The following information applies to the ODonnell Company for March production.
There are only two jobs (X and Y) in production in March.
a Purchased direct materials and indirect materials with the following summary of
Accounting in Action 1 - 1531
Additional paid-in capital
In excess of parpreferred
In excess of parcommon
Total additional paid-in capital
Total paid-in capital
Retained earnings (See note)
Total paid-in capital and retained earnings
Less: Treasury stock
Accounting in Action 1 - 1671
If an investor owns less than 20% of the common stock of another corporation as a
a. the equity method of accounting for the investment should be employed.
b. no dividends can be expected.
c. it is p
Accounting in Action 1 - 1631
On January 1, 2017, Muddle Inc. entered into an agreement to lease equipment from Albert
Corporation. The lease agreement requires five annual rental payments of $90,000 beginning
December 31, 2017. The present value
Accounting in Action 1 - 1681
Consolidated financial statements present all of the following except the
individual assets and liabilities of the parent company
individual assets and liabilities of the subsidiary.
total revenues and expense
Accounting in Action 1 - 1601
The lessee must record a lease as an asset if the lease
transfers ownership of the property to the lessor.
contains a purchase option.
term is 75% or more of the useful life of the leased property.
Accounting in Action 1 - 1661
b. The cost includes any brokerage fees.
c. Debt investments include investments in government and corporation
d. The cost includes any accrued interest.
Ans: d, LO: 1, Bloom: AN, Difficulty: Easy, Min: 1, AACSB: None,
Accounting in Action 1 - 1501
Reserves include each of the following except
other comprehensive income items.
unrealized gains on available-for-sale securities.
IFRS Ans: c, LO: 5, Bloom: K, Difficulty: