war. Etheridge has been assured by governmental officials that it will receive a definite amount for this plant. The amount of the compensation will be more than its book value. How should Etheridge Inc. report this contingency?
In: Accounting
Bingley Company reports the following for year-end (Dec 31st) 2019:
Inventory $6,100 at cost and $5,100 at market
The following is information relating to the inventory as of December 31st, 2020:
| Item | Orig. Cost per Unit | Replacement Cost | Net Realizable Value | NRV less Profit | Inventory Value per unit |
| A | $0.65 | $0.45 | $0.90 | $0.60 | |
| B | $0.45 | $0.40 | $0.90 | $0.60 | |
| C | $0.70 | $0.75 | $0.90 | $0.60 | |
| D | $0.75 | $0.65 | $0.90 | $0.60 | |
| E | $0.90 | $0.85 | $0.90 | $0.60 |
The selling price of all items is $1.00. Disposal costs amount to 10% of selling price and profit is 30% of selling price. There are 1,500 units of each of the six items in the 2020 year-end inventory.
Complete the last column of the table using lower of cost or market rules
In: Accounting
On January 1, 2018, Patriots Co. awarded restricted stock units (RSUs) representing 30 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. On the grant date, the shares had a market price of $3 per share.
Required:
Determine the total compensation cost pertaining to the RSUs.
Prepare the appropriate journal entry to record the award of RSUs on January 1, 2018.
Prepare the appropriate journal entry to record compensation expense on December 31, 2018, December 31, 2019, and December 31, 2020.
Prepare the appropriate journal entry to record the lifting of restrictions on the RSUs and issuing shares at December 31, 2020.
In: Accounting
Topic on: Non-Current Assets Held For Sale
On January 1, 2020, Racelle Company purchased land at a cost of P6,000,000. The entity used the REVALUATION MODEL for this asset.
The fair value of the land was P7,000,000 on Dec. 31, 2020 and P8,500,000 on Dec 31, 2021.
On July 1, 2022, the entity decided to sell the land and therefore classified the asset as held for sale.
The fair value of the land on July 1, 2022 is P7,600,000. The estimated cost of disposal is very minimal.
On Dec. 31, 2022, the land was sold for P8,000,000.
Questions:
In: Accounting
The XYZ Company uses the conventional retail inventory method to estimate ending inventory for its monthly financial statements and presents the following data for one department for February 2020. Present a schedule that shows the ending inventory at cost and highlight that cell with color and a thick outside border. Label each column and row clearly so your workpaper can be used by other people in Marquette's accounting department. Present the cost to retail percentage as a percentage with two decimal places.
| Inventory, February 1, 2020 | |
| At cost | $ 46,000 |
| At retail | 81,000 |
| Purchases (exclusive of freight and returns): | |
| At cost | 249,600 |
| At retail | 423,000 |
| Freight-in | 15,400 |
| Purchase returns: | |
| At cost | 7,511 |
| At retail | 11,350 |
| Markups | 2,500 |
| Markup cancellations | 1,250 |
| Markdowns (net) | 3,600 |
| Sales revenue | 245,000 |
In: Accounting
Question: HHQ1 LLC has projected a net income of $1 million USD in 2020. HHQ1 pays $100,000 total dividends to its 100,000 common shareholders outstanding @ the end of 2019 (Jan 01: 80,000 shares outstanding; July 01: 20,000 new shares were issued). The company also has 10,000 convertible preferred stocks ($5 dividend per P.S) and 2000 convertible bonds (10% coupon rate @$1000 par value). In 2020, 80% of the preferred stock holders may convert to common stocks (3 Common shares per preferred share). Also, 100% bondholders are allowed to convert to 2 common shares per bond. Tax rate 40%. Calculate both the basic and diluted EPS for HHQ1.
In: Finance
Required information
[The following information applies to the questions
displayed below.]
In 2018, the Westgate Construction Company entered into a contract
to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2020. Information related to the contract is
as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,291,000 | $ | 3,555,000 | $ | 2,259,400 | |||
| Estimated costs to complete as of year-end | 5,609,000 | 2,054,000 | 0 | ||||||
| Billings during the year | 2,110,000 | 3,736,000 | 4,154,000 | ||||||
| Cash collections during the year | 1,855,000 | 3,500,000 | 4,645,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
rev: 09_15_2017_QC_CS-99734
Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
In: Accounting
Required information
[The following
information applies to the questions displayed
below.]
In 2018, the Westgate Construction Company entered into a contract
to construct a road for Santa Clara County for $10,000,000. The
road was completed in 2020. Information related to the contract is
as follows:
| 2018 | 2019 | 2020 | |||||||
| Cost incurred during the year | $ | 2,204,000 | $ | 3,192,000 | $ | 2,424,400 | |||
| Estimated costs to complete as of year-end | 5,396,000 | 2,204,000 | 0 | ||||||
| Billings during the year | 2,140,000 | 3,256,000 | 4,604,000 | ||||||
| Cash collections during the year | 1,870,000 | 3,200,000 | 4,930,000 | ||||||
Westgate recognizes revenue over time according to percentage of
completion.
rev: 09_15_2017_QC_CS-99734
3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract. (Do not round intermediate calculations.)
In: Accounting