The revenue recognition principle provides that revenue is recognized when
a. it is realized.
b. it is realizable.
c. it is realized or realizable and it is earned.
d. None of these answers are correct.
When goods or services are exchanged for cas
a. have priority over other indebtedness.
b. are usually secured by a first or second mortgage.
c. pay interest only in the event earnings are sufficient to cover the interest.
d. may be exchanged for equity securities.
Taxable income of a corporation
a. differs from accounting income due to differences in intraperiod allocation between
the two methods of income determination.
b. differs from accounting income due to differences in interperiod allocation and
Ex. 15-131Lump sum issuance of stock-
Parker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock
for a lump sum of $76,000 cash.
(a) Give the entry for the issuance assuming the par value of the common was $5
Ex. 23113Eects of transactions on statement of cash ows.
Indicate for each of the following what should he cisclosed on a statement of cash ows cfw_indirect
method]. If not cisclosed, write "Not shown." There may he more than one answer for some
El. 18-124Joumal entriespercentageofcompletion.
Dixon Constnrction Company was awarded a contract to construct an interchange at the junction
of U.S. 94 and Highway 30 at a total contract price of $12,000,000. The estimated total costs to
complete the pro
Ex. 1 B-135Convertible Bonds.
Garr Co- issued $3,000,000 of 12%, 5year convertible bonds on December 1, 2012 for
$3,013,000 plus accrued interest- The bonds were dated April 1, 2012 with interest payable
April 1 and October 1. Bond premium is amortized ea
BE. 1T120Investment in debt securities at premium.
On April 1, 2014, West Company purchased $400,000 of 031. bonds for $415,?50 plus aoaned
interest as an availableforsale security. Interest is paid on July 1 and January 1 and the bonds
mature on July 1,
Ex. 24BESegment reporting.
Finnev Companv's condensed income statement is presented below:
Cost of goods sold $400,000
Operating and administrative expenses 200,000
Depreciation expense 40,000 54
Income before taxes 2
Acct 312 Intermediate Accounting II
Financial Statement Spreadsheet Project
1. Choose a company from the Dow Jones Industrial Index to analyze. There are many sites to get
this list from, including the following site: http:/www.cnbc.com/dow-c
Which of the following should be disclosed in a Summary of Significant Accounting
a. Types of executory contracts
b. Amount for cumulative effect of change in accounting principle
c. Claims of equity holders
d. Depreciation method followed
The residual interest in a corporation belongs to the
c. common stockholders.
d. preferred stockholders.
The pre-emptive right of a common stockholder is the right to
a. share proportionately in corporate assets upon l