The following exercises must be completed. Show . Ludell Corp, shows the following data- Projected benefit obligation 1/1/17- $560,000 $546,200 benefits of stadell amends the plan and grants prior service cost benefits of $120,000. Settlement rate-9% Cost Plan Assets 1/1/17- Aztion 5t2280 Benefits paid-$40,000 Prepare the pensiorn Y/E balances in C. indowVE balanceson worksheet showing the journal entry for pension expense. on Balance sheet and Income statements Service Cost-$58,000 Contribution-$65,000 Actual/expected returns $52,2 PSC amortization-$17,000. C. Indicate a mounts to be nson accounts (Memo record and OCI accounts included) 2. Doris Smith recorded a capital lease at as a life of 8 years. Smith made the first lease payment of The leased asset has annual payments on January 1, 2017. The interest rate is 11%. The le A. Why is this a capital lease? B. Prepare the amordess ournal e amortization schedule for the first 3 years for the lessee an essee and lessor journal entries for the first three years sume, additionally, that there is an guaranteed residual of $12,000, PV-$10,000. Prepare ules and journal entries for the lessee and lessor for the first 2 years. 3. Raninu Company reports pretax financial income of $85,280 for 2017. The following items cause pr e income to be different from pretax financial income. A Depreciation on the tax return is greater than depreciat is greater than B. 8 Unearned rent revenue is $22,390. depreciation on the income statement by $20,620. C. Fines of $12,900 have been deducted on the income statement. The Raninu tax rate is 40%. A. Compute the Income Taxes Payable B. Prepare the journal entry C. Prepare the Income Tax Expense section of the Income statement, beginning with "Income Before Income Taxes" 4. A On January 1, 2014, Garr Company acquired machinery at a cost of $320,000 The machinery was being depreciated using the double declining balance method. It had an estimated useful life of 8 years and no residual value. At the beginning of 2016, Garr changed to the straight-line method of depreciation. Prepare any journal entry required to account for this change. B. Gundrum Inc. purchased equipment on January1, 2012 for $850,000. The equipment was expected to have a useful life of 10 years and a salvage value of $30,000. Gundrum uses the straight line method of depreciation. At the beginning of 2017, Gundrum determined that the total estimated life of the equipment was 13 years and that the residual value would be $10,000. Prepare the journal entry necessary to account for this change. Surry Inc started work on a $6,466,000 contract in 2018. During 2018- - $1,547,340 Current costs Billing - $1,085,000 Collections - $1,013,000 Costs To Complete - $3,003,660 Prepare Surry's 2018 Journal Entries using the Percentage of Completion Method
