The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017. Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $500,000 at face value. Sep. 1 Acquired $1,200,000 of American Instruments' 10% bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $575,000. Nov. 1 Purchased $1,900,000 of M&D Corporation 6% bonds at face value. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments bonds $ 1,160,000 M&D Corporation bonds $ 1,970,000 Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.)

On January 1, 2018, Pony Corporation issued its stock with a fair value of $471,000 for 60% of the outstanding common stock of Shine Company, which became a subsidiary of Pony. There was no control premium. Differences between book value and fair value of the net identifiable assets of Shine Company on January 1, 2018, were limited to the following:

                                                                     Book value       Fair value         

            Inventories                                        $ 70,000         $ 67,800                       

            Machine (net)                                        521,000             551,200       

            Long-term debt                                   112,000           115,700                       

Required:

(i) Prepare working paper eliminating entries E and R (in journal entry format) for Pony Corporation and subsidiary on January 1, 2018.                             

(ii) Complete the following working paper:

Working paper for consolidated balance sheet on date of business combination, January 1, 2018

On January 1, 2018, Red Flash Photography had the following balances: Cash, $21,000; Supplies, $8,900; Land, $69,000; Deferred Revenue, $5,900; Common Stock $59,000; Retained Earnings, $34,000. During 2018, the company had the following transactions: February 15 Issue additional shares of common stock, $29,000. May 20 Provide services to customers for cash, $44,000, and on account, $39,000. August 31 Pay salaries to employees for work in 2018, $32,000. October 1 Purchase rental space for one year, $21,000. November 17 Purchase supplies on account, $31,000. December 30 Pay dividends, $2,900. The following information is available on December 31, 2018: Employees are owed an additional $4,900 in salaries. Three months of the rental space has expired. Supplies of $5,900 remain on hand. All of the services associated with the beginning deferred revenue have been performed.

1. Record the transactions that occurred during the year

2. Record the adjusting entries at the end of the year.

3. Prepare an adjusted trial balance.

4. Prepare an income statement, statement of stockholders’ equity, and classified balance sheet.

5.Prepare closing entries.

(journal entries)

On January 1, 2018, Sledge had common stock of $160,000 and retained earnings of $300,000. During that year, Sledge reported sales of $170,000, cost of goods sold of $90,000, and operating expenses of $44,000.

On January 1, 2016, Percy, Inc., acquired 70 percent of Sledge's outstanding voting stock. At that date, $64,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $24,000 to an undervalued building (with a 10-year remaining life).

In 2017, Sledge sold inventory costing $10,450 to Percy for $19,000. Of this merchandise, Percy continued to hold $9,000 at year-end. During 2018, Sledge transferred inventory costing $14,400 to Percy for $24,000. Percy still held half of these items at year-end.

On January 1, 2017, Percy sold equipment to Sledge for $14,000. This asset originally cost $20,000 but had a January 1, 2017, book value of $9,800. At the time of transfer, the equipment's remaining life was estimated to be five years.

Percy has properly applied the equity method to the investment in Sledge.

1. Prepare worksheet entries to consolidate these two companies as of December 31, 2018.
2. Compute the net income attributable to the noncontrolling interest for 2018.

Hartman, Inc. has prepared the following comparative balance sheets for 2017 and 2018:

                                                                                                          2018                      2017      

         Cash                                                                                    $   282,000             $  153,000

         Accounts receivable                                                                 139,000                 117,000

         Inventory                                                                                   150,000                 180,000

         Prepaid expenses                                                                      18,000                   27,000

         Plant assets                                                                           1,295,000              1,050,000

         Accumulated depreciation                                                       (450,000)              (375,000)

         Patent                                                                                       153,000                 174,000

                                                                                                      $1,587,000            $1,326,000

         Accounts payable                                                                $   153,000            $   168,000

         Accrued liabilities                                                                       60,000                   42,000

         Mortgage payable                                                                          —                     450,000

         Preferred stock                                                                         525,000                      —

         Additional paid-in capital—preferred                                       120,000                      —

         Common stock                                                                         600,000                 600,000

         Retained earnings                                                                    129,000                   66,000

                                                                                                      $1,587,000            $1,326,000

1.   The Accumulated Depreciation account has been credited only for the depreciation expense for the period.

2.   The Retained Earnings account has been charged for dividends of $138,000 and credited for the net income for the year.

      The income statement for 2018 is as follows:

Sales revenue                                     $1,980,000

Cost of sales                                         1,089,000

Gross profit                                              891,000

Operating expenses                                690,000

Net income                                         $   201,000

Instructions

(a)    From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2018.

(b)    From the information above, prepare a schedule of cash provided by operating activities using the direct method.

On January 1, 2017, Fro-Yo Inc. began offering customers a cash rebate of $5.00 if the customer mails in 10 proof-of-purchase labels from its frozen yogurt containers. Based on historical experience, the company estimates that 20% of the labels will be redeemed. During 2017, the company sold 5,000,000 frozen yogurt containers at $1, cash, per container. From these sales, 800,000 labels were redeemed in 2017, 150,000 labels were redeemed in 2018, and the remaining labels were never redeemed.

Required:

On December 1, 2016, Insto Photo Company purchased merchandise, invoice price $23,000, and issued a 6%, 120-day note to Ringo Chemicals Company. Insto uses the calendar year as its fiscal year and uses the perpetual inventory system.

ABC Corporation purchased a land for P500,000 during 2017 and chooses the revaluation model in accounting for its land . The following information relates to that land , which is the only land asset owned by the company , December 31, 2017- Fair value P520,000. Dec 31, ,2018- Fair Value P470,000. December 31 , 2019- Fair Value P510,000.a) What is the amount of unrealized gain on revaluation-land for the year 2017?_______. b.) How much is the accumulated other comprehensive income for the year 2017 to be recognized in the balance sheet?_____accumulated other comprehensive income. c) What is the amount of unrealized gain on realization -land for the year 2018?_____D.)How much is the impairement loss for the year 2018?____impairement loss. e)How much is the accumulated other comprehensive income for the year 2018 to be recognized in the balance sheet?____.f)How much is the recovery of impairement loss and revaluation gain on land for the year 2019?____.g) What is the amount of unrealized gain on revaluation-land for the year 2019?h)If the land was sold on January 10,2020 for Php 515,000 How much is the gain on sale of land?_____.i)How much is the accumulated other comprehensive income to be recycledto the retained earrnings as a result of the gain on sale of land?_____

Gary Farmer had the following sales of business property during the 2018 tax year:

1. Sold land acquired on December 3, 2007, at a cost of $24,000, for $37,000 on January 5, 2018. The cost of selling the land was $500, and there was no depreciation allowable or capital improvements made to the asset over the life of the asset.
2. Sold a business computer with an adjusted basis of $20,700 that was acquired on April 5, 2015. The original cost was $25,875, and accumulated depreciation was $5,175. The computer was sold on May 2, 2018, for $14,000, resulting in a $6,700 loss.
3. Sold equipment on July 22, 2018 for gross proceeds of $16,000. The equipment was acquired on October 21, 2017 at a cost of $25,000 and accumulated depreciation was $4,300 at the time of the sale. Gary used an equipment broker on this sale and paid a sales commission of $1,600.

Calculate Gary’s net gain or loss and determine the character as either capital or ordinary (ignore any depreciation recapture).

The land and computer  are Section 1231 properties, resulting in a net Section 1231 gain  of $. This is treated as a net long-term capital gain . The equipment  is treated as an ordinary asset . As such it results in an ordinary loss  of $._______________

Goehler, Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2017, at an amount in excess of Kenneth's fair value. On that date, Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life). Goehler has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life). On December 31, 2018, Goehler has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.

18) If Goehler applies the equity method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

A) $1,104,000.

B) $1,080,000.

C) $1,468,000.

D) $1,475,000.

E) $1,100,000.

19) If Goehler applies the partial equity method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

A) $1,475,000.

B) $1,080,000.

C) $1,468,000.

D) $1,100,000.

E) $1,104,000.

20) If Goehler applies the initial value method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

A) $1,080,000.

B) $1,104,000.

C) $1,475,000.

D) $1,100,000.

E) $1,468,000.

Please show works, Thanks!

Woodmier Lawn Products introduced a new line of commercial sprinklers in 2017 that carry a one-year warranty against manufacturer’s defects. Because this was the first product for which the company offered a warranty, trade publications were consulted to determine the experience of others in the industry. Based on that experience, warranty costs were expected to approximate 3% of sales. Sales of the sprinklers in 2017 were $2,850,000. Accordingly, the following entries relating to the contingency for warranty costs were recorded during the first year of selling the product:

  
In late 2018, the company's claims experience was evaluated and it was determined that claims were far more than expected—4% of sales rather than 3%.

Required:
1. Assuming sales of the sprinklers in 2018 were $3,950,000 and warranty expenditures in 2018 totaled $98,500, prepare any journal entries related to the warranty.
2. Assuming sales of the sprinklers were discontinued after 2017, prepare any journal entries in 2018 related to the warranty.