The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company.

Additional information:

Prepaid expenses include $128,000 paid on December 31, 2018, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.

Investments include $34,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $114,000 includes investments in marketable equity securities that the company intends to sell in the next year.

Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.

The notes payable account consists of the following:

a $44,000 note due in six months.

a $104,000 note due in six years.

a $72,000 note due in three annual installments of $24,000 each, with the next installment due August 31, 2019.

The common stock account represents 404,000 shares of no par value common stock issued and outstanding. The corporation has 600,000 shares authorized.

Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Year one is the first year of business renting apartments to students at the edge of USC's main campus. At the end of the year maintenance personnel had earned $400 for which they were never paid. Also at the end of year one, tenants had rented out several of the apartments but never paid the $800 rent. In year two maintenance personnel earned another $500 of wages and still did not get paid. New students moved in but never paid their $1,200 in total rent for the year. At the end of year two, no rent was ever collected nor were any wages paid since the business began. Requirement: Record the adjusting entries (if any) for each year to account for the described events. Do the year end closing entries for each of the two years. Post to the ledger for each year. Indicate with year numbers all transactions on the T accounts. Label each T account according to the proper account classification in parenthesis (ie. Asset, liability, revenue, etc.) Label adjusting journal entries (adj) and closing journal entries (cls). Required: Produce the Income statement for each year. Why do we do adjusting entries (think of how the income statement and balance sheet are off if we do not do adjusting entries)? What does this problem teach you about revenue and expense recognition relative to cash disbursement and cash receipt? What happens to your balance sheet accounts versus your income statement accounts each year?

Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows:

Annual non-manufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine.

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.

On December 31, 2019, Opgenorth Company listed the following items in its adjusted trial balance:

Additional data:

1. Seven thousand shares of common stock have been outstanding the entire year.
2. The income tax rate is 30% on all items of income.

Required:

1. Prepare a 2019 multiple-step income statement. Round earnings per share to two decimal places.

2. Prepare a 2019 single-step income statement. Round earnings per share to two decimal places.

3. Prepare a 2019 statement of comprehensive income.

                                          Exceptional Manufacturing, Inc.

As the financial accountant assigned to year-end federal tax work for the annual report for 2017, you have obtained the following information about Exceptional:

INCOME STATEMENT (in thousands, expenses are shown in parentheses)

Revenue                                                                                                             $475,000

Costs of goods sold                                                                                            (200,000)

Gross profit                                                                                                          $275,000

Marketing, administrative and research expenses                                     (185,000)

Interest income on investments                                                                        5,000

Interest expense                                                                                                  (12,000)

Other income/expense                                                                                        15,000

Income before income taxes                                                                              $98,000

OTHER INFORMATION (in thousands, expenses show in parentheses)

               Depreciation expenses, reflected above (in cost of goods sold

                     and Marketing, administrative and research                               (18,000)

                Depreciation on the tax return (in total)                                            (22,000)

                To be overly clear, tax depreciation is $4,000 higher.

                Interest income on municipal bonds (included in interest “income

                        on investments”)                                                                                   4,000

                 Exceptional received an advance payment of $22,000 from a customer for

                 work that will be done next year. Under tax rules, the $22,000 is taxable

                  this year.

                  Tax credits from research activities (directly reduces tax payable)     750

                 Gross profit earned in a tax-free zone                                                        31,000

                      (Revenue, less cost of goods sold for an operation in a tax

                       free zone, not taxable now and never will be.)

             The federal tax rate is 21%.

Your assignment: Calculate the federal income tax provision/expense and prepare the entry to record the provision (including expense, income taxes payable and deferred income taxes). Calculate the effective tax rate.

Jonathan Lark’s lifelong dream is to own a restaurant. He owns a premium site for a restaurant across the street from the local university. Now he needs to decide what kind of restaurant to open. Recently, Jonathan began to investigate one of the fastest-growing fast-food franchises in the country, Pepper Roni Pizza. A Pepper Roni Pizza franchise costs $40,000, an amount that is amortized over 15 years. As a franchisee, Jonathan would need to adhere to the company’s building specifications. The building would cost an estimated $425,000 and would have a $60,000 salvage value at the end of its 15-year life. The restaurant equipment (fryers, steam tables, booths, counters) is sold as a package by the corporate office at a cost of $150,000, will have a salvage value of $10,000 at the end of its five-year life, and must be replaced every five years. Jonathan estimates the annual revenue from a Pepper Roni Pizza franchise at $1,000,000. Food costs typically run 38% of revenue. Annual operating expenses, not including depreciation, total $455,000. For financial reporting purposes, Jonathan will use straight-line depreciation and amortization. Based on past experience, he uses an 18% discount rate. A) Calculate the restaurant’s net present value over the franchise’s 15-year life. B) Use Excel or a similar spreadsheet application to calculate the restaurant’s internal rate of return over the franchise’s 15-year life. C) Calculate the restaurant’s payback period. D) Should Jonathan open a Pepper Roni Pizza?

Badlands, Inc. manufactures a household fan that sells for $25 per unit. All sales are on account, with 30 percent of sales collected in the month of sale and 70 percent collected in the following month. The data that follow were extracted from the company’s accounting records.

Badlands maintains a minimum cash balance of $20,000. Total payments in January 20x1 are budgeted at $220,000.

A schedule of cash collections for January and February of 20x1 revealed the following receipts for the period:

March 20x1 sales are expected to total 8,500 units.

Finished-goods inventories are maintained at 30 percent of the following month’s sales.

The December 31, 20x0, balance sheet revealed the following selected figures: cash, $23,600; accounts receivable, $126,000; and finished goods, $24,000.

Required:

Determine the number of units that Badlands sold in December 20x0.

Compute the sales revenue for March 20x1.

Compute the total sales revenue to be reported on Badlands’ budgeted income statement for the first quarter of 20x1.

Determine the accounts receivable balance to be reported on the March 31, 20x1, budgeted balance sheet.

Calculate the number of units in the December 31, 20x0, finished-goods inventory.

Calculate the number of units of finished goods to be manufactured in January 20x1.

Calculate the financing required in January, if any, to maintain the firm’s minimum cash balance.

The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company.

Additional information:

Prepaid expenses include $132,000 paid on December 31, 2018, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.

Investments include $36,000 in Treasury bills purchased on November 30, 2018. The bills mature on January 30, 2019. The remaining $116,000 includes investments in marketable equity securities that the company intends to sell in the next year.

Deferred revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.

The notes payable account consists of the following:

a $46,000 note due in six months.

a $106,000 note due in six years.

a $78,000 note due in three annual installments of $26,000 each, with the next installment due August 31, 2019.

The common stock account represents 406,000 shares of no par value common stock issued and outstanding. The corporation has 700,000 shares authorized.

Required:
Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)