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%.
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
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.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.