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1. R. Wayne Computer Consultants, Corp. develops and installs integrated computer systems and networks for large utilities. On January 2, 2022, the company signed a

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1. R. Wayne Computer Consultants, Corp. develops and installs integrated computer systems and networks for large utilities. On January 2, 2022, the company signed a contract to deliver an electricity deployment system for a grid covering three New England States. The contract paid R. Wayne is a fixed fee of $18,000,000. Wayne Computer Consultants uses the percentage-of-completion method (cost-to-cost approach) to report its long-term contracts. Other relevant information related to the contract is presented in the following table. Required: a) Compute the gross profit and revenue to be recognized each year of the contract. b) Prepare the journal entries required for each year of the contract. c) Prepare the t-accounts for construction in progress (CIP), billings on construction in progress, and accounts receivable. d) Determine the net asset (liability) for each year of the contract on December 31 ( 30 points) 3. Total Color, Inc. manufactures and distributes house paints. Total Color uses the dollarvalue LIFO method. Information for 2022, 2023, and 2024 is presented in the following table: a) Compute the company's ending inventory using dollar-value LIFO each year. Round to the nearest dollar. b) Prepare the journal entry required to adjust the LIFO reserve for each year (2023 and 2024). ( 25 points) 4. Acheson Corporation's fiscal year ends on December 31. Acheson determines inventory quantity by a physical count of inventory on hand at the close of business on December 31. The company's controller has asked for your help in deciding if the following items should be included in the year-end inventory count. a) Goods purchased from a vendor shipped f.o.b. shipping point on December 24 that arrived on January 4. b) Goods shipped f.o.b. shipping point on December 27 arrived at the customer's location on January 4. c) Goods purchased from a vendor shipped f.o.b. destination on December 27 that arrived on January 5. d) Freight charges on goods purchased in item 1. e) Inventory held on consignment for Masterwear, Incorporated. f) Goods shipped f.o.b. destination on December 29 that arrived at the customer's location on January 2 . Required: Determine if each of the six items above should be included or excluded from the company's year-end inventory (10 points). Bonus question: Nextech Corporation issued $800,000 bonds with a 6% coupon rate on January 1. 2023. The bonds will be paid in 10 years. Interest is payable semiannually each June 30 and December 31 with the first interest payment at the end of the period on June 30,2023 . If the market rate of interest is 8%, what is the amount of the bond issue proceeds? Is this a premium or discount bond? (10 points)

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