Question 1
P12-26A Journalizing stockholders equity transactions. Airborne Manufacturing Co. complete the following transactions during 2009 Jan 16- Declared a cash dividend on the 4%, $102 par preferred stock (1,050 shares outstanding) Declared a $0.55 per share dividend on the 95,000 shares of common stock outstanding. The date of record is January 31, and the payment due date is February 15. Feb15- Paid the cash dividends June 10 Split common stock 2 for 1. Before the split, airborne had 95,000 shares of $10 par common stock outstanding Jul 30 Distributed a 25% stock dividend on the common stock. The market value of the common stock was $10 per share Oct 26 Purchased 3,000 shares of treasury stock at $15 per share Nov 8 Sold 1,500 shares of treasury stock for $20 per share Nov 30 Sold 1,500 shares of treasury stock for $9 per share Requirement: Record the transactions in Airbornes general journal P12-28A Journalizing dividend and treasury stock transactions, preparing a statement of retained earnings and preparing stockholders equity. The balance sheet of Patrick Management Consulting Inc at December 31, 2011, reported the following stockholders equity: Paid-in capital: Common stock, $15 par, 300,000 shares authorized 20,000 shares issued $300,000 Paid-in capital in excess of par-common 310,000 Total paid in capital 610,000 Retained earnings 158,000 Total stockholders equity $768,000 During 2012 Patrick completed the following selected transactions: Feb6 Distributed 10% stock dividend on the common stock. The market value of Patrick?s stock was $26 per share Jul 29 Purchased 2,000 shares of treasury stock of $26 per share Nov 27 Declared $0.30 per share dividend on the 20,000 shares of common stock outstanding. The date of record in December 17 and the payment date is January 7, 2013. Dec 31 Closed the $86,000 net income to retained earnings. Requirements 1. Record the transactions in the general journal. 2. Prepare a retained earnings statement for the year ended December 31, 2012 3. Prepare the stockholders equity section of the balance sheet at December 31, 2012 P12-29A Computing EPS and reporting a retained earnings restriction The capital structure of Rodeswell Inc at December 31, 2010, included 30,000 shares of $2.00 preferred stock and 40,000 shares of common stock. Common stock outstanding during 2011 totaled 40,000 shares. Income from continuing operations during 2011 was $104,000. The company discontinued the segment of the business at a gain of $20,000 and also had an extraordinary gain of $10,000. The rodeswell board of directors restricts $98,000 of retained earnings for contingencies. Retained earnings at December 31, 2010 was $98,000 and the company declared preferred dividends of $60,000 during 2011. Requirements: 1. Compute Rodeswells earnings per share for 2011. Start with income from continuing operations. All income and loss amounts are net of income tax. 2. Show two ways of reporting Rodeswells retained earnings restriction. P12-30A Preparing a detailed income statement The following info was taken from the records of the underwood inc at sept 30, 2010 Selling expense $124,000 General expenses 131,000 Income from discontinued operations 8,000 Retained earnings, beginning 87,000 Costs of goods, sold 437,000 Treasury stock, common (1,100) shares 12,100 Net sales revenue 832,000 Common stock, $10 par 21,100 Shares authorized and issued $211,000 Preferred stock $5, no-par 3,000 shares issued 150,000 Income tax expense: Continueing operations 72,000 Income from discontinued operations 3,200 Requirement: 1. Prepare a multi step income statement for underwood inc for the fiscal year ended sept 30, 2010. Include earnings per share.,Michael, Thank you so much, I can't tell you what this means, I really want to understand this and become a great accountant, I have a instructor who doesn't help much, I just want to understand how to get the final problem thanks again Peggy,Hi, I was just wondering how it was going,I am working on the assignments and have gotten stuck, how all is going well, thanks again for your time peggy,Thanks again for all your time and understanding
Question 2
1. (TCO B) Zeff Co. prepared the following reconciliation of its pretax financial statement income to taxable income for the year ended December 31, Year 1, its first year of operations: Pretax financial income $160,000 Nontaxable interest received on municipal securities (5,000) Long-term loss accrual in excess of deductible amount 10,000 Depreciation in excess of financial statement amount (25,000) Taxable income $140,000 Zeff's tax rate for Year 1 is 40%. In its December 31, Year 1, balance sheet, what should Zeff report as deferred income tax liability? a) $2,000 b) $4,000 c) $6,000 d) $8,000 2. (TCO B) On its December 31, Year 2, balance sheet, Shin Co. had income taxes payable of $13,000 and a current deferred tax asset of $20,000 before determining the need for a valuation account. Shin had reported a current deferred tax asset of $15,000 at December 31, Year 1. No estimated tax payments were made during Year 2. At December 31, Year 2, Shin determined that it was more likely than not that 10% of the deferred tax asset would not be realized. In its Year 2 income statement, what amount should Shin report as total income tax expense? a) $8,000 b) $8,500 c) $10,000 d) $13,000 3. (TCO B) Hut Co. has temporary taxable differences that will reverse during the next year and add to taxable income. These differences relate to noncurrent assets. Under U.S. GAAP, deferred income taxes based on these temporary differences should be classified in Hut's balance sheet as a: a) Current asset. b) Noncurrent asset. c) Current liability. d) Noncurrent liability. 4. (TCO B) For the year ended December 31, 1993, Grim Co.'s pretax financial statement income was $200,000 and its taxable income was $150,000. The difference is due to the following: Interest on municipal bonds $70,000 Premium expense on keyman life insurance (20,000) Total $50,000 Grim's enacted income tax rate is 30%. In its 1993 income statement, what amount should Grim report as current provision for income tax expense? a) $45,000 b) $51,000 c) $60,000 d) $66,000 5. When accounting for income taxes, a temporary difference occurs in which of the following scenarios? a) An item is included in the calculation of net income, but is neither taxable nor deductible. b) An item is included in the calculation of net income in one year and in taxable income in a different year. c) An item is no longer taxable due to a change in the tax law. d) The accrual method of accounting is used.
Question 3
As part of its stock- based compensation package, International Electronics granted 24 million stock appreciation rights (SARs) to top officers on January 1, 2006. At exercise, holders of the SARs are entitled to receive cash or stock equal in value to the excess of the market price at exercise over the share price at the date of grant. The SARs cannot be exercised until the end of 2009 (vesting date) and expire at the end of 2011. The $1 par common shares have a market price of $46 per share on the grant date. The fair value of the SARs, estimated by an appropriate option pricing model, is $3 per SAR at January 1, 2006. The fair value re-estimated at De- cember 31, 2006, 2007, 2008, 2009, and 2010, is $4, $3, $4, $2.50, and $3, respectively. All recipients are expected to remain employed through the vesting date. Required: 1. Prepare the appropriate journal entry to record the award of SARs on January 1, 2006. 2. Prepare the appropriate journal entries pertaining to the SARs on December 31, 2006?December 31, 2009. 3. The SARs remain unexercised on December 31, 2010. Prepare the appropriate journal entry on that date. 4. The SARs are exercised on June 6, 2011, when the share price is $50, and executives choose to receive the market price appreciation in cash. Prepare the appropriate journal entry(s) on that date.,Hi can I get an update on this request. Thanks
Question 4
Access the most recent annual report for a US based multinational company with which you are familiar. I choose Walmart http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=WMT&dataset=balanceSheet&period=A?cy=native ** Many companies make annual reports available on their corporate internet home page. Annual reports also can be accessed through the SEC?s EDGAR system at www.sec.gov (under filling type, search for 10K) a. Identify the location(s) in the annual report that provides disclosures related to the translation of foreign currency financial statements and foreign currency hedging. b. Determine whether the company?s foreign operations have a predominant functional currency c. Determine the amount of remeasurement gain or loss, if any, reported in net income in each of the three most recent years. d. Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of the three most recent years. e. Determine whether the company hedges net investments in foreign operations. If so, determine the type (s) of hedging instrument used. **Note: ? Wherever possible, reference the amounts in your answers to the specific pages of the annual report from which you will derive them so you can show me clearly where you derive the answers from. ? Please submit your answers in word format. Your answers should be listed in the above order (a,b,c,d,e) ? After your answers section, please include a link to the website where I can access the annual report for the company that you selected
Question 5
When building a new organization or when an organization experiences dramatic growth, leaders must determine the structure and culture of the organization. While the culture will evolve over time and each individual that joins the new organization will leave some imprint on the culture, it is the leaders' responsibility to define how the organization will look and how individuals will behave. Prepare a draft document that defines the new organization addressing the following considerations: (3-5 pages) 1. What type of structure will be best suited to a multinational internet retailer? Why? 2. How would you recommend building a culture that was inclusive of diverse cultures and accommodates highly creative technical staff? 3. How would you measure the success of your organizational design in structure and culture? Develop a short presentation of 4-6 slides that reflects the paper with speaker notes of 100-150 words per slide. 1. How would you build teams across a geographically diverse organization? 2. How would you build a consensus discussion on the values of such an organization? Responses should indicate: understanding of cross-culture diversity that includes country of origin and local customs and values that may be direct conflict with each other demonstrate understanding of the theoretical foundations for culture and include innovative ways to develop a sense of organization unity developing virtual community of employees and the challenges of working w/ others diverse background, culture, time zone, etc....
