Question Details

(solution) Problem 1 - Chapter 20 (26 points) Howard Corp. sponsors a


Would anybody help me with this questions? see the attachment.


Problem 1 ? Chapter 20 (26 points)

 

Howard Corp. sponsors a defined-benefit pension plan for its employees. On January 1, 2015,

 

the following balances related to this plan.

 

Plan assets (fair value)

 

Projected benefit obligation

 

Pension asset/liability

 

Prior service cost

 

OCI ? Loss $550,000

 

600,000

 

50,000 Cr.

 

75,000

 

65,000 As a result of the operation of the plan during 2015, the actuary provided the following additional

 

data at December 31, 2015.

 

Service cost for 2015

 

$ 70,000

 

Actual return on plan assets in 2015

 

45,000

 

Amortization of prior service cost

 

15,000

 

Contributions in 2015

 

115,000

 

Benefits paid retirees in 2015

 

80,000

 

Settlement rate

 

7%

 

Expected return rate

 

8%

 

Average remaining service life of active employees 10 years

 

Instructions

 

(a) Compute pension expense for Howard Corp. for the year 2015 by preparing a pension

 

worksheet.

 

(b) Prepare the journal entry for pension expense. Problem 2 ? Chapter 21 (26 Points)

 

Krause Company on January 1, 2015, enters into a five-year noncancelable lease, with four

 

renewal options of one year each, for equipment having an estimated useful life of 10 years and

 

a fair value to the lessor, Daly Corp., at the inception of the lease of $2,000,000. Krause?s

 

incremental borrowing rate is 8%. Krause uses the straight-line method to depreciate its assets.

 

The lease contains the following provisions:

 

1. Rental payments of $146,000 including $13,000 for property taxes, payable at the beginning

 

of each six-month period.

 

2. A termination penalty assuring renewal of the lease for a period of four years after expiration

 

of the initial lease term.

 

3. An option allowing the lessor to extend the lease one year beyond the last renewal

 

exercised by the lessee. (Hint ? this makes the lease term 10 years, with 5 years + 4

 

renewal years + 1 lessor extension year)

 

4. A guarantee by Krause Company that Daly Corp. will realize $100,000 from selling the asset

 

at the expiration of the lease. However, the actual residual value is expected to be $60,000.

 

Instructions

 

(a) What kind of lease is this to Krause Company and why?

 

(b) What are the minimum lease payments?

 

(c) What is the present value of the minimum lease payments? (PV factor for annuity due of

 

20 semi-annual payments at 8% annual rate, 14.13394; PV factor for amount due in 20

 

interest periods at 8% annual rate, .45639.) (Round to nearest dollar.)

 

(d) Record journal entries for Krause during the first year of the lease. (Include an amortization

 

schedule through 1/1/16 and round to the nearest dollar.) Problem 3 ? Chapter 23 (26 Points)

 

The following information is taken from French Corporation's financial statements: Cash

 

Accounts receivable

 

Allowance for doubtful accounts

 

Inventory

 

Prepaid expenses

 

Land

 

Buildings

 

Accumulated depreciation

 

Patents Accounts payable

 

Accrued liabilities

 

Bonds payable

 

Common stock

 

Retained earnings?appropriated

 

Retained earnings?unappropriated

 

Treasury stock, at cost Net income

 

Depreciation expense

 

Amortization of patents

 

Cash dividends declared and paid

 

Gain or loss on sale of patents December 31

 

2015

 

2014

 

$73,000

 

$ 27,000

 

102,000

 

80,000

 

(4,500)

 

(3,100)

 

155,000

 

175,000

 

7,500

 

6,800

 

100,000

 

60,000

 

289,000

 

244,000

 

(32,000)

 

(13,000)

 

20,000

 

35,000

 

$710,000

 

$611,700

 

$ 90,000

 

54,000

 

125,000

 

100,000

 

80,000

 

276,000

 

(15,000)

 

$710,000 $ 84,000

 

63,000

 

60,000

 

100,000

 

10,000

 

302,700

 

(8,000)

 

$611,700 For 2015 Year

 

$73,300

 

19,000

 

5,000

 

30,000

 

none Instructions

 

Prepare a statement of cash flows for French Corporation for the year 2015. (Use the indirect

 

method.)

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Jan 30, 2021

PRICE: $15

Solution~0001017145.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Jan 30, 2021

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now