{"id":10571,"date":"2021-10-22T19:39:30","date_gmt":"2021-10-22T19:39:30","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/week-5-final-exam-accounting-homework-help\/"},"modified":"2021-10-22T19:39:30","modified_gmt":"2021-10-22T19:39:30","slug":"week-5-final-exam-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/week-5-final-exam-accounting-homework-help\/","title":{"rendered":"Week 5 final exam | Accounting homework help"},"content":{"rendered":"
\n

WEEK 5 FINAL EXAM<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BE15-1 <\/span><\/strong>Buttercup Corporation issued\u00a0300\u00a0shares of $10\u00a0par value common stock for $4,500.
Prepare Buttercup\u2019s journal entry. (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.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BE15-3 <\/span><\/strong>Wilco Corporation has the following account balances at December 31, 2014.<\/span><\/p>\n

Common stock, $5 par value \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $510,000<\/span><\/p>\n

Treasury stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 90,000<\/span><\/p>\n

Retained earnings\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,340,000<\/span><\/p>\n

Paid-in capital in excess of par\u2014common stock\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,320,000<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Prepare Wilco\u2019s December 31, 2014, stockholders\u2019 equity section. (Enter account name only and do not provide descriptive information.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BE15-10 <\/span><\/strong>Woolford Inc. declared a cash dividend of $1.00\u00a0per share on its\u00a02\u00a0million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on August 15.<\/span><\/p>\n

Prepare all journal entries necessary on those three dates. (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.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BE15-4 <\/span><\/strong>Ravonette Corporation issued\u00a0300\u00a0shares of $10\u00a0par value common stock and\u00a0100\u00a0shares of $50\u00a0par value preferred stock for a lump sum of $13,500. The common stock has a market price of $20\u00a0per share, and the preferred stock has a market price of $90\u00a0per 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.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

E15-21 <\/span><\/strong>The outstanding capital stock of Edna Millay Corporation consists of\u00a02,000\u00a0shares of $100\u00a0par value,\u00a08% preferred, and\u00a05,000\u00a0shares of $50\u00a0par value common.<\/span><\/p>\n


Assuming that the company has retained earnings of $90,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions. <\/span><\/p>\n

(a) The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.) <\/span><\/p>\n

(b) The preferred stock is cumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.) <\/span><\/p>\n

(c) The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

E15-22 <\/span><\/strong>Matt Schmidt Company\u2019s ledger shows the following balances on December 31, 2014.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

7% Preferred Stock\u2014$10 par value, outstanding\u00a020,000\u00a0shares\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0 $\u00a0200,000<\/span><\/p>\n

Common Stock\u2014$100 par value, outstanding\u00a030,000\u00a0shares\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3,000,000<\/span><\/p>\n

Retained Earnings\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 630,000<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Assuming that the directors decide to declare total dividends in the amount of $366,000, determine how much each class of stock should receive under each of the conditions stated below. One year\u2018s dividends are in arrears on the preferred stock. <\/span><\/p>\n

(a) The preferred stock is cumulative and fully participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

(b) The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.)<\/span><\/p>\n

(c) The preferred stock is noncumulative and is participating in distributions in excess of a\u00a010% dividend rate on the common stock. (Round the rate of participation to 4 decimal places, e.g.1.4278% \u00a0Round answers to 0 decimal places, e.g. $38,487.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BE16-6 <\/span><\/strong>On January 1, 2014, Barwood Corporation granted\u00a05,000\u00a0options to executives. Each option entitles the holder to purchase one share of Barwood\u2019s $5 par value common stock at $50 per share at any time during the next 5 years. The market price of the stock is $65\u00a0per share on the date of grant. The fair value of the options at the grant date is $150,000. The period of benefit is 2 years.
Prepare Barwood\u2019s 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.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BE16-12 <\/span><\/strong>Rockland Corporation earned net income of $300,000\u00a0in 2014 and had\u00a0100,000\u00a0shares of common stock outstanding throughout the year. Also outstanding all year was $800,000\u00a0of 10% bonds, which are convertible into\u00a016,000\u00a0shares of common. Rockland\u2019s tax rate is\u00a040\u00a0percent.<\/span><\/p>\n


Compute Rockland\u2019s 2014 diluted earnings per share.\u00a0(Round answer to 2 decimal places, e.g. $3.55.)
Diluted earnings per share $<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BE16-16 <\/span><\/strong>Ferraro, Inc. established a stock-appreciation rights (SAR) program on January 1, 2014, which entitles executives to receive cash at the date of exercise for the difference between the market price of the stock and the pre-established price of $20\u00a0on\u00a05,000\u00a0SARs. The required service period is 2 years. The fair value of the SARs are determined to be $4\u00a0on December 31, 2014, and $9\u00a0on December 31, 2015.
Compute Ferraro\u2019s compensation expense for 2014 and 2015.<\/span><\/p>\n

Ferraro\u2019s compensation expense 2014 $<\/span><\/p>\n

Ferraro\u2019s compensation expense for 2015 $<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BE17-1 <\/span><\/strong>Garfield Company purchased, as a held-to-maturity investment, $80,000\u00a0of the\u00a09%,\u00a05-year bonds of Chester Corporation for $74,086, which provides an\u00a011% return.<\/span><\/p>\n

Prepare Garfield\u2019s journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. 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.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

E17-11 <\/span><\/strong>Arantxa Corporation made the following cash purchases of securities during 2014, which is the first year in which Arantxa invested in securities.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

1. On January 15, purchased\u00a010,000\u00a0shares of Sanchez Company\u2019s common stock at $33.50\u00a0per share plus commission $1,980.<\/span><\/p>\n

2. On April 1, purchased\u00a05,000\u00a0shares of Vicario Co.\u2019s common stock at $52\u00a0per share plus commission $3,370.<\/span><\/p>\n

3. On September 10, purchased\u00a07,000\u00a0shares of WTA Co.\u2019s preferred stock at $26.50\u00a0per share plus commission $4,910.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

On May 20, 2014, Arantxa sold\u00a04,000\u00a0shares of Sanchez Company\u2019s common stock at a market price of $35\u00a0per share less brokerage commissions, taxes, and fees of $3,850. The year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of Arantxa told you that Arantxa Corporation plans to hold these securities for the long term but may sell them in order to earn profits from appreciation in prices.<\/span><\/p>\n


(a) Prepare the journal entries to record the above three security purchases. (Round answers to 0 decimal places, e.g. 2,500. 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.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

No.\u00a0\u00a0 \u00a0\u00a0 Date\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Account Titles and Explanation\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Debit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Credit<\/span><\/p>\n

(1) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Jan. 15, 2014<\/span><\/p>\n

(2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Apr. 1, 2014<\/span><\/p>\n

(3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sep. 10, 2014<\/span><\/p>\n

\u00a0<\/span><\/p>\n

(b) Prepare the journal entry for the security sale on May 20. (Round answers to 0 decimal places, e.g 2,500. 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.) <\/span><\/p>\n

\u00a0<\/span><\/p>\n

(c) Compute the unrealized gains or losses. (Round answer to 0 decimal places, e.g. 2,500.) <\/span><\/p>\n

Prepare the adjusting entries for Arantxa on December 31, 2014. (Round answers to 0 decimal places,<\/span><\/p>\n

e.g. 2,500. 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.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

E17-12 <\/span><\/strong>The following are two independent situations.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Situation 1<\/span><\/p>\n

Conchita Cosmetics acquired 10% of the\u00a0200,000\u00a0shares of common stock of Martinez Fashion at a total cost of $13\u00a0per share on March 18, 2014. On June 30, Martinez declared and paid a $75,000\u00a0cash dividend. On December 31, Martinez reported net income of $122,000\u00a0for the year. At December 31, the market price of Martinez Fashion was $15\u00a0per share. The securities are classified as available-for-sale.<\/span><\/p>\n

Situation 2<\/span><\/p>\n

Monica, Inc. obtained significant influence over Seles Corporation by buying\u00a030% of Seles\u2019s\u00a030,000\u00a0outstanding shares of common stock at a total cost of $9\u00a0per share on January 1, 2014. On June 15, Seles declared and paid a cash dividend of $36,000. On December 31, Seles reported a net income of $85,000\u00a0for the year. <\/span><\/p>\n

\u00a0<\/span><\/p>\n

Prepare all necessary journal entries in 2014 for both situations. (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.)<\/span><\/p>\n

\u00a0<\/span><\/strong><\/p>\n

E17-13 <\/span><\/strong>Parent Co. invested $1,000,000\u00a0in Sub Co. for 25% of its outstanding stock. Sub Co. pays out\u00a040% of net income in dividends each year. <\/span><\/p>\n

Use the information in the following T-account for the investment in Sub to answer the following questions.<\/span><\/p>\n\n\n\n\n\n\n
\n

Investment in Sub Co.<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

1,000,000\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

110,000\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\u00a0<\/span><\/p>\n<\/td>\n

\n

\u00a044,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/span><\/p>\n

How much was Parent Co.\u2019s share of Sub Co.\u2019s net income for the year?<\/span><\/p>\n

Net income $<\/span><\/p>\n

How much was Parent Co.\u2019s share of Sub Co.\u2019s dividends for the year?<\/span><\/p>\n

Dividends $<\/span><\/p>\n

(c) What was Sub Co.\u2019s total net income for the year?<\/span><\/p>\n

Total net income $<\/span><\/p>\n

(d) What was Sub Co.\u2019s total dividends for the year?<\/span><\/p>\n

Total Dividends $<\/span><\/p>\n

\u00a0<\/span><\/p>\n

E17-16 <\/span><\/strong>Jaycie Phelps Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on December 31, 2013. The purchase price was $1,200,000\u00a0for\u00a050,000\u00a0shares. Kulikowski Inc. declared and paid an $0.85\u00a0per share cash dividend on June 30 and on December 31, 2014. Kulikowski reported net income of $730,000\u00a0for 2014. The fair value of Kulikowski\u2019s stock was $27\u00a0per share at December 31, 2014.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

(a) Prepare the journal entries for Jaycie Phelps Inc. for 2013 and 2014, assuming that Phelps cannot exercise significant influence over Kulikowski. The securities should be classified as available-for-sale. (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.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

(b) Prepare the journal entries for Jaycie Phelps Inc. for 2013 and 2014, assuming that Phelps can exercise significant influence over Kulikowski. (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.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

(c) At what amount is the investment in securities reported on the balance sheet under each of these methods at December 31, 2014? What is the total net income reported in 2014 under each of these methods?<\/span><\/p>\n

Fair Value Method\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Equity Method<\/span><\/p>\n

Investment amount\u00a0<\/span><\/p>\n

Dividend revenue\u00a0<\/span><\/p>\n

Investment income (income statement)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

E17-22 <\/span><\/strong>On January 2, 2014, Jones Company purchases a call option for $300\u00a0on Merchant common stock. The call option gives Jones the option to buy\u00a01,000\u00a0shares of Merchant at a strike price of $50\u00a0per share. The market price of a Merchant share is $50\u00a0on January 2, 2014 (the intrinsic value is therefore $0). On March 31, 2014, the market price for Merchant stock is $53\u00a0per share, and the time value of the option is $200.<\/span><\/p>\n


(a) Prepare the journal entry to record the purchase of the call option on January 2, 2014. (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.)<\/span><\/p>\n

(b) Prepare the journal entries to recognize the change in the fair value of the call option as of March 31, 2014. (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.)<\/span><\/p>\n

(c) What was the effect on net income of entering into the derivative transaction for the period January 2 to March 31, 2014?<\/span><\/p>\n

Unrealized Holding\u00a0$<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BE19-1 <\/span><\/strong>In 2014, Amirante Corporation had pretax financial income of $168,000\u00a0and taxable income of $120,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is\u00a040%.<\/span><\/p>\n


Compute the amount to be reported as income taxes payable at December 31, 2014.<\/span><\/p>\n

Income taxes payable at December 31, 2014 $<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BE19-10 <\/span><\/strong>Clydesdale Corporation has a cumulative temporary difference related to depreciation of $580,000\u00a0at December 31, 2014. This difference will reverse as follows: 2015, $42,000; 2016, $244,000; and 2017, $294,000. Enacted tax rates are\u00a034% for 2015 and 2016, and\u00a040% for 2017.
Compute the amount Clydesdale should report as a deferred tax liability at December 31, 2014.<\/span><\/p>\n

Deferred tax liability at December 31, 2014 $<\/span><\/p>\n

\u00a0<\/span><\/p>\n

BE19-11 <\/span><\/strong>At December 31, 2014, Fell Corporation had a deferred tax liability of $680,000, resulting from future taxable amounts of $2,000,000\u00a0and an enacted tax rate of 34%. In May 2015, a new income tax act is signed into law that raises the tax rate to\u00a040% for 2015 and future years. <\/span><\/p>\n

\u00a0<\/span><\/p>\n

Prepare the journal entry for Fell to adjust the deferred tax liability. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)<\/span><\/p>\n

\u00a0<\/span><\/strong><\/p>\n

Brief Exercise 20-10<\/span><\/strong><\/p>\n

Lahey Corp. has three defined benefit pension plans as follows.<\/span><\/p>\n\n\n\n\n\n\n
\u00a0<\/td>\n\n

Pension Assets
(at Fair Value)<\/span><\/p>\n<\/td>\n

\n

Projected Benefit
Obligation<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Plan X<\/span><\/p>\n<\/td>\n

\n

$600,000<\/span><\/p>\n<\/td>\n

\n

$500,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Plan Y<\/span><\/p>\n<\/td>\n

\n

900,000<\/span><\/p>\n<\/td>\n

\n

720,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Plan Z<\/span><\/p>\n<\/td>\n

\n

550,000<\/span><\/p>\n<\/td>\n

\n

700,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/span><\/p>\n

How will Lahey report these multiple plans in its financial statements?<\/span><\/p>\n

Pension\u00a0 $<\/span><\/p>\n

Pension\u00a0$<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Brief Exercise 20-11<\/span><\/strong><\/p>\n

Manno Corporation has the following information available concerning its postretirement benefit plan for 2014.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Service cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $40,000<\/span><\/p>\n

Interest cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 47,400<\/span><\/p>\n

Actual and expected return on plan assets\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 26,900<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Compute Manno\u2019s 2014 postretirement expense.<\/span><\/p>\n

Postretirement expense 2014 $<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Brief Exercise 20-12<\/span><\/strong><\/p>\n

For 2014, Sampsell Inc. computed its annual postretirement expense as $240,900. Sampsell\u2019s contribution to the plan during 2014 was $180,000. <\/span><\/p>\n

Prepare Sampsell\u2019s 2014 entry to record postretirement expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Brief Exercise 22-1<\/span><\/strong><\/p>\n

Wertz Construction Company decided at the beginning of 2014 to change from the completed-contract method to the percentage-of-completion method for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2014, pretax income under the two methods was as follows: percentage-of-completion $120,000, and completed-contract $80,000. The tax rate is\u00a035%. <\/span><\/p>\n

\u00a0<\/span><\/p>\n

Prepare Wertz\u2019s 2014 journal entry to record the change in accounting principle. (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.)<\/span><\/em><\/strong><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Brief Exercise 22-6<\/span><\/strong><\/p>\n

In 2014, Bailey Corporation discovered that equipment purchased on January 1, 2012, for $50,000\u00a0was expensed at that time. The equipment should have been depreciated over 5 years, with no salvage value. The effective tax rate is\u00a030%.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Prepare Bailey\u2019s 2014 journal entry to correct the error. (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.)<\/span><\/em><\/strong><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Brief Exercise 22-7<\/span><\/strong><\/p>\n

At January 1, 2014, Beidler Company reported retained earnings of $2,000,000. In 2014, Beidler discovered that 2013 depreciation expense was understated by $400,000. In 2014, net income was $900,000\u00a0and dividends declared were $250,000. The tax rate is 40%.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Prepare a 2014 retained earnings statement for Beidler Company.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Brief Exercise 22-11<\/span><\/strong><\/p>\n

Simmons Corporation owns stock of Armstrong, Inc. Prior to 2014, the investment was accounted for using the equity method. In early 2014, Simmons sold part of its investment in Armstrong, and began using the fair value method. In 2014, Armstrong earned net income of $80,000\u00a0and paid dividends of $95,000.<\/span><\/p>\n

Prepare Simmons\u2019s entries related to Armstrong\u2019s net income and dividends, assuming Simmons now owns\u00a010% of Armstrong\u2019s stock. (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.)<\/span><\/em><\/strong><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Brief Exercise 16-13<\/span><\/strong><\/p>\n

DiCenta Corporation reported net income of $270,000\u00a0in 2014 and had\u00a050,000\u00a0shares of common stock outstanding throughout the year. Also outstanding all year were\u00a05,000\u00a0shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5\u00a0per share. DiCenta\u2019s tax rate is\u00a040%. <\/span><\/p>\n

\u00a0<\/span><\/p>\n

Compute DiCenta\u2019s 2014 diluted earnings per share.\u00a0(Round answer to 2 decimal places, e.g. $3.55.)<\/span><\/em><\/strong><\/span><\/p>\n

Diluted earnings per share $<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Brief Exercise 20-1<\/span><\/strong><\/p>\n

AMR Corporation<\/span><\/strong> (parent company of American Airlines<\/span><\/strong>) reported the following for 2011 (in millions).<\/span><\/p>\n

Service cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $366<\/span><\/p>\n

Interest on P.B.O.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 737<\/span><\/p>\n

Return on plan assets\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 593<\/span><\/p>\n

Amortization of prior service cost\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 13<\/span><\/p>\n

Amortization of net loss\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 154<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Compute AMR Corporation\u2019s 2011 pension expense.<\/span><\/p>\n

Pension expense $\u00a0\u00a0\u00a0\u00a0 millions<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Brief Exercise 20-2<\/span><\/strong><\/p>\n

For Warren Corporation, year-end plan assets were $2,000,000. At the beginning of the year, plan assets were $1,780,000. During the year, contributions to the pension fund were $120,000, and benefits paid were $200,000.<\/span><\/p>\n


Compute Warren\u2019s actual return on plan assets.<\/span><\/p>\n

Actual return on plan assets $<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Brief Exercise 20-4<\/span><\/strong><\/p>\n

For 2012, Campbell Soup Company<\/span><\/strong> had pension expense of $73 million and contributed $71 million to the pension fund.<\/span><\/p>\n


Prepare Campbell Soup Company\u2019s journal entry to record pension expense and funding. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Enter amounts in millions. Ex: 10,000,000 is to be imputed as 10, eliminating the 000,000.)<\/span><\/em><\/strong><\/span><\/p>\n

\u00a0<\/span><\/p>\n

Brief Exercise 17-10<\/span><\/strong><\/p>\n

Hillsborough Co. has an available-for-sale investment in the bonds of Schuyler Corp. with a carrying (and fair) value of $70,000. Hillsborough determined that due to poor economic prospects for Schuyler, the bonds have decreased in value to $60,000. It is determined that this loss in value is other-than-temporary.<\/span><\/p>\n


Prepare the journal entry, if any, to record the reduction in value. (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.)<\/span><\/em><\/strong><\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

WEEK 5 FINAL EXAM \u00a0 BE15-1 Buttercup Corporation issued\u00a0300\u00a0shares of $10\u00a0par value common stock for $4,500.Prepare Buttercup\u2019s journal entry. (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.) \u00a0 BE15-3 Wilco Corporation […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-10571","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/10571","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=10571"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/10571\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=10571"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=10571"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=10571"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}