ACC 304 Final Exam Part 1 (3 Sets) For more classes visit www.snaptutorial.com

This Tutorial contains 3 Set of Finals ACC 304 Final Exam Part 1 (3 Sets) 1 1) Swing High Inc. offers its 100 employees to participate in an employee share-purchase plan. Under the terms of plan, employees are entitled to purchase 10 shares at 10% discount. The par values of shares were \$10. Overall, 60 employees accepted the offer and each employee purchased six shares. The market price on purchase date was \$100. What is the compensation expense recorded by Swing High Inc.?

the

2)

The interest rate written in the terms of the bond indenture is known as

3) Which of the following methods of amortization is normally used for intangible assets? 4) If bonds are initially sold at a discount and the straight-line method of amortization is used, interest expense in the earlier years will 5) The distribution of stock rights to existing common stockholders will increase paid-in capital at the ********************************************************* ACC 304 Final Exam Part 2 (2 Sets)

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ACC 304 Final Exam Part 2 (2 Sets) 1

1) On January 1, 2015, Piper Co. issued ten-year bonds with a face value of \$3,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% .386 Present value of 1 for 10 periods at 12% .322 Present value of 1 for 20 periods at 5% .377 Present value of 1 for 20 periods at 6% .312 Present value of annuity for 10 periods at 10% 6.145 Present value of annuity for 10 periods at 12% 5.650 Present value of annuity for 20 periods at 5% 12.462 Present value of annuity for 20 periods at 6% 11.470 2) Without prejudice to your solution in part (a), assume that the issue price was \$2,652,000. Prepare the amortization table for 2015, assuming that amortization is recorded on interest payment dates using the effective-interest method. 3) The following information pertains to Parsons Co.: Preferred stock, cumulative: Par value per share \$100 Dividend rate 8% Shares outstanding 9,000 Dividends in arrears none Common stock: Par value per share \$10 Shares issued 100,000 Dividends paid per share \$2.00 Market price per share \$47 Additional paid-in capital \$480,000

Unappropriated retained earnings (after closing) Retained earnings appropriated for contingencies Common treasury stock: Number of shares 9,000 Total cost \$240,000 Net income \$610,000

\$250,000 \$280,000

Compute (assume no changes in balances during the past year): ********************************************************* ACC 304 Week 1 Chapter 8 Homework

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ACC 304 Week 1 Chapter 8 Homework 1) Matlock Company uses a perpetual inventory system. Its beginning inventory consists 50 units that cost \$34 each. During June , (1) the company purchased units at \$34 each, (2) returned 6 units for credit ,and (3) sold 125 unit at \$50 each. Journalize the June transactions. 2) Amsterdam Company uses a periodic inventory system. For April, When the company sold 600 units, The following information is available. calculate weighted average cost per unit. 3) Arna, Inc. uses the dollar value LIFO method of computing its inventory. Data for the past 3 year follow. Compute the value of the 2014 and 2015 inventories using the dollar-value LIFE method. 4) Craig Company asks you to review its December 31, 2014, inventory values and prepare the necessary adjustments to the book. The following information is given to u. determine the proper inventory balance for Craig Company at December 31, 2014. 5) Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2014. Assume the books have not been closed.

6) The net income per books of Linda Patrick Company was determined without knowledge of the errors indicated below. Prepare work sheet to show the adjusted net income figure for each of the 6 years after taking into account the inventory errors. 7) Presented below the information related to Dino Radja Company. Compute the ending inventory for Dino Radja Company for 2011 throw 2016 using the Dollar value LIFO method. 8) Under IFRS, an entity should initially recognize inventory when 9) With respect to accounting of inventories, which of the following is a difference that exists for IFRS, as opposed to U.S GAAP? 10) Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method. ********************************************************* ACC 304 Week 2 Chapter 8 Quiz (All Possible Questions) For more classes visit www.snaptutorial.com

ACC 304 Week 2 Quiz â&#x20AC;&#x201C; Strayer NEW CHAPTER 8 VALUATION OF INVENTORIES:A COST-BASIS APPROACH IFRS questions are available at the end of this chapter. TRUE FALSEâ&#x20AC;&#x201D;Conceptual 1. A manufacturing concern would report the cost of units only partially processed as inventory in the balance sheet.

2. Both merchandising and manufacturing companies normally have multiple inventory accounts. 3. When using a perpetual inventory system, freight charges on goods purchased are debited to Freight-In. 4. If a supplier ships goods f.o.b. destination, title passes to the buyer when the supplier delivers the goods to the common carrier. 5.

If ending inventory is understated, then net income is understated.

********************************************************* ACC 304 Week 2 Chapter 9 Homework

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ACC 304 Week 2 Chapter 9 Homework 1) Floyd Corporation has the following four items in its ending inventory. Determine the final lower-of-cost-or-market inventory value for each item. 2) Bell, Inc. buys 1,000 computer game CDs from a distributor who is disconnecting those games. The purchase price for the lot is \$8,000.Bell will group the CDs into three price categories for resale, as indicated bellow. Determine the cost per CD for each group, using the relative sales value method. 3) Boyne Inc. had beginning inventory of \$12,000 at cost and \$20,000 t retail. Net purchase were \$12,000 at cost and \$17,000 at retail. Net markups were

\$10,000; net markdowns were \$7,000; and sales revenue was \$147,000.compute ending inventory at cost using the conventional retail method. 4) Marvin Gaye Company has been having difficulty obtaining key raw materials for its manufacturing process. The Company therefore signed a long-term non cancelable purchase commitment with its largest supplier of this raw material on November 30, 2014,at an agreed price of \$400,0000. At December 31, 2014, the raw material had declined in price to \$365,000. What entry would you make on December 31, 2014, to recognize these facts? 5) Tim Legler requires an estimate of the cost of goods loat by fire on March 9. Merchandise on hand on January 1 was \$38,000. Purchases since January 1 were \$72,000; freight-in \$3,400; purchases returns and allowances, \$2,400. Sales are made at 33 1/3% above cost and totaled \$100,000 to March 9. Goods coasting \$10,900 were left undamaged by the fire; remaining goods were destroyed. (a). compute the cost goods destroyed. (b). compute the cost goods destroyed, assuming that the gross profit 33 1/3% of sales. ********************************************************* ACC 304 Week 3 Chapter 9 Quiz (All Possible Questions)

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1. A company should abandon the historical cost principle when the future utility of the inventory item falls below its original cost. 2. The lower-of-cost-or-market method is used for inventory despite being less conservative than valuing inventory at market value. 3. The purpose of the â&#x20AC;&#x153;floorâ&#x20AC;? in lower-of-cost-or-market considerations is to avoid overstating inventory.

4. Application of the lower-of-cost-or-market rule results in inconsistency because a company may value inventory at cost in one year and at market in the next year. 5. GAAP requires reporting inventory at net realizable value, even if above cost, whenever there is a controlled market with a quoted price applicable to all quantities. 6. A reason for valuing inventory at net realizable value is that sometimes it is too difficult to obtain the cost figures. 7. In a basket purchase, the cost of the individual assets acquired is determined on the basis of their relative sales value. 8. A basket purchase occurs when a company agrees to buy inventory weeks or months in advance. 9.

Most purchase commitments must be recorded as a liability.

10. If the contract price on a noncancelable purchase commitment exceeds the market price, the buyer should record any expected losses on the commitment in the period in which the market decline takes place. d. LIFO. ********************************************************* ACC 304 Week 3 Chapter 10 Homework

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ACC 304 Week 3 Homework (Chapter 10)

1) Hanson Company is constructing a building. Construction begins on February 1 and was completed on December 31. Expenditure were \$1,800,000 on march 1, \$1,200,000 on June 1, and \$3,000,000 on December 31. Compute Hansonâ&#x20AC;&#x2122;s weighted-average accumulated expenditure for interest capitalization purposes. 2) Mehta Company traded a used welding machine (cost \$9,000, accumulated depreciation \$3,000) for office equipment with an estimated fair value of \$5,000. Mehta also paid \$3,000 cash in the transaction. Prepare the journal entry to record the exchange. 3) Ottawa Corporation owns machinery that cost \$20,000 when purchased on July 1, 2011. Depreciation has been recorded at a rate of \$2,400 per year, resulting in a balance is accumulated depreciation of \$8,400 at December 31, 2014. The machinery is sold on September 1, 2015, for \$10,500. Prepare journal entries to (a) update depreciation for 2015 and (b) record the sale. 4) Martin Buber co. purchased land as a factory site for \$400,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid \$42,000 to raze the old buildings and salvaged lumber and brick for \$6,300. Legal fees of \$1,850 were paid for title investigation and drawing the purchase contract. Martin Buber paid \$2,200 to an engineering firm for a land survey, and \$68,000 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost \$1,500, and a liability insurance premium paid during construction was \$900. The contractorâ&#x20AC;&#x2122;s charge for construction was \$2,740,000. The company paid the contractor in two installments:\$1,200,000 at the end of 3 months and \$1,540,000 upon completion. Interest costs of \$170,000 were incurred to finance the construction. Determine the cost of the land and the cost of the building as they should be recorded on the books of Martin Buberk Co. assumes that the land survey was for the building. 5) Ben Sisko Supply Company, a newly formed corporation, incurred the following expenditure related to land, to Buildings, and to machinery and equipment. Determine the amounts that should be debited to land, to buildings, and to machinery and equipment. Assume the benefits of capitalizing interest during construction exceed the cost of implementation. ********************************************************* ACC 304 Week 4 Chapter 10 Quiz (All Possible Questions) For more classes visit

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ACC 304 Week 4 Quiz â&#x20AC;&#x201C; Strayer NEW Week 4 Quiz 3: Chapter 10

ACQUISITION AND DISPOSITION OF PROPERTY, PLANT, AND EQUIPMENT IFRS questions are available at the end of this chapter. TRUE-FALSEâ&#x20AC;&#x201D;Conceptual 1. Assets classified as Property, Plant, and Equipment can be either acquired for use in operations, or acquired for resale. 2. Assets classified as Property, Plant, and Equipment must be both longterm in nature and possess physical substance. 3. When land with an old building is purchased as a future building site, the cost of removing the old building is part of the cost of the new building. 4. Insurance on equipment purchased, while the equipment is in transit, is part of the cost of the equipment. 5. Special assessments for local improvements such as street lights and sewers should be accounted for as land improvements. 6. Variable overhead costs incurred to self-construct an asset should be included in the cost of the asset. 7. Companies should assign no portion of fixed overhead to selfconstructed assets.

8. When capitalizing interest during construction of an asset, an imputed interest cost on stock financing must be included. 9. Assets under construction for a companyâ&#x20AC;&#x2122;s own use do not qualify for interest cost capitalization. ********************************************************* ACC 304 Week 4 Chapter 11 Homework For more classes visit www.snaptutorial.com

ACC 304 Week 4 Chapter 11 Homework 1) Lockard Company purchased machinery on January 1, 2014, for \$102,960. The machinery is estimated to have a salvage value of \$10,296 after a useful life of 8 years. 2) Compute 2014 depreciation expense using the double-declining-balance method. 3) Compute 2014 depreciation expense using the double-declining-balance method, assuming the machinery was purchased on October 1, 2014. 4) Everly Corporation acquires a coal mine at a cost of \$452,000. Intangible development costs total \$113,000. After extraction has occurred, Everly must restore the property (estimated fair value of the obligation is \$90,400), after which it can be sold for \$180,800. Everly estimates that 4,520 tons of coal can be extracted. 5) In its 2011 annual report, Campbell Soup Company reports beginning-ofthe-year total assets of \$6,276 million, end-of-the-year total assets of \$6,862 million, total sales of \$7,719 million, and net income of \$805 million.

6) Compute Campbellâ&#x20AC;&#x2122;s asset turnover ratio. (Round answer to 3 decimal places, e.g. 4.871.) Asset turnover ratio 7) Compute Campbellâ&#x20AC;&#x2122;s profit margin on sales. (Round answer to 2 decimal places, e.g. 4.87 or 4.87%.) 8) Compute Campbellâ&#x20AC;&#x2122;s return on assets using (1) asset turnover and profit margin and (2) net income. (Round answers to 2 decimal places, e.g. 4.87 or 4.87%.)Return on assets 9) Rembrandt Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employee has prepared depreciation schedules for this asset using three different methods to compare the results of using one method with the results of using other methods. You are to assume that the following schedules have been correctly prepared for this asset using (1) the straight-line method, (2) the sum-of-the-years'-digits method, and (3) the double-declining-balance method. Year Straight-Line Sum-of-theYears'-Digits Double-DecliningBalance 1 \$11,970 \$19,950 \$26,600 2 11,970 15,960 15,960 3 11,970 11,970 9,576 4 11,970 7,980 5,746 5 11,970 3,990 1,968 Total \$59,850 \$59,850 \$59,850 10) What is the cost of the asset being depreciated? (Round answer to 0 decimal places, e.g. 45,892.) Cost of asset \$ *********************************************************

ACC 304 Week 5 Midterm Part 1 (Set 1)

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The book value of a plant asset is The asset turnover ratio is computed by dividing On September 19, 2014, Markham Co. purchased machinery for \$285,000. Salvage value was estimated to be \$15,000. The machinery will be depreciated over eight years using the sum-of-the-years'-digits method. If depreciation is computed on the basis of the nearest full month, Markham should record depreciation expense for 2015 on this machinery of In 2014, Bargain shop reported net income of \$5.7 billion, net sales of \$175 billion, and average total assets of \$70 billion. What is Bargain shop's asset turnover ratio? In 2006, Jarrett Company purchased a tract of land as a possible future plant site. In January, 2014, valuable sulphur deposits were discovered on adjoining property and Jarrett Company immediately began explorations on its property. In December, 2014, after incurring \$800,000 in exploration costs, which were accumulated in an expense account, Jarrett discovered sulphur deposits appraised at \$4,500,000 more than the value of the land. To record the discovery of the deposits, Jarrett should ********************************************************* ACC 304 Week 5 Midterm Part 1 (Set 2)

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Multiple Choice Question 90 If Labor, Inc. uses the composite method and its composite rate is 7.5% per year, what entry should it make when plant assets that originally cost \$80,000 and have been used for 10 years are sold for \$24,000? Multiple Choice Question 102 Porter Resources Company acquired a tract of land containing an extractable natural resource. Porter is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 2,000,000 tons, and that the land will have a value of \$1,000,000 after restoration. Relevant cost information follows: Multiple Choice Question 110 ********************************************************* ACC 304 Week 5 Midterm Part 1 (Set 3) For more classes visit www.snaptutorial.com

ACC 304 Week 5 Midterm Part 1 (Set 3)

1) Tongas Company applies revaluation accounting to plant assets with a carrying value of \$1,600,000, a useful life of 4 years, and no salvage value.

Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of \$1,500,000. The journal entry to adjust the plant assets to fair value and record revaluation surplus in year one will include a 2) Tongas Company applies revaluation accounting to plant assets with a carrying value of \$1,600,000, a useful life of 4 years, and no salvage value. Depreciation is calculated on the straight-line basis. At the end of year 1, independent appraisers determine that the asset has a fair value of \$1,500,000. The journal entry to adjust the plant assets to fair value and record revaluation surplus in year one will include a 3)

A major objective of MACRS for tax depreciation is to

4)

Sifton Company reported the following data: 2014 2015 Sales \$3,000,000 \$3,900,000 Net Income 300,000 400,000 Assets at year end 1,800,000 2,500,000 Liabilities at year end 1,100,000 1,500,000 What is Siftonâ&#x20AC;&#x2122;s asset turnover for 2015?

5) Which of the following principles best describes the conceptual rationale for the methods of matching depreciation expense with revenues? ********************************************************* ACC 304 Week 5 Midterm Part 2

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ACC 304 Week 5 Midterm Part 2

1) 1) A machine which cost \$300,000 is acquired on October1, 2014. Its estimated salvage value is \$30,000 and its expected life is eight years. a) Calculate depreciation expense for 2014 and 2015 by double-declining balance b) Calculate depreciation expense for 2014 and 2015 by sum-of-the-yearsdigits c) At the end of 2015, which method results in the larger accumulated depreciation amount? 2) Assume in each case that the selling expenses are \$8 per unit and that the normal profit is \$5 per unit. Calculate the limits for each case. Then enter the amount that should be used for lower of cost or market 3) a) b)

Purchased merchandise costing \$2,500 with terms 2/10, n/30. Inventory = ??? Payment was made thirty days after the purchase

4) A machine cost \$221,400, has annual depreciation expense of \$44,280, and has accumulated depreciation of \$110,700 on December 31, 2014. On April 1, 2015, when the machine has a fair value of \$87,070, it is exchanged for a similar machine with a fair value of \$281,600 and the proper amount of cash is paid. The exchange lacked commercial substance. ********************************************************* ACC 304 Week 6 Chapter 12 Homework

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ACC 304 Week 6 Chapter 12 Homework 1) Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of \$400,000. The Johnson Division’s net assets, including the good well, have a carrying amount of \$800,000. The fair value of the division is estimated to be \$1,000,000.prepare Water’s journal entry to record impairment of the goodwill. 2) Treasure Land Corporation incurred the following costs in 2014. Prepare the necessary 2014 journal entry or entries for Treasure Land. 3) Sinise Industries acquired two copyrights during 2014. One copy right related to a text book that was developed internally at a cost of \$9,900. This textbook is estimated to have a useful life of 3 years from September 1, 2014, the date it was published. The second copy right (a history research textbook) was purchased from University press on December 1, 2014, for \$24,000. This textbook has an indefinite useful life. How should these two copyrights be reported on Sinise’s balance sheet as of December 31, 2014? 4) Alatorre purchased a patent from Vaina Co. for \$1,000,000 on January 1, 2012. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2022. During 2014, alatorre determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the balance sheet for the patent, net of accumulated amortization, at December 31, 2014? ********************************************************* ACC 304 Week 7 Chapter 12 Quiz (All Possible Questions)

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ACC 304 Week 7 Quiz â&#x20AC;&#x201C; Strayer NEW Week 7 Quiz 4: Chapter 12 INTANGIBLE ASSETS IFRS questions are available at the end of this chapter. TRUE-FALSEâ&#x20AC;&#x201D;Conceptual 1. Intangible assets derive their value from the right (claim) to receive cash in the future. 2.

Internally created intangibles are recorded at cost.

3.

Internally generated intangible assets are initially recorded at fair value.

4. Amortization of limited-life intangible assets should not be impacted by expected residual values. 5.

Some intangible assets are not required to be amortized every year.

********************************************************* ACC 304 Week 7 Chapter 13 Homework

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ACC 304 Week 7 Chapter 13 Homework

1) Takemoto Corporation borrowed \$64,850 on November 1, 2014, by signing a \$68,450, 3-month, zero-interest-bearing note. Prepare Takemoto’s November 1, 2014, entry; the December 31, 2014, annual adjusting entry; and the February 1, 2015, entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 2) Kasten Inc. provides paid vacations to its employees. At December 31, 2014, 36 employees have each earned 2 weeks of vacation time. The employees’ average salary is \$513 per week. Prepare Kasten’s December 31, 2014, adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 3) Buchanan Company recently was sued by a competitor for patent infringement. Attorneys have determined that it is probable that Buchanan will lose the case and that a reasonable estimate of damages to be paid by Buchanan is \$317,310. In light of this case, Buchanan is considering establishing a \$115,690 self-insurance allowance. ********************************************************* ACC 304 Week 8 Assignment 1 Delta Airlines Property, Plant, And Equipment For more classes visit www.snaptutorial.com

ACC 304 WEEK 8 ASSIGNMENT 1 DELTA AIRLINES PROPERTY, PLANT, AND EQUIPMENT Assignment 1: Delta Airlines Property, Plant, and Equipment Due Week 8 and worth 200 points

According to the textbook, U.S. companies and foreign companies are affected by deprecation rules. When companies write off the cost of long-lived assets over a period of time, the term used is depreciation. In order to complete this assignment, review Delta Airlinesâ&#x20AC;&#x2122; annual reports for the years 2012 and 2013, located athttp://ir.delta.com/stock-and-financial/secfilings/. ********************************************************* ACC 304 Week 8 Chapter 14 Homework

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ACC 304 Week 8 Chapter 14 Homework 1) Teton Corporation issued \$704,000 of 9% bonds on November 1, 2014, for \$745,018. The bonds were dated November 1, 2014, and mature in 8 years, with interest payable each May 1 and November 1. Teton uses the effectiveinterest method with an effective rate of 8%. Prepare Tetonâ&#x20AC;&#x2122;s December 31, 2014, adjusting entry. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 2) On January 1, 2014, Henderson Corporation redeemed \$572,100 of bonds at 97. At the time of redemption, the unamortized premium was \$17,163 and unamortized bond issue costs were \$5,721. Prepare the corporationâ&#x20AC;&#x2122;s journal entry to record the reacquisition of the bonds. (If no entry is required, select "No Entry" for the account titles and enter 0 for the

amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) ********************************************************* ACC 304 Week 9 Chapter 13 and Chapter 14 Quiz (All Possible Questions)

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ACC 304 Week 9 Quiz â&#x20AC;&#x201C; Strayer NEW Week 9 Quiz 5: Chapter 13, Quiz 6: Chapter 14

CURRENT LIABILITIES AND CONTINGENCIES IFRS questions are available at the end of this chapter. TRUE-FALSEâ&#x20AC;&#x201D;Conceptual 1. A zero-interest-bearing note payable that is issued at a discount will not result in any interest expense being recognized. 2. Dividends in arrears on cumulative preferred stock should be recorded as a current liability. 3. Magazine subscriptions and airline ticket sales both result in unearned revenues.

4. Discount on Notes Payable is a contra account to Notes Payable on the balance sheet. 5. All long-term debt maturing within the next year must be classified as a current liability on the balance sheet. 6. A short-term obligation can be excluded from current liabilities if the company intends to refinance it on a long-term basis. ********************************************************* ACC 304 Week 9 Chapter 15 Homework

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ACC 304 Week 9 Chapter 15 Homework 1) Ravonette Corporation issued 375 shares of \$14 par value common stock and 128 shares of \$51 par value preferred stock for a lump sum of \$17,118. The common stock has a market price of \$20 per share, and the preferred stock has a market price of \$90 per share. Prepare the journal entry to record the issuance. (Round answers to 0 decimal places, e.g., 1520. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit 2) nArantxa Corporation has outstanding 20,110 shares of \$5 par value common stock. On August 1, 2014, Arantxa reacquired 370 shares at \$86 per share.

On November 1, Arantxa reissued the 370 shares at \$78 per share. Arantxa had no previous treasury stock transactions. Prepare Arantxa’s journal entries to record these transactions using the cost method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit ********************************************************* ACC 304 Week 10 Chapter 15 Quiz (All Possible Questions) For more classes visit www.snaptutorial.com

ACC 304 Week 10 Quiz – Strayer NEW Week 10 Quiz 7: Chapter 15 STOCKHOLDERS’ EQUITY IFRS questions are available at the end of this chapter. TRUE-FALSE—Conceptual 1. A corporation is incorporated in only one state regardless of the number of states in which it operates. 2. The preemptive right allows stockholders the right to vote for directors of the company. 3. Common stock is the residual corporate interest that bears the ultimate risks of loss.

4. Earned capital consists of additional paid-in capital and retained earnings. 5. True no-par stock should be carried in the accounts at issue price without any additional paid-in capital reported. 6. Companies allocate the proceeds received from a lump-sum sale of securities based on the securitiesâ&#x20AC;&#x2122; par values. ********************************************************* ACC 304 Week 10 Chapter 16 Homework

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ACC 304 Week 10 Chapter 16 Homework 1) Archer Inc. issued \$4,461,300 par value, 7% convertible bonds at 99 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit 2) On January 1, 2014, Barwood Corporation granted 5,360 options to executives. Each option entitles the holder to purchase one share of Barwoodâ&#x20AC;&#x2122;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 \$73 per share on the date of grant. The fair value of the options at the grant date is \$150,800. The period of benefit is 2 years.

Prepare Barwoodâ&#x20AC;&#x2122;s journal entries for January 1, 2014, and December 31, 2014 and 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 3) Tomba Corporation had 546,600 shares of common stock outstanding on January 1, 2014. On May 1, Tomba issued 51,000 shares. 4) For each of the unrelated transactions described below, present the entries required to record each transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 5) Illiad Inc. has decided to raise additional capital by issuing \$176,300 face value of bonds with a coupon rate of 11%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each \$100 bond sold. The value of the bonds without the warrants is considered to be \$139,570, and the value of the warrants in the market is \$24,630. The bonds sold in the market at issuance for \$156,000. *********************************************************

Acc 304 possible is everything snaptutorial com
Acc 304 possible is everything snaptutorial com

For more classes visit www.snaptutorial.com This Tutorial contains 3 Set of Finals ACC 304 Final Exam Part 1 (3 Sets) 1 1) Swing H...