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

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
introduction to financial accounting

Questions and Answers of Introduction To Financial Accounting

Effects of Goodwill on the Income Statement 1. Philip Morris purchased General Foods for $5.6 billion. Only $1.7 billion of the purchase price could be assigned to identifiable individual assets and
Purchased Goodwill Consider the following balance sheets ($ in millions): Cash Inventories Plant assets, net Total assets Common stock and paid-in surplus Retained earnings Total liab. & stk. equity
Goodwill and Consolidations This alters problem 11-44 However, this problem is self-contained because all the facts are repro- duced as follows. Company P acquired a 100% voting interest in Company S
Minority Interests This alters the preceding problem. However, this problem is self-contained because all the facts are reproduced as follows. Company P acquired an 70% voting interest in Company S
Consolidated Financial Statements Company P acquired a 100% voting interest in Company S for $120 million cash at the start of the year. Immediately before the business combination, each company had
Consolidated Financial Statements and Minority Interest The parent company owns 80% of the common stock of Company S-1 and 60% of the common stock of Company S-2. The balances as of December 31,
Consolidated Statements, Minority Interests Consider the following for Chow Company (the parent) as of December 31, 20X8: Chow Subsidiary* Assets $800,000 $200,000 Liabilities to creditors $300,000 $
Early Extinguishment of an Investment On December 31, 20X2, an insurance company purchased $10 million of 10-year, 10% debentures for $8,852,950. On December 31, 20X3 (after all interest payments and
Short-Term Investments The VanDankan Company has the following footnote to its financial statements: Note 4: Short-Term Investments The company holds the following short-term investments at December
Trading Securities Before its 2002 acquisition by Royal Dutch Shell, Pennzoil Company held a portfolio of trading equity securities that cost $660,100,000 and had a market value of $955,182,000 on
Consolidations in Japan A few years ago, Japan's finance ministry issued a directive requiring the 600 largest Japanese com- panies to produce consolidated financial statements. The previous practice
Affiliated Companies Suppose P company owns 30% of S company. S company earns $200,000 and pays total dividends of $50,000 to its shareholders. What appears in the consolidated income statement of P
Goodwill Megasoft, Inc. purchased 100% of the common shares of Zenatel for $470,000 on January 1, 20X7. Zenatel's balance sheet just before the acquisition was (S in thousands): Cash $ 90. Net fixed
Minority Interest Suppose P company owns 95% of S company and S company earns $200,000. What is the amount of the minority interest shown in P company's consolidated income statement? What is the
Consolidated Statements Able and Baker companies had the following balance sheets at December 31, 20X8 ($ in thousands):Able Baker Assets Cash Net plant $ 500 $100 1,700 400 Total assets $2,200 $500
Equity Method Company X acquired 40% of the voting stock of Company Y for $90 million cash. In year one, Y had a net income of $50 million and paid cash dividends of $20 million. Prepare a tabulation
Market Method or Equity Method Yukon Outdoor Equipment acquired 25% of the voting stock of Bearpaw Snowshoes for $50 mil- lion cash. In year one, Bearpaw had a net income of $28 million and paid a
Bond Premium Transactions On December 31, 20X1, the Guzman Company purchased $2 million of 10-year, 10% debentures for $2,271,830. The market interest rate was 8%. 1. Using the balance sheet equation
Bond Discount Transactions On December 31, 20XI, a company purchased $1 million of 5-year, 10% debentures for $926,400. The market interest rate was 12%. 1. Using the balance sheet equation format,
Available-for-Sale Securities The MacGregor Company has a portfolio of securities identical to that of the McMillan Company (see Exercise 11-27). However, MacGregor classified the portfolio as
Trading Securities The McMillan Company has a portfolio of trading securities consisting of common and preferred stocks. The portfolio cost $160 million on January 1. The market values of the
Transactions Between Companies Your company has sales of $100 million and profits of $10 million. A similar, smaller company with sales of $25 million and profits of $5 million appears to be an
Accounting Consequences of Changing Ownership Interest You own 19% of a company that you do business with and are considering buying another 5% of the company. They provide a great product and great
Scoping Out an Acquisition Strategy You recently hired a young MBA who is advising you that you should grow more aggressively and suggesting that you should do so by acquiring other small companies.
Consequences of Marking to Market As president of a young technology company, you and your chief financial officer are discussing your great success in investing in other high-growth companies in
Would you expect the consolidated income statement to report higher net income than shown in the parent's separate financial statements?Critical Thinking Questions
Why do minority interests arise in con- nection with consolidated statements, but not with investments in affiliated companies?
Does GAAP require amortization of goodwill against net income? If not, when does goodwill decrease?
Distinguish between control of a com- pany and significant influence over a company.
What is a minority interest?
Why does a consolidated balance sheet require "eliminating entries"?
What criterion is used to determine whether a parent-subsidiary relationship exists?
Suppose an investor buys a $1,000 face value bond for $950, a discount of $50. Will amortization of the discount increase or decrease the investor's interest income? Explain.
"Increases in the market price of short-term investments become gains on the income statement; decreases become losses." Do you agree? Explain.
"The cost method is applied to investments in short-term securities." Do you agree? Explain.
Why is marketable securities an ill-chosen term to describe short-term investments?
Explain the economic meaning and financial reporting of goodwill.
Incorporate minority interests into consolidated financial statements.
Prepare consolidated financial statements.
Contrast the equity and market methods of accounting for investments.
Report long-term investments in bonds.
Account for short-term investments in debt securities and equity securities.
Explain why corporations invest in one another.
Analyzing Financial Statements Using the Internet: United Parcel Service Go to www.ups.com to find the home page of United Parcel Service (UPS). Select UPS Investor Relations. Click on Financials to
Starbucks' Annual Report Use Starbucks' financial statements and notes contained in Appendix A to answer the following questions: 1. Prepare the journal entries to record any dividends declared in
Financial Statement Research Select a company and use its financial statements to answer the following questions: 1. Identify each transaction that affected stockholders' equity during the most
Price to Book and ROE Form groups of three to six students each. Each student should pick two companies, preferably from different industries. Find the appropriate data and compute the market-to-book
Stock Options and Ethics Bristol-Myers Squibb is one of the largest pharmaceutical companies in the world. In 2002, the company granted executives options to purchase 40,112,732 shares of common
Shareholders' Equity Section Enron Corporation was a worldwide energy company with annual revenues in excess of $40 bil- lion in 1999. Its main activities were in natural gas and electricity. Enron's
Financial Ratios. Consider the following data from two companies in very different industries. Adobe Systems is a software company. Empire District is an electric utility serving the Midwest.
Covenants and Leases and Buying and Selling Stock Mitchell Energy and Development Corporation was one of the country's largest oil and gas produc- ers. It was purchased by Devon Energy in 2001. Some
Noncash Exchanges Suppose Cartier Company acquires some equipment from Marseilles Company in exchange for issuance of 10,000 shares of Cartier's common stock. The equipment was carried on
Issue of Common Shares Intermec Corporation, a leader in the field of bar code data collection, issued the following common shares during a recent year:a. Through a public offering, 780,000 shares
Convertible Securities Suppose Boston Company had paid $150,000 to Hartford Company for an investment in 10,000 shares of the $5 par value preferred stock of Hartford Company. The preferred stock was
Treasury Stock The following information was provided in footnote 7 of the 2003 H. J. Heiuz annual report. Cumulative Preferred Stock $1.70 First Common Stock Additional Series $10 Par Issued In
Treasury Stock (Alternate is 10-57.) Capetown Company has the following [in rands (R), the South African unit of currency]: Common stock, 2,000,000 shares @R3 par R 6,000,000 Paid-in capital in
Effects of Treasury Stock on Retained Earnings Assume that Ming Company has retained earnings of $9 million, paid-in capital of $24 million, and cost of treasury stock of $6 million. 1. Tabulate the
Disposition of Treasury Stock Chirac Company bought 10,000 of its own shares for $10 per share. The shares were held as treasury stock. This was the only time Chirac had ever purchased treasury
Retirement of Shares Houston Financial Systems, Inc., has the following: Common stock, 6,000,000 shares @ $2 par Paid-in capital in excess of par Total paid-in capital Retained Earnings Overall
Repurchase of Shares and Book Value per Share ExxonMobil repurchased common shares during 2002 and, as a result, the Treasury stock account increased by $4,480,000,000. The market price of ExxonMobil
Treasury Shares in Switzerland Nestl N.A., the Swiss food and beverage company, is 22% owned by U.S. citizens. It reported the fol- lowing in its 2002 end-of-year balance sheet (in millions of CHF,
Treasury Shares During 2002 outstanding common shares of General Electric (GE) increased from 9,925,938,000 to 9,969,894,000. GE declared dividends of $7,266,000,000. The treasury stock account had a
Treasury Stock (Alternate is 10-64.) Minnesota Mining and Manufacturing Company (3) presented the follow- ing data in its 2002 annual report: December 31 2002 2001 (in millions) Stockholders' equity
Stock Split and 100% Stock Dividend The Rubin Company wants to double its number of shares outstanding. The company president asks the controller how a two-for-one stock split differs from a 100%
Issuance, Splits, Dividends (Alternate is 10-54.) AT&T's December 31, 2002 balance sheet showed total shareowners' equity of $12,312 million and indicated the following detail: Common stock, par
Issuance, Splits, Dividends (Alternate is 10-55.) 1. Lopez Company issued 100,000 shares of common stock, $5 par, for $36 cash per share on December 31, 20X1. Prepare the journal entry. 2. Lopez
Issuance and Retirement of Shares, Cash Dividends On January 2, 20X1, Chippewa Investment Company began business by issuing 10,000 shares at $1 par value for $100,000 cash. The cash was invested, and
Stock Dividend and Fractional Shares The Soderstrom Company declared and distributed a 5% stock dividend. The stockholders' equity before the dividend was: Additional paid-in capital Common stock,
Meaning of Stock Splits A letter of January 31 to shareholders of United Financial, a California savings and loan company, said: Once again, I want to take the opportunity of sending you some good
Sony Owners' Equity Sony Corporation is a prominent Japanese electronics company. The following numbers are all expressed in millions of yen (). Net income for 2002 was 15,310 and Sony paid cash
Dividends (Alternate is 10-48.) 1. Garcia Company issued 600,000 shares of common stock, $1 par, for $9 cash per share on December 31, 20X5. Prepare the journal entry. 2. Garcia Company declared and
Dividend Reinvestment Plans Many corporations have automatic dividend reinvestment plans. Individual shareholders may elect not to receive their cash dividends. Instead, an equivalent amount of cash
Dividends and Cumulative Preferred Stock Renton Interiors, Inc., maker of seats and other interior equipment for Boeing aircraft, started 20X8 with the following balance sheet.6% Cumulative
Effects on Stockholders' Equity Indicate the effect (+, -, or 0) on total stockholders' equity of General Services Corporation for each of the following: 1. Declaration of a stock dividend on common
Stockholders' Equity Section The following are data for the Roselli Corporation on December 31, 2008. 6% cumulative preferred stock, $40 par value, callable at $42, authorized 100,000 shares. issued
Financial Ratios and Stockholders' Equity Consider the following data for New York Bankcorp:December 31 20X2 20X1 Stockholders' equity Preferred stock, 200,000 shares, $20 par, liquidation value $22
Book Value and Return on Equity Reach Company had net income of $11 million in 20X8. The stockholders' equity section of its 20X8 annual report follows ($ in millions):Stockholders' equity 8%
Treasury Stock During the first 6 months of 2003, Tompkins Trustco repurchased 83,050 of its own shares at an average price of $42.53 per share and held them in the treasury. At December 31, 2002,
Stock Dividends Company Release- 07/23/2003 10:27 Tompkins Trustco, Inc. Announces Cash and Stock Dividends Ithaca, New York July 23, 2003 (Business Wire) Tompkins Trustco, Inc. (TMP- American Stock
Reverse Stock Split According to a news story, "The shareholders of QED approved a 1-for-10 reverse split of QED's common stock." Accounting for a reverse stock split applies the same principles as
Stock Split An annual report of Dean Foods Company included the following in the statement of consolidated retained earnings:Charge for stock split $4,401,000 The balance sheets before and after the
Stock Options Lyndon Systems granted its top executives options to purchase 4,000 shares of common stock (par $1) at $20 per share, the market price today. The options may be exercised over a 4-year
Cash Dividends If you have a credit card, you have probably dealt with First Data Corporation without knowing it. First Data maintains data for more than 325 million credit and debit cards and
Cumulative Dividends In recent years, the Winslow Company had severe cash flow problems. In 20X4, the company sus- pended payment of cash dividends on common stock. In 20X5, it ceased payment on its
Cumulative Dividends The Ute Data Services Corporation was founded on January 1, 20X1.Preferred stock, no par, cumulative $5 annual dividend per share Issued and outstanding, 1,000,000 shares Capital
Issuance of Common Shares Kawasaid Heavy industries is a large Japanese company that makes ships, aircraft engines, and many other products in addition to motorcycles. Its 2000 sales of 1,150 billion
Preferences as to Assets The following are account balances of Reliable Autos, Inc. ($ in thousands): common stock and retained income, $300; accounts payable, $300; preferred stock (5,000 shares;
Distinctions Between Terms On December 31, 2002, IBM Corporation had 4,688 million shares of common stock authorized. There were 1,921 million shares issued, and 199 million shares held as treasury
Distinctions Between Terms Disposal Services, Inc., a waste management company, had 3 million shares of common stock autho- rized on August 31, 20X2. Shares issued were 2.1 million. There were
Changes in Stock Prices When the Shares Are Split Your friend has developed a stock investing strategy that suggests you should always buy the shares of companies when they split their stock or issue
The Meaning of Par Value Your friend has decided that par value is a meaningless notion and complicates accounting practice without adding value to the financial statements. How do you respond?
The Prohibition on Income Recognition from Trading in the Company's Shares Your friend has considered stock repurchases and thinks that it is proper for the company to buy its own shares and
Company Share Prices and Intentions to Repurchase Shares Your friend has thought about repurchases of common stock by the issuing company and has concluded that this is unethical. Specifically, this
What is the proper measure for an asset newly acquired through an exchange (e.g., an exchange of land for securities)? Explain.
"Treasury stock is not an asset." Explain.
"When a company retires shares, it must pay the stockholders an amount equal to the orig- inal par value and additional capital contributed for those shares plus the stockholders' fractional portion
"A 2% stock dividend increases every shareholder's fractional portion of the company by 2%." Do you agree? Explain.
Why do you suppose companies offer their employees stock options instead of simply paying higher salaries?
Why do some accountants want to record an expense when a company grants stock options to its employees?
What are convertible securities? 3.0-8 In what way is preferred stock similar to debt and to common stock?

Showing 800 - 900 of 3948

First
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved