New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
intermediate accounting
Intermediate Accounting 10th edition J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas - Solutions
Southeast Steel, Inc., changed from the FIFO inventory costing method to the LIFO method during 2020. How would this change likely be reported in the 2021 comparative financial statements?
Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales. Royalties are payable annually on February 1 for sales the previous year. The editor indicated to Feenix on
Refer to the situation described in BE 20–4. Suppose Irwin has been using the straight-line method and switches to the sum-of-the-years’-digits method. Ignoring income taxes, what journal entry(s) should Irwin record relating to the machine for 2021?BE 20–4Irwin, Inc. constructed a machine at
Sugarbaker Designs Inc. changed from the FIFO inventory costing method to the average cost method during 2021. Which items from the 2020 financial statements should be restated on the basis of the average cost method when reported in the 2021 comparative financial statements?
The Crump Companies, Inc. has ownership interests in several public companies. At the beginning of 2021, the company’s ownership interest in the common stock of Silken Properties increased to the point that it became appropriate to begin using the equity method of accounting for the investment.
Irwin, Inc. constructed a machine at a total cost of $35 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is
In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2021 to discontinue accounting for reacquired shares as treasury stock. Instead, shares repurchased will be viewed as having been retired, reassuming the status of unissued shares. As part of the
In 2021, J J Dishes changed its method of valuing inventory from the FIFO method to the LIFO method. At December 31, 2020, J J’s inventories were $96 million (FIFO). J J’s records were insufficient to determine what inventories would have totaled if determined on a LIFO cost basis. Briefly
Mayfair Department Stores operates over 30 retail stores in the Pacific Northwest. Prior to 2021, the company used the FIFO method to value its inventory. In 2021, Mayfair decided to switch to the dollar-value LIFO retail inventory method. One of your responsibilities as assistant controller is to
Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning of 2021. The inventory as reported at the end of 2020 using LIFO would have been $60,000 higher using FIFO. Retained earnings at the end of 2020 was reported as $780,000
In 2021, Adonis Industries changed its method of valuing inventory from the average cost method to the FIFO method. At December 31, 2020, Adonis’s inventories were $47.6 million (average cost). Adonis’s records indicated that the inventories would have totaled $64 million at December 31, 2020,
There are three basic accounting approaches to reporting accounting changes. What are they?
In 2021, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2020, B & B’s inventories were $32 million (FIFO). B & B’s records indicated that the inventories would have totaled $23.8 million at December
As part of its stock-based compensation package, on January 1, 2021, International Electronics granted restricted stock units (RSUs) representing 50 million $1 par common shares. At exercise, holders of the RSUs are entitled to receive cash or stock equal in value to the market price of those
(Note: This is a variation of E 19–29, modified to allow settlement in cash.)As part of its stock-based compensation package, International Electronics granted 24 million stock appreciation rights (SARs) to top officers on January 1, 2021. At exercise, holders of the SARs are entitled to receive
As part of its stock-based compensation package, International Electronics (IE) granted 24 million stock appreciation rights (SARs) to top officers on January 1, 2021. At exercise, holders of the SARs are entitled to receive stock equal in value to the excess of the market price at exercise over
Anderson Steel Company began 2021 with 600,000 shares of common stock outstanding. On March 31, 2021, 100,000 new shares were sold at a price of $45 per share. The market price has risen steadily since that time to a high of $50 per share at December 31. No other changes in shares occurred during
During 2021, its first year of operations, McCollum Tool Works entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 100 million common shares, $1 par per share.Jan. 2 Issued 35 million common shares for cash.3 Entered an agreement with
PHN Foods granted 18 million of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date.Required:1. What journal entry will PHN Foods prepare to record
As part of its executive compensation plan, Vertovec Inc. granted 54,000 of its no-par common shares to executives, subject to forfeiture if employment is terminated within three years. Vertovec’s common shares have a market price of $5 per share on January 1, 2020, the grant date of the
Information from the financial statements of Ames Fabricators, Inc., included the following: Ames?s net income for the year ended December 31, 2021, is $500,000. The income tax rate is 25%. Ames paid dividends of $5 per share on its preferred stock during 2021. Required:Compute basic and diluted
Stanley Department Stores reported net income of $720,000 for the year ended December 31, 2021.Additional Information:Common shares outstanding at Jan. 1, 2021 ..................................................................80,000Incentive stock options (vested in 2020) outstanding throughout
Witter House is a calendar-year firm with 300 million common shares outstanding throughout 2021 and 2022. As part of its executive compensation plan, at January 1, 2020, the company had issued 30 million executive stock options permitting executives to buy 30 million shares of stock for $10 within
(Note: This is a variation of E 19–17 modified to include convertible bonds).On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million
(Note: This is a variation of E 19–16, modified to include the exercise of stock options.)On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased
On January 1, 2021, Tonge Industries had outstanding 440,000 common shares ($l par) that originally sold for $20 per share, and 4,000 shares of 10% cumulative preferred stock ($100 par), convertible into 40,000 common shares. On October 1, 2021, Tonge sold and issued an additional 16,000 shares of
(Note: This is a variation of E 19–16, modified to include stock options.) On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million
On December 31, 2020, Berclair Inc. had 200 million shares of common stock and 3 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2021, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock
At December 31, 2020, Albrecht Corporation had outstanding 373,000 shares of common stock and 8,000 shares of 9.5%, $100 par value cumulative, nonconvertible preferred stock. On May 31, 2021, Albrecht sold for cash 12,000 shares of its common stock. No cash dividends were declared for 2021. For
Hardaway Fixtures’ balance sheet at December 31, 2020, included the following:Shares issued and outstanding:Common stock, $1 par $ 800,000Nonconvertible preferred stock, $50 par 20,000On July 21, 2021, Hardaway issued a 25% stock dividend on its common stock. On December 12, it paid $50,000cash
The Alford Group had 202,000 shares of common stock outstanding at January 1, 2021. The following activities affected common shares during the year. There are no potential common shares outstanding.2021Feb. 28 Purchased 6,000 shares of treasury stock.Oct. 31 Sold the treasury shares purchased on
For the year ended December 31, 2021, Norstar Industries reported net income of $655,000. At January 1, 2021, the company had 900,000 common shares outstanding. The following changes in the number of shares occurred during 2021:Apr. 30 Sold 60,000 shares in a public offeringMay 24 Declared and
Tesla Motors’s disclosure notes for the year ending December 31, 2017, included the following regarding its $0.001 par common stock:EMPLOYEE STOCK PURCHASE PLAN—Our employees are eligible to purchase our common stock through payroll deductions of up to 15% of their eligible compensation,
Refer to the situation described in BE 19–3. Suppose that the options expire without being exercised. What journal entry will National record?BE 19–3Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12
Refer to the situation described in BE 19–3. Suppose that the options are exercised on April 3, 2024, when the market price is $19 per share. What journal entry will National record?BE 19–3Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021,
Walters Audio Visual, Inc., offers a stock option plan to its regional managers. On January 1, 2021, 40 million options were granted for 40 million $1 par common shares. The exercise price is the market price on the grant date, $8 per share. Options cannot be exercised prior to January 1, 2023, and
On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2021, 20 million stock options were granted, exercisable for 20 million shares of Ensor’s $1 par common stock. The options are exercisable between January 1,
When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the equity offerings reported in December 2021:New Securities IssuesEquityAmerican Materials Transfer Corporation (AMTC)—7.5 million common
At December 31, 2021, the financial statements of Hollingsworth Industries included the following: Additional data:The bonds payable were issued at par in 2019. The tax rate for 2021 was 25%. Required:Compute basic and diluted EPS for the year ended December 31, 2021. Net income for 2021 $560
Alciatore Company reported a net income of $150,000 in 2021. The weighted-average number of common shares outstanding for 2021 was 40,000. The average stock price for 2021 was $33. Assume an income tax rate of 25%.Required:For each of the following independent situations, indicate whether the
Information from the financial statements of Henderson-Niles Industries included the following atDecember 31, 2021:Common shares outstanding throughout the year ................................................100 millionConvertible preferred shares (convertible into 32 million shares of common)
Niles Company granted 9 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share on January 1, 2020, the grant date of the restricted stock award. When calculating diluted EPS at
At December 31, 2020 and 2021, Funk & Noble Corporation had outstanding 820 million shares of common stock and 2 million shares of 8%, $100 par value cumulative preferred stock. No dividends were declared on either the preferred or common stock in 2020 or 2021. Net income for 2021 was $426
On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred
(Note: This is a variation of P 19?11, modified to include stock options.)On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15
On December 31, 2020, Dow Steel Corporation had 600,000 shares of common stock and 300,000 shares of 8%, noncumulative, nonconvertible preferred stock issued and outstanding. Dow issued a 4% common stock dividend on May 15 and paid cash dividends of $400,000 and $75,000 to common and preferred
Comparative Statements of Shareholders? Equity for Locke Intertechnology Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. Required:Infer from the statements the events and transactions that affected Locke Intertechnology Corporation?s
On January 1, 2021, Farmer Fabrication issued stock options for 100,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless Farmer Fabrication’s stock price increases
On January 1, 2021, Farmer Fabrication issued stock options for 100,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless divisional revenue increases by 5% in three
LCI Cable Company grants 1 million performance stock options to key executives at January 1, 2021. The options entitle executives to receive 1 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is
Refer to the situation described in BE 19–3. Suppose that unexpected turnover during 2022 caused the forfeiture of 5% of the stock options. What is the effect on earnings in 2022? In 2023?BE 19–3Under its executive stock option plan, National Corporation granted 12 million options on January 1,
On January 1, 2021, Adams-Meneke Corporation granted 25 million incentive stock options to division managers, each permitting holders to purchase one share of the company’s $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is
JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of sharebased compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2021. The options permit holders to acquire 6 million of the
The shareholders’ equity of Proactive Solutions, Inc., included the following at December 31, 2021:Common stock, $1 parPaid-in capital—excess of par on common stock7% cumulative convertible preferred stock, $100 par valuePaid-in capital—excess of par on preferred stockRetained
Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2021, that permit executives to acquire 4 million of the company’s $1 par common shares within the next five years,
On January 1, 2021, David Mest Communications granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company
On January 1, 2021, Hugh Morris Comedy Club (HMCC) granted 1 million stock options to key executives exercisable for 1 million shares of the company’s common stock at $20 per share. The stock options are intended as compensation for the next three years. The options are exercisable within a
Refer to the situation described in P 19–2. Assume Pastner prepares its financial statements using International Financial Reporting Standards (IFRS).Required:Would your responses to requirement 1 and requirement 2 be the same using IFRS?P 19–2Pastner Brands is a calendar-year firm with
Magnetic-Optical Corporation offers a variety of share-based compensation plans to employees. Under its restricted stock unit plan, the company on January 1, 2021, granted restricted stock units (RSUs) representing 4 million of its $1 par common shares to various division managers. The shares are
Refer to the situation described in P 19–2. Assume Pastner measures the fair value of all options on January 1, 2021, to be $4.50 per option using a single weighted-average expected life of the options assumption.Required:1. Determine the compensation expense related to the options to be recorded
Facebook Inc. included the following disclosure note in an annual report: Share-Based Compensation (in part) . . . compensation expense related to these grants is based on the grant date fair value of the RSUs and is recognized on a straight-line basis over the applicable service period.The
Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2021, that permit executives to purchase 12 million of the company’s $1 par common shares within the next six years, but not before December 31, 2023 (the vesting date). The exercise price is the
Pastner Brands is a calendar-year firm with operations in several countries. As part of its executive compensation plan, at January 1, 2021, the company issued 400,000 executive stock options permitting executives to buy 400,000 shares of Pastner stock for $34 per share. One-fourth of the options
Microsoft provides compensation to executives in the form of a variety of incentive compensation plans, including restricted stock award grants. The following is an excerpt from a disclosure note from Microsoft?s 2017 annual report: Note 20 Employee Stock and Savings Plans (in part)Stock awards are
Allied Paper Products, Inc., offers a restricted stock award plan to its vice presidents. On January 1, 2021, the company granted 16 million of its $1 par common shares, subject to forfeiture if employment is terminated within two years. The common shares have a market price of $5 per share on the
The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following accounts at December 31, 2020:Shareholders’ Equity ...............................................($ in millions)Common stock, 240 million shares at $1 par .................$ 240Paid-in
The shareholders’ equity of Core Technologies Company on June 30, 2020, included the following:Common stock, $1 par; authorized, 8 million shares;issued and outstanding, 3 million shares $ 3,000,000Paid-in capital—excess of par 12,000,000Retained earnings 14,000,000On April 1, 2021, the board
A new CEO was hired to revive the floundering Champion Chemical Corporation. The company had endured operating losses for several years, but confidence was emerging that better times were ahead. The board of directors and shareholders approved a quasi reorganization for the corporation. The
At December 31, 2020, the balance sheet of Meca International included the following shareholders’ equity accounts:Shareholders’ Equity .......................................($ in millions)Common stock, 60 million shares at $1 par .......$ 60Paid-in capital—excess of par
In 2021, Western Transport Company entered into the treasury stock transactions described below. In 2019, Western Transport had issued 140 million shares of its $1 par common stock at $17 per share.Required:Prepare the appropriate journal entry for each of the following transactions:1. On January
In 2021, Borland Semiconductors entered into the transactions described below. In 2018, Borland had issued 170 million shares of its $1 par common stock at $34 per share.Required:Assuming that Borland retires shares it reacquires, record the appropriate journal entry for each of the following
The shareholders’ equity of MLS Enterprises includes $200 million of no par common stock and $400 million of 6% cumulative preferred stock. The board of directors of MLS declared cash dividends of $50 million in 2021 after paying $20 million cash dividends in both 2020 and 2019. What is the
Borner Communications’ articles of incorporation authorized the issuance of 130 million common shares. The transactions described below effected changes in Borner’s outstanding shares. Prior to the transactions, Borner’s shareholders’ equity included the following:Shareholders’ Equity
The shareholders’ equity of Kramer Industries includes the data shown below. During 2022, cash dividends of $150 million were declared. Dividends were not declared in 2020 or 2021.......................................................................($ in millions)Common stock
During its first year of operations, Cupola Fan Corporation issued 30,000 of $1 par Class B shares for $385,000 on June 30, 2021. Share issue costs were $1,500. One year from the issue date (July 1, 2022), the corporation retired 10% of the shares for $39,500.Required:1. Prepare the journal entry
The following is a portion of the Statement of Shareholders? Equity from Cisco Systems? July 29, 2017 annual report. Required:1. How does Cisco account for its share buybacks? Treasury stock or retired shares?2. For its share buybacks in the period shown, was the price Cisco paid for the shares
Comparative statements of shareholders? equity for Anaconda International Corporation were reported as follows for the fiscal years ending December 31, 2021, 2022, and 2023. Required:1. Infer from the statements the events and transactions that affected Anaconda International Corporation?s
Listed below are the transactions that affected the shareholders’ equity of Branch-Rickie Corporation during the period 2021–2023. At December 31, 2020, the corporation’s accounts included:.....................................................................................($ in
Comparative statements of retained earnings for Renn-Dever Corporation were reported in its 2021 annual report as follows. At December 31, 2018, common shares consisted of the following: Common stock, 1,855,000 shares at $1 par ......$ 1,855,000Paid-in capital?excess of par
National Supply’s shareholders’ equity included the following accounts at December 31, 2020:Shareholders’ Equity ............................................($ in millions)Common stock, 6 million shares at $1 par .........$ 6,000,000Paid-in capital—excess of par
The following is from the 2021 annual report of Kaufman Chemicals, Inc.: Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders? equity as follows: Required:1. What is comprehensive income and how does it differ from net income?2. How is
Comparative balance sheets for Softech Canvas Goods for 2021 and 2020 are shown below. Softech pays no dividends and instead reinvests all earnings for future growth. Required: 1. Determine the return on shareholders? equity for 2021. 2. What does the ratio measure? Comparative Balance Sheets ($
On January 1, 2021, Tru Fashions Corporation awarded restricted stock units (RSUs) representing 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the
Refer to the situation described in BE 19–8. Suppose that Farmer initially estimates that it is not probable the goal will be achieved, but then after one year, Farmer estimates that it is probable that divisional revenue will increase by 5% by the end of 2023. What journal entry(s) will Farmer
Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2021, options were granted for 40 million $1 par common shares. The exercise price is the market price on the grant date—$8 per share. Options cannot be exercised prior to January 1, 2023, and
On December 31, 2020, Ainsworth, Inc., had 600 million shares of common stock outstanding. Twenty million shares of 8%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2021. On April 30, 2021, Ainsworth purchased 30 million shares of its common stock as treasury
Refer to the situation described in BE 19–8. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 5% in three years. What journal entry will be needed to account for the options in 2022?BE 19–8On January 1, 2021, Farmer Fabrication
SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of sharebased compensation plans. Under its nonqualified stock option plan, SSG granted options to key officers on January 1, 2021. The options permit holders to acquire 12 million of the
Comparative Statements of Retained Earnings for Renn-Dever Corporation were reported as follows for the fiscal years ending December 31, 2019, 2020, and 2021. At December 31, 2018, paid-in capital consisted of the following: Common stock, 1,855,000 shares at $1 par ......$ 1,855,000Paid in
Frazier Refrigeration amended its defined benefit pension plan on December 31, 2021, to increase retirement benefits earned with each service year. The consulting actuary estimated the prior service cost incurred by making the amendment retroactive to prior years to be $110,000. Frazier’s 100
Southeast Technology provides postretirement health care benefits to employees. On January 1, 2021, the following plan-related data were available: On January 1, 2021, Southeast amends the plan in response to spiraling health care costs. The amendment establishes an annual maximum of $3,000 for
Gorky-Park Corporation provides postretirement health care benefits to employees who provide at least 12 years of service and reach age 62 while in service. On January 1, 2021, the following plan-related data were available: On January 1, 2021, Gorky-Park amends the plan to provide certain dental
Cahal-Michael Company has a postretirement health care benefit plan. On January 1, 2021, the following planrelated data were available:...............................................................................................................................($ in thousands)Net loss—AOCI
Data pertaining to the post-retirement health care benefit plan of Sterling Properties include the following for 2021: Required: 1. Determine the postretirement benefit expense for 2021. 2. Prepare the appropriate journal entries to record the (a) Post-retirement benefit expense, (b) Funding, (c)
Lorin Management Services has an unfunded postretirement benefit plan. On December 31, 2021, the following data were available concerning changes in the plan’s accumulated postretirement benefit obligation with respect to one of Lorin’s employees:APBO at the beginning of 2021
The following data are available pertaining to Household Appliance Company’s retiree health care plan for 2021:Number of employees covered ..........................................2Years employed as of January 1, 2021 ...............................3 (each)Attribution period
The EPBO for Branch Industries at the end of 2021 was determined by the actuary to be $20,000 as it relates to employee Will Lawson. Lawson was hired at the beginning of 2007. He will be fully eligible to retire with health care benefits after 15 more years but is expected to retire in 25 years.
Classified Electronics has an unfunded retiree health care plan. Each of the company’s three employees has been with the firm since its inception at the beginning of 2020. As of the end of 2021, the actuary estimates the total net cost of providing health care benefits to employees during their
Refer to the situation described in E 17–21.Required:How might your solution differ if Lacy Construction prepares its financial statements according to International Financial Reporting Standards (IFRS)? Assume the actuary’s discount rate is the rate on high-quality corporate bonds. Include any
Lacy Construction has a noncontributory, defined benefit pension plan. At December 31, 2021, Lacy received the following information: The expected long-term rate of return on plan assets was 10%. There were no AOCI balances related to pensions on January 1, 2021. At the end of 2021, Lacy amended
Showing 4200 - 4300
of 6751
First
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Last
Step by Step Answers
Get 50% OFF
Claim Now
