“On July 1st, 2010 Peterson Company purchased a bond with a face
value of $300,000. The bond has a coupon rate of 8% and the market rate is 12%
and interest is paid semi-annually. The bond will mature in 4 years.
a. Record
the purchase of the bond assuming the bond is an available for sale investment
on June 1, 2010.
b. Assuming
the effective interest rate method, record receipt of the interest received and
revenue on Jan 1st, 2011.
c. Record
the adjustment needed at 12/31/11 if the fair value of the bond is $285,000.

Agee Corp.
acquired a 30% interest in Trent Co. on January 1, 2013, for $500,000. At that
time, Trent had 1,000,000 shares of its $1 par common stock issued and
outstanding. During 2013, Trent paid cash dividends of $160,000. Trent’s net
income for 2013 was $360,000.
a.
Record the
purchase of the 30% interest assuming Agee can exert significant influence.
b. Record the share of net income and dividends Agee is
entitled to, if any.

Gomez, Inc. began work in 2012 on contract #3814, which
provided for a contract price of $9,600,000. Other details follow:
2012 2013
Costs incurred during the year $1,600,000 $4,900,000
Estimated costs to complete as of 12/31 4,800,000 0
Billings during the year 1,800,000 7,200,000
Collections during the year 1,200,000 5,850,000

a. Assuming the percentage of completion method, record the
journal entry to reflect the costs incurred during the year, billings and
collections for 2012 and the amount of revenue recognized for 2012.
b. Assuming the percentage of completion method, record the
journal entry to reflect the costs incurred during the year, billings and
collections for 2012 and the amount of revenue recognized for 2013.
c. Assuming the completed contract method record the
journal entry to recognize the contract and its profit in 2013.

Company has the
following information:
2009 $150,000 profit
2010 $80,000 profit
2011 ($200,000) profit
2012 ($100,000) loss
2013 $75,000 income
2014 $120,000 profit

During
2009 through 2011 the tax rate was 40%, for 2012 it was 42% and 2013 and 2014
it was 45%.

a.
Assuming the company chooses to
carryback the NOL of 2011 for 2 years, record the journal entry for the refund
the company would receive for 2009 and 2010 and any loss carried forward.
b.
In 2012 the company chose to carry
forward the loss. Record the amount of the DTA carried forward.
c.
Record the journal entry for the amount
of loss carry forward used in 2013 to offset income tax expense.
d.
Record the journal entry for the income
tax expense owed in 2014.

On July 1st,
2010Peterson Company purchased a bond with a face
value of $300,000. The bond has a coupon rate of 8% and the market rate is 12%
and interest is paid semi-annually. The bond will mature in 4 years. a. Record
the purchase of the bond assuming the bond is an available for sale investment
on June 1, 2010.b. Assuming
the effective interest rate method, record receipt of the interest received and
revenue on Jan 1st, 2011.c. Record
the adjustment needed at 12/31/11 if the fair value of the bond is $285,000. Agee Corp.
acquired a 30% interest in Trent Co. on January 1, 2013, for $500,000. At that
time, Trent had 1,000,000 shares of its $1 par common stock issued and
outstanding. During 2013, Trent paid cash dividends of $160,000. Trent’s net
income for 2013 was $360,000. a.
Record the
purchase of the 30% interest assuming Agee can exert significant influence.b. Record the share of net income and dividends Agee is
entitled to, if any.Gomez, Inc. began work in 2012 on contract #3814, which
provided for a contract price of $9,600,000. Other details follow: 2012 2013 Costs incurred during the year $1,600,000 $4,900,000Estimated costs to complete as of 12/31 4,800,000 0Billings during the year 1,800,000 7,200,000Collections during the year 1,200,000 5,850,000a. Assuming the percentage of completion method, record the
journal entry to reflect the costs incurred during the year, billings and
collections for 2012 and the amount of revenue recognized for 2012.b. Assuming the percentage of completion method, record the
journal entry to reflect the costs incurred during the year, billings and
collections for 2012 and the amount of revenue recognized for 2013.c. Assuming the completed contract method record the
journal entry to recognize the contract and its profit in 2013.Company has the
following information: 2009 $150,000 profit2010 $80,000 profit2011 ($200,000) profit 2012 ($100,000) loss2013 $75,000 income2014 $120,000 profitDuring
2009 through 2011 the tax rate was 40%, for 2012 it was 42% and 2013 and 2014
it was 45%.a.
Assuming the company chooses to
carryback the NOL of 2011 for 2 years, record the journal entry for the refund
the company would receive for 2009 and 2010 and any loss carried forward.b.
In 2012 the company chose to carry
forward the loss. Record the amount of the DTA carried forward. c.
Record the journal entry for the amount
of loss carry forward used in 2013 to offset income tax expense. d.
Record the journal entry for the income
tax expense owed in 2014.”