View the step-by-step solution to:

Intermediate Accounting II Exam I Spring 2013 INSTRUCTIONS: Please complete all the questions assigned and show all your work. You may either type up...

I need these ten questions for my accounting class answered by Sunday evening if possible. Thank you in advance for your time.
Intermediate Accounting II Exam I Spring 2013 INSTRUCTIONS : Please complete all the questions assigned and show all your work. You may either type up your responses or perform by hand and scan your answer sheets and submit via the dropbox. Total 100 Points) 1. On December 31 st , 2012 Sarah Corporation has the following information: Preferred Stock 6%, $100 par (3,000 shares issued) $200,000 Common Stock, $5 par value (20,000 shares issued) $100,000 Additional Paid in Capital $225,000 Retained Earnings $550,000 Record the following journal entries: a. Paid the annual dividend per share to the preferred shareholder and a $4 dividend to the common stockholder (both in cash). b. Declared a 15% stock dividend on the outstanding common stock when the price was $12 per share. c. Prepare the stockholder’s equity section as of year-end. Assume net income was $350,000 at year-end. (15 points) 2. On May 1, the corporation bought a vehicle for $75,000 by giving a down payment of $15,000 and financing the remaining amount. The company signed an8 percent interest -bearing note for three years. Interest is due every 6 months and principal is at maturity. Record the journal entries on May 1, the interest payment 6 months later and any journal entries needed on December 31 st . (10 points) 3. Johnson Corporation had the following transactions during the year. Record the journal entries. a. On Jan 14 issues 30,000 shares of common stock for cash at $8 per share. The par value is $3 per share b. On Mar 1, bought 5,000 shares of common stock at a price of $12 per share. (Par value of shares is $3). c. Purchased a building on July 15th in exchange for 4,500 shares of common stock. The building is valued at $120,000 and the shares have a par value of $2 per share. d. Sold on August 28, 2,000 of the 5,000 shares bought on March 1 at a price of $15 per share ($2 par value). e. Paid a 15% stock dividend to outstanding common shareholders on December 31st.Assume a $2 par value and that the market value of the shares is $14 per share. (20 points)
Background image of page 1
4. On March 1 st , 2011 a company issued 3,000 of $100 bonds, each convertible into 4 shares of common stock at $6 par value. On December 31, the company converted the bonds into common stock when the unamortized discount was $40,000. Record the conversion of the stock. (5 points) 5. During 2011, Otter Corp. issued a 10 year $200,000, 8% convertible bond. Each bond is $1,000 and convertible into 100 shares of common stock. The company has net income of $1,750,000 and 20,000 shares outstanding. Assume tax rate is 35% and compute Diluted EPS. (10 points) 6. On March 1 st , 2012 a company granted 5 employees the option to buy 1,000 common stock shares at $40 per share with a par value of $3 per share for one year. The fair value of the options (compensation) is $400,000 over a 1 year period. Prepare the journal entry to record the value of the compensation on December 31 st , 2012 and on February 1 st, 2013 when they are exercised. Market value of the shares at the exercise date was $50 per share. (10 points) 7. Robertson Co. has the following transactions during the year: On January 1 st , beginning balance of 80,000 shares. On April 1 st , Issued 10,000 shares for cash. On September 1 st , issued a 20% stock dividend On November 1 st issued 30,000 shares for cash. Calculate the weighted-average number of shares outstanding at year-end. (10 points) 8. Johnson Co issued bonds on January 1, 2008. The face value of the bond is $1,200,000 and has a coupon rate of 11% per year. The market rate is 10% per year. Interest is paid semi-annually and it is a 6- year bond. a. Record the issuance of the bond on January 1 st . b. Record the interest payment and amortization of bond/premium on July 31 st , 2008 using the straight-line method. c. On July 31 st , 2011, the company retired the bonds at a price of 104. Record the retirement of the bond. (10 points) 9. Peterson Corporation has $3,000,000 of short-term debt due March 3, 2014. On March 25 th , 2014 the company issued 100,000 shares of common stock totaling $4,000,000 to pay off the short-term debt. What amount would be recorded at short- term debt in 2014? (4 points) 10. Bonds with a par value of $900,000 were dated January 1 st , 2012 and sold at 106 plus accrued interest on June 1 st . The coupon rate is 12% payable annually and matures in 5 years. Using the effective interest rate method, record the following journal entries: a. Issuance of the bonds on June 1 st , 2012
Background image of page 2
Show entire document
Sign up to view the entire interaction

Top Answer

The answer to this question... View the full answer

8440043.doc

Intermediate Accounting II
Exam I
Spring 2013
INSTRUCTIONS: Please complete all the questions assigned and show all your work.
You may either type up your responses or perform by hand and scan your...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online