ACCOUNTING
ACC 291 Week 5 Assignment
E14-3 The comparative condensed balance sheets of Conard Corporation are presented below.
CONARD CORPORATION
Comparative Condensed Balance Sheets
December 31
Assets
Current assets $ 74,000 $ 80,000
Property, plant, and equipment (net) 99,000 90,000
Intangibles 27,000 40,000
Total assets $200,000 $210,000
Liabilities and stockholders’ equity
Current liabilities $ 42,000 $ 48,000
Long-term liabilities 143,000 150,000
Stockholders’ equity 15,000 12,000
Total liabilities and stockholders’ equity $200,000 $210,000
Instructions
1. Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2011 as a base.
2. Prepare a vertical analysis of the balance sheet data for Conard Corporation in columnar form for 2012.
Click here for the SOLUTION
Friday, September 2, 2011
E13-8 Here are comparative balance sheets for Taguchi Company
ACCOUNTING
ACC 291 Week 5 Assignment
E13-8 Here are comparative balance sheets for Taguchi Company.
TAGUCHI COMPANY
Comparative Balance Sheets
December 31
Assets 2011 2010
Cash $ 73,000 $ 22,000
Accounts receivable 85,000 76,000
Inventories 170,000 189,000
Land 75,000 100,000
Equipment 260,000 200,000
Accumulated depreciation (66,000) (32,000)
Total $597,000 $555,000
Liabilities and Stockholders’ Equity
Accounts payable $ 39,000 $ 47,000
Bonds payable 150,000 200,000
Common stock ($1 par) 216,000 174,000
Retained earnings 192,000 134,000
Total $597,000 $555,000
Additional information:
1. Net income for 2011 was $103,000.
2. Cash dividends of $45,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2011, but land was sold at cost.
Instructions
Prepare a statement of cash flows for 2011 using the indirect method.
Click here for the SOLUTION
ACC 291 Week 5 Assignment
E13-8 Here are comparative balance sheets for Taguchi Company.
TAGUCHI COMPANY
Comparative Balance Sheets
December 31
Assets 2011 2010
Cash $ 73,000 $ 22,000
Accounts receivable 85,000 76,000
Inventories 170,000 189,000
Land 75,000 100,000
Equipment 260,000 200,000
Accumulated depreciation (66,000) (32,000)
Total $597,000 $555,000
Liabilities and Stockholders’ Equity
Accounts payable $ 39,000 $ 47,000
Bonds payable 150,000 200,000
Common stock ($1 par) 216,000 174,000
Retained earnings 192,000 134,000
Total $597,000 $555,000
Additional information:
1. Net income for 2011 was $103,000.
2. Cash dividends of $45,000 were declared and paid.
3. Bonds payable amounting to $50,000 were redeemed for cash $50,000.
4. Common stock was issued for $42,000 cash.
5. No equipment was sold during 2011, but land was sold at cost.
Instructions
Prepare a statement of cash flows for 2011 using the indirect method.
Click here for the SOLUTION
ACC 291 Week Five (Week 5)
ACCOUNTING
ACC 291 Week Five (Week 5) Assignment
Individual Exercises – Week Five
Resource: Ch. 13 & 14 of Financial Accounting
Complete Exercise E13-8 & E14-3.
Exercise E13-8 SOLUTION
Exercise E14-3 SOLUTION
ACC 291 Week Five (Week 5) Assignment
Individual Exercises – Week Five
Resource: Ch. 13 & 14 of Financial Accounting
Complete Exercise E13-8 & E14-3.
Exercise E13-8 SOLUTION
Exercise E14-3 SOLUTION
P11-6A Arnold Corporation has been authorized to issue 40,000 shares of $100 par value, 8%, noncumulative preferred stock and 2,000,000 shares of
ACCOUNTING
ACC 291 Week 4 Assignment
P11-6A Arnold Corporation has been authorized to issue 40,000 shares of $100 par value, 8%, noncumulative preferred stock and 2,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2011, the ledger contained the following balances pertaining to stockholders’ equity. Preferred Stock $ 240,000 Paid-in Capital in Excess of Par Value—Preferred 56,000 Common Stock 2,000,000 Paid-in Capital in Excess of Stated Value—Common 5,700,000 Treasury Stock—Common (1,000 shares) 22,000 Paid-in Capital from Treasury Stock 3,000 Retained Earnings 560,000 The preferred stock was issued for land having a fair market value of $296,000.All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $22. In December, 500 shares of treasury stock were sold for $28 per share. No dividends were declared in 2011.
Instructions
(a) Prepare the journal entries for the:
(1) Issuance of preferred stock for land.
(2) Issuance of common stock for cash.
(3) Purchase of common treasury stock for cash.
(4) Sale of treasury stock for cash.
(b) Prepare the stockholders’ equity section at December 31, 2011
Click here for the SOLUTION
ACC 291 Week 4 Assignment
P11-6A Arnold Corporation has been authorized to issue 40,000 shares of $100 par value, 8%, noncumulative preferred stock and 2,000,000 shares of no-par common stock. The corporation assigned a $5 stated value to the common stock. At December 31, 2011, the ledger contained the following balances pertaining to stockholders’ equity. Preferred Stock $ 240,000 Paid-in Capital in Excess of Par Value—Preferred 56,000 Common Stock 2,000,000 Paid-in Capital in Excess of Stated Value—Common 5,700,000 Treasury Stock—Common (1,000 shares) 22,000 Paid-in Capital from Treasury Stock 3,000 Retained Earnings 560,000 The preferred stock was issued for land having a fair market value of $296,000.All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $22. In December, 500 shares of treasury stock were sold for $28 per share. No dividends were declared in 2011.
Instructions
(a) Prepare the journal entries for the:
(1) Issuance of preferred stock for land.
(2) Issuance of common stock for cash.
(3) Purchase of common treasury stock for cash.
(4) Sale of treasury stock for cash.
(b) Prepare the stockholders’ equity section at December 31, 2011
Click here for the SOLUTION
E12-2 Foren Corporation had the following transactions pertaining to debt investments
ACCOUNTING
ACC 291 Week 4 Assignment
E12-2 Foren Corporation had the following transactions pertaining to debt investments.
Jan. 1 Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable semiannually on July 1 and January 1.
July 1 Received semiannual interest on Choate Co. bonds.
July 1 Sold 30 Choate Co. bonds for $34,000 less $500 brokerage fees.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest at December 31.
Click here for the SOLUTION
ACC 291 Week 4 Assignment
E12-2 Foren Corporation had the following transactions pertaining to debt investments.
Jan. 1 Purchased 50 8%, $1,000 Choate Co. bonds for $50,000 cash plus brokerage fees of $900. Interest is payable semiannually on July 1 and January 1.
July 1 Received semiannual interest on Choate Co. bonds.
July 1 Sold 30 Choate Co. bonds for $34,000 less $500 brokerage fees.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest at December 31.
Click here for the SOLUTION
E12-1 Max Weinberg is studying for an accounting test and has developed the following questions about investments
ACCOUNTING
ACC 291 Week 4 Assignment
E12-1 Max Weinberg is studying for an accounting test and has developed the following questions about investments.
1. What are three reasons why companies purchase investments in debt or stock securities?
2. Why would a corporation have excess cash that it does not need for operations?
3. What is the typical investment when investing cash for short periods of time?
4. What are the typical investments when investing cash to generate earnings?
5. Why would a company invest in securities that provide no current cash flows?
6. What is the typical stock investment when investing cash for strategic reasons?
Instructions
Provide answers for Max.
Click here for the SOLUTION
ACC 291 Week 4 Assignment
E12-1 Max Weinberg is studying for an accounting test and has developed the following questions about investments.
1. What are three reasons why companies purchase investments in debt or stock securities?
2. Why would a corporation have excess cash that it does not need for operations?
3. What is the typical investment when investing cash for short periods of time?
4. What are the typical investments when investing cash to generate earnings?
5. Why would a company invest in securities that provide no current cash flows?
6. What is the typical stock investment when investing cash for strategic reasons?
Instructions
Provide answers for Max.
Click here for the SOLUTION
E11-15 On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000
ACCOUNTING
ACC 291 Week 4 Assignment
E11-15 On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.
Instructions
Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and book value per share. Use the following column headings:
Before Action, After Stock Dividend, and After Stock Split.
Click here for the SOLUTION
ACC 291 Week 4 Assignment
E11-15 On October 31, the stockholders' equity section of Omar Company consists of common stock $600,000 and retained earnings $900,000. Omar is considering the following two courses of action: (1) declaring a 5% stock dividend on the 60,000, $10 par value shares outstanding, or (2) effecting a 2-for-1 stock split that will reduce par value to $5 per share. The current market price is $14 per share.
Instructions
Prepare a tabular summary of the effects of the alternative actions on the components of stockholders' equity, outstanding shares, and book value per share. Use the following column headings:
Before Action, After Stock Dividend, and After Stock Split.
Click here for the SOLUTION
ACC 291 Week Four (Week 4)
ACCOUNTING
ACC 291 Week Four (Week 4) Assignment
Individual Exercises and Problems – Week Four
Resources: Ch. 11 & 12 of Financial Accounting.
Complete Exercises E11-15, E12-1, & E12-2.
Complete Problem 11-6A.
Exercises E11-15 SOLUTION
Exercises E12-1 SOLUTION
Exercises E12-2 SOLUTION
Problem 11-6A SOLUTION
ACC 291 Week Four (Week 4) Assignment
Individual Exercises and Problems – Week Four
Resources: Ch. 11 & 12 of Financial Accounting.
Complete Exercises E11-15, E12-1, & E12-2.
Complete Problem 11-6A.
Exercises E11-15 SOLUTION
Exercises E12-1 SOLUTION
Exercises E12-2 SOLUTION
Problem 11-6A SOLUTION
P10-3A On May 1, 2011, Newby Corp. issued $600,000, 9%, 5-year bonds at face value
ACCOUNTING
ACC 291 Week 3 Assignment
P10-3A On May 1, 2011, Newby Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2011, and pay interest semiannually on May 1 and November 1. Financial statements are prepared annually on December 31.
Instructions
a) Prepare the journal entry to record the issuance of the bonds
b) Prepare the adjusting entry to record the accrual of interest on December 31, 2011
c) Show the balance sheet presentation on December 31, 2011.
d) Prepare the journal entry to record payment of interest of May 1, 2012, assuming no accrual of interest from January 1, 2012 to May 1, 2012.
e) Prepare the journal entry to record payment of interest on November 1, 2012
f) Assume that on November 1, 2012, Newby calls the bonds at 102. record the redemption of the bonds.
Click here for the SOLUTION
ACC 291 Week 3 Assignment
P10-3A On May 1, 2011, Newby Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2011, and pay interest semiannually on May 1 and November 1. Financial statements are prepared annually on December 31.
Instructions
a) Prepare the journal entry to record the issuance of the bonds
b) Prepare the adjusting entry to record the accrual of interest on December 31, 2011
c) Show the balance sheet presentation on December 31, 2011.
d) Prepare the journal entry to record payment of interest of May 1, 2012, assuming no accrual of interest from January 1, 2012 to May 1, 2012.
e) Prepare the journal entry to record payment of interest on November 1, 2012
f) Assume that on November 1, 2012, Newby calls the bonds at 102. record the redemption of the bonds.
Click here for the SOLUTION
On July 1, 2011, Atwater Corporation issued $2,000,000 face value, 10%, 10-year bonds at $2,271,813
ACCOUNTING
ACC 291 Week 3 Assignment
P10-6A On July 1, 2011, Atwater Corporation issued $2,000,000 face value, 10%, 10-year bonds at $2,271,813.This price resulted in an effective-interest rate of 8% on the bonds. Atwater uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1.
Instructions
(Round all computations to the nearest dollar.)
(a) Prepare the journal entry to record the issuance of the bonds on July 1, 2011.
(b) Prepare an amortization table through December 31, 2012 (3 interest periods) for this bond issue.
(c) Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2011.
(d) Prepare the journal entry to record the payment of interest and the amortization of the premium on July 1, 2012, assuming no accrual of interest on June 30.
(e) Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2012.
Click here for the SOLUTION
ACC 291 Week 3 Assignment
P10-6A On July 1, 2011, Atwater Corporation issued $2,000,000 face value, 10%, 10-year bonds at $2,271,813.This price resulted in an effective-interest rate of 8% on the bonds. Atwater uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1.
Instructions
(Round all computations to the nearest dollar.)
(a) Prepare the journal entry to record the issuance of the bonds on July 1, 2011.
(b) Prepare an amortization table through December 31, 2012 (3 interest periods) for this bond issue.
(c) Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2011.
(d) Prepare the journal entry to record the payment of interest and the amortization of the premium on July 1, 2012, assuming no accrual of interest on June 30.
(e) Prepare the journal entry to record the accrual of interest and the amortization of the premium on December 31, 2012.
Click here for the SOLUTION
E10-18 Hrabik Corporation issued $600,000, 9%, 10-year bonds on January 1, 2011, for $562,613
ACCOUNTING
ACC 291 Week 3 Assignment
E10-18 Hrabik Corporation issued $600,000, 9%, 10-year bonds on January 1, 2011, for $562,613. This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable semiannually on July 1 and January 1. Hrabik uses the effective-interest method to amortize bond premium or discount.
Instructions
Prepare the journal entries to record the following. (Round to the nearest dollar.)
a) The issuance of the bonds.
b) The payment of interest and the discount amortization on July 1, 2011, assuming that interest was not accrued on June 30.
c) The accrual of interest and the discount amortization on December 31, 2011.
Click here for the SOLUTION
ACC 291 Week 3 Assignment
E10-18 Hrabik Corporation issued $600,000, 9%, 10-year bonds on January 1, 2011, for $562,613. This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable semiannually on July 1 and January 1. Hrabik uses the effective-interest method to amortize bond premium or discount.
Instructions
Prepare the journal entries to record the following. (Round to the nearest dollar.)
a) The issuance of the bonds.
b) The payment of interest and the discount amortization on July 1, 2011, assuming that interest was not accrued on June 30.
c) The accrual of interest and the discount amortization on December 31, 2011.
Click here for the SOLUTION
E10-8 Jim Thome has prepared the following list of statements about bonds
ACCOUNTING
ACC 291 Week 3 Assignment
E10-8 Jim Thome has prepared the following list of statements about bonds.
1. Bonds are a form of interest bearing notes payable.
2. When seeking long term financing, an advantage of issuing bonds over issuing common stock is that stockholder control is not affected.
3. When seeking long term financing, an advantage of issuing common stock over issuing bonds is that tax savings result.
4. Secured bonds have specific assets of the issuer pledged as collateral for the bonds.
5. Secured bonds are also known as debenture bonds.
6. Bonds that mature in installments are called term bonds.
7. A conversion feature may be added to bonds to make them more attractive to bond buyers.
8. The rate used to determine the amount of cash interest the borrower pays is called the stated rate.
9. Bond prices are usually quoted as a percentage of the face value of the bond.
10. The present value of a bond is the value at which it should sell in the marketplace.
Instructions
Identify each statement above as true or false. If false, indicate how to correct the statement.
Click here for the SOLUTION
ACC 291 Week 3 Assignment
E10-8 Jim Thome has prepared the following list of statements about bonds.
1. Bonds are a form of interest bearing notes payable.
2. When seeking long term financing, an advantage of issuing bonds over issuing common stock is that stockholder control is not affected.
3. When seeking long term financing, an advantage of issuing common stock over issuing bonds is that tax savings result.
4. Secured bonds have specific assets of the issuer pledged as collateral for the bonds.
5. Secured bonds are also known as debenture bonds.
6. Bonds that mature in installments are called term bonds.
7. A conversion feature may be added to bonds to make them more attractive to bond buyers.
8. The rate used to determine the amount of cash interest the borrower pays is called the stated rate.
9. Bond prices are usually quoted as a percentage of the face value of the bond.
10. The present value of a bond is the value at which it should sell in the marketplace.
Instructions
Identify each statement above as true or false. If false, indicate how to correct the statement.
Click here for the SOLUTION
Thursday, September 1, 2011
E10-6 According to the accountant of Ulner Inc., its payroll taxes for the week were as follows
ACCOUNTING
ACC 291 Week 3 Assignment
E10-6 According to the accountant of Ulner Inc., its payroll taxes for the week were as follows: $198.40 for FICA taxes, $19.84 for federal unemployment taxes, and $133.92 for state unemployment taxes.
Instructions
Journalize the entry to record the accrual of the payroll taxes.
Click here for the SOLUTION
ACC 291 Week 3 Assignment
E10-6 According to the accountant of Ulner Inc., its payroll taxes for the week were as follows: $198.40 for FICA taxes, $19.84 for federal unemployment taxes, and $133.92 for state unemployment taxes.
Instructions
Journalize the entry to record the accrual of the payroll taxes.
Click here for the SOLUTION
ACC 291 Week Three (Week 3)
ACCOUNTING
ACC 291 Week Three (Week 3) Assignment
Individual Exercises and Problems – Week Three
Resources: Ch. 10 of Financial Accounting.
Complete Exercise E10-6, E10-8, & E10-18.
Complete Problem 10-3A & 10-6A.
Exercise E10-6 SOLUTION
Exercise E10-8 SOLUTION
Exercise E10-18 SOLUTION
Problem 10-3A SOLUTION
Problem 10-6A SOLUTION
ACC 291 Week Three (Week 3) Assignment
Individual Exercises and Problems – Week Three
Resources: Ch. 10 of Financial Accounting.
Complete Exercise E10-6, E10-8, & E10-18.
Complete Problem 10-3A & 10-6A.
Exercise E10-6 SOLUTION
Exercise E10-8 SOLUTION
Exercise E10-18 SOLUTION
Problem 10-3A SOLUTION
Problem 10-6A SOLUTION
Subscribe to:
Posts (Atom)