Hey could you please solve the 8 problems I have attached in the assignment. I want to double check answers with an expert. This assignment is due this Weds.. So please get back to me ASAP!! Thanks

AC404 SPRING 2011 EXAM 2 - COMPLETE ALL PROBLEMS PROBLEM 1Investment in debt securities at premium. On April 1, 2010, West Co. purchased $160,000 of 6% bonds for $166,300 plus accrued interest as an available-for-sale security. Interest is paid on July 1 and January 1 and the bonds mature on July 1, 2015. Instructions (a) Prepare the journal entry on April 1, 2010. (b) The bonds are sold on November 1, 2011 at 103 plus accrued interest. Amortization was recorded when interest was received by the straight-line method (by months and round to the nearest dollar). Prepare all entries required to properly record the sale. PROBLEM 2Trading equity securities. Korman Company has the following securities in its portfolio of trading equity securities on December 31, 2010: Cost Fair Value 5,000 shares of Thomas Corp., Common $155,000 $139,000 10,000 shares of Gant, Common 182,000 190,000 $337,000 $329,000 All of the securities had been purchased in 2010. In 2011, Korman completed the following securities transactions: March 1 Sold 5,000 shares of Thomas Corp., Common @ $31 less fees of $1,500. April 1 Bought 600 shares of Werth Stores, Common @ $45 plus fees of $550. The Korman Company portfolio of trading equity securities appeared as follows on December 31, 2011: Cost Fair Value 10,000 shares of Gant, Common $182,000 $195,500 600 shares of Werth Stores, Common 27,550 25,500 $209,550 $221,000 Instructions Prepare the general journal entries for Korman Company for: (a) the 2010 adjusting entry. (b) the sale of the Thomas Corp. stock. (c) the purchase of the Werth Stores' stock. (d) the 2011 adjusting entry. PROBLEM 3Percentage-of-completion and completed-contract methods. On February 1, 2010, Marsh Contractors agreed to construct a building at a contract price of $6,000,000. Marsh estimated total construction costs would be $4,000,000 and the project would be finished in 2012. Information relating to the costs and billings for this contract is as follows: 2010 2011 2012 Total costs incurred to date $1,500,000 $2,640,000 $4,600,000 Estimated costs to complete 2,500,000 1,760,000 -0Customer billings to date 2,200,000 4,000,000 5,600,000 Collections to date 2,000,000 3,500,000 5,500,000 Instructions Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for completed-contract accounting, show the gross profit that should be recorded for 2010, 2011, and 2012. Percentage-of-Completion Completed-Contract Gross Profit Gross Profit 2010 ___________ 2010 ___________ 2011 ___________ 2011 ___________ 2012 ___________ 2012 ___________ PROBLEM 4Installment sales. Sawyer Furniture Company concluded its first year of operations in which it made sales of $800,000, all on installment. Collections during the year from down payments and installments totaled $300,000. Purchases for the year totaled $400,000; the cost of merchandise on hand at the end of the year was $80,000. Instructions Using the installment-sales method, make summary entries to record: (a) the installment sales and cash collections; (b) the cost of installment sales; (c) the unrealized gross profit; (d) the realized gross profit. PROBLEM 5Accounting for long-term construction contracts. The board of directors of Ogle Construction Company is meeting to choose between the completed-contract method and the percentage-of-completion method of accounting for long-term contracts in the company's financial statements. You have been engaged to assist Ogle's controller in the preparation of a presentation to be given at the board meeting. The controller provides you with the following information: 1. 2. Ogle commenced doing business on January 1, 2011. Construction activities for the year ended December 31, 2011, were as follows: Project A B C D E Project A B C D E Total Contract Price $ 515,000 690,000 475,000 200,000 480,000 $2,360,000 Billings Through 12/31/11 $ 340,000 210,000 475,000 100,000 400,000 $1,525,000 Cash Collections Through 12/31/11 $ 310,000 210,000 390,000 65,000 400,000 $1,375,000 Contract Costs Estimated Incurred Through Additional Costs to 12/31/11 Complete Contracts $ 424,000 $101,000 195,000 455,000 350,000 -0123,000 97,000 320,000 80,000 $1,412,000 $733,000 3. Each contract is with a different customer. 4. Any work remaining to be done on the contracts is expected to be completed in 2012. Instructions (a) Prepare a schedule by project, computing the amount of income (or loss) before selling, general, and administrative expenses for the year ended December 31, 2011, which would be reported under: (1) The completed-contract method. (2) The percentage-of-completion method (based on estimated costs). (b) Prepare the general journal entry(ies) to record revenue and gross profit on project B (second project) for 2011, assuming that the percentage-of-completion method is used. (c) Indicate the balances that would appear in the balance sheet at December 31, 2011 for the following accounts for Project D (fourth project), assuming that the percentage-of-completion method is used. Accounts Receivable Billings on Construction in Process Construction in Process (d) How would the balances in the accounts discussed in part (c) change (if at all) for Project D (fourth project), if the completed-contract method is used? PROBLEM 6 - Computation of taxable income. The records for Bosch Co. show this data for 2011: 1* Gross profit on installment sales recorded on the books was $360,000. Gross profit from collections of installment receivables was $270,000. 2* Life insurance on officers was $3,800. 3* Machinery was acquired in January for $300,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, MACRS depreciation is used and Bosch may deduct 14% for 2011. 4* Interest received on tax exempt Iowa State bonds was $9,000. 5* The estimated warranty liability related to 2011 sales was $19,600. Repair costs under warranties during 2011 were $13,600. The remainder will be incurred in 2012. 6* Pretax financial income is $600,000. The tax rate is 30%. Instructions (a) Prepare a schedule starting with pretax financial income and compute taxable income. (b) Prepare the journal entry to record income taxes for 2011. PROBLEM 7Operating loss carryforward. In 2010, its first year of operations, Kimble Corp. has a $900,000 net operating loss when the tax rate is 30%. In 2011, Kimble has $360,000 taxable income and the tax rate remains 30%. Instructions Assume the management of Kimble Corp. thinks that it is more likely than not that the loss carryforward will not be realized in the near future because it is a new company (this is before results of 2011 operations are known). (a) What are the entries in 2010 to record the tax loss carryforward? (b) What entries would be made in 2011 to record the current and deferred income taxes and to recognize the loss carryforward? (Assume that at the end of 2011 it is more likely than not that the deferred tax asset will be realized.) PROBLEM 8Permanent and temporary differences. Listed below are items that are treated differently for accounting purposes than they are for tax purposes. Indicate whether the items are permanent differences or temporary differences. For temporary differences, indicate whether they will create deferred tax assets or deferred tax liabilities. 1. Investments accounted for by the equity method. 2. Advance rental receipts. 3. Fine for polluting. 4. Estimated future warranty costs. 5. 6. 7. 8. 9. 10. Excess of contributions over pension expense. Expenses incurred in obtaining tax-exempt revenue. Installment sales. Excess tax depreciation over accounting depreciation. Long-term construction contracts. Premiums paid on life insurance of officers (company is the beneficiary)