Brief Exercise 17-9

The following information relates to Pearl Co. for the year ended December 31, 2017: net income 1,155 million; unrealized holding loss of $11.8 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $57.7 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.

A)Other comprehensive income(loss) for 2017 $ million

B) Comprehensive income for 2017 $ million

C) Accumulated other comprehensive income $ million

Brief Exercise 17-13

Presented below are two independent cases related to available-for-sale debt investments.

Case 1

Amortized cost $37,230.00

Fair value $26,680.00

Expected credit losses $21,640.00

Case 2

Amortized cost $91,300.00

Fair value $10,035.00

Expected credit losses $82,740.00

Case 1 Impairment Loss $

Case 2 Impairment Loss $

Question 8

Skysong financial income for Lake Inc. is $250,000, and its taxable income is $80,000 for 2018. Its only temporary difference at the end of the period relates to a $50,000 difference due to excess depreciation for tax purposes. If the tax rate is 38% 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.

Income Tax expense $

Exercise 20-12

Bridgeport 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.

1-Jan-17 31-Dec-17 Projected benefit obligation $1,497,000 $1,525,000 Market-related and fair value of plan assets 806,000 1,139,600 Accumulated benefit obligation 1,573,000 1,693,800 Accumulated OCI (G/L)?Net gain 0 (199,700 ) 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 $120,800. The company's actual funding (contributions) of the plan in 2017 amounted to $253,000. 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 $1,208,000 on January 1, 2017. Assume no benefits paid in 2017. Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Components of Pension Expense

$

Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit

Exercise 22-18

Kingbird Tool Company's December 31 year-end financial statements contained the following errors.

December 31, 2017

December 31, 2018

Ending inventory$9,000 understated$8,000 overstated

Depreciation expense$2,300 understated?

An insurance premium of $69,600 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 $15,900 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.) (Enter negative amounts using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)

(a) Compute the total effect of the errors on 2018 net income. Total effect of errors on net income$ (b) Compute the total effect of the errors on the amount of Kingbird's working capital at December 31, 2018. Total effect on working capital$ (c) Compute the total effect of the errors on the balance of Kingbird's retained earnings at December 31, 2018. Total effect on retained earnings$

(To record pension expense and employer's contribution)

Brief Exercise 17-9 The following information relates to Pearl Co. for the year ended December 31, 2017: net income 1,155 million; unrealized related to available-for-sale debt securities during the year; accumulated other comprehensive income of $57.7 million on no other changes in accumulated other comprehensive income. Determine (a) other comprehensive income for 2017, (b) comprehensive income for 2017, and (c) accumulated other comp 31, 2017. (Enter answers in millions to 1 decimal place, e.g. 25.5. Enter loss using either a negative sign preceding the num e.g. (45.2).) A) Other comprehensive income(loss) for 2017 B) Comprehensive income for 2017 C) Accumulated other comprehensive income $ $ $ million million million : net income 1,155 million; unrealized holding loss of $11.8 million rehensive income of $57.7 million on December 31, 2016. Assuming 2017, and (c) accumulated other comprehensive income at December her a negative sign preceding the number e.g. -45.2 or parentheses Brief Exercise 17-13 Presented below are two independent cases related to available-for-sale debt investments. Amortized cost Fair value Expected credit losses Case 1 Impairment Loss Case 2 Impairment Loss Case 1 $ 37,230.00 $ 26,680.00 $ 21,640.00 Case 2 $ 91,300.00 $ 10,035.00 $ 82,740.00 Question 8 Skysong financial income for Lake Inc. is $250,000, and its taxable income is $80,000 for 2018. Its only temporary difference at the end of the period relates to a $50,000 difference due to excess depreciation for tax purposes. If the tax rate is 38% fo all periods, compute the amount of income tax expense to report in 2018. No deferred income taxes existed at the beginning of the year. Income Tax expense $ 18. Its only temporary difference urposes. If the tax rate is 38% for me taxes existed at the Exercise 20-12 Bridgeport Company received the following selected information from its pension plan trustee concerning the operation of benefit pension plan for the year ended December 31, 2017. 1-Jan-17 Projected benefit obligation 31-Dec-17 $1,497,000 $1,525,000 Market-related and fair value of plan assets 806,000 1,139,600 Accumulated benefit obligation 1,573,000 1,693,800 Accumulated OCI (G/L)Net gain 0 (199,700 ) The service cost component of pension expense for employee services rendered in the current year amounted to $78,000 service cost was $120,800. The company's actual funding (contributions) of the plan in 2017 amounted to $253,000. The e and the actual rate were both 10%; the interest/discount (settlement) rate was 10%. Accumulated other comprehensive in $1,208,000 on January 1, 2017. Assume no benefits paid in 2017. Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e Components of Pension Expense Service Cost $ 78000 Amortization of Prior Service Cost 120800 I nterest on Projected Benefit Obligation 149700 Benefits Paid 1008300 1356800 Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, s Account Titles and Explanation Debit Pension Asset/Liability Pension Expense (To record pension expense and employer's contribution) 1356800 Credit ncerning the operation of the company's defined ar amounted to $78,000 and the amortization of prior unted to $253,000. The expected return on plan assets d other comprehensive income (PSC) had a balance of e company in 2017. e.g. -45 or parenthesis e.g. (45).) ion plan in 2017. y. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Exercise 22-18 Kingbird Tool Company's December 31 year-end financial statements contained the following errors. December 31, 2017 December 31, 2018 Ending inventory $9,000 understated $8,000 overstated Depreciation expense $2,300 understated An insurance premium of $69,600 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 $15,900 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.) (Enter negative amounts using either a negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).) (a) Compute the total effect of the errors on 2018 net income. Total effect of errors on net income $ (b) Compute the total effect of the errors on the amount of Kingbird's working capital at December 31, 2018. Total effect on working capital $ (c) Compute the total effect of the errors on the balance of Kingbird's retained earnings at December 31, 2018. Total effect on retained earnings $ ors. The entire amount was sold for $15,900 and no corrections ts using either a er 31, 2018. ber 31, 2018