All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
AI Study Help
New
Search
Search
Sign In
Register
study help
business
accounting
Questions and Answers of
Accounting
On January 1, 2006, as a form of executive compensation, Wadlin Corporation grants share appreciation rights to Robert Brandt. These rights entitle Brandt to receive cash equal to the excess of the
On January 2, 2007 the Bray Corporation issues 900 shares of $100 par convertible preferred stock for $117 per share. On January 7, 2008, all the preferred stockholders convert their shares to common
On March 4, 2007 the Hein Corporation issues 1,000 shares of $100 par preferred stock for $125 per share. The stock is not callable by the corporation until three years have expired. On April 7,
The Nelson Corporation issues 6,000 shares of $100 par preferred stock at a price of $112 per share. A stock warrant is attached to each share of preferred stock that enables the holder to purchase
Sapp Company is authorized to issue 20,000 shares of no-par, $5 stated-value common stock and 5,000 shares of 9%, $100 par preferred stock. It enters into the following transactions:1. Accepts a
The following is a list of selected accounts and ending account balances taken from the books of the Adams Company on December 31, 2007:Account Title AmountPremium on preferred stock ..........
On January 1 the Sanders Corporation had 1,000 shares of $10 par common stock authorized and outstanding. These shares were originally issued at a price of $26 per share. In addition, 500 shares of
The records of TMP Incorporated provide the following information on January 1, 2007:Preferred stock, $50 par (5,000 shares authorized, issued, and outstanding) ... $250,000Common stock, $10 par
On January 1 the West Company had outstanding 10,000 shares of $10 par common stock, which had been originally issued at an average price of $35 per share. During the year the company engaged in the
The following information is taken from the accounting records of the Propst-Steele Production Corporation:1. Issued 5,000 shares of no-par common stock at $15 per share.2. Issued an additional 5,000
The Cada Corporation is authorized to issue 10,000 shares of $100 par, convertible, callable preferred stock and 80,000 shares of no-par, no-stated-value common stock. There are currently 7,000
The Epple Corporation is authorized to issue 20,000 shares of $100 par, convertible, callable preferred stock and 100,000 shares of $10 stated value common stock. Currently, the company has
On August 3, 2007, the date of incorporation, the Quinn Company accepts separate subscriptions for 1,000 shares of $100 par preferred stock at $104 per share and 9,000 shares of no-par,
On July 3 the Wallace Company enters into a subscription contract with various investors. Terms of the contract are as follows:1. Number of shares: 10,000 shares of no-par, $6 stated-value common
The Nichols Electronics Corporation has been experiencing a steadily growing demand for its products. In order to meet this demand, a major expansion of production facilities is necessary. The
On January 1, 2007 Roswall Corporation’s common stock is selling for $55 per share. On this date, Roswall creates a compensatory share option plan for its 60 key employees. The plan document states
Connors Company has 70 executives to whom it grants compensatory share options on January 1, 2007. The plan grants each executive options to acquire a maximum of 100 shares of the company’s $5 par
On January 1, 2007 Pierce Company establishes a performance based share option plan for its 80 top executives. The terms of the plan are that each executive is granted a maximum of 200 options after
Smythe Company has a share appreciation rights plan for its key executives. This SAR plan gives each qualifying executive the right to receive cash, stock, or a combination of both equal to the
The Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, $100 par preferred stock. The
The Byrd Company’s Contributed Capital section of its January 1, 2007 balance sheet is as follows: Preferred stock (6%, $50 par, 8,000 shares authorized, 3,400 shares issued and outstanding)
A partial list of the accounts and ending account balances taken from the post closing trial balance of the Jordan Corporation on December 31, 2007 is shown as follows:Account Title
The following is a partial list of the accounts and ending account balances taken from the post-closing trial balance of the Clett Corporation on December 31, 2007:Common stock subscribed $ 10,000
At the end of its first year of operations, the Leo Company lists the following accounts and ending account balances related to stock transactions and dividends:During the first year the following
Bush-Caine Company reported the following data on its December 31, 2006 balance sheet:Preferred stock, $50 par $50,000Common stock, $10 par $100,000Additional paid-in capital on preferred stock
The Ray Holt Corporation has retained you as a consultant on accounting policies and procedures. During 2007 the company engaged in a number of treasury stock transactions, having foreseen an
Udall Corporations post-closing trial balance at December 31, 2007 was as follows:At December 31, 2007 Udall had the following number of common and preferred shares:The dividends on
A stockholder has several rights as an “owner” of a corporation. Furthermore, the rights of preferred stockholders are sometimes modified upon the issuance of preferred stock.Required1. List and
As a general rule, when a corporation issues capital stock for assets other than cash, it is said that the exchange should be valued at the fair value of the stock or the asset, whichever is more
Occasionally, a corporation will combine securities into a “package” (for example, common stocks, preferred stocks, bonds) and issue these securities as a single unit.RequiredAssuming that two
A corporation may enter into subscription contracts for the purchase of its stock.RequiredWhat is a subscription contract and how does it work? What provisions are usually included in the contract?
A corporation has a noncompensatory share purchase plan for all its employees and a compensatory share option plan for some of its corporate officers.Required1. Compare and contrast the accounting at
Capital stock is an important area of a corporation’s equity section. Generally the term “capital stock” embraces common and preferred stock issued by a corporation.Required1. What are the
A corporation sometimes engages in treasury stock transactions.Required1. Define treasury stock.2. Why would a corporation acquire treasury stock?3. Briefly explain the cost method of accounting for
In dealing with the various equity securities of a corporate entity, it is important to understand certain related terminology.RequiredDefine the following terms: (1) Treasury stock, (2) Legal
On November 6, 2006, Gunpowder Corp.’s board of directors approved a share option plan for key executives. On January 2, 2007, a specific number of share options were granted. These options were
Instead of a fixed compensatory share option plan, Wright Company is considering providing its key executives with a plan that involves share appreciation rights (SAR).Required1. Explain what is
Tom Twitlet, president of Twitlet Corporation, is considering establishing a compensatory share option plan for the company’s 20 top executives. Tom desires to set the terms of the plan so that the
The stockholders’ equity of a corporation may include both preferred stock and common stock. Preferred stock may (1) Be convertible into common stock, or (2) Be issued with warrants attached
For numerous reasons a corporation may reacquire shares of its own capital stock. When a corporation purchases treasury stock, it has two options as to how to account for the shares: (1) Cost method,
FASB Statement of Concepts No. 6 defines a company’s equity and discusses the various changes in equity.RequiredDefine and discuss the term equity. Identify the various changes in a company’s
Refer to the financial statements and related notes of The Coca-Cola Company in Appendix A of this book.Required1. How many shares of preferred stock were authorized and issued at the end of 2004?2.
Smaller Corporation has been in operation for several years. Each year, at Christmas time, the company has given a cash bonus to each of its employees, and properly recorded the bonuses as
Situation Russell International, a publicly traded company, reacquired 500,000 shares of its common stock during July 2008 at a cost of $25 per share. The current market price of the stock was $20
Situation Bowsher Company had 10% bonds payable outstanding with a total face value of $185,000. Each bond had an individual face value of $1,000 and paid interest semiannually on June 30 and
What is a simple capital structure?
How is “basic earnings per share” computed for a corporation with a simple capital structure?
What is the “weighted average” number of shares for computing earnings per share and how is it calculated?
On what date are stock dividends and splits considered to be issued for computing earnings per share?
Identify several securities that might be found in the complex capital structure of a corporation.
What two earnings per share figures generally are reported by a corporation with a complex capital structure? Besides common shares outstanding, what additional securities are included in the second
What is the treasury stock method? How is the increase in the diluted earnings per share denominator determined under the treasury stock method?
Discuss how to develop a ranking for determining in which order to include convertible securities in a corporation’s diluted earnings per share calculations.
What additional disclosures does a corporation make concerning the basic and diluted earnings per share it reports on its income statement?
What are the four important dates in regard to a cash dividend? What journal entry does the corporation make on each date?
What is fully participating preferred stock? Partially participating preferred stock?
Discuss how a corporation records the declaration of a property dividend.
Distinguish between an ordinary and special stock dividend.
Distinguish between a small and large stock dividend. What amounts does a corporation use to record the declaration of each dividend?
How does the accounting for a liquidating dividend differ from that for a normal cash dividend?
How does a corporation record and report a correction of a material error made in a previous year in its current year’s financial statements?
For what reasons would a corporation restrict its retained earnings? How does it report a restriction?
What is the suggested format for the statement of retained earnings? What are the two most common elements in this statement?
What items might a corporation include in the accumulated other comprehensive income section of its stockholders’ equity?
What changes does a corporation include in its statement of changes in stockholders’ equity?
(Multiple Choice)1. For purposes of computing the weighted average number of shares outstanding during the year, a midyear event that must be treated as occurring at the beginning of the year is
At the beginning of the current year, Heath Company had 20,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock, so
Ryan Company reports net income of $5,125 for the year ended December 31, 2007, its first year of operations. On January 3, 2007, the company issued 9,000 shares of common stock. On August 1, 2007 it
Sardel Company reported net income of $29,975 for 2007. During all of 2007 the company had 1,000 shares of 10%, $100 par, nonconvertible preferred stock outstanding, on which the year’s dividends
Burke Company shows the following condensed income statement information for the year ended December 31, 2007:Income before extraordinary items ........... $29,936Less: Extraordinary loss (net of
Matthews Company had five convertible securities outstanding during all of 2007. It paid the appropriate interest (and amortized any related premium or discount using the straight-line method) and
Butler Company has 30,000 shares of common stock outstanding during all of 2007. This common stock has been selling at an average market price of $45 per share. The company also has outstanding for
Jamieson Company earned net income of $43,800 during 2007. At the beginning of 2007 it had 10,000 shares of common stock outstanding; an additional 4,000 shares were issued on July 2. During 2007,
Clark Company’s capital structure consists of common stock and convertible bonds. At the beginning of 2007 the company had 15,000 shares of common stock outstanding; an additional 4,500 shares
Walker Company has 15,000 shares of common stock outstanding during all of 2007. It also has two convertible securities outstanding at the end of 2007. These are:1. Convertible preferred stock: 1,000
Caldwell Company has 20,000 shares of common stock outstanding during all of 2007. It also has two convertible securities outstanding at the end of 2007. These are:1. Convertible preferred stock:
Uphoff Company has $80,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par common stock outstanding. The preferred stock is selling for
The Goodson Company listed the following account balances on December 31, 2006:Investment in Xurk Company bonds .......... $ 25,000Common stock, $10 par ............... $400,000Dividends payable:
Mills Company lists the following condensed balance sheet as of the beginning of 2007:Mills is considering the impact of various types of dividends on this balance sheet. Each dividend would be
The stockholders’ equity of the Sadler Company is as shown:Common stock, $10 par ........... $250,000Additional paid-in capital on common stock .. 150,000Retained earnings ..............
Although Weaver Company has enough retained earnings legally to declare a dividend, its working capital is low. The board of directors is considering a stock dividend instead of a cash dividend. The
Miles Company began 2007 with a retained earnings balance of $142,400. During an examination of its accounting records on December 31, 2007, the company found it had made the following material
Perry Company has a retained earnings balance of $400,000 at the end of 2007. During 2007 it had issued $100,000 of five-year, 12%, long-term bonds. The bond provisions require that each year over
Hernandez Company began 2007 with a $120,000 balance in retained earnings. During the year, the following events occurred:1. The company earned net income of $80,000.2. A material error in net income
On January 1, 2007 Franklin Company had a retained earnings balance of $206,000. During 2007 the following events occurred:1. Treasury stock (common) was acquired at a cost of $14,000. State law
Wilk Manufacturing Corporation completed the following transactions during its first year of operation, 2007:1. The state authorized the issuance of 30,000 shares of $5 par common stock; 15,000
The stockholders’ equity section of Winslow Design Company’s December 31, 2006 balance sheet appeared as follows:Contributed capitalPreferred stock, $100 par (10,000 shares authorized, 1,250
Manty Company listed the following selected pretax items in its December 31, 2007 adjusted trial balance:Additional information:The preferred shares had been outstanding the entire year; annual
Agocha Company reported the following selected items in the stockholders' equity section of its balance sheet on December 31, 2007 and 2008:In addition, it listed the following selected pretax items
Wheeler Company began 2007 with 10,000 shares of $10 par common stock and 2,000 shares of 9.4%, $100 par, convertible preferred stock outstanding. On April 2 and June 1, respectively, the company
Madsen Company had five convertible securities outstanding during all of 2007. It paid the appropriate interest (and amortized any related premium or discount using the straight-line method) and
Newton Company is preparing its annual earnings per share amounts to be disclosed on its 2007 income statement. It has collected the following information at the end of 2007:1. Net income: $120,400.
The Frost Company has accumulated the following information relevant to its 2007 earnings per share.1. Net income for 2007, $150,500.2. Bonds payable: On January 1, 2007 the company had issued 10%,
The controller of Lafayette Corporation has requested assistance in determining income, basic earnings per share, and diluted earnings per share for presentation in the company's income statement for
Mason Corporation's capital structure is as follows:The following additional information is available:1. On September 1, 2007, Mason sold 36,000 additional shares of common stock.2. Net income for
The Keener Company has had 1,000 shares of 7%, $100 par-value preferred stock and 40,000 shares of $5 stated-value common stock outstanding for the last three years. During that period, dividends
Tomasco, Inc., began operations in January 2003 and had the following reported net income or loss for each of its five years of operations:2003 $ 150,000 loss2004 130,000 loss2005 120,000 loss2006
The Gray Company lists the following stockholders’ equity items on its December 31, 2006 balance sheet:Preferred stock, 8%, $100 par ................ $120,000Common stock, $10 par
Included in the December 31, 2006 Jacobi Company balance sheet was the following stockholders equity section:The company engaged in the following stock transactions during 2007:Jan. 2
The stockholders’ equity of the Nance Company prior to any of the following events is as follows:Preferred stock, 8%, $100 par ....... $100,000Common stock, $10 par ......... 150,000Premium on
Showing 18100 - 18200
of 107832
First
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
Last