Mr. X and Y each invested $50,000 to start a plumbing business on 01/01/2016 Prepare 2016...

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Mr. X and Y each invested $50,000 to start a plumbing business on 01/01/2016 Prepare 2016 CORPORATE Tax Return from the following information Dr Cr Cash Accounts Receivable Investment in Stocks/Bonds Equpment Accumulated Depreciation Accounts Payable Common Stock Sales Interest income Dividend ( 5% owned) Cost of sales Salaries to X Salaries to Y Other salaries Charitable Contribution Rent Utilities Penalties Advertising Depreciation-MACRS Contract Labor Taxable Income 23,000 85,000 30,000 185,000 450,000 50,000 50,000 85,000 1,000 60,000 18,000 1,000 24,000 43,000 35,000 1,140,000 55,950 43,000 120,000 100,000 873,000 2,500 1,500 1,140,000 Chapter 11 15. On July 31, 2014, Amsterdam Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed on November 1, 2014. To help finance construction, on July 31 Amsterdam issued a $300,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $200,000 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Amsterdam made a final $100,000 payment to Minsk. Other than the note to Netherlands, Amsterdam's only outstanding liability at December 31, 2014, is a $30,000, 8%, 6-year note payable, dated January 1, 2011, on which interest is payable each December 31. (a) Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2014. (Round all computations to the nearest dollar.) (b) Prepare the journal entries needed on the books of Amsterdam Company at each of the following dates. 1. July 31, 2014. 2. November 1, 2014. 3. December 31, 2014. Mr. X and Y each invested $50,000 to start a plumbing business on 01/01/2016 Prepare 2016 CORPORATE Tax Return from the following information Dr Cr Cash Accounts Receivable Investment in Stocks/Bonds Equpment Accumulated Depreciation Accounts Payable Common Stock Sales Interest income Dividend ( 5% owned) Cost of sales Salaries to X Salaries to Y Other salaries Charitable Contribution Rent Utilities Penalties Advertising Depreciation-MACRS Contract Labor Taxable Income 23,000 85,000 30,000 185,000 450,000 50,000 50,000 85,000 1,000 60,000 18,000 1,000 24,000 43,000 35,000 1,140,000 55,950 43,000 120,000 100,000 873,000 2,500 1,500 1,140,000 Chapter 11 15. On July 31, 2014, Amsterdam Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed on November 1, 2014. To help finance construction, on July 31 Amsterdam issued a $300,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $200,000 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Amsterdam made a final $100,000 payment to Minsk. Other than the note to Netherlands, Amsterdam's only outstanding liability at December 31, 2014, is a $30,000, 8%, 6-year note payable, dated January 1, 2011, on which interest is payable each December 31. (a) Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2014. (Round all computations to the nearest dollar.) (b) Prepare the journal entries needed on the books of Amsterdam Company at each of the following dates. 1. July 31, 2014. 2. November 1, 2014. 3. December 31, 2014.

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