MID_11_EC_KEY_W10 - Midterm 2 Review Financial Accounting...

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Midterm 2 Review Financial Accounting II—Winter 2010 Dr. Seyedin 4 points The purpose of this extra credit assignment is to prepare you for the second midterm. Please enter your answer below using MS Word. Hand written solution will be accepted as long as it is legible and written by pen. For problem-solving questions, you must show your work step by step. Please turn in the completed file on Thursday, February 11 SOLUTIONS 1. Define “par value.” Par value is An arbitrary amount established in the articles of incorporation 2. In what type of condition prior period adjustment be necessary ? In case of material errors in a prior period’s net income may arise from mathematical mistakes and from mistakes in applying accounting principles. 3. Okuneva Corporation purchased 1,000 shares of its $1 par common stock at $15 and subsequently sold 500 of the shares at $30. What is the amount of revenue realized from the sale? The amount of revenue realized from the sale is zero. Gain from selling treasury stock is credited to Paid-In-Capital from
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MID_11_EC_KEY_W10 - Midterm 2 Review Financial Accounting...

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