ACC 423 Expect Success/newtonhelp.com

ACC 423 Final Exam Guide (New 2019, With EXCEL FILE)
For more course tutorials visit
www.newtonhelp.com
This Tutorial contains Excel File which can be used for any change in
values
Week 5 Final Exam
CPA Question 01
CPA Question 02
CPA Question 05
Question 29
Brief Exercise 15-4
Exercise 15-1
CPA Question 04
CPA Question 06
Brief Exercise 16-2

Brief Exercise 16-7
Brief Exercise 17-1
Brief Exercise 17-9
Brief Exercise 17-13
Exercise 17-3
Exercise 17-10
Question 8
Brief Exercise 19-3
Exercise 19-2
CPA Question 08
CPA Question 02
Brief Exercise 20-8
Exercise 20-1
Exercise 20-5
Exercise 20-12
CPA Question 03
Exercise 22-19

CPA Question 01
On September 1, 2017, Hyde Corp., a newly formed company, had the
following stock issued and outstanding:
• Common stock, no par, $1 stated value, 5,000 shares originally issued
at $15 per share.
• Preferred stock, $10 par value, 1,500 shares originally issued for $25
per share.
Hyde's September 1, 2017 statement of stockholders' equity should
report
Common
stock
Preferred
stock
Additional Paid-
in capital
CPA Question 02
Beck Corp. issued 200,000 shares of common stock when it began
operations in year 1 and issued an additional 100,000 shares in year 2.
Beck also issued preferred stock convertible to 100,000 shares of
common stock. In year 3, Beck purchased 75,000 shares of its common
stock and held it in Treasury. At December 31, year 3, how many shares
of Beck's common stock were outstanding?
CPA Question 05
Jones Co. had 50,000 shares of $5 par value common stock outstanding
at January 1. On August 1, Jones declared a 5% stock dividend followed
by a two-for-one stock split on September 1. What amount should Jones
report as common shares outstanding at December 31?
Question 29
Grouper Corp. had $100,000 of 7%, $20 par value preferred stock and
12,000 shares of $25 par value common stock outstanding throughout
2017.

Brief Exercise 16-7
On January 1, 2017, Larkspur Corporation granted 2,000 shares of
restricted $5 par value common stock to executives. The market price
(fair value) of the stock is $66 per share on the date of grant. The period
of benefit is 2 years.
Prepare Larkspur’s journal entries for January 1, 2017, and December
31, 2017 and 2018.
Brief Exercise 17-1
Teal Company purchased, on January 1, 2017, as a held-to-maturity
investment, $81,000 of the 8%, 5-year bonds of Chester Corporation for
$74,859, which provides an 10% return.
Prepare Teal’s journal entries for (a) the purchase of the investment, and
(b) the receipt of annual interest and discount amortization. Assume
effective-interest amortization is used.
BE 17-3
Brief Exercise 17-9
The following information relates to Culver Co. for the year ended
December 31, 2017: net income 1,321 million; unrealized holding loss
of $11.7 million related to available-for-sale debt securities during the
year; accumulated other comprehensive income of $56.3 million on
December 31, 2016. Assuming no other changes in accumulated other
comprehensive income.
Determine (a) other comprehensive income for 2017, (b) comprehensive
December 31, 2017$79,000$83,000

Orca's income tax rate is 30%.
In its 2017 financial statements, what amount should Orca report as the
cumulative effect of this accounting change?
Exercise 22-18
Pina Tool Company’s December 31 year-end financial statements
contained the following errors.
December 31, 2017 December 31, 2018
Ending inventory $10,500 understated $7,400 overstated
Depreciation expense $2,100 understated —
An insurance premium of $70,200 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 $13,500 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.)
Exercise 22-19
A partial trial balance of Bramble Corporation is as follows on
December 31, 2018.
Dr. Cr.
Supplies $2,600
Salaries and wages
payable
$1,500
Interest Receivable 4,600
Prepaid Insurance 86,200

Unearned Rent 0
Interest Payable 14,100
Additional adjusting data:
1.
A physical count of supplies on hand on December 31, 2018, totaled
$1,100.
2.
Through oversight, the Salaries and Wages Payable account was not
changed during 2018. Accrued salaries and wages on December 31,
2018, amounted to $4,700.
3.
The Interest Receivable account was also left unchanged during 2018.
Accrued interest on investments amounts to $3,700 on December 31,
2018.
4.
The unexpired portions of the insurance policies totaled $68,300 as of
December 31, 2018.
5.
$26,500 was received on January 1, 2018, for the rent of a building
for both 2018 and 2019. The entire amount was credited to rent
revenue.
6.
Depreciation on equipment for the year was erroneously recorded as
$5,200 rather than the correct figure of $52,000.
7.
A further review of depreciation calculations of prior years revealed
that equipment depreciation of $7,500 was not recorded. It was
decided that this oversight should be corrected by a prior period
adjustment.
Exercise 22-5
Presented below are income statements prepared on a LIFO and FIFO
basis for Novak Company, which started operations on January 1, 2016.
The company presently uses the LIFO method of pricing its inventory
and has decided to switch to the FIFO method in 2017. The FIFO
income statement is computed in accordance with the requirements of
GAAP. Novak’s profit-sharing agreement with its employees indicates
that the company will pay employees 10% of income before profit-
sharing. Income taxes are ignored.

Question 18
In January 2017, installation costs of $5,800 on new machinery were
charged to Maintenance and Repairs Expense. Other costs of this
machinery of $29,000 were correctly recorded and have been
depreciated using the straight-line method with an estimated life of 10
years and no salvage value. At December 31, 2018, it is decided that the
machinery has a remaining useful life of 20 years, starting with January
1, 2018. What entries should be made in 2018 to correctly record
transactions related to machinery, assuming the machinery has no
salvage value? The books have not been closed for 2018 and
depreciation expense has not yet been recorded for 2018.
===============================================
ACC 423 Week 1 Coca-Cola and PepsiCo Presentation
www.newtonhelp.com
Create a 10- to 12-slide presentation that addresses each question within
the Comparative Analysis Case, pp. 824-825.
Click the Assignment Files tab to submit your assignment.
The Coca-Cola Company and PepsiCo, Inc. The financial statements of
Coca-Cola and PepsiCo are presented in Appendices C and D,
respectively. The companies' complete annual reports, including the

notes to the financial statements, are available online. Instructions Use
the companies' financial information to answer the following questions.
(a) What is the par or stated value of Coca-Cola's and PepsiCo's
common or capital stock?
(b) What percentage of authorized shares was issued by Coca-Cola at
December 31, 2014, and by PepsiCo at December 31, 2014?
(c) How many shares are held as treasury stock by Coca-Cola at
December 31, 2014, and by PepsiCo at December 31, 2014?
(d) How many Coca-Cola common shares are outstanding at December
31, 2014? How many PepsiCo shares of capital stock are outstanding at
December 31, 2014?
(e) What amounts of cash dividends per share were declared by Coca-
Cola and PepsiCo in 2014? What were the dollar amount effects of the
cash dividends on each company's stockholders' equity?
(f) What are Coca-Cola's and PepsiCo's return on common/capital
stockholders' equity for 2014 and 2013? Which company gets the higher
return on the equity of its shareholders?
(g) What are Coca-Cola's and PepsiCo's payout ratios for 2014? (h)What
was the market price range (high/low) for Coca-Cola's common stock
and PepsiCo's capital stock during the fourth quarter of 2014? Which
company's (Coca-Cola's or PepsiCo's) stock price increased more (%)
during 2014?
===============================================
ACC 423 Week 1 Discussion Question 1

www.newtonhelp.com
Why do companies offer stock options? What is the experience of either
your organization or an organization that you are familiar with when it
comes to stock option compensation? Should stock option
compensation be included as an expense when calculating an
organization’s net income? Explain why or why not. If so, how should
the amount of expense be calculated?
===============================================
www.newtonhelp.com
What are the differences between basic and diluted earnings per share?
What are the differences between the numerator and the denominator in
the basic and diluted earnings per share calculations? What actions can
an organization take in order to improve their earnings per share? What
is the experience of either your organization or an organization that you
are familiar with when it comes to any of these actions? As an investor,

do you evaluate a company as a potential investment using basic or
diluted earnings per share? Explain why.
===============================================
ACC 423 Week 1 DQ (New)
www.newtonhelp.com
Why do companies offer stock options? Should stock-option
compensation be included as an expense when calculating an
organization's net income? Explain why or why not. if so, how should
the amount of expense be calculated?
What is the experience of either your organization or an organization
that you are familiar with when it comes to stock option compensation?
Should stock option compensation be included as an expense when
calculating an organization’s net income? Explain why or why not. If so,
how should the amount of expense be calculated?
===============================================
ACC 423 Week 1 Wileyplus With Excel File New Syllabus

www.newtonhelp.com
This Tutorial contains Excel File which can be used for any Values
• Brief Exercise 15-9
• Exercise 15-6
• Exercise 15-7
• Exercise 15-10
• Exercise 15-12
• Exercise 15-17
• Exercise 15-21
• Exercise 16-4
• Exercise 16-10
• Exercise 16-14
• Exercise 16-18
• Exercise 16-24
Brief Exercise 15-9
Oriole Corporation has outstanding 22,000 shares of $5 par value
common stock. On August 1, 2017, Oriole reacquired 190 shares at $82

per share. On November 1, Oriole reissued the 190 shares at $71 per
share. Oriole had no previous treasury stock transactions.
Prepare Oriole’s journal entries to record these transactions using the
cost method.
Swifty Mining Company declared, on April 20, a dividend of $442,000
payable on June 1. Of this amount, $108,000 is a return of capital.
Prepare the April 20 and June 1 entries for Swifty. Ex 15-10
Exercise 15-6
Whispering Corporation is authorized to issue 49,000 shares of $5 par
value common stock. During 2017, Whispering took part in the
following selected transactions.
1. Issued 4,900 shares of stock at $42 per share, less costs related to the
issuance of the stock totaling $7,400.
2. Issued 1,200 shares of stock for land appraised at $49,000. The stock
was actively traded on a national stock exchange at approximately $43
per share on the date of issuance.
3. Purchased 520 shares of treasury stock at $42 per share. The treasury
shares purchased were issued in 2013 at $39 per share.
(a) Prepare the journal entry to record item 1.
(b) Prepare the journal entry to record item 2.
(c) Prepare the journal entry to record item 3 using the cost method.
Exercise 15-7

Joe Dumars Company has outstanding 40,000 shares of $5 par common
stock which had been issued at $30 per share. Joe Dumars then entered
into the following transactions.
1. Purchased 5,000 treasury shares at $45 per share.
2. Resold 2,000 of the treasury shares at $49 per share.
3. Resold 500 of the treasury shares at $40 per share.
===============================================
www.newtonhelp.com
What are the differences between traditional and derivative instruments?
Why do companies use derivative instruments? Explain whether or not
derivatives are a good investment. What experience do you have with
either traditional or derivative instruments in your organization or an
organization that you are familiar with?.
===============================================

www.newtonhelp.com
Why do companies make investments in other companies? What are the
differences between debt and equity investments? What is the
experience of either your organization or an organization that you are
familiar with when it comes to debt and/or equity investments? What
would influence a company to choose equity or debt as an investment?
===============================================
www.newtonhelp.com
What are the differences between traditional and derivative instruments?
Why do companies use derivative instruments? Are derivatives a good
investment? Explain why or why not.

Why do companies make investments in other companies? What are the
differences between debt and equity investments? What would influence
a company to choose equity or debt as an investment?
How do the various classifications of investments affect financial
statements? What is the rationale behind the different accounting
methods for the various investment classifications? Which is more
important when determining the accounting method for securities,
influence, or ownership? Explain why.
===============================================
ACC 423 Week 2 Signature Assignment Codification Research
Paper (2 Papers)
www.newtonhelp.com
This Tutorial contains 2 Papers
What is a Signature Assignment?
A signature assignment is designed to align with specific program
student learning outcome(s) for a program. Program Student Learning
Outcomes are broad statements that describe what students should know

and be able to do upon completion of their degree. The signature
assignments are graded with an automated rubric that allows the
University to collect data that can be aggregated across a location or
college/school and used for program improvements.
Resource: FASB Codification Link.
Write a 700- to 1,050-word paper.
Your client, Cascade Company, is planning to invest some of its excess
cash in 5-year revenue bonds issued by the county and in the stock of
one of its suppliers, Teton Co. Teton's shares trade on the over-the-
counter market. The company would like you to conduct some research
on the accounting for these investments.
Instructions:
Access the FASB Codification.
Once you login using the username and password provided from the link
above "login instructions" click on Education (from the menu across the
top) > select FASB & GARS > click on FASB User Login and use the
same credentials given for the initial login page. That will get you to the
FASB Accounting Standards Codification (professional view) page.
Review the log-in instructions.
Provide Codification references for your responses below.
Incorporate your review of the FASB link to determine when the fair
value of a security "readily determinable".
Since the Teton shares do not trade on one of the large stock markets,
Cascade argues that the fair value of this investment is not readily
available.

Describe how an impairment of a security is accounted for.
Determine how close to maturity Cascade could sell an investment and
still classify it as held-to-maturity.
To avoid volatility in their financial statements due to fair value
adjustments, Cascade debated whether the bond investment could be
classified as held-to-maturity; Cascade is pretty sure it will hold the
bonds for five years.
List disclosures that must be made for any sale or transfer from
securities classified as held-to-maturity.
Format your paper consistent with APA standards.
Submit your assignment to the Assignment Files tab.
Assignment Deliverables Summary:
1. How can the shares investment in Teton Inc. fair value be determined
according to GAAP, provide FASB codification reference?
2. How should the bond investment in a County Government be
classified if Cascade Company does not plan to hold the bond to its
maturity? can the management change its intention in later years?
3. Under what condition and factors for an equity investment to be
considered as "impaired", provide FASB codification reference?
4. What are the disclosure requirements for reclassification of sale or
transfer of security from one category to another?
===============================================
ACC 423 Week 2 Wiley PLUS Assignment (New Syllabus/With
Excel File)

www.newtonhelp.com
This Tutorial contains Excel File which can be used to solve for any
change in values
Complete the following in WileyPLUS:
• Brief Exercise 116
• Exercise 121
• Exercise 122
• Exercise 123
• Exercise 17-3
• Exercise 17-9
• Exercise 17-12

• Exercise 17-18
• Exercise 17-27
Brief Exercise 116
On April 1, 2018, West Company purchased $472,000 of 6.50% bonds
for $490,630 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,
2023.
Prepare the journal entry on April 1, 2018.
The bonds are sold on November 1, 2019 at 103 plus accrued interest.
Amortization was recorded when interest was received by the straight-
line method. Prepare all entries required to properly record the sale
===============================================
www.newtonhelp.com
Why are there differences between taxable and financial income? What
are some examples of permanent and temporary differences? Why do
these differences exist? How do they affect the financial statements?
What experience do you have with either taxable and financial income

and/or permanent and temporary differences in your organization or an
organization that you are familiar with?
===============================================
www.newtonhelp.com
How are the tax benefits of net operating losses (NOL) disclosed on
financial statements? Which is more beneficial to an organization, an
NOL carryforward or an NOL carryback? Explain why. What
experience do you have with NOL in your organization or an
organization that you are familiar with? When would a company decide
to forego a NOL carryback?
===============================================
www.newtonhelp.com

Why are there between taxable and financial income? What are some
example of payment and temporary differences? Why do these
differences exist? How do they affect financial statements.”
“How they deferred tax assets and deferred tax liabilities derived?
How do they relate to the difference between tax expenses and tax
payable? How could an organization have a tax receivable? Why is tax
expenses reported on the income statement comprised of current and
deferred tax?”
financial statements? Which is more beneficial to the organization, an
NOL carryforward or NOL carryback? Why. When would a company
decide to forego on carryback?
===============================================
ACC 423 week 3 SEC 10-K Analysis (Ford Motors)
www.newtonhelp.com
ACC 423 week 3 SEC 10-K Analysis

Below are the instructions.
Read the SEC 10-K for Ford Motor Company. Alternatively, you can
use Securities and Exchange Commission's (SEC) Edgar filing system to
view this information.
Write a 350- to 700-word paper describing the amounts of current and
deferred income taxes.
Explain the items that affect both these classifications.
Provide details of the current and long-term portion of the deferred
taxes. Be sure to list the Note number where you found your
information.
Format your paper consistent with APA standards.
===============================================
ACC 423 Week 3 Team Assignment (CA 15-2, CA 15-6, CA
16-2, CA 16-4, CA 17-6)
www.newtonhelp.com
Complete the following for this assignment as a team:
• Concepts for Analysis 15-2, p. 823

Compile all team members' input.
financial statements? Which is more beneficial to the organization, an
NOL carryforward or NOL carryback? Why. When would a company
decide to forego on carryback?
===============================================
ACC 423 Week 3 WileyPLUS Assignment (With Excel Sheet)
www.newtonhelp.com
This Tutorial contains Excel Sheet, which can be used for any change in
values
Brief Exercise 19-2
Brief Exercise 19-6

Exercise 19-6
Exercise 19-8
Exercise 19-17
Exercise 19-20
Exercise 19-24
Brief Exercise 19-2
Pina Corporation began operations in 2017 and reported pretax financial
income of $228,000 for the year. Pina’s tax depreciation exceeded its
book depreciation by $38,000. Pina’s tax rate for 2017 and years
thereafter is 30%. In its December 31, 2017, balance sheet, what amount
of deferred tax liability should be reported?
Brief Exercise 19-6
At December 31, 2017, Sandhill Inc. had a deferred tax asset of $30,200.
At December 31, 2018, the deferred tax asset is $57,200. The
corporation’s 2018 current tax expense is $59,100.
What amount should Sandhill report as total 2018 income tax expense?
At December 31, 2017, Sarasota Corporation had a deferred tax liability
of $746,200, resulting from future taxable amounts of $1,820,000 and an
enacted tax rate of 41%. In May 2018, a new income tax act is signed
into law that raises the tax rate to 46% for 2018 and future years.

Prepare the journal entry for Sarasota to adjust the deferred tax liability.
Bridgeport Inc. incurred a net operating loss of $483,000 in 2017.
Combined income for 2015 and 2016 was $324,000. The tax rate for all
years is 30%. Bridgeport elects the carryback option. Assume that it is
more likely than not that the entire net operating loss carryforward will
not be realized in future years.
Prepare all the journal entries necessary at the end of 2017.
Exericse 19-6
Listed below are items that are commonly accounted for differently for
financial reporting purposes than they are for tax purposes.
For each item below, indicate whether it involves:
(1) A temporary difference that will result in future deductible
amounts and, therefore, will usually give rise to a deferred income tax
asset.
(2) A temporary difference that will result in future taxable amounts
and, therefore, will usually give rise to a deferred income tax liability.
(3) A permanent difference.
Exercise 19-8 (Part Level Submission)
Cheyenne Company has the following two temporary differences
between its income tax expense and income taxes payable.

Assuming there were no temporary differences prior to 2017, prepare the
journal entry to record income tax expense, deferred income taxes, and
income taxes payable for 2017, 2018, and 2019.
Indicate how deferred taxes will be reported on the 2019 balance sheet.
Cheyenne’s product warranty is for 12 months
Exercise 19-17
Novak Co. establishes a $126,000,000 liability at the end of 2017 for the
estimated site-cleanup costs at two of its manufacturing facilities. All
related closing costs will be paid and deducted on the tax return in 2018.
Also, at the end of 2017, the company has $63,000,000 of temporary
differences due to excess depreciation for tax purposes, $8,820,000 of
which will reverse in 2018.
The enacted tax rate for all years is 40%, and the company pays taxes of
$80,640,000 on $201,600,000 of taxable income in 2017. Novak expects
to have taxable income in 2018.
The differences between the book basis and tax basis of the assets and
liabilities of Crane Corporation at the end of 2016 are presented below.
Book Basis
Tax Basis
Accounts receivable
$45,600
$0
Litigation liability

29,600
0
It is estimated that the litigation liability will be settled in 2017. The
difference in accounts receivable will result in taxable amounts of
$32,200 in 2017 and $13,400 in 2018. The company has taxable income
of $325,000 in 2016 and is expected to have taxable income in each of
the following 2 years. Its enacted tax rate is 34% for all years. This is the
company’s first year of operations. The operating cycle of the business
is 2 years.
Bramble Inc. reports the following pretax income (loss) for both book
and tax purposes. (Assume the carryback provision is used where
possible for a net operating loss.)
a)
Prepare the journal entries for years 2015–2018 to record income tax
expense (benefit) and income taxes payable (refundable), and the tax
effects of the loss carryback and loss carryforward, assuming that based
on the weight of available evidence, it is more likely than not that one-
half of the benefits of the loss carryforward will not be realized.
Prepare the income tax section of the 2017 income statement beginning
with the line “Operating loss before income taxes.”
===============================================

www.newtonhelp.com
What are the differences and similarities between a defined contribution
plan and a defined benefit plan? As an employee, explain why you
would rather have a defined contribution plan or a defined benefit plan?
What experience do you have with pension plans in your organization or
an organization that you are familiar with? As an employer, explain
why you would rather offer a defined contribution plan or a defined
benefit plan to your employees?
===============================================
www.newtonhelp.com
What are the components of pension expense? How do the components
of pension expense differ among the various types of contribution and
benefit plans? How is the interest rate determined? Why are prior service
costs amortized? Based on your knowledge of the components of

pension, what would make you more or less likely to invest in a
company?
===============================================
www.newtonhelp.com
What are the differences and similarities between a defined contribution
plan and a defined benefit plan? As an employee, would you rather have
defined contribution plan or a defined benefit plan? Explain your
answer. As an employer, would you rather offer a defined contribution
plan or a defined benefit plan? Explain answer.
What are the components of pension expense? How is the interest rate
determined? Why are prior service costs amortized? How do the
components of pension expense differ among the various types of
contribution and benefit Plans?
How does a pension plan differ from a 401(k) plan? As an
employee,.would you rather have a pension plan or a 401(k) plan?
Explain your answer. If you were an employer, would your decision
change? Why or why not.”
===============================================

ACC 423 Week 4 Team Assignment (CA 19-3, CA 19-7, Ch 19
Comparative Analysis Case)
www.newtonhelp.com
• Ch. 19: Comparative Analysis Case, p.1108
===============================================
ACC 423 Week 4 WileyPLUS Assignment (New Syllabus/ With
Excel File)
www.newtonhelp.com

This Tutorial contains Excel Sheet, which can be used for any change in
values
• Question 16
• Exercise 20-3
• Exercise 20-11
• Exercise 20-19
• Exercise 20-21
• Exercise 20-23
Question 16
Given the following items and amounts, compute the actual return on
plan assets: fair value of plan assets at the beginning of the period
$9,480,000; benefits paid during the period $1,500,000; contributions
made during the period $910,000; and fair value of the plan assets at the
end of the period $10,110,000.

Brief Exercise 20-1
AMR Corporation (parent company of American Airlines) reported the
following (in millions).
Service cost $366
Interest on P.B.O. 737
Return on plan assets 593
Amortization of prior service cost 13
Amortization of net loss 154
Brief Exercise 20-5
Bonita Corporation amended its pension plan on January 1, 2017, and
granted $153,180 of prior service costs to its employees. The employees
are expected to provide 2,070 service years in the future, with 380
service years in 2017.
Compute prior service cost amortization for 2017.
Brief Exercise 20-6
At December 31, 2017, Buffalo Corporation had a projected benefit
obligation of $596,500, plan assets of $301,800, and prior service cost of
$128,900 in accumulated other comprehensive income.
Determine the pension asset/liability at December 31, 2017. (Enter
liability using either a negative sign preceding the number e.g. -45 or
parentheses e.g. (45).)
Brief Exercise 20-8

Flounder Corporation has the following balances at December 31, 2017.
Projected benefit obligation $2,543,000
Plan assets at fair value 1,984,000
Accumulated OCI (PSC) 1,163,000
What is the amount for pension liability that should be reported on
Flounder's balance sheet at December 31, 2017?
Pension liability balance at December 31, 2017
Larkspur Corp. has three defined benefit pension plans as follows.
Pension Assets
(at Fair Value) Projected Benefit
Obligation
Plan X $604,000 $498,000
Plan Y 984,000 665,000
Plan Z 517,000 694,000
How will Larkspur report these multiple plans in its financial
statements?
Waterway Company provides the following information about its
defined benefit pension plan for the year 2017.

Service cost $91,200
Contribution to the plan 104,700
Prior service cost amortization 9,800
Actual and expected return on plan assets 62,800
Benefits paid 40,500
Plan assets at January 1, 2017 632,600
Projected benefit obligation at January 1, 2017 686,700
Accumulated OCI (PSC) at January 1, 2017 152,100
Interest/discount (settlement) rate 9 %
Skysong Company sponsors a defined benefit pension plan for its
employees. The following data relate to the operation of the plan for the
year 2017 in which no benefits were paid.
1. The actuarial present value of future benefits earned by employees for
services rendered in 2017 amounted to $55,500.
2. The company’s funding policy requires a contribution to the pension
trustee amounting to $136,360 for 2017.
3. As of January 1, 2017, the company had a projected benefit obligation
of $894,500, an accumulated benefit obligation of $806,900, and a debit
balance of $396,000 in accumulated OCI (PSC). The fair value of
pension plan assets amounted to $600,000 at the beginning of the year.

The actual and expected return on plan assets was $53,500. The
settlement rate was 8%. No gains or losses occurred in 2017 and no
benefits were paid.
4. Amortization of prior service cost was $49,800 in 2017. Amortization
of net gain or loss was not required in 2017.
Exercise 20-19
Marin Co. provides the following information about its postretirement
benefit plan for the year 2017.
Service cost $ 42,100
Accumulated postretirement benefit obligation at January 1, 2017
330,400
Discount rate 10 %
Compute the postretirement benefit expense for 2017.
Exercise 20-21
Pina Inc. provides the following information related to its postretirement
benefits for the year 2017.

$728,700
Discount rate 10 %
Service cost 76,300
Compute postretirement benefit expense for 2017.
Exercise 20-23
Sunland Co. provides the following information about its postretirement
benefit plan for the year 2017.
Service cost $81,300
747,500
Accumulated OCI (PSC) at January 1, 2017 92,800 Dr.

Discount rate 10 %
Prepare a worksheet inserting January 1, 2017, balances, showing
December 31, 2017, balances, and the journal entry recording
postretirement benefit expense. (Enter all amounts as positive.)
===============================================
www.newtonhelp.com
What is a change in accounting principle? How do you determine if a
change in principle should be reported retroactively, currently, or
prospectively? How do these changes affect the financial statements?
What experience do you have with change in accounting principle in
your organization or an organization you are familiar with?
===============================================
www.newtonhelp.com

What are the differences between counterbalancing and
noncounterbalancing errors? What are some examples of
counterbalancing and noncounterbalancing errors? How are each
handled? What experience do you have with counterbalancing and/or
noncounterbalancing errors in your organization or an organization that
you are familiar with? Does it matter if the books are closed? Explain
why or why not.
===============================================
www.newtonhelp.com
What is a change in accounting principle? How do you determinate if a
change in principle should be reported retroactively, currently or
prospectively? How do these changes affect financial statements?
Why do accountants make errors? What types of errors may occur? Why
is it necessary to correct them? Whit are the ramifications of not
correcting errors? What are some examples of counterbalancing errors?

What are some examples of noncounter balancing errors? What are the
differences between counterbalancing and noncounter balancing errors?
How are each handled? Does it matter if the books are closed? Why or
why not.
===============================================
ACC 423 Week 5 Team Assignment (CA 20-5, CA 20-7, CA
22-1, CA 22-6)
www.newtonhelp.com
===============================================

ACC 423 Week 5 WileyPLUS Assignment (With Excel File,
100% Score )
www.newtonhelp.com
Brief Exercise 22-1
Brief Exercise 22-4
Brief Exercise 22-7
Brief Exercise 22-8
Exercise 22-2
Exercise 22-5
Exercise 22-10
Exercise 22-11
Exercise 22-16
Exercise 22-17
Exercise 22-20
Exercise 22-22

Brief Exercise 22-1
At the beginning of 2017, Sage Construction Company changed from
the completed-contract method to recognizing revenue over time
(percentage-of-completion) for financial reporting purposes. The
company will continue to use the completed-contract method for tax
purposes. For years prior to 2017, pretax income under the two methods
was as follows: percentage-of-completion $114,600, and completed-
contract $84,000. The tax rate is 40%.
Prepare Sage’s 2017 journal entry to record the change in accounting
principle.
Brief Exercise 22-4
Culver Company changed depreciation methods in 2017 from double-
declining-balance to straight-line. Depreciation prior to 2017 under
double-declining-balance was $87,900, whereas straight-line
depreciation prior to 2017 would have been $54,900. Culver’s
depreciable assets had a cost of $241,300 with a $43,800 salvage value,
and an 8-year remaining useful life at the beginning of 2017.
Prepare the 2017 journal entry related to Culver’s depreciable assets
(Equipment
Brief Exercise 22-7
At January 1, 2017, Coronado Company reported retained earnings of
$1,970,000. In 2017, Coronado discovered that 2016 depreciation
expense was understated by $436,000. In 2017, net income was
$878,000 and dividends declared were $243,000. The tax rate is 40%.
Prepare a 2017 retained earnings statement for Coronado Company.
===============================================

ACC 423 Expect Success/newtonhelp.com

ACC 423 Expect Success/newtonhelp.com

Recommended

Recommended

More Related Content

What's hot

What's hot (17)

Similar to ACC 423 Expect Success/newtonhelp.com

Similar to ACC 423 Expect Success/newtonhelp.com (20)

Recently uploaded

Recently uploaded (20)

ACC 423 Expect Success/newtonhelp.com