Problem #1 – Lump sum issuance of stock. Parker Corporation has issued 4,000 shares of common stock and 800 shares of preferred stock for a lump sum of $148,000 cash. Instructions (a) Give the entry for the issuance assuming the par value of the common
stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock.) (b) Give the entry for the issuance assuming the same facts as
(a) above except the preferred stock has no ready market and the common stock has a fair value of $24 per share. Problem #2 – Treasury stock. Agler Corporation’s balance sheet reported the following: Capital stock outstanding, 5,000 shares, par $30 per share
$150,000 Paid-in capital in excess of par 80,000 Retained earnings 100,000 The following transactions occurred this year: (a) Purchased 400 shares of capital stock to be held as treasury stock, paying $50 per share. (b) Sold 150 of the shares of treasury stock
at $70 per share. (c) Sold the remaining shares of treasury stock at $55 per share. Instructions A. Prepare the journal entry for these transactions under the cost method of accounting for treasury stock. B. Prepare the Stockholder’s Equity Section of the
Balance Sheet. Problem #3 – Basic and diluted EPS. Assume that the following data relative to Kane Company for 2015 is available: Net Income $5,600,000 Transactions in Common Shares Change Cumulative Jan. 1, 2015, Beginning number 700,000 Mar. 1, 2015, Purchase
of treasury shares (60,000) 640,000 June 1, 2015, Stock split 2-1 640,000 1,280,000 Nov. 1, 2015, Issuance of shares 240,000 1,520,000 8% Cumulative Convertible Preferred Stock Sold at par, convertible into 200,000 shares of common (adjusted for split). $1,000,000
Instructions (a) Compute the basic earnings per share for 2015. (Round to the nearest penny.) (b) Compute the diluted earnings per share for 2015. (Round to the nearest penny.) Problem #4 – Trading equity securities. Korman Company has the following securities
in its portfolio of trading securities on December 31, 2014: Cost Fair Value 5,000 shares of Thomas Corp., Common $151,000 $139,000 10,000 shares of Gant, Common 182,000 190,000 $333,000 $329,000 All of the securities had been purchased in 2014. In 2015, Korman
completed the following securities transactions: March 1 Sold 5,000 shares of Thomas Corp., Common @ $31 April 1 Bought 1,200 shares of Werth Stores, Common @ $45 The Korman Company portfolio of trading securities appeared as follows on December 31, 2015:
Cost Fair Value 10,000 shares of Gant, Common $182,000 $195,500 1,200 shares of Werth Stores, Common 54,000 51,500 $236,000 $247,000 Instructions Prepare the general journal entries for Korman Company for: (a) the 2014 adjusting entry. (b) the sale of the
Thomas Corp. stock. (c) the purchase of the Werth Stores’ stock. (d) the 2015 adjusting entry. Problem #5 – Interperiod tax allocation with change in enacted tax rates. Murphy Company purchased equipment for $300,000 on January 2, 2014, its first day of operations.
For book purposes, the equipment will be depreciated using the straight-line method over three years with no salvage value. Pretax financial income and taxable income are as follows: 2014 2015 2016 Pretax financial income $194,000 $260,000 $330,000 Taxable
income 224,000 260,000 300,000 The temporary difference between pretax financial income and taxable income is due to the use of accelerated depreciation for tax purposes. Instructions (a) Prepare the journal entries to record income taxes for all three years
(expense, deferrals, and liabilities) assuming that the enacted tax rate applicable to all three years is 30%.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Assignment Help has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!
At Assignment Help, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.
You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!
Editing and Proofreading
Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.
We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.
College Essay Writing
If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!
Quality Assignment/Homework Help
We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.