Reference no: EM132318506

Accounting Questions -

Question 1 - Buttercup Corporation issued 250 shares of $11 par value common stock for $4,125. Prepare Buttercup' journal entry. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Question 2 - Wilco Corporation has the following account balances at December 31, 2012.

Common stock, $5 par value	$511,670
Treasury stock	95,260
Retained earnings	2,400,840
Paid-in capital in excess of par	1,320,150

Prepare Wilco's December 31, 2012, stockholders' equity section.

Question 3 - Woolford Inc. declared a cash dividend of $1.38 per share on its 2.22 million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on August 15. Prepare the journal entries necessary on those three dates. (If no entry is required, enter No Entry as the Description and 0 as the amount.)

Question 4 - The outstanding capital stock of Pennington Corporation consists of 3,100 shares of $109 par value, 6% preferred, and 5,700 shares of $52 par value common.

Assuming that the company has retained earnings of $83,000 , 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.

(a) The preferred stock is noncumulative and nonparticipating.

(b) The preferred stock is cumulative and nonparticipating.

(c) The preferred stock is cumulative and participating. (Round rate of participation to 4 decimal places, e.g. 5.1234. Round final answer to 0 decimal places, e.g. 25,320.)

Question 5 - Martinez Company's ledger shows the following balances on December 31, 2012.

5%	Preferred stock-	$10	par value, outstanding	22,480	shares	$224,800
	Common stock-	$100	par value, outstanding	33,720	shares	3,372,000
	Retained earnings					708,120

Assuming that the directors decide to declare total dividends in the amount of $298,984 , determine how much each class of stock should receive under each of the conditions stated below. One year's dividends are in arrears on the preferred stock.

(a) The preferred stock is cumulative and fully participating.

(b) The preferred stock is noncumulative and nonparticipating.

Question 6 - On January 1, 2012, Barwood Corporation granted 5,040 options to executives. Each option entitles the holder to purchase one share of Barwood'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 $72 per share on the date of grant. The fair value of the options at the grant date is $154,000. The period of benefit is 2 years.

Prepare Barwood's journal entries for January 1, 2012, and December 31, 2012 and 2013. (If no entry is required, enter No Entry as the description and 0 as the amount.)

Question 7 - Rockland Corporation earned net income of $340,800 in 2012 and had 100,000 shares of common stock outstanding throughout the year. Also outstanding all year was $908,800 of 10% bonds, which are convertible into 18,176 shares of common. Rockland's tax rate is 40% percent. Compute Rockland's 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. 2.13.)

Question 8 - DiCenta Corporation reported net income of $250,000 in 2012 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 5,410 shares of cumulative preferred stock, each convertible into 2 shares of common. The preferred stock pays an annual dividend of $5 per share. DiCenta' tax rate is 40%. Compute DiCenta' 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. 5.23.)

Question 9 - Ferraro, Inc. established a stock appreciation rights (SAR) program on January 1, 2012, 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 $24 on 5,050 SARs. The required service period is 2 years. The fair value of the SAR's are determined to be $6 on December 31, 2012, and $13 on December 31, 2013.

Compute Perkins' compensation expense for 2012.

Compute Perkins' compensation expense for 2013.

Question 10 - Hillsborough Co. has an available-for-sale investment in the bonds of Schuyler with a carrying (and fair) value of $88,020 . Hillsborough determined that due to poor economic prospects for Schuyler, the bonds have decreased in value to $57,020 . It is determined that this loss in value is other-than temporary. Prepare the journal entry, if any, to record the reduction in value.

Question 11 - Capriati Corporation made the following cash purchases of securities during 2012, which is the first year in which Arantxa invested in securities.

1. On January 15, purchased 11,700 shares of Gonzalez Company's common stock at $43.55 per share plus commission $2,574.00.

2. On April 1, purchased 6,500 shares of Belmont Co.'s common stock at $67.60 per share plus commission $4,381.00.

3. On September 10, purchased 9,100 shares of Thep Co.'s preferred stock at $34.45 per share plus commission $6,383.00.

On May 20, 2012, Capriati sold 3,900 shares of Gonzalez Company's common stock at a market price of $45.50 per share less brokerage commissions, taxes, and fees of $3,705 The year-end fair values per share were:

Gonzalez	$39.00
Belmont	$71.50
Thep	$36.40

In addition, the chief accountant of Capriati told you that Capriati Corporation plans to hold these securities for the long term but may sell them in order to earn profits from appreciation in prices.

A) Prepare the Entries to record the above three security purchases.

B) Prepare the entry for security sale on May 20.

C) Compute the unrealised gain/loss and prepare the adjusting entry.

Question 12 - In 2012, Amirante Corporation had pretax financial income of $207,000 and taxable income of $ $166,400. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2012.

Question 13 - At December 31, 2012, Fell Corporation had a deferred tax liability of $732,802.00 , resulting from future taxable amounts of $2,155,300 and an enacted tax rate of 34% . In May 2013, a new income tax act is signed into law that raises the tax rate to 42% for 2013 and future years. Prepare the journal entry for Fell to adjust the deferred tax liability.

Question 14 - For Warren Corporation, year-end plan assets were $2,094,700 . At the beginning of the year, plan assets were $1,762,400. During the year, contributions to the pension fund were $120,000 , and benefits paid were $200,000. Compute Warren's actual return on plan assets.

Question 15 - For 2010, Campbell Soup Company had pension expense of $48 million and contributed $296 million to the pension fund. Prepare Campbell Soup Company's journal entry to record pension expense and funding.