• Q : Weighted average shares outstanding basics....
    Accounting Basics :

    Milo Co. had 900,000 shares of common stock outstanding on January 1, issued 126,000 shares on May 1, purchased 63,000 shares of treasury stock on September 1, and issued 57,000 shares on November

  • Q : Average market price of the options....
    Accounting Basics :

    In the diluted earnings per share computation, the treasury stock method is used for options and warrants to reflect assumed reacquisition (repurchase) of common stock at the average market price du

  • Q : Adjustment to the numerator earnings....
    Accounting Basics :

    In computing earnings per share for a simple capital structure, if the preferred stock is cumulative, the amount that should be deducted as an adjustment to the numerator (earnings) is the:

  • Q : Face amount of the bonds exceeds the cash proceeds....
    Accounting Basics :

    Lang Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value. The sum of the fair value of the warrants and the face amount of the bonds exceeds the cash p

  • Q : Compensation expense on books in the amount....
    Accounting Basics :

    The service period is for two years beginning January 1,2012. As a result of the option granted to Williams, using the fair value method, Trent should recognize compensation expense for 2012 on its

  • Q : Initial carrying value of the bonds payable....
    Accounting Basics :

    The amount of the proceeds from the issuance that should be accounted for as the initial carrying value of the bonds payable would be:

  • Q : Conversion of the preferred stock to the common stock....
    Accounting Basics :

    The market value of the common stock at the date of the conversion was $30 per share. What total amount should be credited to additional paid-in capital from common stock as a result of the conversi

  • Q : Total unamortized bond premium at the date of conversion....
    Accounting Basics :

    On that date the market price of the bonds was 105 and the market price of the common stock was $36. The total unamortized bond premium at the date of conversion was $350,000. Fogel should record, a

  • Q : Complete liquidation of the company....
    Accounting Basics :

    Robin transferred her 60 percent interest to Cardinal Company as part of a complete liquidation of the company. In the exchange she received land with a fair market value of $800,000.

  • Q : What amount of income or loss show on the return....
    Accounting Basics :

    Richard operates a hair styling boutique out of his home. 300 of the 1,200 square feet of floor space are allocated to the boutique. Other information is as follows:What amount of income or loss fro

  • Q : Strategies should equival adopt to achieve objective....
    Accounting Basics :

    Equival Company wishes to sell truck axles to car manufacturers. The current market price of the axles is $400, and Equival knows it must accept the market price. Currently, it costs the company $33

  • Q : Preparing the journal entry for the issuance....
    Accounting Basics :

    Prepare the journal entry for the issuance when the market price of the common shares is $168 each and market price of the preferred is $210 each. ( round to nearest dollar)

  • Q : Income before interest and taxes....
    Accounting Basics :

    Income before interest and taxes is expected to be $3.000.000.The company has a 30% tax rate and has 600000 ordinary shares outstanding prior to new financing.

  • Q : Predict the cash flows for the hospital....
    Accounting Basics :

    Predict the cash flows for the hospital over the next five years beginning with the current year (Year 0). The hospital projects revenues to be $3,100,000 in 2012, $3,200,000 in 2013, 3,250,000 in 2

  • Q : Retired bonds plus accrued interest....
    Accounting Basics :

    The bonds were issued on December 31, 2008 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization) On April 1, 2011, Wolfe retired $240,000 of these bonds at 101 pl

  • Q : Medical expenses attributable to the skiing accident....
    Accounting Basics :

    Aaron had AGI of $40,000 for 2011. He was injured in a skiing accident and paid $2,600 for hospital expenses and $1,400 for doctor bills. Aaron also incurred medical expenses of $1,200 for his child

  • Q : Deduction for medical expenditures....
    Accounting Basics :

    Aaron also incurred medical expenses of $1,200 for his child, who lives with his former wife and is claimed as a dependent by her. In 2010, Aaron was reimbursed $1,300 by his insurance company for

  • Q : Direct labor and factory overhead....
    Accounting Basics :

    Ebony Company uses the weighted-average method of process costing to assign production costs to its products. Ebony Company uses the weighted-average method of process costing to assign production c

  • Q : Problem regarding partnership in exchange....
    Accounting Basics :

    On January 1, 2010, Mary transferred cash off $9,000 and land worth $44,000 (basis to her, $23,000) to the Partnership in exchange for a 25% profit/loss interest. For calendar 2010, JKL had a net pr

  • Q : Allowance for doubtful accounts-prepare adjusting entry....
    Accounting Basics :

    Eaton Company has a credit balance of $3,500 in Allowance For Doubtful Accounts. The estimated bad debts expense under the percentage of sales basis is $4,1000. The total estimated uncollectibles un

  • Q : Journalize the entry to record the factory labor costs....
    Accounting Basics :

    Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $12 per direct labor hour. The direct labor rate is $30 per hour. Journalize the entry to record the factory labo

  • Q : Report taxable income in all future years....
    Accounting Basics :

    Havaci's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2012.

  • Q : Assess the net cash provided by operating activities....
    Accounting Basics :

    Keyser Beverage Company reported the following items in the most recent year.Compute net cash provided by operating activities, the net change in cash during the year, and free cash flow.

  • Q : Maximum amount of revenues using modified accrual accounting....
    Accounting Basics :

    What adjusting entry would you need to make, assuming you decided to allow the maximum amount of revenues for 2009, using modified accrual accounting?

  • Q : Statement of revenues-expenditures-changes in fund....
    Accounting Basics :

    The City of Greenville had a balance in the Reserve for Encumbrances account at the end of 2008 in the amount of $30,000. During 2009, all purchase orders related to the $30,000 were filled and the

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