Intermediate Accounting Homework Question

Intermediate Accounting Homework Question

Intermediate Accounting – Homework

(Due on Monday 3pm NY)

1. Zekany Corporation

2. Sachs Brands’ defined benefit

3. During its first year of operations, the McCollum

1. Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2013 through 2016 except for differences in depreciation on an operational asset. The asset cost $250,000 and is depreciated for income tax purposes in the following amounts:

2013

$

82,500

2014

110,000

2015

37,500

2016

20,000

The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes.

Income amounts before depreciation expense and income taxes for each of the four years were as follows.

2013

2014

2015

2016

Accounting income before taxes and depreciation

$ 135,000

$155,000

$145,000

$145,000

Assume the average and marginal income tax rate for 2013 and 2014 was 30%; however, during 2014 tax legislation was passed to raise the tax rate to 40% beginning in 2015. The 40% rate remained in effect through the years 2015 and 2016. Both the accounting and income tax periods end December 31.

Required:

Prepare the journal entries to record income taxes for the years 2013 through 2016. (If no entry is required for a particular transaction, select “No journal entry required” in the first account field.)

2. Sachs Brands’ defined benefit pension plan specifies annual retirement benefits equal to: 1.3% × service years × final year’s salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 1999 and is expected to retire at the end of 2033 after 35 years’ service. Her retirement is expected to span 18 years. Davenport’s salary is $87,000 at the end of 2013 and the company’s actuary projects her salary to be $265,000 at retirement. The actuary’s discount rate is 9%. (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:

2. Estimate by the accumulated benefits approach the amount of Davenport’s annual retirement payments earned as of the end of 2013.

3. What is the company’s accumulated benefit obligation at the end of 2013 with respect to Davenport?

4. If no estimates are changed in the meantime, what will be the accumulated benefit obligation at the end of 2016 (three years later) when Davenport’s salary is $100,000?

3.

PART A

During its first year of operations, the McCollum Corporation entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 130 million common shares, $1 par per share.

Required:

Prepare the appropriate journal entries to record each transaction. (If no entry is required for a particular transaction, select “No journal entry required” in the first account field. Enter your answers in whole dollars.)

Jan. 9 Issued 30 million common shares for $14 per share.

Mar. 11 Issued 4,200 shares in exchange for custom-made equipment. McCollum’s shares have traded recently on the stock exchange at $14 per share.

Transaction list

Record the entry of related to the issued common stock.

Record the entry of related to the issued equipment.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Open chat
1
You can contact our live agent via WhatsApp! Via + 1 929 473-0077

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 20% with the discount code GURUH