Buttercup Corporation issued 300 shares of $10 par value common stock for $4,500. Prepare Buttercup' journal entry.
(List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Description/Account Debit Credit Question 2
Wilco Corporation has the following account balances at December 31, 2012. Common stock, $5 par value
Paidin capital in excess of par $518,800
1,348,160 Prepare Wilco's December 31, 2012, stockholders' equity section.
December 31, 2012
Total paidin capital Less: $ Total stockholders' equity Question 3
Woolford Inc. declared a cash dividend of $1.45 per share on its 2.11 million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on August 15. Prepare the journal entries necessary on those three dates. (If no entry is required, enter No Entry as the Description and 0 as the amount.)
Date Description/Account Debit Credit Aug. 1 Aug. 15 Sep. 9 Question 4
The outstanding capital stock of Pennington Corporation consists of 2,300 shares of $104 par value, 6% preferred, and 5,200 shares of $60 par value common.
Assuming that the company has retained earnings of $85,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions.
(a) The preferred stock is noncumulative and nonparticipating.
Common (b) $
The preferred stock is cumulative and nonparticipating.
Preferred (c) Common $
The preferred stock is cumulative and participating. (Round rate of participation to 4 decimal places, e.g. 5.1234. Round final answer to 0 decimal places, e.g. 25,320.)
Common $ $ Question 5
Martinez Company's ledger shows the following balances on December 31, 2012. 5% Preferred stock$10 par value, outstanding 26,780 shares
Common stock$100 par value, outstanding 40,170 shares
Retained earnings $267,800
843,570 Assuming that the directors decide to declare total dividends in the amount of $356,174, determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock.
(a) The preferred stock is cumulative and fully participating.
Preferred (b) $
The preferred stock is noncumulative and nonparticipating.
Preferred (c) Common Common $
The preferred stock is noncumulative and is participating in distributions in excess of a 7% dividend rate on the common stock. (Note: Do not round rate of participation. Round final answers to zero decimal places, e.g. 12,310.) Preferred Common $ $ Question 6
On January 1, 2012, Barwood Corporation granted 5,090 options to executives. Each option entitles the holder to purchase one share of Barwood's $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $69 per share on the date of grant. The fair value of the options at the grant date is $157,500. The period of benefit is 2 years. Prepare Barwood's journal entries for January 1, 2012, and December 31, 2012 and 2013. (If no entry is required, enter No Entry as the description and 0 as the amount.)
Date Description/Account Debit 1/1/12 12/31/12 12/31/13 Credit Question 7
Rockland Corporation earned net income of $431,700 in 2012 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $1,151,200 of 10% bonds, which are convertible into 23,024 shares of common. Rockland's tax rate is 40 percent. Compute Rockland's 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.13.)
$ Question 8
DiCenta Corporation reported net income of $295,000 in 2012 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 6,010 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. DiCenta' tax rate is 40%. Compute DiCenta' 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. 5.23.)
$ Question 9
Ferraro, Inc. established a stock appreciation rights (SAR) program on January 1, 2012, which entitles executives to receive cash at the date of exercise for the difference between the market price of the stock and the preestablished price of $25 on 5,190 SARs. The required service period is 2 years. The fair value of the SAR's are determined to be $7 on December 31, 2012, and $14 on December 31, 2013.
Compute Perkins' compensation expense for 2012. $ Compute Perkins' compensation expense for 2013. $ Question 10
Hillsborough Co. has an availableforsale investment in the bonds of Schuyler with a carrying (and fair) value of $78,980. Hillsborough determined that due to poor economic prospects for Schuyler, the bonds have decreased in value to $57,610. It is determined that this loss in value is otherthan temporary. Prepare the journal entry, if any, to record the reduction in value.
Description/Account Credit Debit Question 11
(Equity Securities Entries)
Capriati Corporation made the following cash purchases of securities during 2012, which is the first year in which Arantxa invested in securities. 1. On January 15, purchased 10,800 shares of Gonzalez Company's common stock at $40.20 per share plus commission $2,376. 2. On April 1, purchased 6,000 shares of Belmont Co.'s common stock at $62.40 per share plus commission $4,044. 3. On September 10, purchased 8,400 shares of Thep Co.'s preferred stock at $31.80 per share plus commission $5,892. On May 20, 2012, Capriati sold 3,600 shares of Gonzalez Company's common stock at a market price of $42.00 per share less brokerage commissions, taxes, and fees of $3,420. The yearend fair values per share were: Gonzalez $36.00, Belmont $66.00, and Thep $33.60. In addition, the chief accountant of Capriati told you that Capriati Corporation plans to hold these securities for the long term but may sell them in order to earn profits from appreciation in prices.
(a) Prepare the journal entries to record the above three security purch Description/Account Deb
January 15, 2012 April 1, 2012 September 10, 2012 Prepare the journal entry for the security sale on May 20. (List multiple debit/credit entries from largest to smallest amou (b) Description/Account (c) Compute the unrealized gains or losses and prepare the adjusting entries for Capriati on December 31, 2012. Unrealized gain or loss (For negative numbers use eithe $ Description/Account Question 12
(Journal Entries for Fair Value and Equity Methods)
Presented below are two independent situations.
Prepare all necessary journal entries in 2012 for each situation.
Hatcher Cosmetics acquired 10% of the 202,300 shares of common stock of Ramirez Fashion at a total cost of $15 per share on March 18, 2012. On June 30, Ramirez declared and paid a $82,200 cash dividend. On December 31, Ramirez reported net income of $130,200 for the year. At December 31, the market price of Ramirez Fashion was $18 per share. The securities are classified as availableforsale.
Date Description/Account Mar. 18 Jun. 30 Dec. 31 Situation 2 Holmes, Inc. obtained significant influence over Nadal Corporation by buying 25% of Nadal's 31,300 outstanding shares of common stock at a total cost of $11 per share on January 1, 2012. On June 15, Nadal declared and paid a cash dividend of $36,400. On December 31, Nadal reported a net income of $90,600 for the year.
Date Description/Account Jan. 1 Jun. 15 Dec. 31 Question 13
Gator Co. invested $1,320,000 in Demo Co. for 25% of its outstanding stock. Demo Co. pays out 40% of net income in dividends each year.
Use the information in the following Taccount for the investment in Demo to answer the following questions.
Investment in Demo Co. (a) (b) (c) (d) 1,320,000 195,000 78,000
How much was Gator Co.'s share of Demo Co.'s net income for the year? $
How much was Gator Co.'s share of Demo Co.'s dividends for the year? $
What was Demo Co.'s total net income for the year? $
What was Demo Co.'s total dividends for the year? $ Question 14
(Fair Value and Equity Method Compared)
Gregory Inc. acquired 20% of the outstanding common stock of Handerson Inc. on December 31, 2012. The purchase price was $1,320,000 for 50,000 shares. Handerson Inc. declared and paid an $0.92 per share cash dividend on June 30 and on December 31, 2013. Handerson reported net income of $747,000 for 2013. The fair value of Handerson's stock was $34 per share at December 31, 2013.
12/31/12 Prepare the journal entries for Gregory Inc. for 2012 and 2013, assuming that as availableforsale.
Description/Account 06/30/13 12/31/13 (To record dividend) (b) Prepare the journal entries for Gregory Inc. for 2012 and 2013, assuming that Date Description/Account 12/31/12 06/30/13 12/31/13 (To record dividend) (c) At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, zero, please enter a 0 do not leave any fields blank.) Fair Value Method Investment amount(bal. sheet)
Dividend rev.(inc. statement)
Revenue from investment
(inc. statement) Questi
On January 2, 2012, Jones Company purchases a call option for $370 on Merchant common stock. The call option gives Jones the option to buy 1,000 shares of Merchant at a strike price of $50 per share. The market price of a Merchant share is $50 on January 2, 2012 (the intrinsic value is therefore $0). On March 31, 2012, the market price for Merchant stock is $72 per share, and the time value of the option is $200.
(a) Description/Account (b) Description/Account (To record the time value change) (c) What was the effect on net income of entering into the derivative transaction for the period January 2 to March 31, 2012? Unrealized Holding Gain: $ Question 16
In 2012, Amirante Corporation had pretax financial income of $204,800 and taxable income of $163,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2012.
$ Question 17
At December 31, 2012, Fell Corporation had a deferred tax liability of $741,608, resulting from future taxable amounts of $2,181,200 and an enacted tax rate of 34%. In May 2013, a new income tax act is signed into law that raises the tax rate to 40% for 2013 and future years. Prepare the journal entry for Fell to adjust the deferred tax liability.
Description/Account Debit Credit Question 18
AMR Corporation (parent company of American Airlines) reported the following for 2009 (in millions). Service cost
Interest cost on P.B.O
Return on plan assets
Amortization of service cost
Amortization of loss $434
33 Compute AMR Corporation's 2009 pension expense (in millions).
$ million Question 19
For Warren Corporation, yearend plan assets were $2,170,800. At the beginning of the year, plan assets were $1,737,400. During the year, contributions to the pension fund were $120,000, and benefits paid were $200,000. Compute Warren's actual return on plan assets.
$ Question 20
For 2010, Campbell Soup Company had pension expense of $39 million and contributed $289 million to the pension fund. Prepare Campbell Soup Company's journal entry to record pension expense and funding.
Description/Account Debit Credit Question 21
Lahey Corp. has three definedbenefit pension plans as follows.
(at Fair Projected Benefit
Obligation Plan X
Plan Z $609,200
710,500 How will Lahey report these multiple plans in its financial statements?
Pension Asset $ Pension Liability $ Question 22
For 2012, Sampsell Inc. computed its annual postretirement expense as $271,210. Sampsell's contribution to the plan during 2012 was $192,620. Prepare Sampsell's 2012 entry to record postretirement expense. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)
Description/Account Debit Credit Question 23
Wertz Corporation decided at the beginning of 2012 to change from the completedcontract method to the percentageofcompletion method for financial reporting purposes. The company will continue to use completed
contract method for tax purposes. For years prior to 2012, pretax income under the two methods was as follows: percentageofcompletion $112,900, and completedcontract $87,700. The tax rate is 34%. Prepare Wertz's 2012 journal entry to record the change in accounting principle. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
Description Debit Credit
$ $ $ Question 24
In 2012, Bailey Corporation discovered that equipment purchased on January 1, 2010, for $110,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 31%. Prepare Hiatt's 2012 journal entry to correct the error. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
Description Debit Credit
$ $ $ $ Question 25
At January 1, 2012, Beilder Company reported retained earnings of $1,962,700. In 2012, Beilder discovered that 2011 depreciation expense was understated by $352,200. In 2012, net income was $892,650 and dividends declared were $290,670. The tax rate is 40%. Complete the 2012 retained earnings statement for Beilder Company. (List amounts from largest to smallest eg 10, 5, 3, 2.)
Retained Earnings Statement : : : Question 26
Simmons Corporation owns stock of Armstrong, Inc. Prior to 2012, the investment was accounted for using the equity method. In early 2012, Simmons sold part of its investment in Armstrong, and began using the fair value method. In 2012, Armstrong earned net income of $76,300 and paid dividends of $95,900. Prepare Simmons's entries related to Armstrong's net income and dividends, assuming Simmons now owns 10% of Armstrong's stock. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
Description Debit Credit
$ $ $ Question 27
Manno Corporation has the following information available concerning its postretirement benefit plan for 2012. Service cost Interest cost Actual return on plan assets Compute Manno's 2012 postretirement expense.
$ Question 28
Ravonette Corporation issued 310 shares of $13 par value common stock and 140 shares of $46 par value preferred stock for a lump sum of $17,400. The common stock has a market price of $23 per share, and the preferred stock has a market price of $98 per share. Prepare the journal entry to record the issuance. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. Round answers to zero decimal places, e.g. 16,210.)
Description/Account Question 29
Garfield Company purchased, as a heldtomaturity investment, $94,600 of the 9%, 5year bonds of Chester Corporation for $84,370, which provides an 12% return. Prepare Garfield's journal entries for (a) the purchase of the investment and (b) the receipt of annual interest and discount amortization. Assume effective interest amortization is used. (Round answers to zero decimal places, e.g. 25,000. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Description/Account Debit Credit (a) (b) Question 30
Clydesdale Corporation has a cumulative temporary difference related to depreciation of $627,500 at December 31, 2012. This difference will reverse as follows: 2013, $52,500; 2014, $248,100; and 2015, $326,900. Enacted tax rates are 34% for 2013 and 2014, and 40% for 2015. Compute the amount Clydesdale should report as a deferred tax liability at December 31, 2012.
Hi, Please find... View the full answer
- I need help with the solutions for this practice set for accounting.
- I NEED SOLUTIONS FOR CHAPTER 4.. REQUEST ANY ADDITIONAL INFORMATION IF ITS NECESSARY.
- I have an accounting assignment need to finish before 12/7/2011.
- I need help finding the solutions to the Province of Europa practice set. I have attached the Practice Set pdf and the assignment directions.
- Accounting-Invest & financing need solutions for 5 Questions, see attachment Thank you
- I need help with two accounting problems Please include solution(s)
Recently Asked Questions
- Semore company makes camping lanterns using a single production process. All direct materials are added at the beginning of the manufacturing process.
- a horizontal force of 150n is used to push a 40.0kg packing crate on a rough horizontal surface through a distance of 6.0m. what's the coefficient of kinetic
- Please help with this accounting question. The problem is attached. thank you