We at Accounting Assignments Help provide Advance Accounting Homework Problems Help with step by step calculation and explanation 24*7 from our accounting experts.
Problem-1
BuyCo holds 25 percent of the outstanding shares of Marqueen and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $10,000 per year. For 2014, Marqueen reported earnings of $100,000 and declares cash dividends of $30,000. During that year, Marqueen acquired inventory for $50,000, which it then sold to BuyCo for $80,000. At the end of 2014, BuyCo continued to hold merchandise with a transfer price of $32,000.
- What Equity in Investee Income should BuyCo report for 2014?
- How will the intra-entity transfer affect BuyCo’s reporting in 2015?
- If BuyCo had sold the inventory to Marqueen, how would the answers to (a ) and (b ) have changed?
Problem-2
A company’s January 1, 2014 balance sheet reported total assets of $120,000 and total liabilities of $40,000. During January 2014, the following transactions occurred: (A) the company issued stock and collected cash totaling $30,000; (B) the company paid an account payable of $6,000; (C) the company purchased supplies for $1,000 with cash; (D) the company purchased land for $60,000 paying $10,000 with cash and signing a note payable for the balance. What is total stockholders’ equity after the transactions above?
Problem-3
Superior has provided the following information for its recent year of operation:
- The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000.
- The additional paid-in capital account balance increased $2,500 during the year.
- The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $91,000.
- Net income was $26,000.
How much did Superior sell its common stock for during the year?
Problem-4
Suppose the following information (in thousands of dollars) is available for Coronado Industries—famous for ketchup and other fine food products—for the year ended April 30, 2017.
Prepaid insurance $ 115,000 Buildings $4,074,100
Land 76,300 Cash 379,700
Goodwill 3,931,500 Accounts receivable 1,162,500
Trademarks 780,900 Accumulated depreciation—buildings 2,176,100
Inventory 1,220,700
Prepare the assets section of a classified balance sheet. (List current assets in order of liquidity.)
Problem-5
BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $118,500 paid to its employee, and FICA Medicare taxes are 1.45% of gross pay. For BMX, its FUTA taxes are 0.6% and SUTA taxes are 2.9% of the first $7,000 paid to its employee.
| Gross Pay through
August |
Gross Pay for
September |
|
| a. | $6,700 | $400 |
| b. | $18,500 | $2,400 |
| c. | $112,500 | $8,300 |
Problem-6
Compute the times interest earned for Park Company, which reports income before interest expense and income taxes of $3,610,000 and interest expense of $190,000.
Problem-7
Lenny Florita, an unmarried employee, works 50 hours in the week ended January 12. His pay rate is $11 per hour, and his wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. He claims three withholding allowances. Compute his regular pay, overtime pay (for this company, workers earn 150% of their regular rate for hours in excess of 40 per week), and gross pay. Then compute his FICA tax deduction (use 6.2% for the Social Security portion and 1.45% for the Medicare portion), income tax deduction (use the wage bracket withholding table from Exhibit 11A.6.), total deductions, and net pay. (Round your intermediate calculations and final answers to 2 decimal places.)
Problem-8
Keesha Co. borrows $255,000 cash on November 1, 2017, by signing a 120-day, 11% note with a face value of $255,000.
- On what date does this note mature? (Assume that February has 28 days)
- What is the amount of interest expense in 2017 and 2018 from this note? (Use 360 days a year. Round final answers to the nearest whole dollar.)
- Prepare journal entries to record (a) issuance of the note, (b) accrual of interest at the end of 2017, and (c) payment of the note at maturity. (Assume no reversing entries are made.) (Use 360 days a year. Do not round intermediate calculations.)