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    Inter. Acc. (Assigment) - 1

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    hudeyfaadam97
    Jupiter Company sells goods to Danone Inc. for $700,000 to be paid in 1 year, with a cash price of $610,000 if paid within 30 days and a $10,000 discount for immediate payment. Jupiter must record the sale transaction and report the proper revenue amount. Nilsen Company has a construction contract for $1,600,000 completed from 2012 to 2014. Journal entries must be prepared for 2013 using the percentage-of-completion method and gross profit calculated for each year under both percentage-of-completion and completed-contract methods. Several problems involve calculating deferred tax liability, pension fund returns, and journal entries for equipment leased under a 4-year agreement requiring equal annual

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    Inter. Acc. (Assigment) - 1

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    hudeyfaadam97
    27 views3 pages
    Jupiter Company sells goods to Danone Inc. for $700,000 to be paid in 1 year, with a cash price of $610,000 if paid within 30 days and a $10,000 discount for immediate payment. Jupiter must record the sale transaction and report the proper revenue amount. Nilsen Company has a construction contract for $1,600,000 completed from 2012 to 2014. Journal entries must be prepared for 2013 using the percentage-of-completion method and gross profit calculated for each year under both percentage-of-completion and completed-contract methods. Several problems involve calculating deferred tax liability, pension fund returns, and journal entries for equipment leased under a 4-year agreement requiring equal annual

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    Inter. Acc. (Assigment)-1

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    Jupiter Company sells goods to Danone Inc. for $700,000 to be paid in 1 year, with a cash price of $610,000 if paid within 30 days and a $10,000 discount for immediate payment. Jupiter must record the sale transaction and report the proper revenue amount. Nilsen Company has a construction contract for $1,600,000 completed from 2012 to 2014. Journal entries must be prepared for 2013 using the percentage-of-completion method and gross profit calculated for each year under both percentage-of-completion and completed-contract methods. Several problems involve calculating deferred tax liability, pension fund returns, and journal entries for equipment leased under a 4-year agreement requiring equal annual

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    27 views3 pages

    Inter. Acc. (Assigment) - 1

    Uploaded by

    hudeyfaadam97
    Jupiter Company sells goods to Danone Inc. for $700,000 to be paid in 1 year, with a cash price of $610,000 if paid within 30 days and a $10,000 discount for immediate payment. Jupiter must record the sale transaction and report the proper revenue amount. Nilsen Company has a construction contract for $1,600,000 completed from 2012 to 2014. Journal entries must be prepared for 2013 using the percentage-of-completion method and gross profit calculated for each year under both percentage-of-completion and completed-contract methods. Several problems involve calculating deferred tax liability, pension fund returns, and journal entries for equipment leased under a 4-year agreement requiring equal annual

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    SIMAD University

    Assignment

    Intermediate Accounting

    Instructions

    Submit the assignment in hand-writing form


    Submission Date: 31-May-2023
    Part One: Revenue Recognition
    Problem #1
    Jupiter Company sells goods on January 1 that have a cost of $500,000 to Danone Inc. for $700,000, with
    payment due in 1 year. The cash price for these goods is $610,000, with payment due in 30 days. If Danone
    paid immediately upon delivery, it would receive a cash discount of $10,000.
    Required
    (a) Prepare the journal entry to record this transaction at the date of sale.
    (b) How much revenue should Jupiter report for the entire year?

    Problem #2
    During 2012, Nilsen Company started a construction job with a contract price of $1,600,000. The job was
    completed in 2014. The following information is available.

    Required
    (a) Compute the amount of gross profit to be recognized each year, assuming the percentage-of completion
    method is used.
    (b) Prepare all necessary journal entries for 2013.
    (c) Compute the amount of gross profit to be recognized each year, assuming the completed-contract
    method is used.

    Part Two: Income Tax


    Problem #3
    In 2012, Amirante Corporation had pretax financial income of $168,000 and taxable income of $120,000.
    The difference is due to the use of different depreciation methods for tax and accounting purposes. The
    effective tax rate is 40%.
    Required
    Compute the amount to be reported as income taxes payable at December 31, 2012.
    Problem #4
    Oxford Corporation began operations in 2012 and reported pretax financial income of $225,000 for the
    year. Oxford’s tax depreciation exceeded its book depreciation by $40,000. Oxford’s tax rate for 2012 and
    years thereafter is 30%.
    Required
    In its December 31, 2012, balance sheet, what amount of deferred tax liability should be reported?

    Part Three: Pension Fund


    Problem #5
    For Warren Corporation, year-end plan assets were $2,000,000. At the beginning of the year, plan assets
    were $1,780,000. During the year, contributions to the pension fund were $120,000, and benefits paid were
    $200,000. Compute Warren’s actual return on plan assets.

    Part Four: Lease


    Problem #6
    Waterworld Company leased equipment from Costner Company. The lease term is 4 years and requires
    equal rental payments of $43,019 at the beginning of each year. The equipment has a fair value at the
    inception of the lease of $150,000, an estimated useful life of 4 years, and no salvage value. Waterworld
    pays all executory costs directly to third parties. The appropriate interest rate is 10%.
    Required
    Prepare Waterworld’s January 1, 2012, journal entries at the inception of the lease.

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