Autonomous (give an example of its usage)
"independent". Ex. investment is autonomous of income
Consumer spending averages about what of disposable
Consumption accounts for how much of spending?
The relationship in
21. Dividends on preferred stock.
The stockholders' equity section of Lemay Corporation shows the following on
December 31, 2015:
Preferred stock5%, $100 par, 5,000 shares outstanding :13 500,00(
Common stockS 10 par, 60,000 shares outstanding 600,00(
Chapter 16 Exercises (homework)
For each of the unrelated transactions described below, present the entry(ies) required to record each
1. Grand Corp. issued $20,000,000 par value 10% convertible bonds at 99. If the bonds
Chapt 14 Reveiw
Calculation of bond sale price
Present value of the face amount (i = 5% n = 10)
Present value of the interest ($900,000*.6139)
Present value of the interest ($40,500* 7.7217)
Issue price of the bonds
No - Entry
There is no transaction. Since this is the approval
granted for issue of shares.
Paid in capital in excess of
par value - Preferred
24. Earnings per share.
Colson Corp. had $700,000 net income in 2015. On January 1, 2015 there were 200,000
shares of common stock outstanding. On April 1, 20,000 shares were issued and on
September 1, Colson bought 30,000 shares of treasury stock. On Oct
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 your responses.
a) Identify relevant Codification sect
Interest on projected benefit obligation (10%*$600,000
Expected return on plan assets (9%*$520,000)
Amortization of prior service cost
Amortization of loss: $70000 divided by 5 (y
Remmers Corporation 19.1
Depreciation reported on the tax return exceeded depreciation reported
on the income statement by $120,000. This difference will reverse in
equal amounts of $30,000 over the years 2015-2018.
Interest received on municipal bo
(Recording the Issuances of Common Stock)
During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock.
Jan.10 Issued 80,000 shares for cash at $6 per share.
Chapt 16 Ethics Case
(Ethical IssuesCompensation Plan)
The executive officers of Rouse Corporation have a performance-based compensation plan. The
performance criteria of this plan is linked to growth in earnings per share. When annual EPS growth is
Lois Kenseth, president of Sycamore Corporation, is concerned about several large
stockholders who have been very vocal lately in their criticisms of her leadership. She
thinks they might mount a campaign to have her removed as the corp
Chapter 20 Quiz
Presented below is information related to the pension plan of Vector Inc. for the year
1. The service cost related to pension expense is $150,000 using the projected benefits
2. The projected benefit obligat
Calculate the amount of the lease Payment
Calculation of Minimum lease
Less Executory Cost
Minimum Lease payment
Annual payments of $55,900.24 made at the begi
Danner Company expects to have a cash balance of $49,500 on January 1, 2017 . Relevant monthly budget data for the first 2
months of 2017 are as follows:
Collections from customers: January $93,500, February $165,000.
Payments for di
1 v' Your answer is correct.
DeWitt Industries has adopted the following production budget for the first 4 months of 2017.
E ach unit requires 5 pounds of raw mat
Your answer is correct.
Rodriguez, Inc., is preparing its direct labor budget for 2017 from the following production budget
based on a calendar year.
Each unit requires 1.7
Page 1 of 1
Your answer is correct.
Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2017 sales
forecast is as follows.
The January 1, 2017, inv
n May 1, 2017, Herron Corp. issued $540,000, 10%, 5-year bonds at face value. The bonds
were dated May 1, 2017, and pay interest annually on May 1. Financial statements are
prepared annually on December 31.
Your answer is correct.
Prepare the journal
Problem 8-1A (Part Level Submission)
At December 31, 2016, House Co. reported the following information on its balance sheet.
Less: Allowance for doubtful accounts
During 2017, the company had the following transactions
DeLong Corporation was organized on January 1, 2017. It is authorized to
issue 14,000 shares of 8%, $100 par value preferred stock, and 550,000 shares of no-par
common stock with a stated value of $3 per share. The following stock transactions were
In January 2017, the management of Kinzie Company concludes that it has sufficient cash to
permit some short-term investments in debt and stock securities. During the year, the
following transactions occurred.
Feb. 1 Purchased 640 shares of Muninger commo