Requirement 1. Journalize the transactions in the

Wholesale Pharmacies general journal. Round all answers to the nearest dollar. Explanations are not required. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

Mar 1,2018​: Borrowed $350,000 from Margate Bank. The seven​-year, 99​% note requires payments due​ annually, on

March1. Each payment consists of $50,000 principal plus one​ year's interest.

Dec.Dec. 1, 2018​: Mortgaged the warehouse for $150,000 cash with Sandi Bank. The mortgage requires monthly payments of $10,000.The interest rate on the note is 44​% and accrues monthly. The first payment is due on January​ 1, 2019.

Dec. 31,2018​: Recorded interest accrued on the Sandi Bank note.

Dec.​31,2018​: Recorded interest accrued on the Margate Bank note.

Jan.​1, 2019​: Paid Sandi Bank monthly mortgage payment.

Feb.​1,2019​: Paid Sandi Bank monthly mortgage payment.

Mar.​1,2019​: Paid Sandi Bank monthly mortgage payment.

Mar ​1, 2019​: Paid first installment on note due to Margate Bank.

rev: 12_20_2018_QC_CS-152109

Thrifty Tax Services, Inc. was organized in 2018 to provide tax and accounting services to small businesses. The following are balance sheet values as of June 1, 2018:

Cash                                       $ 1,400

Accounts receivable                    750

Supplies                                       210

Equipment                                 8,200

Patent                                        5,900

Accounts payable                                                600

Notes payable                                                        -0-

Common Stock                                                 2,000

Additional Paid in Capital                    12,000

Retained earnings                                             1,860

Total                                       $16,460         $16,460

Consider the following transactions that occurred during June 2018:

Sold 1,000 shares of $1 par value stock for $10 per share to investors.

Borrowed $7,500 from a local bank signing a promissory note due at the end of two years.

Purchased miscellaneous supplies on account for $350.

Billed a client $2,000 for tax preparation services.

Paid a $650 bill from the local newspaper for advertising for the month of June. The ad appeared in the paper during June.

Received $500 from the client billed in entry (4).

Received cash of $1,400 for services provided in preparing a client’s tax return.

Purchased computer equipment for $4,000 in cash.

Paid $1,650 in salaries and wages for June.

Received and paid the $700 bill for June utilities.

Required

1. Enter beginning balances in T-accounts.

2. Prepare journal entries for each transaction.

3. Post the entries to the T-accounts. Key your entries with the transaction letters used here.

4. Prepare a classified balance sheet for the month ended June 30, 2018. The ending balance in Retained Earnings as of June 30, 2018 (after closing entries) is $2,260.

On November 1, 2017, Bernard Company (a U.S.-based company) sold merchandise to a foreign customer for 170,000 FCUs with payment to be received on April 30, 2018. At the date of sale, Bernard entered into a six-month forward contract to sell 170,000 FCUs. The company properly designates the forward contract as a cash flow hedge of a foreign currency receivable. The following exchange rates apply:

Bernard's incremental borrowing rate is 12 percent. The present value factor for four months at an annual interest rate of 12 percent (1 percent per month) is 0.9610.

Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract.

What is the impact on net income in 2017?

What is the impact on net income in 2018?

Part A

Prepare all journal entries, including December 31 adjusting entries, to record the sale and forward contract. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. What is the impact on net income in 2017?
c. What is the impact on net income in 2018?
(In case of negative impact on net income, answer should be entered with a minus sign. Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Please show each step and calculations!!!!

Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018:

Gibson acquired 60 percent of Davis on April 1, 2018, for $595,350. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $39,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $396,900. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018.

Prepare a consolidated income statement for the year ending December 31, 2018.

Determine the consolidated balance for each of the following accounts as of December 31, 2018:

Goodwill

Equipment (net)

Common stock

Buildings (net)

Dividends declared

Please show each step and calculations!!!!

Question 1 (EPS)

The following summarised information is available in relation to ‘La Scan’, a publicly listed company in Australia:

Statement of comprehensive income extracts for years ended 30th June:

* Acquired on the 1st November 2017

Analyst expect profits from the market sector in which La Scan’s existing operations are based to increase by 6% in the year to 30th June 2019 and by 8% in the sector of its newly acquired operations.

On 1st July 2016 La Scan had:

$12 million of $1 ordinary shares in issue.

$5 million 8% convertible debentures 2023; the terms of conversion are 40 equity shares in exchange for each $100 of debenture.

On 1 January 2018 the directors of La Scan were granted options to buy 2 million shares in the company for $1 each. The average market price of La Scan’s shares for the year ending 30th June 2018 was $2.50 each.

Assume an income tax rate of 30% for year 2016,2017 and 2018

Required:

(i) Calculate La Scan’s estimated profit after tax for the year ending 30 June 2019 assuming the analysts’ expectations prove correct;

(ii) Calculate the diluted earnings per share (EPS) on the continuing operations of La Scan for the year ended 30 June 2018 and the comparatives for 2017.

Question 1 (EPS)

The following summarised information is available in relation to ‘La Scan’, a publicly listed company in Australia:

Statement of comprehensive income extracts for years ended 30^th June:

* Acquired on the 1^st November 2017

Analyst expect profits from the market sector in which La Scan’s existing operations are based to increase by 6% in the year to 30^th June 2019 and by 8% in the sector of its newly acquired operations.

On 1^st July 2016 La Scan had:

$12 million of $1 ordinary shares in issue.

$5 million 8% convertible debentures 2023; the terms of conversion are 40 equity shares in exchange for each $100 of debenture.

On 1 January 2018 the directors of La Scan were granted options to buy 2 million shares in the company for $1 each. The average market price of La Scan’s shares for the year ending 30^th June 2018 was $2.50 each.

Assume an income tax rate of 30% for year 2016,2017 and 2018

Required:

(i) Calculate La Scan’s estimated profit after tax for the year ending 30 June 2019 assuming the analysts’ expectations prove correct;

(ii) Calculate the diluted earnings per share (EPS) on the continuing operations of La Scan for the year ended 30 June 2018 and the comparatives for 2017.

Universal Foods issued 12% bonds, dated January 1, with a face amount of $155 million on January 1, 2018 to Wang Communications. The bonds mature on December 31, 2032 (15 years). The market rate of interest for similar issues was 14%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. Universal Foods sold the entire bond issue to Wang Communications. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1-3. Prepare the journal entry to record the purchase of the bonds by Wang Communications on January 1, 2018, interest revenue on June 30, 2018 and interest revenue on December 31, 2025. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer is not complete.

Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2018:

Haried Company purchases all of Smith's common stock on January 1, 2018, for $14,520,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life

During 2018, Smith reports earning $680,000 in net income and declares $590,000 in cash dividends. Haried applies the equity method to this investment. a.What is the noncontrolling interest's share of consolidated net income for this period? b.What is the balance in the Investment in Smith account as of December 31, 2018? c.What consolidation entries are needed for 2018?

Prepare Entry S and A to eliminate the subsidiary stockholders' equity, record excess fair values, and to record the outside ownership of the subsidiary's preferred stock at fair value.

Prepare Entry S and A to eliminate the subsidiary stockholders' equity, record excess fair values, and to record the outside ownership of the subsidiary's preferred stock at fair value.

Prepare Entry I to eliminate the equity accrual made in connection with common stock along with the excess amortization recorded by the parent.

Prepare Entry D to remove the intra-entity dividend declarations made on common stock.

Prepare Entry E to recognize the amortization of franchises for the current year.

On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $120,000, and its estimated useful life was four years or 1,150,000 cuttings, after which it could be sold for $5,000.

Required

a. Calculate each year’s depreciation expense for the machine's useful life under each of the following depreciation methods (round all answers to the nearest dollar):

1. Straight-line.
2. Double-declining balance.
3. Units-of-production. (Assume annual production in cuttings of 280,000; 430,000; 360,000; and 80,000.)

1. Straight-Line

2. Double-declining balance

3. Units of Production

b. Assume that the machine was purchased on July 1, 2015. Calculate each year’s depreciation expense for the machine's useful life under each of the following depreciation methods:

1. Straight-line.
2. Double-declining balance.

1. Straight-Line

2. Double-declining balance (Round answers to the nearest whole number, when appropriate.)