GeneralProducts Inc. is incorporated in Nevada, USA on Jan 1st 2013 to take over a local retail
chain. The objective of the company is to supply goods of everyday use to customers at the most
competitive prices. GeneralProducts has established a chain of
Exercise 15-2 (Recording the Issuance of Common and Preferred Stock)
Abernathy Corporation was organized on January 1, 2010. It is authorized to issue 10,000
shares of 8%, $50 par value preferred stock and 500,000 shares of no par common stock with a
1. (TCO C) Intangible assets are reported on the balance sheet (Points : 5)
with an accumulated depreciation account.
in the property, plant, and equipment section.
separately from other assets.
None of the above
2. (TCO C) When developing computer softwa
21.An example of an item which is not a liability is
dividends payable in stock.
The covenants and other terms of the agreement between the issuer of bonds
and the lender are set forth in the
The term used for bonds that are unsecu
Week #2 Discussions
When must a company recognize an asset retirement obligation?
A company must recognize asset retirement obligations when it has
an existing legal obligation related to the retirement of a longlived asset and it can reasonably estimate
E14-1 Classification of Liabilities
Presented below are various account balances.
(a) Bank loans payable of a winery due March 10, 2014. (The product requires aging for 5 years before
Current liability IF current assets are used to satisfy debt.
Ricardo Nelson Lopez
Keller Graduate School of Management
ACCT 551 Course Project
Notes to Financial Statements
Table of Contents
Table of Contents
Tropical Pool Cleaning Income Statement
Tropical Pool Cleaning Balance Sheet
E15-13 (Stock Split and Stock Dividend) The common stock of Warner
Inc. is currently selling at $110 per share. The directors wish to reduce the share
price and increase share volume prior to a new issue. The per share par value is
$10; book value is $70
Week 2 : Current Liabilities and Contingencies - Quiz
Question 1.1. (TCO D) Warranty4U provides extended service contracts on electronic equipment sold
through major retailers. The standard contract is for 3 years. During the current year,
WEEK 3 HOMEWORK Ricardo N. Lopez
E14-3 (Entries for Bond Transactions) Presented below are two independent situations.
1. On January 1, 2012, Divac Company issued $300,000 of 9%, 10-year
bonds at par. Interest is payable quarterly on April 1, July 1, Octo
E13-1 (Balance Sheet Classification of Various Liabilities) How
would each of the following items be reported on the balance sheet?
Accrued vacation pay. - Current liability
Estimated taxes payable. - Current liability
(c) Service warranties on ap
For Practice Purposes Only - Not graded or part of the Graded Homework
WEEK ONE Exercises 7, 13, 14, 17: Problem 1 & 3
In early January 2011, Reymont Corporation applied for a trade name,
incurring legal costs of $18,000. In Janua
WEEK 1 HOMEWORK Ricardo N. Lopez
E12-1 (Classification IssuesIntangibles) Presented below is a list of items that
could be included in the intangible assets section of the balance sheet.
Investment in a subsidiary company. LT Investment in BS
October 29, 2014
Professional Research: FASB Codification
If your school has a subscription to the FASB Codification, go
to http:/aaahq.org/asclogin.cfm to log in and prepare
responses to the following. Provide Codification references for