FAT 2
common stockholders
The residual interest in a corporation belongs to the...
$0.
Vernon's December 31, 2012 financial statements were issued on March 31, 2013. On January 15, 2013, the entire $600,000 balance of the 8% note was refinanced by issuance of a long-term obligation payable in a lump sum. In addition, on March 10, 2013, Vernon consummated a non cancelable agreement with the lender to refinance the 7%, $250,000 note on a long term basis, on the readily determinable terms that have not yet been implemented. On the December 31, 2012 balance sheet, the amount of the notes payable that Vernon should classify as short-term obligations is...
Par Value per Share - DECREASE Retained Earnings- NO EFFECT
What does the issuance of a 2-for-1 stock split have on each of the following?
$380,000
Berry Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2012, the first year of the corporation's existence: - sold 10,000 shares of common stock for $18 per share - issued 10,000 share of common stock in exchange for a patent valued at $200,000 At the end of Berry's first year, total paid-in capital amounted to...
allocated to the periods benefited by the employee's required service (service period)
Compensation expense resulting from stock based compensation using a stock option plan is generally...
$43,000
During 2012 Eaton Co. Introduced a new product carrying a two year warranty against defects. The estimated warranty costs related to dollar sales are 2% within 12 months following sale and 3% in the second 12 months following sale. Sales and actual warranty expenditures for the years ended December 31, 2012 and 2013 are as follows: - - total sales - $1,800,000 - actual Warranty Expenditures - $47,000 At December 31, 2013, Eaton should report and estimated warranty liability of...
$9,850,000
Feller Company issues $10,000,000 of 10 year, 9% bonds on March 1, 2012 at 97 plus accrued interest. The bonds are dated January 1, 2012, and pay interest on June 30 and December 31. What is the total cash received on the issue date?
Property Dividend
Houser Corporation owns 4,000,000 shares of stock in Baha Corporation. On December 31, 2012, Hoser distributed these shares of stock as a dividend to its stockholders. This is an example of a...
decreased the total stockholders equity
In January 2012, Finley Corporation, a newly formed company, issued 10,000 shares of its $10 par common stock for $15 per share. On July 1, 2012, Finley Corporation reacquired 1,000 shares of its outstanding stock for $12 per share. The acquisition of these treasury shares...
credit of $18,750 to Discount on Bonds Payable
Kant Corp. retires is $500,000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $481,250. The entry to record the extinguishment will include a...
$240,000
Member Corporation started business in 2007 by issuing 200,000 shares of $20 par common stock for $36 each. In 2012, 30,000 of these shares were purchased for $52 per share by Pember Corporation and held as treasury stock. On June 15, 2013 these 30,000 shares were exchanged for a piece of property that had an assessed value of $810,000. Perrier's stock is actively traded and had a market price of $60 on June 15, 2013. The cost method is used to account for treasury stock. The amount of paid-in capital from treasury stock transactions resulting from the above events would be...
$1,650,000
On December 1, 2012, Abel Corporation exchanged 30,000 shares of its $10 par value common stock held in treasury for a used machine. The treasury shares were acquired by Abel at a cost of $40 per share and are accounted for under the cost method. On the date of the exchange, the common stock had a fair value of $55 per share (the shares were originally issued at $30 per share). As a result of this exchange Abel's total stockholder's equity will increase by...
625,000
On December 10, Vandalia Co. split its stock 5 for 2 (if investor A owned 2 shares she will have 5 shares after the split) when the market value was $49 per share. Prior to the split Vandalia Co had 250,000 shares of $15 par value stock. After the split, Vandalia's outstanding shares would be...
$503,200
On January 1, 2012 Solis Co. issued it 10% bonds in the face amount of $4,000,000 which mature on January 1, 2022. The bonds were issued for $4,540,000 to yield 8% resulting in bond premium of $540,000. Interest is payable annually on December 21. At December 31, 2012 Solis's adjusted unamortized bond premium should be...
$210,000
On January 2, 2014 Sanders Corporation granted stock options to key employees for the purchase of 60,000 shares of the company's common stock at $25 per share. The options are intended to compensate employees for the next two years (service period). The options are exercisable within a four year period beginning January 1, 2016, by grantees still in employ of the company (exercise period). The fair value of the option determined by an option pricing model is $7 at the grant date. How much should Sanders charge to Compensation Expense for the year ended December 31, 2014? Assume that no stock options were terminated during the year.
a $4,800 increase in paid in capital in excess of par
On July 1, 2012, an interest payment date, $80,000 of Parks Co. bonds were converted into 1,600 shares of Parks Co. common stock each having a par value of $45 and a market value of $54. There is 3,200 unamortized discount on the bonds. Using the book value method, Parks would record...
$64,000
On June 1, Continental Company issued 8,000 shares of its $10 par common stock to Diedrich Inc. for a tract of land. The stock had a fair market value of $18 per share on this date. On Diedrich's last property tax bill, the land was assessed at $96,000. Continental should record and increase in Additional Paid-In Capital of...
treasury stock for 240,000
On September 1, 2012 Valdez Company reacquired 16,000 shares of its $10 par value common stock for $15 per share. Valdez uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit...
the nominal rate of interest exceeded the market rate
Reich, Inc. issued bonds with a maturity amount of $200,000 and a maturity ten years from date of issue. If the bonds were issued at a premium, this indicates that...
bear the ultimate risks and uncertainties and receive the benefits of enterprise ownership
Stockholders of a business enterprise are said to be the residual owners. The term residual owner means that shareholders...
$16,000
The 12% bonds payable of Nyman Co. had a carrying amount of $2,080,000 on December 31, 2012. The bonds which had a face value of $2,000,000 were issued at a premium to yield 10%. Lyman uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2013, several years before their maturity Nyman retired the bonds at 104 plus accrued interest. The loss on the retirement ignoring taxes is...
book value method
The conversion of preferred stock may be recorded by the...
requires that dividends not paid in any year must be made up in a late year before dividends are distributed to common shareholders
The cumulative feature of preferred stock...
of grant
The date on which total compensation expense is computed in a stock option plan is the date...
reflected currently in income (gain/loss from extinguishment of debt)
When convertible debt is retired by the issuer, any material difference between the cash acquisition price and the carrying amount of the debt should be...
treasury stock for the purchase price
When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account should be debited?
current liability
Where is debt callable by the creditor reported on the debtor's financial statements?
amount of loss is reasonably estimable and occurrence of event is probable
Which set of conditions would give rise to the accrual of a contingency under current generally accepted accounting principles?
debenture bonds
the term used for bonds that are unsecured as to principal is...