On July 1, 2020, IBM Inc. purchased a 3-year, $50,000 bond with a June 30, 2023 maturity date. The bond’s stated rate of interest was 5%, paid semiannually (June 30 and December 31). The bond was purchased at face value for $50,000 and properly reported as a trading security.
The fair market value of the bond purchased by IBM was $51,000 on December 31, 2020.
What was the balance in the Securities Fair Value Adjustment account at December 31, 2020? What was the net dollar impact of the adjustment to the SFVA Adjustment account on 2020 income before income taxes?
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SFVA Balance: $1,000 Cr Effect of Net Income: no effect |
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SFVA Balance: $1,000 Cr Effect of Net Income: $1,000 increase |
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SFVA Balance: $1,000 Dr Effect of Net Income: $1,000 increase |
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None of the other answer choices is correct. |
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SFVA Balance: $1,000 Dr Effect of Net Income: $1,000 decrease |
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SFVA Balance: $1,000 Dr Effect of Net Income: no effect |
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SFVA Balance: $1,000 Cr Effect of Net Income: $1,000 decrease |
In: Accounting
Exercise 20-09 (Part Level Submission) Sheffield Enterprises provides the following information relative to its defined benefit pension plan.
Balances or Values at December 31, 2020
Projected benefit obligation $2,726,200
Accumulated benefit obligation 1,996,100
Fair value of plan assets 2,263,000
Accumulated OCI (PSC) 210,000
Accumulated OCI—Net loss (1/1/20 balance, 0) 45,900
Pension liability 463,200
Other pension plan data for 2020: Service cost $94,200
Prior service cost amortization 42,100
Actual return on plan assets 130,000
Expected return on plan assets 175,900
Interest on January 1, 2020, projected benefit obligation 250,700
Contributions to plan 92,300 Benefits paid 139,800
(c)
| Your answer is incorrect. Try again. | |
Compute the amount of accumulated other comprehensive income reported at December 31, 2020. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| Accumulated other comprehensive income (loss) | $ |
In: Accounting
. Complete the required tasks utilizing excel and label everything. All work must be shown
FKG Inc. carries the following debt and equity securities on its books at December 31, 2020. All securities were purchased during 2020.
Trading Securities
Company Cost Fair Value, 12/31/20 Fair Value, 12/31/21
Company A Investment $ 25,000 $ 13,000 $ 20,000
Company B Investment $ 13,000 $ 20,000 $ 20,000
Company C Investment $ 35,000 $30,000 $ 25,000
Available-for-Sale Securities
Company Cost Fair Value, 12/31/20 Fair Value, 12/31/21
Company X Investment $210,000 $130,000 $ 50,000
Company Y Investment $ 50,000 $60,000 $ 70,000
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Required: |
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In: Accounting
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Using the data above, compute pension expense for Teal Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.)
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In: Accounting
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Using the data above, compute pension expense for Teal Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.)
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In: Accounting
Question 12
The following facts pertain to a non-cancelable lease agreement between Shamrock Leasing Company and Pharoah Company, a lessee.
| Commencement date | May 1, 2020 | ||
| Annual lease payment due at the beginning of | |||
| each year, beginning with May 1, 2020 | $17,865.02 | ||
| Bargain purchase option price at end of lease term | $7,000 | ||
| Lease term | 5 | years | |
| Economic life of leased equipment | 10 | years | |
| Lessor’s cost | $65,000 | ||
| Fair value of asset at May 1, 2020 | $85,000 | ||
| Lessor’s implicit rate | 6 | % | |
| Lessee’s incremental borrowing rate | 6 | % |
1. Compute the amount of the lease receivable at commencement of the lease. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answer to 2 decimal places, e.g. 5,275.15.)
2. Suppose the collectibility of the lease payments was not probable for Shamrock. Prepare all necessary journal entries for the company in 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15.)
In: Accounting
Show all computation’s Bob and Brenda Horton, a married couple filing a joint return for 2020. Bob is 61 and Brenda is 60. They have fully supported their son, Charles age 31 (a US citizen) who lived with Bob and Brenda all of 2020. Bob and Brenda fully supported Charles for all of 2020. Charles only source of income was $3,990 from unemployment. The following information relates to Bob and Brenda for 2020: Salary – Bob $80,000 Salary – Brenda 120,000 Interest income (from bank account) 150 Interest Income from State of NY bonds 4,000 Capital Loss on the sale of ZeZ, Inc stock (7,220) Property taxes paid 4,000 State income taxes paid 5,000 Home mortgage interest paid 6,000 Charitable contributions paid 3,000 Federal Withholding 39,000
a. What is the amount of their gross income?
b. What is the amount of their adjusted gross income?
c. What is the amount of their taxable income?
d. What is the amount of their tax liability?
e. What is the amount of their tax due or (refund)?
In: Accounting
Assume that on January 1, 2020, Kroger Corp. signs a 6-year, non-cancelable lease agreement to lease a storage building from Trancoso Company. The following information pertains to this lease agreement:
1. The agreement requires equal rental payments of $35,000 beginning on December 31, 2020.
2. The fair value of the building on January 1, 2020, is $195,000.
3. The building has an estimated economic life of 12 years, an unguaranteed residual value of $5,000, and an expected residual value of $1,000. Kroger depreciates similar buildings on the straight-line method.
4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor.
5. The lessor's implicit rate is 6%, which is known by Kroger.
questions: (1) Determine whether this is a finance or operating lease. Clearly document your rationale and show all necessary calculations. (2) Prepare the journal entries on the lessee's books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2020, 2021, and 2022. Kroger's fiscal year-end is December 31.
In: Accounting
During 2020, Riverbed Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. T
he following information is available. 2020 2021 2022
Costs incurred to date $383,800 $905,280 $1,063,000
Estimated costs to complete 626,200 198,720 –0–
Billings to date 302,000 896,000 1,610,000
Collections to date 271,000 817,000 1,419,000
Compute the amount of gross profit to be recognized each year,
assuming the percentage-of-completion method is used.
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Gross profit recognized in 2020 |
$ |
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|---|---|---|
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Gross profit recognized in 2021 |
$ |
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Gross profit recognized in 2022 |
$ |
Prepare all necessary journal entries for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For costs incurred use account Materials, Cash, Payables.)
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(To record cost of construction.) |
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(To record progress billings.) |
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(To record collections.) |
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(To recognize revenue.) |
Compute the amount of gross profit to be recognized each year,
assuming the completed-contract method is used.
Gross profit 2020? 2021? 2022?
In: Accounting
Tabor Company had the following account balances on January 1, 2020: Raw Materials Inventory $ 42,000 Work in Process Inventory $ 87,000 Finished Goods Inventory $ 93,000 During 2020, the following transactions took place: 1. Raw materials costing $75,000 were purchased on account. 2. Raw materials costing $96,000 were issued to the factory, of which $70,000 is considered to be direct material cost. 3. Total factor labor costs for the period were $150,000 of which $120,000 is considered to be direct labor cost. 4. The following other factory overhead costs were incurred: Factory utilities (paid in cash) $32,000; factory depreciation $64,000; and miscellaneous factory costs (incurred on account) $53,000. 5. Units costing a total of $250,000 were completed. 6. Units costing $240,000 were sold on account for $500,000.
INSTRUCTIONS: A. Complete a cost flow diagram (T-accounts attached) for 2020.
B. Prepare the journal entries to record ALL of the 2020 transactions listed above.
C. Prepare a manufacturing statement and a partial income statement.
In: Accounting