社大会计作业题目更新
楼主:桑田岛
时间:2020-11-06 10:43:18
Problem 1: Accounting for the Sale of a Fixed Asset (Chapter 7)
Calculate the balance of Accumulated Depreciation on the date of the sale.
You will be given the cost of the asset, the expected residual value, and expected useful life. You will need to determine the amount of depreciation that has been recorded for the asset since the date the asset was placed in service.
The company uses Straight-line to calculate depreciation expense.
Do not forget the final year's depreciation expense needs to calculated an included in the Accumulated Depreciation Balance on the date the asset is disposed of/sold. This will be a partial years’ worth of depreciation. (Remember that if the asset was placed in service mid-year or sold mid-year, you will need to calculate a partial year’s depreciation expense.)
Once you have accumulated depreciation’s balance, you will need to record the sale of the asset. The journal entry will include cash proceeds, gain or loss on sale, and removal of asset and related accounts.
Problem 2: Bonds Payable (Chapter 9)
Calculate the Issue Price of the bonds using Excel. (Note that interest is paid ANNUALLY (not semi-annually, so adjust number of periods used to calculate Issue Price will be equal to the term in years).
Determine the maturity value of the bonds.
Calculate the annual cash interest payment.
Calculate the carrying value of the bonds at the end of year 1.
Create amortization table using the effective interest method. (Fill in the interest payments, interest expense, discount amortization, discount balance, and bond carrying values for 4 years.)
Calculate Interest Expense for year 4.
Show what is included in the Liabilities section of the balance sheet.
Problem 3: Notes Payable (Chapter 8)
Record the issuance of a notes payable (note that you will be purchasing an asset, not receiving cash).
Record the accrual of interest expense at year-end. (Pay attention to the date that the note was issued and the year-end date for the company.)
Journalize the payoff of the note and related interest. You will have 4 accounts impacted.
Balance sheet presentation related to the notes (show what is included and at what balance at year-end)
Income Statement—show what is included for the year
Problem 4: Account for Accrued Liabilities (Chapter 8)
You will be provided with a list of accounts and balances. You will need to determine what accounts and balance of those accounts needs to be included in the “Current Liabilities” portion of a balance sheet. They will give you relevant supplemental information that you will use to determine accounts to include and balances (for some of the accounts).
You will have 2 entries:
Reverse the Fair Value Adjustment from above
Record Sale and Calculate Gain or Loss on Sale
See my chapter 8 summary for more information. This problem is similar to your homework problem.
Problem 5: Depreciation Expense Calculation (Chapter 7)
Calculate annual depreciation expense for the following methods:
Straight-line
Units of Production
Double Declining balance
Pay attention to the date the asset was placed in service.
Answer questions related to the different methods
Settings:
Partial credit will be given for answers that are partially correct
2 attempts allowed
Must complete each attempt in one session
No learning aids are available in this assessment
240 minute time limit for each attempt
No printing
Calculate the balance of Accumulated Depreciation on the date of the sale.
You will be given the cost of the asset, the expected residual value, and expected useful life. You will need to determine the amount of depreciation that has been recorded for the asset since the date the asset was placed in service.
The company uses Straight-line to calculate depreciation expense.
Do not forget the final year's depreciation expense needs to calculated an included in the Accumulated Depreciation Balance on the date the asset is disposed of/sold. This will be a partial years’ worth of depreciation. (Remember that if the asset was placed in service mid-year or sold mid-year, you will need to calculate a partial year’s depreciation expense.)
Once you have accumulated depreciation’s balance, you will need to record the sale of the asset. The journal entry will include cash proceeds, gain or loss on sale, and removal of asset and related accounts.
Problem 2: Bonds Payable (Chapter 9)
Calculate the Issue Price of the bonds using Excel. (Note that interest is paid ANNUALLY (not semi-annually, so adjust number of periods used to calculate Issue Price will be equal to the term in years).
Determine the maturity value of the bonds.
Calculate the annual cash interest payment.
Calculate the carrying value of the bonds at the end of year 1.
Create amortization table using the effective interest method. (Fill in the interest payments, interest expense, discount amortization, discount balance, and bond carrying values for 4 years.)
Calculate Interest Expense for year 4.
Show what is included in the Liabilities section of the balance sheet.
Problem 3: Notes Payable (Chapter 8)
Record the issuance of a notes payable (note that you will be purchasing an asset, not receiving cash).
Record the accrual of interest expense at year-end. (Pay attention to the date that the note was issued and the year-end date for the company.)
Journalize the payoff of the note and related interest. You will have 4 accounts impacted.
Balance sheet presentation related to the notes (show what is included and at what balance at year-end)
Income Statement—show what is included for the year
Problem 4: Account for Accrued Liabilities (Chapter 8)
You will be provided with a list of accounts and balances. You will need to determine what accounts and balance of those accounts needs to be included in the “Current Liabilities” portion of a balance sheet. They will give you relevant supplemental information that you will use to determine accounts to include and balances (for some of the accounts).
You will have 2 entries:
Reverse the Fair Value Adjustment from above
Record Sale and Calculate Gain or Loss on Sale
See my chapter 8 summary for more information. This problem is similar to your homework problem.
Problem 5: Depreciation Expense Calculation (Chapter 7)
Calculate annual depreciation expense for the following methods:
Straight-line
Units of Production
Double Declining balance
Pay attention to the date the asset was placed in service.
Answer questions related to the different methods
Settings:
Partial credit will be given for answers that are partially correct
2 attempts allowed
Must complete each attempt in one session
No learning aids are available in this assessment
240 minute time limit for each attempt
No printing
楼主:桑田岛
时间:2020-11-06 10:43:18
Key Topics
Current liabilities are obligations that are due within one year or within the company’s normal operating cycle if longer than a year. Obligations due beyond that period of time are classified as long-term liabilities. Current liabilities are categorized as those with known amounts and those that must be estimated.
Current liabilities of a known amount include accounts payable, short-term notes payable, sales tax payable, accrued liabilities (accrued expenses), payroll liabilities, unearned revenues, and current portion of long-term debt. Accounts payable turnover measures the number of times a year that a company is able to pay its accounts payable. The calculation is:
Accounts Payable Turnover (T/O) = Cost of Goods Sold / Average Accounts Payable
Estimated warranty payable is a current liability that must be estimated. Since the company guarantees its product under warranty agreements, the matching principle requires that the warranty expense is recorded in the same period as the sale. The business cannot predict the exact amount of warranty expense, so it must estimate warranty expense and the related liability.
The entry to record the estimated amount is:
Warranty Expense XX
Estimated Warranty Payable XX
The entry to record the actual replacement of the defective product or repair is:
Estimated Warranty Payable XX
Inventory XX
Contingent Liabilities are potential liabilities that depend on the future outcome of past events. The Financial Accounting Standards Board (FASB) has provided guidelines to account for these. First, a contingent liability must be accrued if it’s probable that the loss will occur and the amount can be reasonably estimated.
Second, a company must disclose a contingency in note to the financial statement if it’s reasonably possible that a loss will occur. Finally, a contingent loss that is unlikely to occur does not need to be reported.
Current liabilities are obligations that are due within one year or within the company’s normal operating cycle if longer than a year. Obligations due beyond that period of time are classified as long-term liabilities. Current liabilities are categorized as those with known amounts and those that must be estimated.
Current liabilities of a known amount include accounts payable, short-term notes payable, sales tax payable, accrued liabilities (accrued expenses), payroll liabilities, unearned revenues, and current portion of long-term debt. Accounts payable turnover measures the number of times a year that a company is able to pay its accounts payable. The calculation is:
Accounts Payable Turnover (T/O) = Cost of Goods Sold / Average Accounts Payable
Estimated warranty payable is a current liability that must be estimated. Since the company guarantees its product under warranty agreements, the matching principle requires that the warranty expense is recorded in the same period as the sale. The business cannot predict the exact amount of warranty expense, so it must estimate warranty expense and the related liability.
The entry to record the estimated amount is:
Warranty Expense XX
Estimated Warranty Payable XX
The entry to record the actual replacement of the defective product or repair is:
Estimated Warranty Payable XX
Inventory XX
Contingent Liabilities are potential liabilities that depend on the future outcome of past events. The Financial Accounting Standards Board (FASB) has provided guidelines to account for these. First, a contingent liability must be accrued if it’s probable that the loss will occur and the amount can be reasonably estimated.
Second, a company must disclose a contingency in note to the financial statement if it’s reasonably possible that a loss will occur. Finally, a contingent loss that is unlikely to occur does not need to be reported.
楼主:桑田岛
时间:2020-11-06 10:43:18
准备考试 NO。 8章的内容
Problems
Here is a summary of the Chapter 8 Homework problems:
Reporting Current and Long-Term Liabilities
The point of the following questions is to determine what amount would be reported in the balance sheet. So you're determining the Ending Balance of these accounts based on the information given.
Based on the beginning balance of warranty payable and the amount calculated for warranty expense for the period, calculate the ending balance of warranty payable which would be the sum of the beginning balance (credit balance) + warranty expense for the period (credited to warranties payable) = Ending Balance of Warranty Payable.
Calculate Interest Payable as of the companies period end. Pay attention to the dates and remember that interest is calculated as follows: Interest Expense = Principal * Interest Rate (annual percentage) * # of days outstanding during the current period (or # of months depending on what the requirements state in MAL)/ 365 or 360 days per year (depends on MAL) or 12 months/year if monthly is required for the calculation. If it's by days, and it was issued on the 1st and you accrue interest on the 31st, it would be 30 days of interest outstanding for that first month. *smile*
(Note: a day off can make the calculation "wrong" in MAL, because the system is set for a very specific answer, let me know if you don't agree or can't figure out the calculation)
Calculate the ending balance of unearned/deferred revenue. This one you'll be reducing for the amount of revenue earned during the period. (Remember chapter 3 deferral adjustments) Beginning balance of Unearned Revenue (Cr Balance) - Revenue earned during the period (debited to Unearned revenue as it's now earned) = Ending Balance of Unearned Revenue
Calculate the payroll accrual for the period based on the information given.
Analyze Current and Long-Term Liabilities and Evaluate Accounts Payable (A/P) Turnover
Describe the company's liabilities and state what happened to create the liability
What were the company's total assets at the end of the period based on the partial Balance Sheet given. Remember Chapter 1 and 2. *smile*
Calculate the following ratios for 2 years:
A/P turnover
Days' payable outstanding
Current Ratio
Evaluate whether the company improved or deteriorated from the standpoint of its ability to cover accounts payable and current liabilities over the year. (This is a great exercise to help with determining what company's to invest in! We'll learn more in Chapter 12! This is a great skill to have as you start thinking about your retirement (or continue thinking about) or where to earn money on your money.)
Record Liability-related Transactions
Record the following journal entries:
Record the signing of a Note Payable (Principal only, remember the interest will be used in a later transaction) (issuance) (opposite of Notes Receivable, now we are borrowing money)
Record the signing of a Note Payable (Principal only, remember the interest will be used in a later transaction) (issuance) (opposite of Notes Receivable, now we are borrowing money)
Record repayment of 1 of the notes at maturity (interest and principal will be paid back).
Interest Expense = Principal * Interest Rate (annual percentage) * # of days outstanding during the current period (or # of months depending on what the requirements state in MAL)/ 365 or 360 days per year (depends on MAL) or 12 months/year if monthly is required for the calculation. If it's by days, and it was issued on the 1st and you accrue interest on the 31st, it would be 30 days of interest outstanding for that first month. *smile*
This note was borrowed and repaid in the same year, so you'll have two debits (Notes Payable and Interest Expense, since the interest was incurred in the same year it is paid)
Record Estimated Warranty Expense for the period
Record Accrual of Interest using the interest expense calculation above.
Note was outstanding during the year for a number of days/months, so we've incurred interest BUT won't pay interest until next year (the next accounting period)
Record the repayment of the note a maturity. (Notes Payable, Interest Payable and Interest Expense will be debited, since you are now paying the interest incurred last year (balance of interest payable) and you have incurred further interest during the current period as the note was outstanding in this period as well.
Record and Report Current Liabilities
Record the collection of cash for a subscription (unearned revenue) and calculate and record sales tax collected and owed to the state on behalf of your customer (Sales Tax Payable)
Record remittance of sales tax to the state
Record adjustment to unearned revenue account for amount "earned" during the period. Similar to problem you did above.
Warranty Payable and Warranty Expense
You are given in the T-accounts the following: Beginning Balance of Accrued Warranty Payable and Sales Revenue
Journalize warranty expense for the period (based on estimated returns and sales revenue given). Journalize ACTUAL claims (actual warranty returns/exchanges/repairs)
Record the accrual of warranty payable (estimated based on past experience). Estimated warranty payable (liability account) increases when you record the estimated warranty returns for the period (historical % return * sales for the period). When we record the estimated liability, we also record the expense. Matching the expense against the revenue that was generated in the same period.
Record the actual returns related to the warranty during the period. This entry reduces the liability, as it no longer needs to be reserved for. At the same time it also reduces either cash or inventory (usually) depending on if we replaced the product or reimbursed due to the defect.
Determine what the company will show in the Income Statement and Balance Sheet
What data from b (requirement 2) will affect the current ratio (think back to how the current ratio is calculated, we've discussed it in several chapters). Will the company's current ratio increase or decrease due to this item?
Account for Estimated Warranties Payable and Account for Contingent Liabilities
You will record 5 dates worth of Journal Entries:
Record Sale and Cost of Goods Sold (remember that sales revenue is calculated based on the sales price per unit * # of units sold; Cost of goods sold is calculated by taking the cost basis of the units sold (how much we paid) * # of units sold)
Determine if we need to record a contingent liability based on the Contingent Liability rules (Remote, Reasonably Possible, Probable are the key words/concepts of the claims). Record the contingent liability if "probable" (recording a loss and accrual for the amount we'll have to pay)
Record warranty repairs (actual claims)
Determine if we need to record a contingent liability based on the Contingent Liability rules (Remote, Reasonably Possible, Probable are the key words/concepts of the claims). Record the contingent liability if "probable" (recording a loss and accrual for the amount we'll have to pay)
Determine if we need to record a contingent liability based on the Contingent Liability rules (Remote, Reasonably Possible, Probable are the key words/concepts of the claims). Record the contingent liability if "probable" (recording a loss and accrual for the amount we'll have to pay)
Record estimated warranty expense for the period
Describe how each of the contingent liabilities would be treated in the Financial Statements (Footnotes, nothing, or journalized and reported in the income statement and balance sheet)
Problems
Here is a summary of the Chapter 8 Homework problems:
Reporting Current and Long-Term Liabilities
The point of the following questions is to determine what amount would be reported in the balance sheet. So you're determining the Ending Balance of these accounts based on the information given.
Based on the beginning balance of warranty payable and the amount calculated for warranty expense for the period, calculate the ending balance of warranty payable which would be the sum of the beginning balance (credit balance) + warranty expense for the period (credited to warranties payable) = Ending Balance of Warranty Payable.
Calculate Interest Payable as of the companies period end. Pay attention to the dates and remember that interest is calculated as follows: Interest Expense = Principal * Interest Rate (annual percentage) * # of days outstanding during the current period (or # of months depending on what the requirements state in MAL)/ 365 or 360 days per year (depends on MAL) or 12 months/year if monthly is required for the calculation. If it's by days, and it was issued on the 1st and you accrue interest on the 31st, it would be 30 days of interest outstanding for that first month. *smile*
(Note: a day off can make the calculation "wrong" in MAL, because the system is set for a very specific answer, let me know if you don't agree or can't figure out the calculation)
Calculate the ending balance of unearned/deferred revenue. This one you'll be reducing for the amount of revenue earned during the period. (Remember chapter 3 deferral adjustments) Beginning balance of Unearned Revenue (Cr Balance) - Revenue earned during the period (debited to Unearned revenue as it's now earned) = Ending Balance of Unearned Revenue
Calculate the payroll accrual for the period based on the information given.
Analyze Current and Long-Term Liabilities and Evaluate Accounts Payable (A/P) Turnover
Describe the company's liabilities and state what happened to create the liability
What were the company's total assets at the end of the period based on the partial Balance Sheet given. Remember Chapter 1 and 2. *smile*
Calculate the following ratios for 2 years:
A/P turnover
Days' payable outstanding
Current Ratio
Evaluate whether the company improved or deteriorated from the standpoint of its ability to cover accounts payable and current liabilities over the year. (This is a great exercise to help with determining what company's to invest in! We'll learn more in Chapter 12! This is a great skill to have as you start thinking about your retirement (or continue thinking about) or where to earn money on your money.)
Record Liability-related Transactions
Record the following journal entries:
Record the signing of a Note Payable (Principal only, remember the interest will be used in a later transaction) (issuance) (opposite of Notes Receivable, now we are borrowing money)
Record the signing of a Note Payable (Principal only, remember the interest will be used in a later transaction) (issuance) (opposite of Notes Receivable, now we are borrowing money)
Record repayment of 1 of the notes at maturity (interest and principal will be paid back).
Interest Expense = Principal * Interest Rate (annual percentage) * # of days outstanding during the current period (or # of months depending on what the requirements state in MAL)/ 365 or 360 days per year (depends on MAL) or 12 months/year if monthly is required for the calculation. If it's by days, and it was issued on the 1st and you accrue interest on the 31st, it would be 30 days of interest outstanding for that first month. *smile*
This note was borrowed and repaid in the same year, so you'll have two debits (Notes Payable and Interest Expense, since the interest was incurred in the same year it is paid)
Record Estimated Warranty Expense for the period
Record Accrual of Interest using the interest expense calculation above.
Note was outstanding during the year for a number of days/months, so we've incurred interest BUT won't pay interest until next year (the next accounting period)
Record the repayment of the note a maturity. (Notes Payable, Interest Payable and Interest Expense will be debited, since you are now paying the interest incurred last year (balance of interest payable) and you have incurred further interest during the current period as the note was outstanding in this period as well.
Record and Report Current Liabilities
Record the collection of cash for a subscription (unearned revenue) and calculate and record sales tax collected and owed to the state on behalf of your customer (Sales Tax Payable)
Record remittance of sales tax to the state
Record adjustment to unearned revenue account for amount "earned" during the period. Similar to problem you did above.
Warranty Payable and Warranty Expense
You are given in the T-accounts the following: Beginning Balance of Accrued Warranty Payable and Sales Revenue
Journalize warranty expense for the period (based on estimated returns and sales revenue given). Journalize ACTUAL claims (actual warranty returns/exchanges/repairs)
Record the accrual of warranty payable (estimated based on past experience). Estimated warranty payable (liability account) increases when you record the estimated warranty returns for the period (historical % return * sales for the period). When we record the estimated liability, we also record the expense. Matching the expense against the revenue that was generated in the same period.
Record the actual returns related to the warranty during the period. This entry reduces the liability, as it no longer needs to be reserved for. At the same time it also reduces either cash or inventory (usually) depending on if we replaced the product or reimbursed due to the defect.
Determine what the company will show in the Income Statement and Balance Sheet
What data from b (requirement 2) will affect the current ratio (think back to how the current ratio is calculated, we've discussed it in several chapters). Will the company's current ratio increase or decrease due to this item?
Account for Estimated Warranties Payable and Account for Contingent Liabilities
You will record 5 dates worth of Journal Entries:
Record Sale and Cost of Goods Sold (remember that sales revenue is calculated based on the sales price per unit * # of units sold; Cost of goods sold is calculated by taking the cost basis of the units sold (how much we paid) * # of units sold)
Determine if we need to record a contingent liability based on the Contingent Liability rules (Remote, Reasonably Possible, Probable are the key words/concepts of the claims). Record the contingent liability if "probable" (recording a loss and accrual for the amount we'll have to pay)
Record warranty repairs (actual claims)
Determine if we need to record a contingent liability based on the Contingent Liability rules (Remote, Reasonably Possible, Probable are the key words/concepts of the claims). Record the contingent liability if "probable" (recording a loss and accrual for the amount we'll have to pay)
Determine if we need to record a contingent liability based on the Contingent Liability rules (Remote, Reasonably Possible, Probable are the key words/concepts of the claims). Record the contingent liability if "probable" (recording a loss and accrual for the amount we'll have to pay)
Record estimated warranty expense for the period
Describe how each of the contingent liabilities would be treated in the Financial Statements (Footnotes, nothing, or journalized and reported in the income statement and balance sheet)
楼主:桑田岛
时间:2020-11-06 10:43:18
楼主:桑田岛
时间:2020-11-06 10:43:18
楼主:桑田岛
时间:2020-11-06 10:43:18
楼主:桑田岛
时间:2020-11-06 10:43:18
Two ratios can be used to compute rates of return. The calculation for the return on assets (ROA) is:
Net Income + Interest Expense
Average Total Assets
The calculation for return on equity (ROE):
Net Income – Preferred Dividends
Average Common Stockholders’ Equity
Net Income + Interest Expense
Average Total Assets
The calculation for return on equity (ROE):
Net Income – Preferred Dividends
Average Common Stockholders’ Equity
楼主:桑田岛
时间:2020-11-06 10:43:18
楼主:桑田岛
时间:2020-11-06 10:43:18
楼主:桑田岛
时间:2020-11-06 10:43:18
楼主:桑田岛
时间:2020-11-06 10:43:18
One of the benefits of owning preferred stock as oppsed to common stock is that preferred owners are entitled to dividends with preference over the common stockholders. Note the preferred stock description in the balance sheet information provided: "$0.50 cumulative preferred stock, $15 par, 1 comma 000 shares issued". Some preferred stock pays dividends as a percentage of the par value of the preferred stock. Others, as in this case, pay a stated amount of dividends per share. The stated dividend is $0.50 per share. We can calculate the annual preferred dividend, then, by multiplying the number of preferred shares by the dividend rate. Go ahead and complete the formula below to compute the dividend.
楼主:桑田岛
时间:2020-11-06 10:43:18
Aug 9: Declared and distributed a 10% stock dividend on the common stock. Market price of the common stock was $11 per share.
A stock dividend is a proportional distribution by a corporation of its own stock to its stockholders. A distribution of a stock dividend affects only the stockholders' equity accounts. There is no impact on the asset or liability accounts because the corporation is not obligated to give assets to the stockholders. If the stock dividend is higher than 25%, it is considered a large dividend. Generally accepted accounting principles (GAAP) consider a stock dividend of 25% or less of outstanding common shares to be small and require that the dividend be recorded at the market value of the shares distributed. This is a small dividend so the Retained Earnings account is debited for the market value of the stock distributed as the dividend. The Common Stock account is credited for the par value of the stock, and the Paid-in Capital account is credited for the excess.
Before we can journalize the entry, we have to determine the value of the shares distributed in the dividend. To determine this, calculate the total shares distributed in the stock dividend. This will be 10% of the common shares issued through August 9, the date of the dividend. We can use the information given to calculate the total number of shares issued as of August 9.
Beginning common shares
+
Shares issued on Feb 3
=
Shares issued prior to stock dividend
6,100
+
5,000
=
11,100
Next, using the number of shares issued, we can calculate the number of common shares distributed as a dividend.
A stock dividend is a proportional distribution by a corporation of its own stock to its stockholders. A distribution of a stock dividend affects only the stockholders' equity accounts. There is no impact on the asset or liability accounts because the corporation is not obligated to give assets to the stockholders. If the stock dividend is higher than 25%, it is considered a large dividend. Generally accepted accounting principles (GAAP) consider a stock dividend of 25% or less of outstanding common shares to be small and require that the dividend be recorded at the market value of the shares distributed. This is a small dividend so the Retained Earnings account is debited for the market value of the stock distributed as the dividend. The Common Stock account is credited for the par value of the stock, and the Paid-in Capital account is credited for the excess.
Before we can journalize the entry, we have to determine the value of the shares distributed in the dividend. To determine this, calculate the total shares distributed in the stock dividend. This will be 10% of the common shares issued through August 9, the date of the dividend. We can use the information given to calculate the total number of shares issued as of August 9.
Beginning common shares
+
Shares issued on Feb 3
=
Shares issued prior to stock dividend
6,100
+
5,000
=
11,100
Next, using the number of shares issued, we can calculate the number of common shares distributed as a dividend.
楼主:桑田岛
时间:2020-11-06 10:43:18
Before we can journalize the entry, we have to determine the value of the shares distributed in the dividend. To determine this, calculate the total shares distributed in the stock dividend. This will be 10% of the common shares issued through August 9, the date of the dividend. We can use the information given to calculate the total number of shares issued as of August 9.
Beginning common shares
+
Shares issued on Feb 3
=
Shares issued prior to stock dividend
6,100
+
5,000
=
11,100
Next, using the number of shares issued, we can calculate the number of common shares distributed as a dividend.
Number of common shares
x
Dividend
=
Shares distributed as stock dividend
11,100
x
10
%
=
1,110
The market value of the common stock was $11 per share. Let's calculate the market value of the stock dividend.
Shares distributed
x
Market value per share
=
Market value of dividend
1,110
x
$11.00
=
$12,210
Now, calculate the par value of the stock distributed in the stock dividend.
Shares distributed
x
Par value per share
=
Par value of stock distributed
1,110
x
$1
=
$1,110
We can now prepare the entry for the stock dividend. We determined in the preceding step that the par value of the common stock issued in this transaction amounts to $ 1 comma 110. The difference between this amount and the total market value of the dividends issued, $ 12 comma 210, will be the paid-in capital amount. Remember, when a company issues stock as a dividend, it increases its stock accounts and reduces its Retained Earnings account. Go ahead and prepare the entry.
楼主:桑田岛
时间:2020-11-06 10:43:18
When reporting stockholders' equity on the balance sheet, a corporation lists its accounts in this order:
times
Preferred stock (whenever it exists) comes first and is usually reported as a single amount.
times
Common stock lists the par value per share, the number of shares authorized, the number of shares issued, and the number of shares outstanding.
times
Additional paid-in capital combines paid-in capital in excess of par plus paid-in capital from other sources. Additional paid-in capital belongs to the common stockholders.
times
Outstanding stock equals issued stock minus treasury stock.
times
Retained earnings comes after the paid-in capital accounts.
times
Treasury stock is reported, usually at cost, as a deduction.
times
Accumulated other comprehensive income is added (or accumulated other comprehensive loss is deducted). This account may be listed either before or after Treasury Stock.
Begin by selecting the statement labels. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.)
Venice Jewelry Company
Balance Sheet (partial)
December 31, 2019
Stockholders' Equity:
$
cumulative preferred stock,
$
par
shares
Common stock,
$
par
shares
shares
Paid-in capital in excess of par—common
Paid-in capital from treasury stock transactions
Total paid-in capital
Retained earnings
Less: Treasury stock, common,
shares
Total stockholders' equity
Now, use the following T-accounts to calculate the ending balances in the accounts to be reported in the stockholders' equity section of the balance sheet.
Preferred Stock
Common Stock
Paid-in Capital in Excess of Par
Beg bal
20,000
Beg bal
47,200
Beg bal
17,900
Feb 13
41,600
Feb 13
15,600
Aug 9
17,760
Aug 9
8,880
End bal
20,000
End bal
106,560
End bal
42,380
Paid-in Capital from Treasury Stock
Retained Earnings
Treasury Stock
Beg bal
0
Beg bal
25,000
Beg bal
0
Nov 20
400
Jun 7
900
Net inc.
31,000
Oct 26
7,000
Nov 20
2,800
Aug 9
26,640
Dec 31
3,255
End bal
400
End bal
25,205
End bal
4,200
Next, complete the statement by calculating Venice Jewelry's December 31, 2019 ending stockholders' equity. All balances that were computed or reviewed in the previous steps have been entered for you.
Venice Jewelry Company
Balance Sheet (partial)
December 31, 2019
Stockholders' Equity:
$
0.90
cumulative preferred stock,
$
20
par
1,000
shares
issued and outstanding
$20,000
Common stock,
$
8
par
13,320
shares
issued
13,020
shares
outstanding
106,560
Paid-in capital in excess of par—common
42,380
Paid-in capital from treasury stock transactions
400
Total paid-in capital
Retained earnings
25,205
Less: Treasury stock, common,
300
shares
at cost
(4,200)
Total stockholders' equity
times
Preferred stock (whenever it exists) comes first and is usually reported as a single amount.
times
Common stock lists the par value per share, the number of shares authorized, the number of shares issued, and the number of shares outstanding.
times
Additional paid-in capital combines paid-in capital in excess of par plus paid-in capital from other sources. Additional paid-in capital belongs to the common stockholders.
times
Outstanding stock equals issued stock minus treasury stock.
times
Retained earnings comes after the paid-in capital accounts.
times
Treasury stock is reported, usually at cost, as a deduction.
times
Accumulated other comprehensive income is added (or accumulated other comprehensive loss is deducted). This account may be listed either before or after Treasury Stock.
Begin by selecting the statement labels. (Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.)
Venice Jewelry Company
Balance Sheet (partial)
December 31, 2019
Stockholders' Equity:
$
cumulative preferred stock,
$
par
shares
Common stock,
$
par
shares
shares
Paid-in capital in excess of par—common
Paid-in capital from treasury stock transactions
Total paid-in capital
Retained earnings
Less: Treasury stock, common,
shares
Total stockholders' equity
Now, use the following T-accounts to calculate the ending balances in the accounts to be reported in the stockholders' equity section of the balance sheet.
Preferred Stock
Common Stock
Paid-in Capital in Excess of Par
Beg bal
20,000
Beg bal
47,200
Beg bal
17,900
Feb 13
41,600
Feb 13
15,600
Aug 9
17,760
Aug 9
8,880
End bal
20,000
End bal
106,560
End bal
42,380
Paid-in Capital from Treasury Stock
Retained Earnings
Treasury Stock
Beg bal
0
Beg bal
25,000
Beg bal
0
Nov 20
400
Jun 7
900
Net inc.
31,000
Oct 26
7,000
Nov 20
2,800
Aug 9
26,640
Dec 31
3,255
End bal
400
End bal
25,205
End bal
4,200
Next, complete the statement by calculating Venice Jewelry's December 31, 2019 ending stockholders' equity. All balances that were computed or reviewed in the previous steps have been entered for you.
Venice Jewelry Company
Balance Sheet (partial)
December 31, 2019
Stockholders' Equity:
$
0.90
cumulative preferred stock,
$
20
par
1,000
shares
issued and outstanding
$20,000
Common stock,
$
8
par
13,320
shares
issued
13,020
shares
outstanding
106,560
Paid-in capital in excess of par—common
42,380
Paid-in capital from treasury stock transactions
400
Total paid-in capital
Retained earnings
25,205
Less: Treasury stock, common,
300
shares
at cost
(4,200)
Total stockholders' equity
楼主:桑田岛
时间:2020-11-06 10:43:18
楼主:桑田岛
时间:2020-11-06 10:43:18
楼主:桑田岛
时间:2020-11-06 10:43:18
楼主:桑田岛
时间:2020-11-06 10:43:18
楼主:桑田岛
时间:2020-11-06 10:43:18
楼主:桑田岛
时间:2020-11-06 10:43:18
A corporation's net income (including earnings per share) receives more attention that any other item in the financial statements. To stockholders, the larger the net income, the greater the likelihood of dividends. To creditors, the better the ability to pay debts.
Net sales–Cost of sales=Gross profit
The topmost section of the income statement reports the results of continuing operations. This part of the business is expected to continue from period to period. Consequently, it is an important predictor of future profits. Review the income statement and determine how much was income from continuing operations.
The net income reports the overall results of all of the corporation's activities for the year. This includes the results of continuing operations as well as discontinued operations and extraordinary items. Find Orlando's Imports' net income on the income statement.
At the end of 2018, what dollar amount of net income would most sophisticated investors use to predict Household's Imports' net income for 2019 and beyond? Name this item, give its amount, and state your reason. (Use parentheses or a minus sign for losses.)
Sophisticated investors would use income from continuing operations in the amount of
$
63,029
thousand.
Household's Imports' continuing operations will continue from period to period
. This makes income from continuing operations a good predictor of future net income.
Net sales–Cost of sales=Gross profit
The topmost section of the income statement reports the results of continuing operations. This part of the business is expected to continue from period to period. Consequently, it is an important predictor of future profits. Review the income statement and determine how much was income from continuing operations.
The net income reports the overall results of all of the corporation's activities for the year. This includes the results of continuing operations as well as discontinued operations and extraordinary items. Find Orlando's Imports' net income on the income statement.
At the end of 2018, what dollar amount of net income would most sophisticated investors use to predict Household's Imports' net income for 2019 and beyond? Name this item, give its amount, and state your reason. (Use parentheses or a minus sign for losses.)
Sophisticated investors would use income from continuing operations in the amount of
$
63,029
thousand.
Household's Imports' continuing operations will continue from period to period
. This makes income from continuing operations a good predictor of future net income.
楼主:桑田岛
字数:149901字
帖子分类:我的大学
发表时间:2020-02-06 21:12:56
更新时间:2020-11-06 10:43:18
评论数:321条评论
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