Intermediate Accounting

Download Document
Showing pages : 1 - 4 of 10
This preview has blurred sections. Sign up to view the full version! View Full Document
COMPREHENSIVE EXAMINATION D PART 4 (Chapters 15-17) Approximate Problem Topic Time D-I Treasury Stock. 20 min. D-II *Cash Dividends. 10 min. D-III Stock Dividends and Stock Splits. 10 min. D-IV Earnings Per Share Concepts. 10 min. D-V Earnings Per Share Computations. 10 min. D-VI Basic and Diluted Earnings Per Share. 20 min. D-VII Available-for-Sale Equity Securities. 15 min. D-VIII Trading Securities. 30 min. 125 min. *Part of this topic is dealt with in an Appendix to the chapter.
Background image of page 1
Test Bank for Intermediate Accounting, Fourteenth Edition Problem D-I — Treasury Stock The stockholders' equity section of Carey Co.'s balance sheet at December 31, 2012, was as follows: Common stock--$10 par (authorized 1,000,000 shares, issued and outstanding 600,000 shares) $ 6,000,000 Paid-in capital in excess of par 1,500,000 Retained earnings 3,250,000 $10,750,000 Instructions Prepare journal entries (1, 2, and 4) and show proper disclosure (3) to reflect the following treasury stock transactions showing how each is accounted for under the cost method. (Show computations.) 1. On January 4, 2013, having idle cash, Carey Co. repurchased 20,000 shares of its out- standing stock for $500,000. 2. On March 4, Carey sold 5,000 of these reacquired shares at $28 per share. 3. Show the proper disclosures in the stockholders' equity section of the balance sheet issued at the end of the first quarter, March 31, 2013. Assume net income of $100,000 during the first quarter. 4. On June 30, 2013 the firm sold 10,000 of the reacquired shares for $21 per share. *Problem D-II — Cash Dividends Bell Company has stock outstanding as follows: Common, $10 par value per share, 140,000 shares; Preferred, 5%; $100 par value per share, 8,000 shares. The Preferred is cumulative and participating up to an additional 4% of par; two years are in arrears (not including the current year); and the total amount of cash dividends declared for both classes of stock is $230,000. Instructions Prepare the entry for the dividend declaration, separating the dividend into the common and preferred portions. D - 2
Background image of page 2
Comprehensive Examination D Problem D-III — Stock Dividends and Stock Splits Stock dividends and stock splits are common forms of corporate stock distribution to stockholders. Consider each of the numbered statements. You are to decide whether it: A. Applies to both stock dividends and stock splits. B. Applies to neither. C. Applies to stock splits only. D. Applies to stock dividends only. E. Applies to stock splits effected in the form of a dividend only. F. Applies to both stock splits effected in the form of a dividend and a stock dividend.
Background image of page 3
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.
Ask a homework question - tutors are online