ACC 423 Final Exam Guide 1
$15.00

ACC 423 Final Exam Guide 1

This Tutorial was purchased 4 times & rated A by student like you.

 

This Tutorial contains following Attachments

  • ACC 423 Final Exam Guide 1.docx

Question 1 Buttercup Corporation issued 250 shares of $11 par value common stock for $4,125. Prepare Buttercup’ journal entry.   Question 2 Wilco Corporation has the following account balances at December 31, 2012.Common stock, $5 par value $511,670Treasury stock 95,260Retained earnings 2,400,840Paid-in capital in excess of par 1,320,150Prepare Wilco’s December 31, 2012, stockholders’ equity section   Question 3 Woolford Inc. declared a cash dividend of $1.38 per share on its 2.22 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. Question 4 The outstanding capital stock of Pennington Corporation consists of 3,100 shares of $109 par value, 6% preferred, and 5,700 shares of $52 par value common.Assuming that the company has retained earnings of $83,000, 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. Question 5 Martinez Company’s ledger shows the following balances on December 31, 2012.5% Preferred stock-$10 par value, outstanding 22,480 shares $224,800Common stock-$100 par value, outstanding 33,720 shares 3,372,000Retained earnings 708,120Assuming that the directors decide to declare total dividends in the amount of $298,984, 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. Question 6 On January 1, 2012, Barwood Corporation granted 5,040 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 $72 per share on the date of grant. The fair value of the options at the grant date is $154,000. The period of benefit is 2 years. Prepare Barwood’s journal entries for January 1, 2012, and December 31, 2012 and 2013. Question 7 Rockland Corporation earned net income of $340,800 in 2012 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $908,800 of 10% bonds, which are convertible into 18,176 shares of common. Rockland’s tax rate is 40 percent. Compute Rockland’s 2012 diluted earnings per share. Question 8 DiCenta Corporation reported net income of $250,000 in 2012 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 5,410 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. 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 pre-established price of $24 on 5,050 SARs. The required service period is 2 years. The fair value of the SAR’s are determined to be $6 on December 31, 2012, and $13 on December 31, 2013. Question 10 Hillsborough Co. has an available-for-sale investment in the bonds of Schuyler with a carrying (and fair) value of $88,020. Hillsborough determined that due to poor economic prospects for Schuyler, the bonds have decreased in value to $57,020. It is determined that this loss in value is other-than temporary. Prepare the journal entry, if any, to record the reduction in value. Question 11 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 11,700 shares of Gonzalez Company’s common stock at $43.55 per share plus commission $2,574.2. On April 1, purchased 6,500 shares of Belmont Co.’s common stock at $67.60 per share plus commission $4,381.3. On September 10, purchased 9,100 shares of Thep Co.’s preferred stock at $34.45 per share plus commission $6,383.On May 20, 2012, Capriati sold 3,900 shares of Gonzalez Company’s common stock at a market price of $45.50 per share less brokerage commissions, taxes, and fees of $3,705. The year-end fair values per share were: Gonzalez $39.00, Belmont $71.50, and Thep $36.40. 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. 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.Situation 1Hatcher Cosmetics acquired 10% of the 207,400 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 $80,200 cash dividend. On December 31, Ramirez reported net income of $123,500 for the year. At December 31, the market price of Ramirez Fashion was $18 per share. The securities are classified as available-for-sale. Situation 2Holmes, Inc. obtained significant influence over Nadal Corporation by buying 25% of Nadal’s 30,800 outstanding shares of common stock at a total cost of $9 per share on January 1, 2012. On June 15, Nadal declared and paid a cash dividend of $43,800. On December 31, Nadal reported a net income of $90,500 for the year. Question 13 (Equity Method)Gator Co. invested $1,380,000 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 T-account for the investment in Demo to answer the following questions. 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 $0.87 per share cash dividend on June 30 and on December 31, 2013. Handerson reported net income of $741,000 for 2013. The fair value of Handerson’s stock was $32 per share at December 31, 2013. Question 15 (Call Option)On January 2, 2012, Jones Company purchases a call option for $450 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 $60 per share, and the time value of the option is $200. Question 16 In 2012, Amirante Corporation had pretax financial income of $207,000 and taxable income of $166,400. 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 $732,802, resulting from future taxable amounts of $2,155,300 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 42% for 2013 and future years. Prepare the journal entry for Fell to adjust the deferred tax liability. Question 18 AMR Corporation (parent company of American Airlines) reported the following for 2009 (in millions).Service cost $405Interest cost on P.B.O 736Return on plan assets 825Amortization of service cost 29Amortization of loss 66Compute AMR Corporation’s 2009 pension expense (in millions). Question 19 For Warren Corporation, year-end plan assets were $2,094,700. At the beginning of the year, plan assets were $1,762,400. 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 $48 million and contributed $296 million to the pension fund. Prepare Campbell Soup Company’s journal entry to record pension expense and funding. Question 21 Lahey Corp. has three defined-benefit pension plans as follows.Pension Assets(at Fair Value) Projected BenefitObligationPlan X $637,500 $504,000Plan Y 902,200 739,900Plan Z 584,600 713,200How will Lahey report these multiple plans in its financial statements? Question 22 For 2012, Sampsell Inc. computed its annual postretirement expense as $278,680. Sampsell’s contribution to the plan during 2012 was $185,750. Prepare Sampsell’s 2012 entry to record postretirement expense. Question 23 Wertz Corporation decided at the beginning of 2012 to change from the completed-contract method to the percentage-of-completion method for financial reporting purposes. The company will continue to use completed-contract method for tax purposes. For years prior to 2012, pre-tax income under the two methods was as follows: percentage-of-completion $143,000, and completed-contract $65,800. The tax rate is 32%. Prepare Wertz’s 2012 journal entry to record the change in accounting principle. Question 24 In 2012, Bailey Corporation discovered that equipment purchased on January 1, 2010, for $50,000 was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is 29%. Prepare Hiatt’s 2012 journal entry to correct the error. Question 25 At January 1, 2012, Beilder Company reported retained earnings of $2,027,300. In 2012, Beilder discovered that 2011 depreciation expense was understated by $442,300. In 2012, net income was $931,270 and dividends declared were $204,310. The tax rate is 38%. Complete the 2012 retained earnings statement for Beilder Company. 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 $81,100 and paid dividends of $90,400. Prepare Simmons’s entries related to Armstrong’s net income and dividends, assuming Simmons now owns 11% of Armstrong’s stock. Question 27 Manno Corporation has the following information available concerning its postretirement benefit plan for 2012.Service cost $53,750Interest cost 58,360Actual return on plan assets 40,190Compute Manno’s 2012 postretirement expense Question 28 Ravonette Corporation issued 310 shares of $13 par value common stock and 130 shares of $47 par value preferred stock for a lump sum of $17,500. The common stock has a market price of $22 per share, and the preferred stock has a market price of $98 per share. Prepare the journal entry to record the issuance Question 29 Garfield Company purchased, as a held-to-maturity investment, $82,400 of the 9%, 8-year bonds of Chester Corporation for $73,919, which provides an 11% 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. Question 30 Clydesdale Corporation has a cumulative temporary difference related to depreciation of $606,600 at December 31, 2012. This difference will reverse as follows: 2013, $43,100; 2014, $264,300; and 2015, $299,200. 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.

Write a review

Order Id


Order Id will be kept Confidential
Your Name:


Your Review:
Rating:   A   B   C   D   F  

Enter the code in the box below:



Related Tutorials
$5.00

This Tutorial was purchased 4 times & rated A+ by student like you.

Resource:Intermediate Accounting Preparewritten responses to the following assignments from the text:   ·         Ch.20: Exercise E20-7 and Problem P20-4 Ch.22: Exercise E22-19 ad Problem P22-6 ..
$3.00

This Tutorial was purchased 0 times & rated No rating by student like you.

What are the differences between counterbalancing and noncounterbalancing errors? What are some examples of counterbalancing and noncounterbalancing errors? How are each handled? What experience do you have with counterbalancing and/or noncounterbalancing errors in your organization or an organiz..
$3.00

This Tutorial was purchased 1 times & rated B+ by student like you.

What is a change in accounting principle? How do you determine if a change in principle should be reported retroactively, currently, or prospectively? How do these changes affect the financial statements?  What experience do you have with change in accounting principle in your organization o..
$5.00

This Tutorial was purchased 4 times & rated A by student like you.

Resource: Intermediate Accounting Prepare written responses to the following assignments from the text:   Ch.19: Problems P19-2& P19-7 ..
$5.00

This Tutorial was purchased 4 times & rated A by student like you.

Resource: Intermediate Accounting Prepare written responses to the following assignments from the text:   Ch. 19: Exercises E19-6 &E19-9 and Problems P19-1&P19-3 ..
$3.00

This Tutorial was purchased 1 times & rated B+ by student like you.

What are the components of pension expense? How do the components of pension expense differ among the various types of contribution and benefit plans? How is the interest rate determined? Why are prior service costs amortized? Based on your knowledge of the components of pension, what would make ..
$3.00

This Tutorial was purchased 1 times & rated No rating by student like you.

What are the differences and similarities between a defined contribution plan and a defined benefit plan? As an employee, explain why you would rather have a defined contribution plan or a defined benefit plan? What experience do you have with pension plans in your organization or an organization..
$7.00

This Tutorial was purchased 2 times & rated A by student like you.

Resource: Intermediate Accounting Prepare written responses to the following assignments from the text:   Ch. 17: Exercises E17-7 & E17-12 and Problems P17-3 & P17-8 (a&c) ..
$3.00

This Tutorial was purchased 1 times & rated B+ by student like you.

How are the tax benefits of net operating losses (NOL) disclosed on financial statements? Which is more beneficial to an organization, an NOL carryforward or an NOL carryback? Explain why. What experience do you have with NOL in your organization or an organization that you are familiar with?&nbs..
$3.00

This Tutorial was purchased 1 times & rated No rating by student like you.

Why are there differences between taxable and financial income? What are some examples of permanent and temporary differences? Why do these differences exist? How do they affect the financial statements?  What experience do you have with either taxable and financial income and/or permanent a..
$5.00

This Tutorial was purchased 2 times & rated A+ by student like you.

Resource: Intermediate Accounting Prepare written responses to the following assignments from the text:   ·         Ch. 15: Problem P15-3 Ch. 16: Problems P16-6&P16-8 and Concepts for Analysis CA16-4 ..
$5.00

This Tutorial was purchased 2 times & rated A by student like you.

Resource: Intermediate Accounting Prepare written responses to the following assignments from the text:   ·         Ch.15: Excercise E15-13 (a&b) and Problem P15-1 Ch.16: Exercise E16-20 and Problem P16-7 ..
$3.00

This Tutorial was purchased 0 times & rated No rating by student like you.

Why do companies make investments in other companies? What are the differences between debt and equity investments? What is the experience of either your organization or an organization that you are familiar with when it comes to debt and/or equity investments? What would influence a company to c..
$3.00

This Tutorial was purchased 1 times & rated B+ by student like you.

What are the differences between traditional and derivative instruments? Why do companies use derivative instruments? Explain whether or not derivatives are a good investment.  What experience do you have with either traditional or derivative instruments in your organization or an organizati..
$5.00

This Tutorial was purchased 2 times & rated A by student like you.

Resources: Intermediate Accounting and Electronic Reserve Readings Prepare a 700- to 1,050-word response to the following questions:   ·         Why is it important to keep paid-in capital separate from earned capital? ·  &nbs..
$3.00

This Tutorial was purchased 0 times & rated No rating by student like you.

What are the differences between basic and diluted earnings per share?  What are the differences between the numerator and the denominator in the basic and diluted earnings per share calculations?  What actions can an organization take in order to improve their earnings per share? ..
$3.00

This Tutorial was purchased 1 times & rated B+ by student like you.

Why do companies offer stock options?  What is the experience of either your organization or an organization that you are familiar with when it comes to stock option compensation?  Should stock option compensation be included as an expense when calculating an organization’s net income?&..
$22.00

This Tutorial was purchased 5 times & rated A+ by student like you.

ACC 423 Week 1 Discussion Question 1 ACC 423 Week 1 Discussion Question 2 ACC 423 Week 1 DQ (New) ACC 423 Week 1 Individual Assignment Owners Equity Paper ACC 423 Week 2 Discussion Question 1 ACC 423 Week 2 Discussion Question 2 ACC 423 Week 2 Team Assignme..
$4.00

This Tutorial was purchased 1 times & rated No rating by student like you.

What is a change in accounting principle? How do you determinate if a change in principle should be reported retroactively, currently or prospectively? How do these changes affect financial statements?   Why do accountants make errors? What types of errors may occur? Why is it necess..
$4.00

This Tutorial was purchased 1 times & rated No rating by student like you.

What are the differences and similarities between a defined contribution plan and a defined benefit plan? As an employee, would you rather have defined contribution plan or a defined benefit plan? Explain your answer. As an employer, would you rather offer a defined contribution plan or a defined..
$4.00

This Tutorial was purchased 0 times & rated No rating by student like you.

Why are there between taxable and financial income? What are some example of payment and temporary differences? Why do these differences exist? How do they affect financial statements.” “How they deferred tax assets and deferred tax liabilities derived?   How do they relate to th..
$5.00

This Tutorial was purchased 4 times & rated A by student like you.

Prepare written responses to the following assignments from Ch. 17 of Intermediate Accounting: Concepts for Analysis CA17-1 Click the Assignment Files tab to submit your assignment. ..
$4.00

This Tutorial was purchased 1 times & rated No rating by student like you.

What are the differences between traditional and derivative instruments? Why do companies use derivative instruments? Are derivatives a good investment? Explain why or why not.   Why do companies make investments in other companies? What are the differences between debt and equity in..
$4.00

This Tutorial was purchased 2 times & rated No rating by student like you.

Why do companies offer stock options? Should stock-option compensation be included as an expense when calculating an organization's net income? Explain why or why not. if so, how should the amount of expense be calculated?   What is the experience of either your organization or an or..
$14.99

This Tutorial was purchased 4 times & rated A+ by student like you.

1) When the cash proceeds from a bond issued with detachable stock warrants exceed the sum of the par value of the bonds and the fair market value of the warrants, the excess should be credited to  A.   premium on bonds payable. B.   retained earnings. C.   a liability account. D.   additional p..
$15.00

This Tutorial was purchased 4 times & rated A by student like you.

Question 1 Buttercup Corporation issued 250 shares of $11 par value common stock for $4,125. Prepare Buttercup’ journal entry.   Question 2 Wilco Corporation has the following account balances at December 31, 2012.Common stock, $5 par value $511,670Treasury stock 95,260Retained earnings 2,400,84..
$3.00

This Tutorial was purchased 2 times & rated B+ by student like you.

Discuss the objectives for Week One. How do they relate to the practice of accounting and its uses in business? Distinguish between paid-in and earned capital. Record journal entries related to common, preferred, and treasury stock. Record journal entries related to the various typ..
acc423 © 2017 All Rights Reserved.Powered by:Webzindagi