Alquist Company uses the retail method to estimate its ending inventory. Selected information about its year 2018 operations is as follows:

January 1, 2018, beginning inventory had a cost of $160,000 and a retail value of $220,000.

Purchases during 2018 cost $1,663,000 with an original retail value of $2,440,000.

Freight costs were $17,000 for incoming merchandise.

Net additional markups were $215,000 and net markdowns were $255,000.

Based on prior experience, shrinkage due to shoplifting was estimated to be $22,000 of retail value.

Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a separate account at the net selling price. The balance in this account at the end of 2018 is $320,000.

Sales to customers totaled $1,910,000 for the year.

Required:
1. Estimate ending inventory and cost of goods sold using the conventional retail method.
2. Estimate ending inventory and cost of goods sold using the LIFO retail method. (Assume stable prices.)

(For all requirements, Round your intermediate calculations and final answers to whole dollars.)

On March 1, 2017, Oriole Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,410,000. The building was completed by October 31, 2019. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2017, 2018, and 2019 are given below:

(a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank.)

(b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.) (If answer is 0, please enter 0. Do not leave any fields blank. Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

As part of its stock-based compensation package, on January 1, 2018, International Electronics granted restricted stock units (RSUs) representing 150 million $1 par common shares. At exercise, holders of the RSUs are entitled to receive cash or stock equal in value to the market price of those shares at exercise. The RSUs cannot be exercised until the end of 2021 (vesting date) and expire at the end of 2023. The $1 par common shares have a market price of $6 per share on the grant date. The fair value at December 31, 2018, 2019, 2020, 2021, and 2022, is $8, $6, $8, $5, and $6, respectively. All recipients are expected to remain employed through the vesting date.

After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares.

Required:

1. to 3. Prepare the appropriate journal entries pertaining to the RSUs on January 1, 2018 and December 31, 2018–December 31, 2021. The RSUs remain unexercised on December 31, 2022, prepare the appropriate entry.
4. The RSUs are exercised on June 6, 2023, when the share price is $6.50, and executives choose to receive cash. Prepare the appropriate journal entry(s) on that date.

On January 1, 2018 Tuk Ltd., which uses IFRS 16, entered into an eight-year lease agreement for drilling equipment. Annual lease payments are $28,500 at the beginning of each lease year, which ends December 31. Tuk made the first payment on January 1, 2018. At the end of the lease the equipment will revert to the lessor. The drilling equipment is expected to only last eight years, and has no residual value. At the time of the lease agreement, drilling equipment could be purchased for $167,250 (cash). Equivalent financing for the machine could be obtained from Tuk’s bank at 10 %. Tuk’s fiscal year coincides with the calendar year. Tuk uses straight-line depreciation for its drilling equipment.

i. Calculate the present value of the minimum lease payments.

ii. What type of lease is it? Explain your answer.

iii. Prepare an amortization schedule for Tuk

iv. Prepare the journal entries for Tuk’s books for: a. Inception of lease b. Payments and expenses (interest and depreciation) for 2018 and 2019

v. Provide Tuk’s required note disclosure for the lease at December 31, 2018 and 2019 vi. Provide Tuk’s required note disclosure for the lease liability for the fiscal year ending December 31, 2019.

Otis Company’s income statement information follows:

The average number of shares outstanding was 9,600 for 2018 and 8,000 for 2017.

Required

Compute the following ratios for Otis for 2018 and 2017.

Number of times interest was earned. (Round your answers to 2 decimal places.)

Earnings per share based on the average number of shares outstanding. (Round your answers to 2 decimal places.)

Price-earnings ratio (market prices: 2018, $64 per share; 2017, $78 per share). (Round intermediate calculations and final answers to 2 decimal places.)

Return on average equity. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

Net margin. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).)

Calculate: Interest Earned, Earnings Per Share, Price-earnings Ratio, Return on Equity, Net Margin

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.

for Georgia-Atlantic to make semiannual lease payments of $545,554 over a four-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2018. Georgia-Atlantic’s incremental borrowing rate is 8%, the same rate IC uses to calculate lease payment amounts. Depreciation is recorded on a straight-line basis at the end of each fiscal year. The fair value of the warehouse is $3.8. (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. Determine the present value of the lease payments at June 30, 2018 that Georgia-Atlantic uses to record the right-of-use asset and lease liability. 2. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2018? 3. What pretax amounts related to the lease would Georgia-Atlantic report in its income statement for the year ended December 31, 2018? (For all requirements, enter your answers in whole dollars and not in millions. Round your final answer to nearest whole dollar.)

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)