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ACC 423 Final Exam Guide (New 2017, With EXCEL FILE)

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Week 5 Final Exam

CPA Question 01

CPA Question 02

CPA Question 05

Question 29

Brief Exercise 15-4


Exercise 15-1

CPA Question 04

CPA Question 06

Brief Exercise 16-2

Brief Exercise 16-7

Brief Exercise 17-1

Brief Exercise 17-9

Brief Exercise 17-13

Exercise 17-3 https://edugen.wileyplus.com/edugen/art2/common/pixel.gif Exercise 17-10

Question 8


Brief Exercise 19-3

Brief Exercise 19-12

Exercise 19-2

CPA Question 08

CPA Question 02

Brief Exercise 20-8

Exercise 20-1

Exercise 20-5 https://edugen.wileyplus.com/edugen/art2/common/pixel.gif Exercise 20-12

CPA Question 03 Question is selected.


Exercise 22-19

CPA Question 01 https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

On September 1, 2017, Hyde Corp., a newly formed company, had the following stock issued and outstanding: • Common stock, no par, $1 stated value, 5,000 shares originally issued at $15 per share. • Preferred stock, $10 par value, 1,500 shares originally issued for $25 per share. Hyde's September 1, 2017 statement of stockholders' equity should report

Common stock

Preferred stock


Additional Paid-in capital

https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

CPA Question 02 Beck Corp. issued 200,000 shares of common stock when it began operations in year 1 and issued an additional 100,000 shares in year 2. Beck also issued preferred stock convertible to 100,000 shares of common stock. In year 3, Beck purchased 75,000 shares of its common stock and held it in Treasury. At December 31, year 3, how many shares of Beck's common stock were outstanding?

CPA Question 05 Jones Co. had 50,000 shares of $5 par value common stock outstanding at January 1. On August 1, Jones declared a 5% stock dividend followed by a two-for-one stock split on September 1. What amount should Jones report as common shares outstanding at December 31?

Question 29 Grouper Corp. had $100,000 of 7%, $20 par value preferred stock and 12,000 shares of $25 par value common stock outstanding throughout 2017. Assuming that total dividends declared in 2017 were $64,000, and that the preferred stock is not cumulative but is fully participating, common stockholders should receive 2017 dividends of what amount?


Assuming that total dividends declared in 2017 were $64,000, and that the preferred stock is fully participating and cumulative with preferred dividends in arrears for 2016, preferred stockholders should receive 2017 dividends totaling what amount? Assuming that total dividends declared in 2017 were $30,000, that the preferred stock is cumulative, nonparticipating, and was issued on January 1, 2016, and that $5,000 of preferred dividends were declared and paid in 2016, the common stockholders should receive 2017 dividends totaling what amount?

Brief Exercise 15-4 Kingbird Corporation issued 384 shares of $10 par value common stock and 144 shares of $50 par value preferred stock for a lump sum of $19,872. The common stock has a market price of $20 per share, and the preferred stock has a market price of $100 per share.

Prepare the journal entry to record the issuance.

Exercise 15-1 During its first year of operations, Metlock Corporation had the following transactions pertaining to its common stock. Jan. 10

Issued 80,500 shares for cash at $6 per share.


Mar. 1

Issued 5,000 shares to attorneys in payment of a bill for $37,700 for services rendered in helping the company to incorporate. July 1

Issued 33,300 shares for cash at $8 per share. Sept. 1

Issued 62,100 shares for cash at $10 per share.

(a)

Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share. (b)

Prepare the journal entries for these transactions, assuming that the common stock is no-par with a stated value of $2 per share.

CPA Question 04


A restricted stock award was granted at the beginning of 2015 calling for 3,000 shares of stock to be awarded to executives at the beginning of 2019. The fair value of one option was $20 at grant date. During 2017, 100 shares were forfeited because an executive left the firm. What amount of compensation expense is recognized for 2017?

CPA Question 06 A company had the following outstanding shares as of January 1, year 2: Preferred stock, $60 par, 4%, cumulative 10,000 shares Common stock, $3 par 50,000 shares

On April 1, year 2, the company sold 8,000 shares of previously unissued common stock. No dividends were in arrears on January 1, year 2, and no dividends were declared or paid during year 2. Net income for year 2 totaled $236,000. What amount is basic earnings per share for the year ended December 31, year 2?

Brief Exercise 16-2 Oriole Corporation has outstanding 2,100 $1,000 bonds, each convertible into 60 shares of $10 par value common stock. The bonds


are converted on December 31, 2017, when the unamortized discount is $26,200 and the market price of the stock is $21 per share.

Record the conversion using the book value approach.

Brief Exercise 16-7

On January 1, 2017, Larkspur Corporation granted 2,000 shares of restricted $5 par value common stock to executives. The market price (fair value) of the stock is $66 per share on the date of grant. The period of benefit is 2 years.

Prepare Larkspur’s journal entries for January 1, 2017, and December 31, 2017 and 2018.

Brief Exercise 17-1 Teal Company purchased, on January 1, 2017, as a held-to-maturity investment, $81,000 of the 8%, 5-year bonds of Chester Corporation for $74,859, which provides an 10% return.

Prepare Teal’s journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used.


BE 17-3

Brief Exercise 17-9 The following information relates to Culver Co. for the year ended December 31, 2017: net income 1,321 million; unrealized holding loss of $11.7 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $56.3 million on December 31, 2016. Assuming no other changes in accumulated other comprehensive income.

Determine (a) other comprehensive income for 2017, (b) comprehensive income for 2017, and (c) accumulated other comprehensive income at December 31, 2017

Exercise 17-3 On January 1, 2017, Carla Company purchased 8% bonds having a maturity value of $360,000, for $390,329.57. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Carla Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the heldto-maturity category.


Question 8 Skysong financial income for Lake Inc. is $290,000, and its taxable income is $100,000 for 2018. Its only temporary difference at the end of the period relates to a $100,000 difference due to excess depreciation for tax purposes. If the tax rate is 39% for all periods, compute the amount of income tax expense to report in 2018. No deferred income taxes existed at the beginning of the year.

Brief Exercise 19-3 https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Marigold Corporation began operations in 2017 and reported pretax financial income of $206,000 for the year. Marigold’s tax depreciation exceeded its book depreciation by $33,000. Marigold’s tax rate for 2017 and years thereafter is 30%. Assume this is the only difference between Marigold’s pretax financial income and taxable income.

Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable


Brief Exercise 19-12 Blossom Corporation had the following tax information. Year

Taxable Income

Tax Rate

Taxes Paid 2015

$306,000

34%

$104,040

2016

324,000


29%

93,960

2017

393,000

29%

113,970

In 2018, Blossom suffered a net operating loss of $488,000, which it elected to carry back. The 2018 enacted tax rate is 28%.

Prepare Blossom’s entry to record the effect of the loss carryback.

Exercise 19-2


The following information is available for Pronghorn Corporation for 2016 (its first year of operations). 1.

Excess of tax depreciation over book depreciation, $40,800. This $40,800 difference will reverse equally over the years 2017–2020. 2.

Deferral, for book purposes, of $21,400 of rent received in advance. The rent will be recognized in 2017. 3.

Pretax financial income, $319,400. 4.

Tax rate for all years, 30%.

CPA Question 08 Brass Co. reported income before income tax expense of $60,000 for 2017. Brass had no permanent or temporary timing differences for tax purposes. Brass has an effective tax rate of 30% and a $40,000 net operating loss carry-forward from 2016. What is the maximum income tax benefit that Brass can realize from the loss carry-forward for 2017?


Brief Exercise 20-8 Windsor Corporation has the following balances at December 31, 2017. Projected benefit obligation

$2,705,000 Plan assets at fair value

2,099,000 Accumulated OCI (PSC)

995,000

What is the amount for pension liability that should be reported on Windsor's balance sheet at December 31, 2017?

Exercise 20-1 The following information is available for the pension plan of Marigold Company for the year 2017. Actual and expected return on plan assets


$ 16,300

Benefits paid to retirees

38,400

Contributions (funding)

94,400

Interest/discount rate

11 % Prior service cost amortization

8,800

Projected benefit obligation, January 1, 2017

510,000


Service cost

63,300

Exercise 20-12 Shamrock Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2017.

January 1, 2017

December 31, 2017 Projected benefit obligation

$1,499,000

$1,527,000


Market-related and fair value of plan assets

802,000

1,127,200

Accumulated benefit obligation

1,622,000

1,742,500

Accumulated OCI (G/L)—Net gain

0

(199,900 )

The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization


of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2017 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2017. Assume no benefits paid in 2017.

CPA Question 03 https://edugen.wileyplus.com/edugen/art2/common/pixel.gif

Your answer has been saved and sent for grading. See Gradebook for score details.

During 2017, Orca Corp. decided to change from the FIFO method of inventory valuation to the weighted-average method. Inventory balances under each method were as follows:

FIFO Weighted-average January 1, 2017 $71,000 $77,000


December 31, 2017 $79,000 $83,000

Orca's income tax rate is 30%.

In its 2017 financial statements, what amount should Orca report as the cumulative effect of this accounting change?

Exercise 22-18 Pina Tool Company’s December 31 year-end financial statements contained the following errors.

December 31, 2017

December 31, 2018 Ending inventory

$10,500 understated


$7,400 overstated Depreciation expense

$2,100 understated

—

An insurance premium of $70,200 was prepaid in 2017 covering the years 2017, 2018, and 2019. The entire amount was charged to expense in 2017. In addition, on December 31, 2018, fully depreciated machinery was sold for $13,500 cash, but the entry was not recorded until 2019. There were no other errors during 2017 or 2018, and no corrections have been made for any of the errors. (Ignore income tax considerations.)

Exercise 22-19 A partial trial balance of Bramble Corporation is as follows on December 31, 2018.

Dr.

Cr. Supplies


$2,600

Salaries and wages payable

$1,500 Interest Receivable

4,600

Prepaid Insurance

86,200

Unearned Rent

0 Interest Payable

14,100

Additional adjusting data:


1.

A physical count of supplies on hand on December 31, 2018, totaled $1,100. 2.

Through oversight, the Salaries and Wages Payable account was not changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,700. 3.

The Interest Receivable account was also left unchanged during 2018. Accrued interest on investments amounts to $3,700 on December 31, 2018. 4.

The unexpired portions of the insurance policies totaled $68,300 as of December 31, 2018. 5.

$26,500 was received on January 1, 2018, for the rent of a building for both 2018 and 2019. The entire amount was credited to rent revenue. 6.


Depreciation on equipment for the year was erroneously recorded as $5,200 rather than the correct figure of $52,000. 7.

A further review of depreciation calculations of prior years revealed that equipment depreciation of $7,500 was not recorded. It was decided that this oversight should be corrected by a prior period adjustment.

Exercise 22-5 Presented below are income statements prepared on a LIFO and FIFO basis for Novak Company, which started operations on January 1, 2016. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2017. The FIFO income statement is computed in accordance with the requirements of GAAP. Novak’s profit-sharing agreement with its employees indicates that the company will pay employees 10% of income before profitsharing. Income taxes are ignored.

Question 18 In January 2017, installation costs of $5,800 on new machinery were charged to Maintenance and Repairs Expense. Other costs of this machinery of $29,000 were correctly recorded and have been depreciated using the straight-line method with an estimated life of 10


years and no salvage value. At December 31, 2018, it is decided that the machinery has a remaining useful life of 20 years, starting with January 1, 2018. What entries should be made in 2018 to correctly record transactions related to machinery, assuming the machinery has no salvage value? The books have not been closed for 2018 and depreciation expense has not yet been recorded for 2018. ==============================================

ACC 423 Final Exam Guide (New 2018, With EXCEL FILE)

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This Tutorial contains Excel File which can be used for any change in values Week 5 Final Exam CPA Question 01 CPA Question 02 CPA Question 05


Question 29 Brief Exercise 15-4 Exercise 15-1 CPA Question 04 CPA Question 06 Brief Exercise 16-2 Brief Exercise 16-7 Brief Exercise 17-1 Brief Exercise 17-9 Brief Exercise 17-13 Exercise 17-3 Exercise 17-10 Question 8 Brief Exercise 19-3 Brief Exercise 19-12 Exercise 19-2 CPA Question 08 CPA Question 02


Brief Exercise 20-8 Exercise 20-1 Exercise 20-5 Exercise 20-12 CPA Question 03 Exercise 22-19

CPA Question 01

On September 1, 2017, Hyde Corp., a newly formed company, had the following stock issued and outstanding: • Common stock, no par, $1 stated value, 5,000 shares originally issued at $15 per share. • Preferred stock, $10 par value, 1,500 shares originally issued for $25 per share. Hyde's September 1, 2017 statement of stockholders' equity should report Common Preferred Additional Paidstock stock in capital

CPA Question 02 Beck Corp. issued 200,000 shares of common stock when it began operations in year 1 and issued an additional 100,000 shares in year 2. Beck also issued preferred stock convertible to 100,000 shares of


common stock. In year 3, Beck purchased 75,000 shares of its common stock and held it in Treasury. At December 31, year 3, how many shares of Beck's common stock were outstanding? CPA Question 05 Jones Co. had 50,000 shares of $5 par value common stock outstanding at January 1. On August 1, Jones declared a 5% stock dividend followed by a two-for-one stock split on September 1. What amount should Jones report as common shares outstanding at December 31? Question 29 Grouper Corp. had $100,000 of 7%, $20 par value preferred stock and 12,000 shares of $25 par value common stock outstanding throughout 2017. Assuming that total dividends declared in 2017 were $64,000, and that the preferred stock is not cumulative but is fully participating, common stockholders should receive 2017 dividends of what amount? Assuming that total dividends declared in 2017 were $64,000, and that the preferred stock is fully participating and cumulative with preferred dividends in arrears for 2016, preferred stockholders should receive 2017 dividends totaling what amount? Assuming that total dividends declared in 2017 were $30,000, that the preferred stock is cumulative, nonparticipating, and was issued on January 1, 2016, and that $5,000 of preferred dividends were declared and paid in 2016, the common stockholders should receive 2017 dividends totaling what amount? Brief Exercise 15-4 Kingbird Corporation issued 384 shares of $10 par value common stock and 144 shares of $50 par value preferred stock for a lump sum of $19,872. The common stock has a market price of $20 per share, and the preferred stock has a market price of $100 per share. Prepare the journal entry to record the issuance.


Exercise 15-1 During its first year of operations, Metlock Corporation had the following transactions pertaining to its common stock. Jan. Issued 80,500 shares for cash at $6 per share. 10 Issued 5,000 shares to attorneys in payment of a bill for Mar. $37,700 for services rendered in helping the company to 1 incorporate. July Issued 33,300 shares for cash at $8 per share. 1 Sept. Issued 62,100 shares for cash at $10 per share. 1 Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share. Prepare the journal entries for these transactions, assuming that the (b) common stock is no-par with a stated value of $2 per share. (a)

CPA Question 04 A restricted stock award was granted at the beginning of 2015 calling for 3,000 shares of stock to be awarded to executives at the beginning of 2019. The fair value of one option was $20 at grant date. During 2017, 100 shares were forfeited because an executive left the firm. What amount of compensation expense is recognized for 2017? CPA Question 06 A company had the following outstanding shares as of January 1, year 2: Preferred stock, 10,000 $60 par, 4%, shares cumulative Common stock, 50,000 $3 par shares On April 1, year 2, the company sold 8,000 shares of previously unissued common stock. No dividends were in arrears on January 1, year


2, and no dividends were declared or paid during year 2. Net income for year 2 totaled $236,000. What amount is basic earnings per share for the year ended December 31, year 2?

Brief Exercise 16-2 Oriole Corporation has outstanding 2,100 $1,000 bonds, each convertible into 60 shares of $10 par value common stock. The bonds are converted on December 31, 2017, when the unamortized discount is $26,200 and the market price of the stock is $21 per share. Record the conversion using the book value approach. Brief Exercise 16-7 On January 1, 2017, Larkspur Corporation granted 2,000 shares of restricted $5 par value common stock to executives. The market price (fair value) of the stock is $66 per share on the date of grant. The period of benefit is 2 years. Prepare Larkspur’s journal entries for January 1, 2017, and December 31, 2017 and 2018.

Brief Exercise 17-1 Teal Company purchased, on January 1, 2017, as a held-to-maturity investment, $81,000 of the 8%, 5-year bonds of Chester Corporation for $74,859, which provides an 10% return. Prepare Teal’s journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used.

BE 17-3


Brief Exercise 17-9 The following information relates to Culver Co. for the year ended December 31, 2017: net income 1,321 million; unrealized holding loss of $11.7 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $56.3 million on December 31, 2016. Assuming no other changes in accumulated other comprehensive income. Determine (a) other comprehensive income for 2017, (b) comprehensive income for 2017, and (c) accumulated other comprehensive income at December 31, 2017

Exercise 17-3 On January 1, 2017, Carla Company purchased 8% bonds having a maturity value of $360,000, for $390,329.57. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Carla Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the heldto-maturity category. Question 8 Skysong financial income for Lake Inc. is $290,000, and its taxable income is $100,000 for 2018. Its only temporary difference at the end of the period relates to a $100,000 difference due to excess depreciation for tax purposes. If the tax rate is 39% for all periods, compute the amount of income tax expense to report in 2018. No deferred income taxes existed at the beginning of the year. Brief Exercise 19-3


Marigold Corporation began operations in 2017 and reported pretax financial income of $206,000 for the year. Marigold’s tax depreciation exceeded its book depreciation by $33,000. Marigold’s tax rate for 2017 and years thereafter is 30%. Assume this is the only difference between Marigold’s pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable Brief Exercise 19-12 Blossom Corporation had the following tax information. Taxable Tax Year Taxes Paid Income Rate 2015 $306,000

34% $104,040

2016

324,000 29%

93,960

2017

393,000 29%

113,970

In 2018, Blossom suffered a net operating loss of $488,000, which it elected to carry back. The 2018 enacted tax rate is 28%. Prepare Blossom’s entry to record the effect of the loss carryback.

Exercise 19-2 The following information is available for Pronghorn Corporation for 2016 (its first year of operations). Excess of tax depreciation over book depreciation, $40,800. This 1. $40,800 difference will reverse equally over the years 2017–2020. Deferral, for book purposes, of $21,400 of rent received in advance. 2. The rent will be recognized in 2017. 3. Pretax financial income, $319,400.


4. Tax rate for all years, 30%. CPA Question 08 Brass Co. reported income before income tax expense of $60,000 for 2017. Brass had no permanent or temporary timing differences for tax purposes. Brass has an effective tax rate of 30% and a $40,000 net operating loss carry-forward from 2016. What is the maximum income tax benefit that Brass can realize from the loss carry-forward for 2017? Brief Exercise 20-8 Windsor Corporation has the following balances at December 31, 2017. Projected benefit $2,705,000 obligation Plan assets at 2,099,000 fair value Accumulated 995,000 OCI (PSC) What is the amount for pension liability that should be reported on Windsor's balance sheet at December 31, 2017? Exercise 20-1 The following information is available for the pension plan of Marigold Company for the year 2017. Actual and expected $ 16,300 return on plan assets Benefits paid to 38,400 retirees Contributions 94,400 (funding) Interest/discount rate Prior service cost

11% 8,800


amortization Projected benefit obligation, January 1, 2017 Service cost

510,000 63,300

Exercise 20-12 Shamrock Company received the following selected information from its pension plan trustee concerning the operation of the company’s defined benefit pension plan for the year ended December 31, 2017. January 1, December 2017 31, 2017 Projected benefit $1,499,000 $1,527,000 obligation Market-related and fair value of 802,000 1,127,200 plan assets Accumulated benefit 1,622,000 1,742,500 obligation Accumulated OCI (G/L)— 0 (199,900) Net gain The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 and the amortization of prior service cost was $120,500. The company’s actual funding (contributions) of the plan in 2017 amounted to $245,000. The expected return on plan assets and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive income (PSC) had a balance of $1,205,000 on January 1, 2017. Assume no benefits paid in 2017.


CPA Question 03 Your answer has been saved and sent for grading. See Gradebook for score details. During 2017, Orca Corp. decided to change from the FIFO method of inventory valuation to the weighted-average method. Inventory balances under each method were as follows: FIFO Weighted-average January 1, 2017 $71,000 December 31, 2017 $79,000

$77,000 $83,000

Orca's income tax rate is 30%. In its 2017 financial statements, what amount should Orca report as the cumulative effect of this accounting change? Exercise 22-18 Pina Tool Company’s December 31 year-end financial statements contained the following errors. December 31, 2017 December 31, 2018 Ending inventory

$10,500 understated $7,400 overstated

Depreciation expense $2,100 understated

—

An insurance premium of $70,200 was prepaid in 2017 covering the years 2017, 2018, and 2019. The entire amount was charged to expense in 2017. In addition, on December 31, 2018, fully depreciated machinery was sold for $13,500 cash, but the entry was not recorded until 2019. There were no other errors during 2017 or 2018, and no corrections have been made for any of the errors. (Ignore income tax considerations.)


Exercise 22-19 A partial trial balance of Bramble Corporation is as follows on December 31, 2018. Dr. Supplies

$2,600

Salaries and wages payable

$1,500

Interest Receivable

4,600

Prepaid Insurance

86,200

Unearned Rent Interest Payable

Cr.

0 14,100

Additional adjusting data: A physical count of supplies on hand on December 31, 2018, totaled 1. $1,100. Through oversight, the Salaries and Wages Payable account was not 2. changed during 2018. Accrued salaries and wages on December 31, 2018, amounted to $4,700. The Interest Receivable account was also left unchanged during 2018. 3. Accrued interest on investments amounts to $3,700 on December 31, 2018. The unexpired portions of the insurance policies totaled $68,300 as of 4. December 31, 2018. $26,500 was received on January 1, 2018, for the rent of a building 5. for both 2018 and 2019. The entire amount was credited to rent revenue. Depreciation on equipment for the year was erroneously recorded as 6. $5,200 rather than the correct figure of $52,000. A further review of depreciation calculations of prior years revealed 7. that equipment depreciation of $7,500 was not recorded. It was decided that this oversight should be corrected by a prior period


adjustment.

Exercise 22-5 Presented below are income statements prepared on a LIFO and FIFO basis for Novak Company, which started operations on January 1, 2016. The company presently uses the LIFO method of pricing its inventory and has decided to switch to the FIFO method in 2017. The FIFO income statement is computed in accordance with the requirements of GAAP. Novak’s profit-sharing agreement with its employees indicates that the company will pay employees 10% of income before profitsharing. Income taxes are ignored. Question 18 In January 2017, installation costs of $5,800 on new machinery were charged to Maintenance and Repairs Expense. Other costs of this machinery of $29,000 were correctly recorded and have been depreciated using the straight-line method with an estimated life of 10 years and no salvage value. At December 31, 2018, it is decided that the machinery has a remaining useful life of 20 years, starting with January 1, 2018. What entries should be made in 2018 to correctly record transactions related to machinery, assuming the machinery has no salvage value? The books have not been closed for 2018 and depreciation expense has not yet been recorded for 2018. ==============================================

ACC 423 Week 1 Coca-Cola and PepsiCo Presentation

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www.newtonhelp.com Create a 10- to 12-slide presentation that addresses each question within the Comparative Analysis Case, pp. 824-825. Click the Assignment Files tab to submit your assignment.

The Coca-Cola Company and PepsiCo, Inc. The financial statements of Coca-Cola and PepsiCo are presented in Appendices C and D, respectively. The companies' complete annual reports, including the notes to the financial statements, are available online. Instructions Use the companies' financial information to answer the following questions. (a) What is the par or stated value of Coca-Cola's and PepsiCo's common or capital stock? (b) What percentage of authorized shares was issued by Coca-Cola at December 31, 2014, and by PepsiCo at December 31, 2014? (c) How many shares are held as treasury stock by Coca-Cola at December 31, 2014, and by PepsiCo at December 31, 2014? (d) How many Coca-Cola common shares are outstanding at December 31, 2014? How many PepsiCo shares of capital stock are outstanding at December 31, 2014? (e) What amounts of cash dividends per share were declared by CocaCola and PepsiCo in 2014? What were the dollar amount effects of the cash dividends on each company's stockholders' equity? (f) What are Coca-Cola's and PepsiCo's return on common/capital stockholders' equity for 2014 and 2013? Which company gets the higher return on the equity of its shareholders?


(g) What are Coca-Cola's and PepsiCo's payout ratios for 2014? (h)What was the market price range (high/low) for Coca-Cola's common stock and PepsiCo's capital stock during the fourth quarter of 2014? Which company's (Coca-Cola's or PepsiCo's) stock price increased more (%) during 2014?

==============================================

ACC 423 Week 1 Wileyplus With Excel File New Syllabus

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• Brief Exercise 15-9 • Brief Exercise 15-12 • Exercise 15-6 • Exercise 15-7 • Exercise 15-10 • Exercise 15-12


• Exercise 15-17 • Exercise 15-21 • Brief Exercise 16-11 • Exercise 16-4 • Exercise 16-10 • Exercise 16-14 • Exercise 16-18 • Exercise 16-24

Brief Exercise 15-9 Oriole Corporation has outstanding 22,000 shares of $5 par value common stock. On August 1, 2017, Oriole reacquired 190 shares at $82 per share. On November 1, Oriole reissued the 190 shares at $71 per share. Oriole had no previous treasury stock transactions.

Prepare Oriole’s journal entries to record these transactions using the cost method.

Brief Exercise 15-12 Swifty Mining Company declared, on April 20, a dividend of $442,000 payable on June 1. Of this amount, $108,000 is a return of capital.


Prepare the April 20 and June 1 entries for Swifty. Ex 15-10

Exercise 15-6 Whispering Corporation is authorized to issue 49,000 shares of $5 par value common stock. During 2017, Whispering took part in the following selected transactions. 1. Issued 4,900 shares of stock at $42 per share, less costs related to the issuance of the stock totaling $7,400. 2. Issued 1,200 shares of stock for land appraised at $49,000. The stock was actively traded on a national stock exchange at approximately $43 per share on the date of issuance. 3. Purchased 520 shares of treasury stock at $42 per share. The treasury shares purchased were issued in 2013 at $39 per share.

(a) Prepare the journal entry to record item 1. (b) Prepare the journal entry to record item 2. (c) Prepare the journal entry to record item 3 using the cost method.

Exercise 15-7


Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30 per share. Joe Dumars then entered into the following transactions. 1. Purchased 5,000 treasury shares at $45 per share. 2. Resold 2,000 of the treasury shares at $49 per share. 3. Resold 500 of the treasury shares at $40 per share. ==============================================

ACC 423 Week 2 Signature Assignment Codification Research Paper (2 Papers)

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What is a Signature Assignment? A signature assignment is designed to align with specific program student learning outcome(s) for a program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature


assignments are graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements. Resource: FASB Codification Link. Write a 700- to 1,050-word paper. Your client, Cascade Company, is planning to invest some of its excess cash in 5-year revenue bonds issued by the county and in the stock of one of its suppliers, Teton Co. Teton's shares trade on the over-thecounter market. The company would like you to conduct some research on the accounting for these investments. Instructions: Access the FASB Codification. Once you login using the username and password provided from the link above "login instructions" click on Education (from the menu across the top) > select FASB & GARS > click on FASB User Login and use the same credentials given for the initial login page. That will get you to the FASB Accounting Standards Codification (professional view) page. Review the log-in instructions. Provide Codification references for your responses below. Incorporate your review of the FASB link to determine when the fair value of a security "readily determinable". Since the Teton shares do not trade on one of the large stock markets, Cascade argues that the fair value of this investment is not readily available. Describe how an impairment of a security is accounted for.


Determine how close to maturity Cascade could sell an investment and still classify it as held-to-maturity. To avoid volatility in their financial statements due to fair value adjustments, Cascade debated whether the bond investment could be classified as held-to-maturity; Cascade is pretty sure it will hold the bonds for five years. List disclosures that must be made for any sale or transfer from securities classified as held-to-maturity. Format your paper consistent with APA standards. Submit your assignment to the Assignment Files tab.

Assignment Deliverables Summary:

1. How can the shares investment in Teton Inc. fair value be determined according to GAAP, provide FASB codification reference? 2. How should the bond investment in a County Government be classified if Cascade Company does not plan to hold the bond to its maturity? can the management change its intention in later years? 3. Under what condition and factors for an equity investment to be considered as "impaired", provide FASB codification reference? 4. What are the disclosure requirements for reclassification of sale or transfer of security from one category to another?

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ACC 423 Week 2 Wiley PLUS Assignment (New Syllabus/With Excel File)

For more course tutorials visit uophelp.com is now newtonhelp.com www.newtonhelp.com This Tutorial contains Excel File which can be used to solve for any change in values

Complete the following in WileyPLUS: • Brief Exercise 116 • Exercise 121 • Exercise 122 • Exercise 123 • Brief Exercise 17-2 • Brief Exercise 17-5 • Brief Exercise 17-7 • Brief Exercise 17-11 • Brief Exercise 17-13


• Exercise 17-3 • Exercise 17-9 • Exercise 17-12 • Exercise 17-18 • Exercise 17-27

Brief Exercise 116 On April 1, 2018, West Company purchased $472,000 of 6.50% bonds for $490,630 plus accrued interest as an available-for-sale security. Interest is paid on July 1 and January 1 and the bonds mature on July 1, 2023. Prepare the journal entry on April 1, 2018. The bonds are sold on November 1, 2019 at 103 plus accrued interest. Amortization was recorded when interest was received by the straightline method. Prepare all entries required to properly record the sale

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ACC 423 Week 3 Team Assignment (CA 15-2, CA 15-6, CA 16-2, CA 16-4, CA 17-6)

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uophelp.com is now newtonhelp.com www.newtonhelp.com Complete the following for this assignment as a team: • Concepts for Analysis 15-2, p. 823 • Concepts for Analysis 15-6, p. 824 • Concepts for Analysis 16-2, p. 885 • Concepts for Analysis 16-4, p. 886 • Concepts for Analysis 17-6, p. 963 Compile all team members' input. Click the Assignment Files tab to submit your assignment.

How are the tax benefits of net operating losses (NOL) disclosed on financial statements? Which is more beneficial to the organization, an NOL carryforward or NOL carryback? Why. When would a company decide to forego on carryback? ==============================================

ACC 423 Week 3 WileyPLUS Assignment (With Excel Sheet)

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Complete the following in WileyPLUS: Brief Exercise 19-2 Brief Exercise 19-6 Brief Exercise 19-11 Brief Exercise 19-14 Exercise 19-6 Exercise 19-8 Exercise 19-17 Exercise 19-20 Exercise 19-24 Brief Exercise 19-2

Pina Corporation began operations in 2017 and reported pretax financial income of $228,000 for the year. Pina’s tax depreciation exceeded its book depreciation by $38,000. Pina’s tax rate for 2017 and years thereafter is 30%. In its December 31, 2017, balance sheet, what amount of deferred tax liability should be reported?


Brief Exercise 19-6

At December 31, 2017, Sandhill Inc. had a deferred tax asset of $30,200. At December 31, 2018, the deferred tax asset is $57,200. The corporation’s 2018 current tax expense is $59,100.

What amount should Sandhill report as total 2018 income tax expense? Brief Exercise 19-11

At December 31, 2017, Sarasota Corporation had a deferred tax liability of $746,200, resulting from future taxable amounts of $1,820,000 and an enacted tax rate of 41%. In May 2018, a new income tax act is signed into law that raises the tax rate to 46% for 2018 and future years.

Prepare the journal entry for Sarasota to adjust the deferred tax liability. Brief Exercise 19-14

Bridgeport Inc. incurred a net operating loss of $483,000 in 2017. Combined income for 2015 and 2016 was $324,000. The tax rate for all years is 30%. Bridgeport elects the carryback option. Assume that it is more likely than not that the entire net operating loss carryforward will not be realized in future years.

Prepare all the journal entries necessary at the end of 2017.


Exericse 19-6

Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes.

For each item below, indicate whether it involves:

(1) A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset.

(2) A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability.

(3)

A permanent difference.


Exercise 19-8 (Part Level Submission)

Cheyenne Company has the following two temporary differences between its income tax expense and income taxes payable. Assuming there were no temporary differences prior to 2017, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019.

Indicate how deferred taxes will be reported on the 2019 balance sheet. Cheyenne’s product warranty is for 12 months

Exercise 19-17

Novak Co. establishes a $126,000,000 liability at the end of 2017 for the estimated site-cleanup costs at two of its manufacturing facilities. All related closing costs will be paid and deducted on the tax return in 2018. Also, at the end of 2017, the company has $63,000,000 of temporary differences due to excess depreciation for tax purposes, $8,820,000 of which will reverse in 2018.


The enacted tax rate for all years is 40%, and the company pays taxes of $80,640,000 on $201,600,000 of taxable income in 2017. Novak expects to have taxable income in 2018.

Exercise 19-20 (Part Level Submission)

The differences between the book basis and tax basis of the assets and liabilities of Crane Corporation at the end of 2016 are presented below.

Book Basis

Tax Basis Accounts receivable

$45,600

$0 Litigation liability

29,600

0


It is estimated that the litigation liability will be settled in 2017. The difference in accounts receivable will result in taxable amounts of $32,200 in 2017 and $13,400 in 2018. The company has taxable income of $325,000 in 2016 and is expected to have taxable income in each of the following 2 years. Its enacted tax rate is 34% for all years. This is the company’s first year of operations. The operating cycle of the business is 2 years.

Exercise 19-24 (Part Level Submission)

Bramble Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.)

a) Prepare the journal entries for years 2015–2018 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that onehalf of the benefits of the loss carryforward will not be realized. Prepare the income tax section of the 2017 income statement beginning with the line ―Operating loss before income taxes.‖


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ACC 423 Week 4 Team Assignment (CA 19-3, CA 19-7, Ch 19 Comparative Analysis Case)

For more course tutorials visit uophelp.com is now newtonhelp.com www.newtonhelp.com Complete the following for this assignment as a team: • Concepts for Analysis 19-3, p. 1106 • Concepts for Analysis 19-7, p. 1107 • Ch. 19: Comparative Analysis Case, p.1108 Compile all team members' input. Click the Assignment Files tab to submit your assignment.

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ACC 423 Week 4 WileyPLUS Assignment (New Syllabus/ With Excel File)


For more course tutorials visit uophelp.com is now newtonhelp.com www.newtonhelp.com This Tutorial contains Excel Sheet, which can be used for any change in values Complete the following in WileyPLUS: • Question 16 • Brief Exercise 20-1 • Brief Exercise 20-5 • Brief Exercise 20-6 • Brief Exercise 20-8 • Brief Exercise 20-10 • Brief Exercise 20-11 • Exercise 20-3 • Exercise 20-11 • Exercise 20-19 • Exercise 20-21 • Exercise 20-23 Question 16 Given the following items and amounts, compute the actual return on plan assets: fair value of plan assets at the beginning of the period


$9,480,000; benefits paid during the period $1,500,000; contributions made during the period $910,000; and fair value of the plan assets at the end of the period $10,110,000.

Brief Exercise 20-1 AMR Corporation (parent company of American Airlines) reported the following (in millions). Service cost $366 Interest on P.B.O. 737 Return on plan assets 593 Amortization of prior service cost 13 Amortization of net loss 154

Brief Exercise 20-5 Bonita Corporation amended its pension plan on January 1, 2017, and granted $153,180 of prior service costs to its employees. The employees are expected to provide 2,070 service years in the future, with 380 service years in 2017.

Compute prior service cost amortization for 2017.


Brief Exercise 20-6 At December 31, 2017, Buffalo Corporation had a projected benefit obligation of $596,500, plan assets of $301,800, and prior service cost of $128,900 in accumulated other comprehensive income.

Determine the pension asset/liability at December 31, 2017. (Enter liability using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Brief Exercise 20-8 Flounder Corporation has the following balances at December 31, 2017. Projected benefit obligation $2,543,000 Plan assets at fair value 1,984,000 Accumulated OCI (PSC) 1,163,000

What is the amount for pension liability that should be reported on Flounder's balance sheet at December 31, 2017? Pension liability balance at December 31, 2017

Brief Exercise 20-10 Larkspur Corp. has three defined benefit pension plans as follows. Pension Assets


(at Fair Value) Projected Benefit Obligation Plan X $604,000 $498,000 Plan Y 984,000 665,000 Plan Z 517,000 694,000

How will Larkspur report these multiple plans in its financial statements?

Exercise 20-3 (Part Level Submission) Waterway Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $91,200 Contribution to the plan 104,700 Prior service cost amortization 9,800 Actual and expected return on plan assets 62,800 Benefits paid 40,500 Plan assets at January 1, 2017 632,600 Projected benefit obligation at January 1, 2017 686,700 Accumulated OCI (PSC) at January 1, 2017 152,100 Interest/discount (settlement) rate 9 %


Exercise 20-11 (Part Level Submission) Skysong Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $55,500. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $136,360 for 2017. 3. As of January 1, 2017, the company had a projected benefit obligation of $894,500, an accumulated benefit obligation of $806,900, and a debit balance of $396,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $600,000 at the beginning of the year. The actual and expected return on plan assets was $53,500. The settlement rate was 8%. No gains or losses occurred in 2017 and no benefits were paid. 4. Amortization of prior service cost was $49,800 in 2017. Amortization of net gain or loss was not required in 2017.

Exercise 20-19 Marin Co. provides the following information about its postretirement benefit plan for the year 2017.


Service cost $ 42,100 Contribution to the plan 10,500 Actual and expected return on plan assets 10,700 Benefits paid 20,800 Plan assets at January 1, 2017 108,400 Accumulated postretirement benefit obligation at January 1, 2017 330,400 Discount rate 10 %

Compute the postretirement benefit expense for 2017.

Exercise 20-21 Pina Inc. provides the following information related to its postretirement benefits for the year 2017. Accumulated postretirement benefit obligation at January 1, 2017 $728,700 Actual and expected return on plan assets 36,800 Prior service cost amortization 21,300 Discount rate 10 % Service cost 76,300

Compute postretirement benefit expense for 2017.


Exercise 20-23 Sunland Co. provides the following information about its postretirement benefit plan for the year 2017. Service cost $81,300 Prior service cost amortization 2,800 Contribution to the plan 55,700 Actual and expected return on plan assets 68,100 Benefits paid 43,800 Plan assets at January 1, 2017 703,800 Accumulated postretirement benefit obligation at January 1, 2017 747,500 Accumulated OCI (PSC) at January 1, 2017 92,800 Dr. Discount rate 10 %

Prepare a worksheet inserting January 1, 2017, balances, showing December 31, 2017, balances, and the journal entry recording postretirement benefit expense. (Enter all amounts as positive.)

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ACC 423 Week 5 Team Assignment (CA 20-5, CA 20-7, CA 22-1, CA 22-6)

For more course tutorials visit uophelp.com is now newtonhelp.com www.newtonhelp.com Complete the following for this assignment as a team: • Concepts for Analysis 20-5, p. 1176 • Concepts for Analysis 20-7, p. 1177 • Concepts for Analysis 22-1, p. 1329 • Concepts for Analysis 22-6, p. 1329 Compile all team members' input. Click the Assignment Files tab to submit your assignment. ==============================================

ACC 423 Week 5 WileyPLUS Assignment (With Excel File, 100% Score )

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uophelp.com is now newtonhelp.com www.newtonhelp.com Complete the following in WileyPLUS: Brief Exercise 22-1 Brief Exercise 22-4 Brief Exercise 22-7 Brief Exercise 22-8 Exercise 22-2 Exercise 22-5 Exercise 22-10 Exercise 22-11 Exercise 22-16 Exercise 22-17 Exercise 22-20 Exercise 22-22

Brief Exercise 22-1 At the beginning of 2017, Sage Construction Company changed from the completed-contract method to recognizing revenue over time (percentage-of-completion) for financial reporting purposes. The company will continue to use the completed-contract method for tax


purposes. For years prior to 2017, pretax income under the two methods was as follows: percentage-of-completion $114,600, and completedcontract $84,000. The tax rate is 40%.

Prepare Sage’s 2017 journal entry to record the change in accounting principle.

Brief Exercise 22-4 Culver Company changed depreciation methods in 2017 from doubledeclining-balance to straight-line. Depreciation prior to 2017 under double-declining-balance was $87,900, whereas straight-line depreciation prior to 2017 would have been $54,900. Culver’s depreciable assets had a cost of $241,300 with a $43,800 salvage value, and an 8-year remaining useful life at the beginning of 2017.

Prepare the 2017 journal entry related to Culver’s depreciable assets (Equipment

Brief Exercise 22-7 At January 1, 2017, Coronado Company reported retained earnings of $1,970,000. In 2017, Coronado discovered that 2016 depreciation expense was understated by $436,000. In 2017, net income was $878,000 and dividends declared were $243,000. The tax rate is 40%.

Prepare a 2017 retained earnings statement for Coronado Company.


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ACC 423 Experience Tradition/newtonhelp.com  

For more course tutorials visit uophelp.com is now newtonhelp.com www.newtonhelp.com This Tutorial contains Excel File which can be used for...

ACC 423 Experience Tradition/newtonhelp.com  

For more course tutorials visit uophelp.com is now newtonhelp.com www.newtonhelp.com This Tutorial contains Excel File which can be used for...

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