# Register now to access 7 million high quality study materials (What's Course Hero?) Course Hero is the premier provider of high quality online educational resources. With millions of study documents, online tutors, digital flashcards and free courseware, Course Hero is helping students learn more efficiently and effectively. Whether you're interested in exploring new subjects or mastering key topics for your next exam, Course Hero has the tools you need to achieve your goals.

3 Pages

### 7252569-MIdterm-1 (dragged) 33

Course: ACCTG ACC423, Spring 2012
School: University of Phoenix
Rating:

#### Document Preview

Weygandt, Kieso, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition ILLUSTRATION 14-3 BONDS PAYABLEREVIEW PROBLEM Three-year bond with an 8% coupon rate sold to yield 10% on January 1, 2005. Interest payable annually. Callable at 105. Face value: \$100,000. Bond issue costs: \$5,000. 1. Calculation of premium or discount \$100,000(0.75132) = \$ 8,000(2.48685) = \$75,132.00 19,894.80...

Register Now

#### Unformatted Document Excerpt

Coursehero >> Arizona >> University of Phoenix >> ACCTG ACC423

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.
Weygandt, Kieso, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition ILLUSTRATION 14-3 BONDS PAYABLEREVIEW PROBLEM Three-year bond with an 8% coupon rate sold to yield 10% on January 1, 2005. Interest payable annually. Callable at 105. Face value: \$100,000. Bond issue costs: \$5,000. 1. Calculation of premium or discount \$100,000(0.75132) = \$ 8,000(2.48685) = \$75,132.00 19,894.80 \$95,026.80 Discount = \$100,000 - \$95,026.80 = \$4,973.20 2. Recording of bond issuance Cash Bond Issue Expenses Bonds Payable 3. 95,026.80 Bond Discount Amortization Interest Payable (8%) 01/01/05 12/31/05 12/31/06 12/31/07 4. 90,026.80 5,000.00 Interest Expense (10%) 8,000 8,000 8,000 9,502.68 9,652.95 9,818.24 Discount Amortization 1,502.68 1,652.95 1,818.24 Bond Discount 4,973.20 3,470.52 1,817.57 -0- Face Value of Bonds 100,000 100,000 100,000 100,000 Carrying Value of Bonds 95,026.80 96,529.48 98,182.43 100,000.00 Accounting Entries Interest Expense Bonds payable Cash 12/31/05 9,502.68 1,502.68 8,000.00 12/31/06 9,652.95 1,652.95 8,000.00 Bonds Payable Cash 12/31/07 9,818.24 1,818.24 8,000.00 100,000.00 100,000.00 14-17
Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian EditionILLUSTRATION 14-3 (continued)5.Entries, if bonds recalled on 12/31/06. Expenses of recall: \$2,000Cash paid = (1.05 x \$100,000) + \$2,000 = \$107,000Net carrying am
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian EditionSHAREHOLDERS' EQUITYCHAPTER 15CHAPTER TOPICS CROSS-REFERENCED WITH CICA HANDBOOKShare CapitalSection 3240Share Capital: Treasury Shares (Acquisition of Shares)
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Edition13.Compare current Canadian and international GAAP and understand which directioninternational GAAP is headed.14.Explain the accounting for par value shares (App
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian EditionCHAPTER REVIEW1.Chapter 15 focuses on the shareholders' equity section of the corporate form of businessorganization. Shareholders' equity represents the amount t
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Editiondocuments are appropriately completed. Once the certificate of incorporation isissued, the corporation is recognized as a separate legal entity bound by the laws of
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Edition10.Profits of a corporation distributed to shareholders are referred to as dividends. In general,dividends can only be paid if the company's capital will be mainta
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Edition17.Where an entity advances money to its employees or officers for the purpose of purchasingshares of company stock, it is common practice to deduct the remaining
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Edition22.While the unencumbered credit balance in retained earnings is normally considered toprovide the basis for dividend distributions, very few companies pay dividen
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Editiondistribution. When a property dividend is declared, fair market value should be recognizedin the accounts with the appropriate gain or loss recorded. The fair marke
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Editionto share capital. When the stock dividend is &quot;paid,&quot; the appropriate share capital account iscredited, and the common stock dividend distributable account is debite
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Editiona.b.Participating. Preferred shares that are participating share proportionately with thecommon shareholders in any profit distribution beyond a prescribed amount
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, Wiecekd.e.f.g.39.Intermediate Accounting, Eighth Canadian EditionFinancial reorganizations (Appendix 15B)Stock rights and warrants (Chapter 16)Issue of convertible debt (Chapter 16)Share subscriptions forfeited
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Editionc.Price earnings ratio: The analyst, in discussing the investment possibility of agiven enterprise, mostly uses this ratio. It is calculated as follows: market pri
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Editiontreasury shares are reissued for less than acquisition cost, the difference should be debitedto any contributed capital from previous treasury share, or repurchase
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian EditionLECTURE OUTLINEThe material in this chapter is relatively straightforward and can be covered in one or two classsessions.A.Nature of Shareholders' Equity1.The
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, Wiecek5.Intermediate Accounting, Eighth Canadian EditionShare Capital or Capital Stock System. Each share represents an ownership rightwith the following privileges:a.To share proportionately in profits and losses.
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Edition4.Callable at the option of the corporation5.Retractable at the option of the shareholder6.Nonvoting7.Cumulative8.ParticipatingPreferred shares sometimes h
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Edition1.2.E.Such reacquired shares may be retired (cancelled) or, where permitted, held astreasury shares. With rare exceptions, the CBCA does not allow a corporation
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekG.Intermediate Accounting, Eighth Canadian EditionTreasury SharesTreasury shares are not an asset. A corporation cannot own a part of itself.1.In Canada, the CICA Handbook recommends that treasury shares, if t
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian EditionILLUSTRATION 15-1COMPONENTS OF SHAREHOLDERS' EQUITYPreferred SharesCommon SharesShareholders'EquityUnappropriatedRetained EarningsAppropriatedAccumulated Ot
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian EditionILLUSTRATION 15-2ACCOUNTING FOR TREASURY SHARE TRANSACTIONSHTM Limited has the following shareholders' equity at September 30, 2004:Common shares, no par value, 1
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian EditionILLUSTRATION 15-2SOLUTION:(a)October 12Treasury SharesCash100,000100,000October 29Cash30,900Contributed Surplus (T/S Transactions)Treasury Shares (3,000 x
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian EditionCHAPTER 16COMPLEX FINANCIAL INSTRUMENTSCHAPTER TOPICS CROSS-REFERENCED WITH CICA HANDBOOKFinancial Instrumentsrecognition and measurementSection 3855Financial I
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Edition11.Understand how derivatives are used in hedging.12.Explain what hedge accounting is and identify the qualifying hedge criteria.13.Explain the difference betwe
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian EditionCHAPTER REVIEWIntroductionComplex financial instruments, once uncommon, are now widely used by companies in an effortto manage risk, access pools of financing, an
University of Phoenix - ACCTG - ACC423
Kieso, Weygandt, Warfield, Young, WiecekIntermediate Accounting, Eighth Canadian Editionliability.4.Mandatorily redeemable or term preferred shares (although legally equity), meet thedefinition of a liability since there is an obligation for the comp
University of Phoenix - ACC260 - AAAJ0OKG00
4-6The following four steps are used in process costing:(a) Analysis of physical flow of units: All of the units in the beginning and endinginventories, those started during the period, and those transferred out to finishedgoods are accounted for.(b)
University of Phoenix - ACC260 - AAAJ0OKG00
4-11The difference between normal and actual costing lies in the calculation of themanufacturing-overhead cost of the current period. Under actual costing, themanufacturing-overhead cost of the current period is the actual overhead costincurred during
University of Phoenix - ACC260 - AAAJ0OKG00
SOLUTIONS TO EXERCISESEXERCISE 4-16 (10 MINUTES)The general formula for all three cases is the following:Work-in-process,beginning+Units startedduring monthUnits completedduring month=Work-in-process,endingUsing this formula, the missing amou
University of Phoenix - ACC260 - AAAJ0OKG00
EXERCISE 4-18 (15 MINUTES)CALCULATION OF EQUIVALENT UNITS: PETROTECH COMPANY - AMARILLO PLANTWeighted-Average MethodPercentageofCompletionEquivalent UnitswithPhysicalRespect toDirectUnitsConversion Material ConversionWork in process, July 1.
University of Phoenix - ACC260 - AAAJ0OKG00
EXERCISE 4-20 (30 MINUTES)All three of these companies manufacture large amounts of relatively homogeneousproducts (i.e., lumber and paper). Therefore, process costing is an appropriate productcosting system.EXERCISE 4-21 (15 MINUTES)CALCULATION OF CO
University of Phoenix - ACC260 - AAAJ0OKG00
EXERCISE 4-23 (25 MINUTES)TUSCALOOSA PAPERBOARD COMPANYWeighted-Average MethodDirectMaterialConversionWork in process, March 1 .\$ 10,900\$ 28,950Costs incurred during March .112,700160,200Total costs to account for.\$123,600\$189,150Equivalent
University of Phoenix - ACC260 - AAAJ0OKG00
EXERCISE 4-24 (25 MINUTES)RALEIGH TEXTILES COMPANYWeighted-Average MethodDirectMaterialConversionWork in process, November 1 .\$ 85,750\$ 16,900Costs incurred during November .158,000267,300Total costs to account for.\$243,750\$284,200Equivalen
University of Phoenix - ACC260 - AAAJ0OKG00
EXERCISE 4-25 (45 MINUTES)1. Diagram of production process:Work-in-Process Inventory:Preparation DepartmentBatch P25 Batch S33AccumulatedbydepartmentConversion costs:Direct-laborManufacturingoverheadWork-in-Process Inventory:Finishing Departm
University of Phoenix - ACC260 - AAAJ0OKG00
EXERCISE 4-25 (CONTINUED)2. The product cost for each basketball is computed as follows:ProfessionalDirect material:.Batch P25 (\$42,000 2,000).Batch S33 (\$45,000 4,000).Conversion: Preparation Department .Conversion: Finishing Department .*Convers
University of Phoenix - ACC260 - AAAJ0OKG00
EXERCISE 4-25 (CONTINUED)Work-in-Process Inventory: Finishing Department .Applied Conversion Costs .*\$36,000 = 6,000 units36,000*36,000\$6.00 per unitWork-in-Process Inventory: Packaging Department .Finished-Goods Inventory .Work-in-Process Invent
University of Phoenix - ACC260 - AAAJ0OKG00
EXERCISE 4-26 (10 MINUTES)1.Work-in-Process Inventory: Preparation Department .Raw-Material Inventory .Wages Payable.Manufacturing Overhead .1,635,0002.Work-in-Process Inventory: Finishing Department .Work-in-Process Inventory: Preparation Depart
University of Phoenix - ACC260 - AAAJ0OKG00
SOLUTIONS TO PROBLEMSPROBLEM 4-27 (45 MINUTES)1.Work in process, June 1 .Units started during June.Total units to account for .PhysicalUnits40,000190,000230,000Units completed and transferred out during June .Work in process, June 30.Total un
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-27 (CONTINUED)4.Cost of goods completed and transferred out during June:number of unitstotal cost pertransferred outequivalent unit.180,000\$4.00\$720,000.50,000\$2.35\$117,500cost perequivalent.unit ofconversion27,500\$1.6545,3
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-28 (CONTINUED)4.Cost of goods completed and transferred out during April:number of unitstransferred outtotal cost per. 80,000equivalent unit\$3.81\$304,800cost perequivalent. 30,000unit ofdirect material\$2.00\$60,000cost perequiva
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-29 (50 MINUTES)1.Physical flow of units:Work in process, 1/1/x4 .Units started during 20x4 .Total units to account for .Units completed and transferred out during 20x4.Work in process, 12/31/x4 .Total units accounted for .2.PhysicalUn
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-29 (CONTINUED)3.Costs per equivalent unit:Work in process, 1/1/x4 .Costs incurred during 20x4 .Total costs to account for .Equivalent units .Costs per equivalent unit .DirectMaterial ConversionTotala \$ 920,800\$ 300,000 \$ 620,8001,40
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-29 (CONTINUED)4.Cost of ending inventories:Cost of goods completed and transferred out:number of unitstransferred outtotal cost per. 1,000,000equivalent unit\$4.80\$4,800,000Cost remaining in 12/31/x4 work-in-process inventory:Direct m
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-30 (40 MINUTES)1.Equivalent units:PhysicalUnitsWork in process, August 1.40,000Units started during August.80,000Total units to account for . 120,000Units completed and transferredout during August.Work in process, August 31.Total u
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-30 (CONTINUED)4.Cost remaining in August 31 work-in-process inventory:Direct material:number ofcost perequivalentequivalentunits ofunit ofdirect materialdirect material.20,000\$1.15\$23,0006,000\$10.2861,680Conversion:number of
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-31 (40 MINUTES)1.a. Equivalents units:PhysicalUnitsWork in process, June 1 .30,000Units started during June .34,000Total units to account for .64,000Units completed andtransferred out during June .Work in process, June 30 .Total un
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-31 (CONTINUED)c.Cost of goods completed and transferred out during June:number of unitstransferred outtotal cost perequivalent unit\$54.50\$2,180,000\$5.45\$130,800. 18,000 \$49.05882,90040,000Cost remaining in June 30 work-in-process i
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-32 (35 MINUTES)1.Direct material cost was \$1,390,000:JR1163 .JY1065 .DC0766 .Total .\$ 225,000710,000455,000\$1,390,000Texarkana Corporations total direct-labor payroll amounted to \$134,274 for 6,394hours of work (\$134,274 \$21 per hour
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-32 (CONTINUED)DirectMaterialWork in process, April 1Costs incurred during April.Total costs to account for.Equivalent units.Cost per equivalent unitConversionTotal\$ 230,0001,390,000\$1,620,00030,000\$54a\$ 63,940575,460\$639,40027,
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-33 (50 MINUTES)The missing amounts are shown below. A completed production report follows.Work in process, October 1 (in units).Units completed and transferred out during October .Total equivalent units: conversion .10,00075,00078,500Wor
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-33 (CONTINUED)Work in process, October 1.Costs incurred during October .Total costs to account for.Equivalent units .Costs per equivalent unit.DirectMaterial\$112,000600,000\$712,00080,000\$8.90*Conversion\$ 30,225900,000\$930,22578,
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-33 (CONTINUED)Cost of goods completed and transferred out during October:number of unitstransferred outtotal cost per. 75,000equivalent unit\$20.75\$1,556,250\$8.90\$44,500\$11.8541,475Total cost of October 31 work-in-process .\$85,975C
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-34 (30 MINUTES)1.The ending work-in-process inventory consisted of 400 units (200 + 800 600).2.The cost of goods completed during June totaled \$57,000 (600 units x \$95):PercentageOfEquivalent UnitsCompletion_WithDirectPhysical Respec
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-34 (CONTINUED)4.Equivalent units measure the amount of manufacturing activity (i.e., for directmaterial or conversion) that has been applied to a batch of physical units. If, forexample, a company has 1,000 physical units in process that are
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-35 (30 MINUTES)1.a. Equivalent units:TaxReturns(physicalunits)Returns in process, February 1 .300Returns started in February .900Total returns to account for . 1,200Returns completedduring February.800Returns in process, February
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-36 (50 MINUTES)The missing amounts are shown below. A completed production report follows.Units started during January.Units completed and transferred out during January .Total equivalent units: conversion .55,00060,00066,000Work in proc
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-36 (CONTINUED)Work in process, January 1.Costs incurred during January .Total costs to account for.Equivalent units .Costs per equivalent unit.DirectMaterial\$232,000400,000\$632,00080,000\$7.90Conversion\$110,600820,000\$930,60066,0
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-37 (45 MINUTES)1.PRODUCTION REPORT: MIXING DEPARTMENT(Weighted-Average Method)November 20x5PercentageofCompletionwithEquivalent UnitsPhysicalRespect toDirectUnitsConversionMaterialConversionWork in process, November 1 .5,00070
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-37 (CONTINUED)Cost of goods completed and transferred out during November:number of unitstotal cost pertransferred outequivalent unit. 16,000\$20.20\$323,200\$5.30\$31,800\$14.9026,820Cost remaining in November 30 work-in-process invento
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-38 (35 MINUTES)1.Conversion cost per unit in department I:direct labor manufacturing overheadunits produced*\$76,000 \$460,0005,500 2,000 2,500\$53.60 per uni t*Note that all of the products sold after processing in departments I, II, or II
University of Phoenix - ACC260 - AAAJ0OKG00
PROBLEM 4-38 (CONTINUED)4.Cost of an unetched, colored glass sheet:=cost per clearglass sheet\$143.60direct materialconversion cost per+ per unit in department II + unit in department II\$144,000\$40.004,500\$215.60 per sheet5.Cost of an etched