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ACC 423 Final Exam 3
Question 1: Buttercup Corporation issued 330 shares of $10 par value common stock for $4,950. Prepare Buttercup journal entry.
Question 2: Wilco Corporation has the following account balances at December 31, 2012 Prepare Wilco’s December 31,2012, stockholders equity section
Question 3: Woolford Inc. declared a cash dividend of $1.37 par share on its 2.49 million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on August 15.
Question 4: (Preferred Dividends) The outstanding capital stock of Pennington Corporation consists of 2200 shares of $101 par value , 6 % preferred, and, 8400 shares of $56 par value common.
Question 5: (Preferred Dividends) Martinez Company’s ledger shows the following balances on December31, 2012. 5% preferred stock- $10 par value , Assuming that the directors decides to declare total dividend in the amount of $302,176,
Question 6: On January1,2012, Barwood corporation granted 5,430 options to executives. Each option entitles the holder to purchase one share of Barewood’s $5 par value common stock at $50 per share at any time during next 5 years.
Question 7: Rockland corporation earned net income of $417,900 in 2012 and had 100000 shares of common stock outstanding throughout the year. Also outstanding all year was $1,114,400 of 10% bonds, which are convertible into 22,288 shares of common.
Question 8: DiCenta corporation reported net income of $2,57,000 in 2012 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 6,330 shares of cumulative preferred stock
Question 9: Ferraro Inc. established a stock appreciation rights (SAR) program on January 1,2012, which entitles executives to receive cash at the exercise for the difference between market price of the stock and the pre-established price of $25 on 5,130 SARs.
Question 10: Hillsborough company has an available-for-sale investment in the bonds of Schuyler with a carrying (and fair) value of $77,030. Hillsborough determined that due topoor economic prospects for Schuyler,
Question 11: Capital Corporation made the following cash purchases of securities during 2012,which is the first year in which Arantxa invested in securities,
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
Question 13: (Equity Method) Gator Co.invested $1,080,000 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 answer.
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 $1,220,000 for 50,000 shares.
Question 15: (Call Option) On January2, 2012 , Jones Company purchases a call option for $450 on Merchant common stock. The call option gives Jones the option to buy 1000 shares of Merchant at a strike price of $50 per share.
Question 16: In 2012 , Amirante Corporation had pretax financial income of $148,900 and taxable income of $107,900. The difference is due to the use of different depreciation method for tax and accounting purposes.
Question 17: At December 31,2012, Fell corporation had a deferred tax liability of $708,356, resulting from future taxable amounts of $2,083,400 and an enacted tax rate of 34%.
Question 18: AMR Corporation( parent company of American Airlines) reported the following for 2009 ( in millions) Compute AMR Corporation’s 2009 pensions expense( in millions)
Question 19: For Warren corporation ,year end planned assets were $2,159,200. At the beginning of the year , plan assets were $1,735,600. During the year, contributions to the pension fund were $1,20,000,
Question 20: For 2010, Campbell Soup Company had pension expense of $37million and contributed $266 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 How will Lahey report these multiple plans in its financial statements?
Question 22: For 2012,Sampsell Inc. computed its annual postretirement expense as $255,860. Sampsell’s contribution to the plan during 2012 was $199,210. 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.
Question 24: In 2012, Bailey Corporation discovered that equipment purchased on January 1, 2010, for $52,500 was expensed at that time . The equipment should have been depreciated over 5 years,
Question 25: At January 1,2012, Beilder Company reported retained earnings of $2,002,000. In 2012 Beilder discovered that 2011 depriciation expense was understated by $355,000. In 2012 net income was $910,660 and dividends declared were $266,820.
Question 26: Simmon 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 ,
Question 27: Manno corporation has the following information available concerning its postretirement benefit plan for 2012.
Question 28: Ravonette Corporation issued 310 shares of $13 par value common stock and 150 shares of $48 par value preferred stock for a lum sum of $17,400.
Question 29: Garfield Company purchased , as a held to maturity investment,$81,700 of the 9%, 12 years bonds of Chester Corporation for $66,518, which provides an 12% return. Prepare Garfield’s journal entries for,