Johnson Corp. sponsors a defined benefit plan for its employee group.
The following data pertains to the plan's first 2 years in existence:
- The plan was started on January 1st, Year 1, with $30,000 of funding.
- The company h
64. A property dividend causes a debit to retained earnings equal to the _ of the property
A. Book value
B. Fair market value
C. Original cost
D. Income tax basis
65. CB Corporation issued a 2 for 1 stock split. Which of the following is NOT
What is a defined contribution plan?
A defined contribution plan places the risk of the future amount to be received by the
employee on the employee. The employer agrees to make specific contributions with the
amount to be received by the employee dep
72. Which type of accounting change should always be accounted for in current and future periods?
A. Change in accounting estimate
B. Correction of an error
C. Change in accounting principle
D. Change in inventory costing methods
73. Which of the followin
89. Information concerning XYZ's common shares is as follows:
What was the price-earnings ratio on common shares for 2014?
A. 2 to 1
B. 2.67 to 1
C. 3 to 1
D. 4 to 1
E. None of these choices are correct.
90. Which of the following represent situations whe
Which of the following statements is true?
A. If a bond is sold "at a discount," the effective interest rate on the bond is lower than the
stated interest rate.
B. If a bond is sold between interest dates, it is necessary to record the interest accrue
57. ASPE and IFRS differ in their treatment of long-term Bonds Payable in that:
A. Under IFRS, exchange gains and losses on short-term debt are recorded in the income
B. The straight-line method may be used under ASPE but not under
DWWR purchased its own common shares for $20,000 and debited the treasury stock
account for the purchase price. The shares were subsequently sold for $17,000. The $3,000
difference between the cost and sale price should be recorded as a reduction of:
44. A firm retired a long-term note by in-substance defeasance. This means that:
A. the creditors have been paid.
B. the debtor has been released of its legal responsibility for all remaining debt payments.
C. there is only a remote chance that the debtor
Which of the following changes would be accounted for prospectively?
A. Changing from declining-balance depreciation to straight-line depreciation
B. Change in the expected life of a depreciable asset
C. First time presentation of assumption financial
UGBA 120AB Midterm 2 Fall 2015 V
100 Points (Questions 1-22 at 4 points each and question 23 at 12 points)
Student: lg ("L-g}
M 1. Giada Foods reported $940 million in income before income taxes for 2013, its ﬁrst year of
operations. Tax deprec
47. Contingent liabilities will or will not become actual liabilities depending on:
A. Whether they are probable and estimable
B. The degree of uncertainty
C. The present condition suggesting a liability
D. The outcome of a future event
48. Under IFRS, wh
A restriction of retained earnings is most likely to be required by the:
A. payment of last maturing series of a serial bond issue.
B. amortization of intangible assets.
C. purchase of treasury stock.
D. exhaustion of potential benefits of the invest
UGBA lZOAB Midsterm 2 Spring 2916
Version #1 Student: l’é :3 u}!
100 Points (Questions 1—22 at\4 points each and question 23 at 12 points)
:7 1. Bonds payable should be reported as a long—term liability in the balance sheet of the issuing
$5,000 (face value) of bonds with a book value of $4,300 was retired 4 years and 9 months
prior to maturity. The dollar amount (excluding interest) paid to retire the bonds was $4,700.
The entry to record the retirement would include:
A. dr. bonds pay
Discussion Section 09/18/2015
San Mateo Co. had the following account balances in Dec 31, 2011 before recording
bad debt expense for the year:
89. Which of the following is not an example of an accounting error, as distinguished from a change
in accounting principle or change in estimate?
A. Misstatement of an accounting value, such as inventory, deferred charge or credit, liabilities, or
147.A company reported the following capital structure on December 31, 2002, and the related
results of operations for the year then ended.
A 2 for 1 stock split was issued on December 31, 2002.
The tax rate for the year is 40%.
Show the earnings per shar
A company with a simple capital structure would include which of the following in the
computation of earnings per share?
A. Convertible securities
B. Number of shares of nonconvertible cumulative preferred shares
C. Dividends on nonconvertible cumulat
FED had 100 common shares issued and outstanding at December 31, 2013. On July 1,
2014, FED issued a 10 percent stock dividend. Unexercised stock options to purchase 20
common shares (adjusted for 2014 stock dividends) at $20 per share were outstandi
JUNK BONDS Inc. began operations Jan. 1, 2014. The following events related to common
shares took place on the indicated dates during 2014.
Jan. 1 Issued 25,000 common shares
Apr. 1 Purchased 4,000 treasury shares
May 1 Split the common shares 4-for-1
XYZ reported the following equity accounts on December 31 of this year:
(1) The Board of Directors declared a 10 percent stock dividend on all classes of shares on
April 1, and issued these shares on August 1.
(2) Income for th
A company had 50,000 common shares and the following 3 convertible securities outstanding
the entire year:
1. 6%, $100 par cumulative preferred shares, 200 shares outstanding, each convertible into 5
2. 200, 6% convertible bonds, face $
Learning Objective: 20-02 Calculate basic EPS adjusting for weighted average number of shares; contingently issuable and complex dividends.
On January 1, 2014, WXY had stock warrants outstanding to purchase 6,000 shares at an
At December 31, 2014 and 2013, GHI had 90 common shares and 20 convertible preferred
shares outstanding, in addition to 9% convertible bonds payable in the face amount of $4,000.
During 2014, GHI paid dividends of $2.50 per share on the preferred sha
You calculate basic EPS to be $15.87 and diluted EPS to be $16.65. From a disclosure point,
what needs to be disclosed?
Both basic EPS and diluted EPS must be disclosed on the face of the Statement of
Beechy - Chapter 20 #131
137.On January 1, 20x1, DB purchased equipment that cost $48,000. It was depreciated on the
straight-line basis for the years 20x1, 20x2 and 20x3 (estimated useful life 5 years and no
residual value). During early 20x4, DB changed the estimated total usef
123.In 20x4, a firm discovered that $10,000 of equipment purchased on 1/1/x1 was expensed in full.
The equipment has a ten-year life, has no residual value, and should have been depreciated on
the straight-line basis. The error is corrected. As a result,