ACC 557 Week 8 Homework 4 Chapter 11 and 12, E11-7, E11-13, E12-8, P11-3A, P12-6A
ACC 557 Homework 4 Chapter11 and 12
E11-7. Quay Co. had the following transactions during the current period. Mar. 2 Issued 5,000 shares of $5 par value common stock to attorneys in payment of a bill for $30,000 for services performed in helping the company to incorporate.
E11-13. On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred.
a) Prepare the entries, if any, on each of the three dividend dates.
b) How are dividends and dividends payable reported in the ?nancial statements prepared at December 31?
E12-8. Presented below are two independent situations.
1. Gambino Cosmetics acquired 10% of the 200,000 shares of common stock of Nevins Fashion at a total cost of $13 per share on March 18, 2015. On June 30, Nevins declared and paid a $60,000 dividend. On December 31, Nevins reported net income of $122,000 for the year. At December 31, the market price of Nevins Fashion was $15 per share. The stock is classi?ed as available-for-sale.
2. Kanza, Inc., obtained signi?cant in?uence over Rogan Corporation by buying 40% of Rogan’s 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2015. On June 15, Rogan declared and paid a cash dividend of $30,000. On December 31, Rogan reported a net income of $80,000 for the year.
Prepare all the necessary journal entries for 2015 for (a) Gambino Cosmetics and (b) Kanza, Inc. E12-12. Uttinger Company has the following data at December 31, 2015. The available-for-sale securities are held as a long-term investment.
a) Prepare the adjusting entries to report each class of securities at fair value.
b) Indicate the statement presentation of each class of securities and the related unrealized gain (loss) accounts.
P11-3A. The stockholders’ equity accounts of Castle Corporation on January 1, 2015, were as follows. a) Journalize the transactions and the closing entry for net income. b) Enter the beginning balances in the accounts, and post the journal entries to the stockholders’ equity accounts. (Use J5 for the posting reference.) c) Prepare a stockholders’ equity section at December 31, 2015, including the disclosure of the preferred dividends in arrears.
P12-6A. The following data, presented in alphabetical order, are taken from the records of Nieto Corporation. The investment in Sasse common stock is considered to be a long-term available-for-sale security. Prepare a classi?ed balance sheet at December 31, 2015