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I need the solutions only for some accou...
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I need the solutions only for some accounting problems
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Question 1
ButtercupCorporationissued300sharesof$10parvaluecommonstockfor$4,500.PrepareButtercup'journalentry.
(Listmultipledebit/creditentriesfromlargesttosmallestamount,e.g.10,5,2.)
Description/Account

Debit

Credit










Question 2
WilcoCorporationhasthefollowingaccountbalancesatDecember31,2012.





Commonstock,$5parvalue
Treasurystock
Retainedearnings
Paidincapitalinexcessofpar

$518,800
97,460
2,377,190
1,348,160

PrepareWilco'sDecember31,2012,stockholders'equitysection.
WILCOCORPORATION
Stockholders'Equity
December31,2012
$
Totalpaidincapital

Less:
$

Totalstockholders'equity

Question 3
WoolfordInc.declaredacashdividendof$1.45pershareonits2.11millionoutstandingshares.Thedividendwas
declaredonAugust1,payableonSeptember9toallstockholdersofrecordonAugust15.Preparethejournalentries
necessaryonthosethreedates.(Ifnoentryisrequired,enterNoEntryastheDescriptionand0asthe
amount.)
Date

Description/Account

Debit

Credit

Aug.1







Aug.15







Sep.9







Question 4
(PreferredDividends)
TheoutstandingcapitalstockofPenningtonCorporationconsistsof2,300sharesof$104parvalue,6%preferred,
and5,200sharesof$60parvaluecommon.
Assumingthatthecompanyhasretainedearningsof$85,000,allofwhichistobepaidoutindividends,andthat
preferreddividendswerenotpaidduringthe2yearsprecedingthecurrentyear,statehowmucheachclassofstock
shouldreceiveundereachofthefollowingconditions.
(a)


Thepreferredstockisnoncumulativeandnonparticipating.
Preferred
Common


(b)

$
$
Thepreferredstockiscumulativeandnonparticipating.
Preferred



(c)


Common

$
$
Thepreferredstockiscumulativeandparticipating.(Roundrateofparticipationto4decimalplaces,e.g.
5.1234.Roundfinalanswerto0decimalplaces,e.g.25,320.)
Preferred
Common



$

$

Question 5
(PreferredDividends)
MartinezCompany'sledgershowsthefollowingbalancesonDecember31,2012.




5%Preferredstock$10parvalue,outstanding26,780shares
Commonstock$100parvalue,outstanding40,170shares
Retainedearnings

$267,800
4,017,000
843,570

Assumingthatthedirectorsdecidetodeclaretotaldividendsintheamountof$356,174,determinehowmucheach
classofstockshouldreceiveundereachoftheconditionsstatedbelow.Oneyear'sdividendsareinarrearsonthe
preferredstock.
(a)

Thepreferredstockiscumulativeandfullyparticipating.
Preferred



(b)

$
$
Thepreferredstockisnoncumulativeandnonparticipating.
Preferred



(c)

Common

Common

$
$
Thepreferredstockisnoncumulativeandisparticipatingindistributionsinexcessofa7%dividendrateonthe
commonstock.(Note:Donotroundrateofparticipation.Roundfinalanswerstozerodecimalplaces,
e.g.12,310.)



Preferred

Common



$

$

Question 6
OnJanuary1,2012,BarwoodCorporationgranted5,090optionstoexecutives.Eachoptionentitlestheholderto
purchaseoneshareofBarwood's$5parvaluecommonstockat$50pershareatanytimeduringthenext5years.
Themarketpriceofthestockis$69pershareonthedateofgrant.Thefairvalueoftheoptionsatthegrantdateis
$157,500.Theperiodofbenefitis2years.PrepareBarwood'sjournalentriesforJanuary1,2012,andDecember31,
2012and2013.(Ifnoentryisrequired,enterNoEntryasthedescriptionand0astheamount.)
Date

Description/Account

Debit

1/1/12







12/31/12







12/31/13


Credit






Question 7
RocklandCorporationearnednetincomeof$431,700in2012andhad100,000sharesofcommonstockoutstanding
throughouttheyear.Alsooutstandingallyearwas$1,151,200of10%bonds,whichareconvertibleinto23,024shares

ofcommon.Rockland'staxrateis40percent.ComputeRockland's2012dilutedearningspershare.(Roundanswer
to2decimalplaces,e.g.2.13.)
$

Question 8
DiCentaCorporationreportednetincomeof$295,000in2012andhad50,000sharesofcommonstockoutstanding
throughouttheyear.Alsooutstandingallyearwere6,010sharesofcumulativepreferredstock,eachconvertibleinto2
sharesofcommon.Thepreferredstockpaysanannualdividendof$5pershare.DiCenta'taxrateis40%.Compute
DiCenta'2012dilutedearningspershare.(Roundanswerto2decimalplaces,e.g.5.23.)
$

Question 9
Ferraro,Inc.establishedastockappreciationrights(SAR)programonJanuary1,2012,whichentitlesexecutivesto
receivecashatthedateofexerciseforthedifferencebetweenthemarketpriceofthestockandthepreestablished
priceof$25on5,190SARs.Therequiredserviceperiodis2years.ThefairvalueoftheSAR'saredeterminedtobe
$7onDecember31,2012,and$14onDecember31,2013.
ComputePerkins'compensationexpensefor2012.

$

ComputePerkins'compensationexpensefor2013.

$

Question 10
HillsboroughCo.hasanavailableforsaleinvestmentinthebondsofSchuylerwithacarrying(andfair)valueof
$78,980.HillsboroughdeterminedthatduetopooreconomicprospectsforSchuyler,thebondshavedecreasedin
valueto$57,610.Itisdeterminedthatthislossinvalueisotherthantemporary.Preparethejournalentry,ifany,to
recordthereductioninvalue.
Description/Account

Credit









Debit



Question 11
(EquitySecuritiesEntries)
CapriatiCorporationmadethefollowingcashpurchasesofsecuritiesduring2012,whichisthefirstyearinwhich
Arantxainvestedinsecurities.

1.

OnJanuary15,purchased10,800sharesofGonzalezCompany'scommonstockat$40.20pershareplus
commission$2,376.

2.

OnApril1,purchased6,000sharesofBelmontCo.'scommonstockat$62.40persharepluscommission
$4,044.

3.

OnSeptember10,purchased8,400sharesofThepCo.'spreferredstockat$31.80pershareplus
commission$5,892.

OnMay20,2012,Capriatisold3,600sharesofGonzalezCompany'scommonstockatamarketpriceof$42.00per
sharelessbrokeragecommissions,taxes,andfeesof$3,420.Theyearendfairvaluespersharewere:Gonzalez
$36.00,Belmont$66.00,andThep$33.60.Inaddition,thechiefaccountantofCapriatitoldyouthatCapriati
Corporationplanstoholdthesesecuritiesforthelongtermbutmayselltheminordertoearnprofitsfrom
appreciationinprices.
(a)

Preparethejournalentriestorecordtheabovethreesecuritypurch


Description/Account

Deb
January15,2012


April1,2012

September10,2012


PreparethejournalentryforthesecuritysaleonMay20.(Listmultipledebit/creditentriesfromlargesttosmallestamou

(b)


Description/Account


(c)

ComputetheunrealizedgainsorlossesandpreparetheadjustingentriesforCapriationDecember31,2012.

Unrealizedgainorloss(Fornegativenumbersuseeithe

$




Description/Account


Question 12
(JournalEntriesforFairValueandEquityMethods)
Presentedbelowaretwoindependentsituations.
Prepareallnecessaryjournalentriesin2012foreachsituation.
Situation1
HatcherCosmeticsacquired10%ofthe202,300sharesofcommonstockof
RamirezFashionatatotalcostof$15pershareonMarch18,2012.OnJune
30,Ramirezdeclaredandpaida$82,200cashdividend.OnDecember31,
Ramirezreportednetincomeof$130,200fortheyear.AtDecember31,the
marketpriceofRamirezFashionwas$18pershare.Thesecuritiesare
classifiedasavailableforsale.
Date

Description/Account

Mar.18




Jun.30




Dec.31




Situation2

Holmes,Inc.obtainedsignificantinfluenceoverNadalCorporationbybuying
25%ofNadal's31,300outstandingsharesofcommonstockatatotalcostof
$11pershareonJanuary1,2012.OnJune15,Nadaldeclaredandpaida
cashdividendof$36,400.OnDecember31,Nadalreportedanetincomeof
$90,600fortheyear.
Date

Description/Account

Jan.1




Jun.15




Dec.31




Question 13
(EquityMethod)
GatorCo.invested$1,320,000inDemoCo.for25%ofitsoutstandingstock.DemoCo.paysout40%ofnetincome
individendseachyear.
UsetheinformationinthefollowingTaccountfortheinvestmentinDemotoanswerthefollowingquestions.
InvestmentinDemoCo.



(a)


(b)


(c)


(d)




1,320,000


195,000



78,000
HowmuchwasGatorCo.'sshareofDemoCo.'snetincomefortheyear?

$
HowmuchwasGatorCo.'sshareofDemoCo.'sdividendsfortheyear?

$
WhatwasDemoCo.'stotalnetincomefortheyear?

$
WhatwasDemoCo.'stotaldividendsfortheyear?

$

Question 14
(FairValueandEquityMethodCompared)
GregoryInc.acquired20%oftheoutstandingcommonstockofHandersonInc.onDecember31,2012.Thepurchase
pricewas$1,320,000for50,000shares.HandersonInc.declaredandpaidan$0.92persharecashdividendonJune
30andonDecember31,2013.Handersonreportednetincomeof$747,000for2013.ThefairvalueofHanderson's
stockwas$34pershareatDecember31,2013.
(a)

Date
12/31/12

PreparethejournalentriesforGregoryInc.for2012and2013,assumingthat
asavailableforsale.
Description/Account





06/30/13




12/31/13






(Torecorddividend)






(b)


PreparethejournalentriesforGregoryInc.for2012and2013,assumingthat

Date

Description/Account

12/31/12




06/30/13




12/31/13






(Torecorddividend)



(c)



AtwhatamountistheinvestmentinsecuritiesreportedonthebalancesheetundereachofthesemethodsatDecember31,
zero,pleaseentera0donotleaveanyfieldsblank.)



FairValueMethod



Investmentamount(bal.sheet)
Dividendrev.(inc.statement)
Revenuefrominvestment
(inc.statement)


Questi
on 15
(Call
Option)
OnJanuary
2,2012,
Jones
Company
purchases
acalloption
for$370on
Merchant
common
stock.The
calloption







givesJones
theoption
tobuy
1,000
sharesof
Merchantat
astrike
priceof$50
pershare.
Themarket
priceofa
Merchant
shareis
$50on
January2,
2012(the
intrinsic
valueis
therefore
$0).On
March31,
2012,the
market
pricefor
Merchant
stockis$72
pershare,
andthe
timevalue
ofthe
optionis
$200.
(a)

Description/Account

(b)

Description/Account

(Torecordthetimevaluechange)

(c)

WhatwastheeffectonnetincomeofenteringintothederivativetransactionfortheperiodJanuary2to
March31,2012?





UnrealizedHoldingGain:$

Question 16
In2012,AmiranteCorporationhadpretaxfinancialincomeof$204,800andtaxableincomeof$163,000.The
differenceisduetotheuseofdifferentdepreciationmethodsfortaxandaccountingpurposes.Theeffectivetaxrate
is40%.ComputetheamounttobereportedasincometaxespayableatDecember31,2012.
$

Question 17
AtDecember31,2012,FellCorporationhadadeferredtaxliabilityof$741,608,resultingfromfuturetaxableamounts
of$2,181,200andanenactedtaxrateof34%.InMay2013,anewincometaxactissignedintolawthatraisesthetax
rateto40%for2013andfutureyears.PreparethejournalentryforFelltoadjustthedeferredtaxliability.
Description/Account

Debit

Credit






Question 18
AMRCorporation(parentcompanyofAmericanAirlines)reportedthefollowingfor2009(inmillions).






Servicecost
InterestcostonP.B.O
Returnonplanassets
Amortizationofservicecost
Amortizationofloss

$434
731
803
78
33

ComputeAMRCorporation's2009pensionexpense(inmillions).
$ million

Question 19
ForWarrenCorporation,yearendplanassetswere$2,170,800.Atthebeginningoftheyear,planassetswere
$1,737,400.Duringtheyear,contributionstothepensionfundwere$120,000,andbenefitspaidwere$200,000.
ComputeWarren'sactualreturnonplanassets.
$

Question 20
For2010,CampbellSoupCompanyhadpensionexpenseof$39millionandcontributed$289milliontothepension
fund.PrepareCampbellSoupCompany'sjournalentrytorecordpensionexpenseandfunding.
Description/Account

Debit

Credit





Question 21
LaheyCorp.hasthreedefinedbenefitpensionplansasfollows.
Pension
Assets
(atFair
ProjectedBenefit
Value)
Obligation



PlanX
PlanY
PlanZ

$609,200
930,700
581,100





$544,200
731,900
710,500





HowwillLaheyreportthesemultipleplansinitsfinancialstatements?
PensionAsset

$

PensionLiability

$

Question 22
For2012,SampsellInc.computeditsannualpostretirementexpenseas$271,210.Sampsell'scontributiontotheplan
during2012was$192,620.PrepareSampsell's2012entrytorecordpostretirementexpense.(Listmultiple
debit/creditentriesfromlargesttosmallestamount,e.g.10,5,2.)
Description/Account

Debit

Credit










Question 23
WertzCorporationdecidedatthebeginningof2012tochangefromthecompletedcontractmethodtothe
percentageofcompletionmethodforfinancialreportingpurposes.Thecompanywillcontinuetousecompleted
contractmethodfortaxpurposes.Foryearspriorto2012,pretaxincomeunderthetwomethodswasasfollows:
percentageofcompletion$112,900,andcompletedcontract$87,700.Thetaxrateis34%.PrepareWertz's2012
journalentrytorecordthechangeinaccountingprinciple.(Formultipledebit/creditentries,listamountsfrom
largesttosmallesteg10,5,3,2.)
Description

Debit

Credit
$







$





$

Question 24
In2012,BaileyCorporationdiscoveredthatequipmentpurchasedonJanuary1,2010,for$110,000wasexpensedat
thattime.Theequipmentshouldhavebeendepreciatedover5years,withnosalvagevalue.Theeffectivetaxrateis
31%.PrepareHiatt's2012journalentrytocorrecttheerror.(Formultipledebit/creditentries,listamountsfrom
largesttosmallesteg10,5,3,2.)
Description

Debit

Credit
$







$





$





$

Question 25
AtJanuary1,2012,BeilderCompanyreportedretainedearningsof$1,962,700.In
2012,Beilderdiscoveredthat2011depreciationexpensewasunderstatedby
$352,200.In2012,netincomewas$892,650anddividendsdeclaredwere
$290,670.Thetaxrateis40%.Completethe2012retainedearningsstatementfor
BeilderCompany.(Listamountsfromlargesttosmallesteg10,5,3,2.)
BEIDLERCOMPANY
RetainedEarningsStatement

:
:
:

Question 26
SimmonsCorporationownsstockofArmstrong,Inc.Priorto2012,theinvestmentwasaccountedforusingtheequity
method.Inearly2012,SimmonssoldpartofitsinvestmentinArmstrong,andbeganusingthefairvaluemethod.In
2012,Armstrongearnednetincomeof$76,300andpaiddividendsof$95,900.PrepareSimmons'sentriesrelatedto
Armstrong'snetincomeanddividends,assumingSimmonsnowowns10%ofArmstrong'sstock.(Formultiple
debit/creditentries,listamountsfromlargesttosmallesteg10,5,3,2.)
Description

Debit

Credit
$







$





$

Question 27
MannoCorporationhasthefollowing
informationavailableconcerningits
postretirementbenefitplanfor2012.


Servicecost



Interestcost



Actualreturnonplanassets

ComputeManno's2012postretirement
expense.
$

Question 28
RavonetteCorporationissued310
sharesof$13parvaluecommonstock
and140sharesof$46parvalue
preferredstockforalumpsumof
$17,400.Thecommonstockhasa
marketpriceof$23pershare,andthe
preferredstockhasamarketpriceof
$98pershare.Preparethejournal
entrytorecordtheissuance.(List
multipledebit/creditentriesfrom
largesttosmallestamount,e.g.10,
5,2.Roundanswerstozerodecimal
places,e.g.16,210.)
Description/Account





Question 29
GarfieldCompanypurchased,asaheldtomaturityinvestment,$94,600ofthe9%,5yearbondsofChester
Corporationfor$84,370,whichprovidesan12%return.PrepareGarfield'sjournalentriesfor(a)thepurchaseofthe
investmentand(b)thereceiptofannualinterestanddiscountamortization.Assumeeffectiveinterestamortizationis
used.(Roundanswerstozerodecimalplaces,e.g.25,000.Listmultipledebit/creditentriesfromlargestto
smallestamount,e.g.10,5,2.)


Description/Account

Debit

Credit

(a)







(b)













Question 30
ClydesdaleCorporationhasacumulativetemporarydifferencerelatedtodepreciationof$627,500atDecember31,
2012.Thisdifferencewillreverseasfollows:2013,$52,500;2014,$248,100;and2015,$326,900.Enactedtaxrates
are34%for2013and2014,and40%for2015.ComputetheamountClydesdaleshouldreportasadeferredtax
liabilityatDecember31,2012.
$

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Hi, Please find the file attached Thank you View the full answer

8497804.docx

Question 1
ButtercupCorporationissued300sharesof$10parvaluecommonstockfor$4,500.PrepareButtercup'journalentry.
(Listmultipledebit/creditentriesfromlargesttosmallestamount,e.g.10,5,2.)...

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