Question 2.  Benmont Corporation (“the Company”) started ope…

Question 2.  Benmont Corporation (“the Company”) started operations on January 1, 2018, and has used the average-cost method of inventory valuation since its inception. At the beginning of 2023, the Company decides to switch to the FIFO method. The Company determined its net income for each year since 2018 as follows (ignore all tax effects):   Net Income Year Average-Cost FIFO Difference 2018 53,000 68,000 15,000 2019 81,000 92,000 11,000 2020 95,000 82,000 (13,000) 2021 74,000 78,000 4,000 2022 99,000 91,000 (8,000) 2023 87,000 94,000 7,000 The Company is publicly traded and as a result, is required to disclose the two most recent prior years’ information along with the current year within its comparative income statement and statement of retained earnings. Required: (9 Points) Provide your answers below related to the fact pattern for Benmont Corporation:

Required: Part 3(a) (16 Points) Prepare the journal entry to…

Required: Part 3(a) (16 Points) Prepare the journal entry to reflect all of the pension plan transactions and events that occurred during 2023. As a general rounding rule, if required, round final answers to the nearest whole dollar. Pension Journal Entry for 2023: Account Debit Credit  

The Jackson 5, Inc. is comprised of the following five profi…

The Jackson 5, Inc. is comprised of the following five profit centers. The following information is available for each profit center for the current year: Profit Centers Sales to Nonaffiliates Intersegment Sales Operating Profit (Loss) Identifiable Assets A $ 1,000 $ 3,000 ($ 5,300) $ 24,000 B 95,000 10,000 4,000 169,000 C 12,000 1,000 (3,100) 18,000 D 9,000 – 2,900 97,000 E 25,000 – 23,200 32,000 Total 142,000 14,000 21,700 340,000   Each profit center represents an individual operating segment, except for B and C, which together represent operating segment BC. Intersegment sales are distributed as follows: All of A’s intersegment sales were to B. 30% of B’s intersegment sales were to D; the remainder was to C. All of C’s intersegment sales were to B. Under the operating profit (loss) test, how many of the five profit centers would be included in a reportable segment? For the purposes of this question, disregard the combined revenue test.

On January 1, 2020, The Sweet Corporation issued 600, 7% bon…

On January 1, 2020, The Sweet Corporation issued 600, 7% bonds with a face value of $1,000 each at par. The bonds mature on January 1, 2030 and pay interest semiannually on July 1 and January 1. Each bond is convertible into 30 shares of the Company’s $10 par common stock. In 2023, the Company wishes to reduce its interest costs and offers an incentive to bondholders whereby the Company will pay $45 cash for each bond converted in 2023. On December 31, 2023, 400 of the 600 bonds are converted when the market price of the Company’s common stock is $52 per share. Upon conversion, what amount is recorded to Additional Paid-In Capital – Common Stock?