...Week 5 Acct 551 15-13 (Stock Split and Stock Dividend) A Land 1,500,000 25,000*60 Treasury Stock 1,200,000 25,000*48 Paid in Capital Treasury 300,000 B The appraised value of the land is a good choice but it is based on the market. So to get more of a transaction them trading price of the stock is probably the best fit E15-15 (Dividend Entries) A Retained Earnings 117,000 60,000*39*5% Common Stock 30,000 Paid in Capital 87,000 Common Stock Dividend 30,000 Common Stock 30,000 B No entry is needed C Debt Investment 35,000 Unrealized holding gain or loss-Income 35,000 Retained Earnings 125,000 Property Dividends Payable 125,000 Property Payable 125,000 Debt Investment 125,000 E15-18 (Dividends and Stockholders’ Equity Section) 1 Dividends Payable 56,000 8*2,000=16,000 2*20,000=40,000 Cash 56,000 2 Treasury Stock 108,000 40*2,700 Cash 108,000 3 Land 30,000 Treasury Stock 28,000 40*700 Paid in capital Treasury Stock 2,000 4 Cash 52,500 105*500 Preferred Stock 50,000 100*500 Paid in capital-Preferred Stock 2,500 5 Retained Earnings 81,000 45*1,800 Common Stock Dividend Distributable 9,000 5*1,800 Paid In capital Common Stock 72,000 20,000-2,700+700=18,000 18,000*10% 6 Common Stock Dividend Distributable 9,000 Common Stock 9,000 7 Retained Earnings 56,900 Dividends Payable 56,900 Sum of Preferred (2,500 * 8 =20,000) Common (19,800...
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...Week 3 Homework E14-3 (Entries for Bond Transactions) Presented below are two independent situations. 1 A 1/1/12 Cash 300,000 Bonds payable 300,000 B 7/1/12 Interest Expense 6,750 300,000*.09*3/12 Cash 6,750 C 12/31/12 Interest Expense 6,750 Interest Payable 6,750 2 A Cash 210,000 Bond payable 200,000 Interest Expense 10,000 200,000*.012*5/12 B Interest Expense 12,000 200,000*.12*6/12 Cash 12,000 C Interest Expense 12,000 Interest payable 12,000 E14-7 (Amortization Schedule—Effective-Interest) Assume the same information Date Cash Paid Interest Expense Discount Amortized Carrying Bond 1/1/12 2,783,724 1/1/13 300,000 334,046.88 34,046.88 2,817,770.88 1/1/14 300,000 338,132.51 38,132.51 2,855,903.39 1/1/15 300,000 342,708.41 42,708.41 2,898,611.80 1/1/16 300,000 347,833.42 47,833.42 2,946,445.22 1/1/17 300,000 353,554.78 53,554.78 3,000,000.00 3,000,000*.10= 300,000 300,000*.62092=1,862,760 300,000*3.79079=1,137,237 1,862,760+1,137,237=2,999,997 E14-10 (Entries for Bond Transactions) A Cash 860,651.79 Premium Payable 60,651.79 Bonds Payable 800,000 B Date Cash Paid Interest Expense Amortized Premium Carrying Bond 1/1/12 860,651.79 1/1/13 96,000 86,065.18 9,934.82 850,716.97 1/1/14 96,000 85,071.70 10,928.30 850,716.97 1/1/15 96,000 83,978.87 12,021.13 827,767.54 1/1/16 96,000 1/1/17 96,000 C Interest Expense 86,065.18 Bonds Payable...
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...Week 3 Homework 7/7 Differentiate between the following: active income, passive income, and portfolio income? Portfolio income is derived from investments and includes capital gains, interest, dividends, and royalties. Various types of portfolio income are taxed differently. Passive Income, this type of income comes from activities in which you do not actively participate. Such activities include income from real estate and certain business arrangements, such as limited partnerships. Active Income, Income for which services have been performed. This includes wages, tips, salaries, commissions, and income from businesses in which there is material participation. 7/13 Briefly, what is "material participation"? Why is the determination of whether a taxpayer materially participates important? Material participation is the point at which an individual becomes Actively or Continuously involved in a project . Earned revenue from the project is no longer considered passive income. This is important as this determines whether income is active or passive inconsideration of how loses are deducted and how this income is taxed. 7/46 Mary Beth is a CPA, devoting 3,000 hours per year to her practice. She also owns an office building in which she rents out space to tenants? Mary has to see it as a passive loss because she is using a property management company. She makes no management decisions. Mary Beth unfortunately has to carry the loss to future years. She is not allowed...
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...Week 4 homework E15-2 (Recording the Issuance of Common and Preferred Stock) Jan 10 Cash 400,000 80,000*5 Common Stock 160,000 2*80,000 Paid in capital 240,000 3*80,000 Mar 1 Cash 540,000 108*5,000 Preferred Stock 250,000 50*5,000 Paid in capital 290,000 58*5,000 Apr 1 Land 80,000 Common Stock 48,000 2*24,000 Paid in capital 32,000 80,000-48,000 May 1 Cash 560,000 7*80,000 Common Stock 160,000 2*80,000 Paid in capital 400,000 5*80,000 Aug 1 Company Expense 50,000 Common Stock 20,000 2*10,000 Paid in capital 30,000 50,000-20,000 Sept 1 Cash 90,000 9*10,000 Common Stock 20,000 2*10,000 Paid in capital 70,000 7*10,000 Nov 1 Cash 112,000 112*1,000 Preferred Stock 50,000 50*1,000 Paid in capital 62,000 62*1,000 E15-3 (Stock Issued for Land) A Land 1,500,000 60*25,000 Treasury Stock 1,200,000 45*25,000 Paid in capital 300,000 B The price of the stock is probably the best price when its fair value in the transaction. E15-5 (Lump-Sum Sales of Stock with Preferred Stock) A Common 84,000 168*500 Preferred 21,000 210*100 Total 105,000 Allocated Common 80,000 84,000/105,000*100,000 Allocated Preferred 20,000 21,000/105,000*100,000 Total 100,000 Cash 100,000 Common Stock 5,000 5*1,000 Paid in Capital common stock 75,000 80,000-5,000 Preferred Stock 10,000 100*100 Paid in capital preferred stock 10,000 20,000-10,000 ...
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...Intermediate Accounting II Acct. 551 E 13-1, 13-2, 13-8, 13-13, 13-19 13-1 A. Current B. Current C. Current D. Current E. Foot note Disclosure F. Current G. Current H. Current I. Current J. Current K. Current L. Current M. Current N. Current O. Foot note disclosure P. Current or Long-term 13-2 a. Sept. 1 Purchase 50,000 Account Payable 50,000 Oct. 1 Account Payable 50,000 Notes Payable 50,000 Oct. 1 Cash 75,000 Discount Notes Pay. 6,000 Notes Payable 81,000 b. Dec. 31 Interest Expense 1,000 Interest Payable 1,000 Dec. 31 Interest Expense 1,500 Discount on Notes Payable 1,500 c. Notes Payable 50,000 Interest Payable 1,000 51,000 Notes Payable 81,000 Less Discount 4,500 76,500 13-8 Salaries and Wages Expense 480,000 Withholding Taxes Payable 80,000 FICA Taxes Payable 28,040 Union Dues Payable 9,000 Cash 362,960 Payroll Tax Expense 29,440 FICA Taxes Payable 28,040 FUTA Taxes Payable 560 SUTA Taxes Payable 840 13-13 1. Maverick Inc. reports a liability of 800,000 at 12/31/12 2. The insurance recovery is a gain contingency that is not recorded until received. The loss should be accrued for 6,000,000. 3. It is a gain contingency. 13-19 a. 1. 318,000/87,000=3.66 2.820,000/200,000 + 170,000/2=4.43 3.1,400,00/95,000=14.74 4.210,000/52,000=4.04 5.210,000/1,400,000=15% 6.210,000/488,000=43% b. 1. No effect 2. Reduce...
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...Week 6 Homework E16-1 (Issuance and Conversion of Bonds) 1 Cash 9,900,000 .99*10,000,000 Discount 100,000 Bonds Payable 10,000,000 Bonds 70,000 Cash 70,000 2 Expense 75,000 Bonds Payable 10,000,000 Discount Bonds 55,000 Common Stock 1,000,000 Paid in Capital Common Stock 8,945,000 10,000,000-1,000,000-55,000 Cash 75,000 E16-12 (Issuance, Exercise, and Termination of Stock Options) 1/1/11 no journal entry 12/31/11 Compensation 225,000 450,000/2 Paid in Capital Stock 225,000 12/31/12 Compensation 225,000 450,000/2 Paid in Capital Stock 225,000 5/1/13 Cash 180,000 20*9,000 Paid in Capital Stock 405,000 9,000/10,000*450,000 Common Stock 45,000 5*9,000 Excess Par Common Stock 540,000 405,000+108,000-45,000=540,000 1/1/14 Paid in Capital Stock 45,000 450,000-405,000 Paid in Capital Stock Expired 45,000 E16-25 (EPS with Convertible Bonds and Preferred Stock) A Net Income 240,000 Saving 108,000 3,00,000*.06=180,000*1-.04 Adjustment Income 348,000 3,000,000/1,000=3,000*15=45,000bonds Diluted EPS=348,000/100,000+45,000=2.40 B Outstanding Shares 100,000 Shares issued 50,000 1,000,000/100=10,000*5 Adjusted for dilutive = 150,000 Diluted EPS 240,000 /150,000 =...
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...Chapter 16 Week 6 Homework E16-1 1. Cash ($10,000,000 X .99) 9,900,000 Discount on Bonds Payable 100,000 Bonds Payable 10,000,000 Unamortized Bond Issue Costs 70,000 Cash 70,000 2. Cash ($10,000,000 X .98) 9,800,000 Discount on Bonds Payable 600,000 Bonds Payable 10,000,000 Paid-in Capital – Stock Warrants (100,000 X $4) 400,000 3. Debt Conversion Expense 75,000 Bonds Payable 10,000,000 Discount on Bonds Payable 55,000 Common Stock 1,000,000 Paid-in Capital in Excess of Par 8,945,000 [($10,000,000 - $55,000) - $1,000,000] Cash 75,000 E16-6 (a) December31, 2012: Bond Interest Expense 117,000 Premium on Bonds Payable ($60,000 X 1/20) 3,000 Cash ($3,000,000 X 8% X 6/12) 120,000 (b) January 1, 2013: Bonds Payable 600,000 Premium on Bonds Payable 9,600 Common Stock [8 X $100 X ($600,000 / $1,000)] 480,000 Paid-in Capital in Excess of Par 129,600 Total Premium ($3,000,000 X.02) $60,000 Premium Amortized ($60,000 X 2/10) 12,000 Balance $48,000 Bonds Converted ($600,000 / $3,000,000) 20% Related Premium ($48,000 X 20%) $9,600 (c) March 31, 2013: Bond Interest Expense 11,700 Premium on Bonds Payable ($9,600 / 8) X 3/12 300 Bond Interest Payable ($600,000 X 8% X 3/12) 12,000 Bond Payable 600,000 Premium on Bonds...
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...Nisan Williams 10/22/2014 Acct 551 Week 7 Course Project The Proctor & Gamble Company (P&G) Note 1 SIGNIFICANT ACCOUNTING POLICIES Identifying significant accounting policies helps Proctor & Gamble to interpret its financial statements and facilitate better financial presentation of its franchise. The Nature of company’s operations The Proctor & Gamble Company (the “Company”, “we” or “us”) provides over 300 branded consumer products in more than 160 countries. Their billion-dollar and half billion-dollar brands are amongst the strongest on the world and are segmented into Fabric and Home Care, Baby and Family Care, Beauty Care, Health Care and Snacks and Beverages. Their products can be found Basis of presentation The consolidated financial statements are between the company and its controlled subsidiaries. Estimates use The U.S GAAP requires that the managers conduct estimates and assumptions when preparing the financial statements. This should be in conformity with the principles accounting that the company uses. The estimates are based on the knowledge that the management has on the current and future actions that the company may undertake. Estimates are required for accounting the, consumer promotion accruals, stock options, the benefits obtained in pension and post-employment schemes, intangible assets valuation, depreciation usefulness, tax assets deferred, among others. The estimates may differ from the actual value of the financial statement...
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...E13-11 a. Cash 3,000,000 Sales 3,000,000 (To record the sale of 500 Rollomatics at $6,000 each) Warranty Expense 20,000 Cash 20,000 Warranty Expense 100,000 Estimated Liability Under Warranties 100,000 ($120,000 - $20,000 = $100,000) b. Cash 3,000,000 Sales 2,850,000 Unearned Warranty Revenue 150,000 Warranty Expense 20,000 Cash 20,000 Unearned Warranty Revenue 25,000 Warranty Revenue 25,000 ($150,000 * (20,000/120,000) = $100,000) E13-12 Inventory Premiums 7,040 Cash 7,040 (8,800 * 0.80 = $7,040) Cash 363,000 Sales 363,000 (To record the sale of 110,000 boxes of soap powder at $3.30 each) Premium Expense 3,520 Inventory Premiums 3,520 [(44,000/10) * 0.80 = $3,520] Premium Expense 1,760 Estimated Liability Premiums 1,760 ([(110,000 * 0.60) – 44,000]/10 * 0.80 = $1,760) P13-9 a. 2014 Inventory Premium MP3 codes 562,500 Cash 562,500 (To record purchase of 250,000 MP3 codes at $2.25 each) Cash 868,620 Sales 868,620 (To record the sale of 2,895,400 candy bars at $0.30 each) Cash [(1,200,000/5) * $2.50] 600,000 Premium Expense 60,000 Inventory of Premiums [(1,200,000/5) * ($2.25 + $0.50)] 660,000 (To record the premium expense...
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...E16-1 1- Cash 9,900,000 Discount on Bonds Payable 100,000 Bonds Payable 10,000,000 Unamortized Bond Issuance Costs 70,000 Cash 70,000 ------------------------------------------------- 2- Cash 9,800,000 Discount on Bonds Payable 600,000 Bonds Payable 10,000,000 PIC – Stock Warrants (100,000 warrants) 400,000 ------------------------------------------------- 3- Debt Conversion Expense 75,000 Bonds Payable 10,000,000 Discount on Bonds Payable 55,000 Common Stock 1,000,000 PIC in Excess of Par 8,945,000 Cash 75,000 E16-6 December 31, 2012. Bond Interest Expense 117,000 Premium on Bonds Payable (60,000 x 1/20) 3,000 Cash (3,000,000 x 8% x 6/12) 120,000 January 1, 2013. Bonds Payable 600,000 Premium on Bonds Payable 9,600 Common Stock (8 x 100 x 600,000/1,000) 480,000 PIC in Excess of Par 129,600 March 31, 2013. Bond Interest Expense 11,625 Premium on Bonds Payable (12,000 / 8 x 3/12) 375 Bond Interest Payable (600,000 x 8% x 3/12) 12,000 Bonds Payable 600,000 Premium on Bonds Payable 11,625 Common Stock 480,000 PIC in Excess of Par 121,625 June 30, 2013. Bond Interest Expense 58,875 Premium on Bonds Payable 1,125 Bond Interest Payable (600,000 x 8% x 3/12) 12,000 Cash (1,800,000 x 8% x 6/12) 72,000 E16-8 Journal Cash 3,150...
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...Stamford University Bangladesh Class Schedule –Spring 2013 Trimester; MBA Program (Siddeswari) |Time |06:30 pm - 09:00 pm | |Day | | | |Course |Section |Course Teacher |Room | |SATURDAY |MKT 607 Service Marketing |Sec-A |Prof. Dr. Horipada Bhattacharjee |B/307 | | |FIN 604 Fin. An. & Control |Sec-A |Prof. Dr. Md. Rafiqul Islam |B/303 | | |FIN 604 Fin. An. & Control |Sec-B |Ms. Pallabi Siddiqua |A/308 | | |HRM 602 Industrial Relations |Sec-A |Mr. Dipak Kanti Paul |A/312 | | |MGT 431 Business Communication |Sec-A |Mr. Sahin Ahmed Chowdhury |A/501 | |SUNDAY |MGT 432 Organizational Behavior |Sec-A |Ms. Nahid...
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...Acct 551 HW week 5 E15 -15 A. Retained Earnings 97,500 Common Stock 25,000 Paid in Capital in Excess of Par -Common stock 72,500 Common Stock Dividend Distibutable 25,000 Common Stock 25,000 B. No entry required $2 shares outstanding are 300,000 (60,000x5) C. Date Journal Entry Debit Credit 5-Jan-14 Debt investments 35,000 Unrealized holding loss or gain 35,000 5-Jan-14 Retained Earnings 135,000 Propery Dividends payable 1,350,000 25-Jan-14 Property Divideneds Payable 135,000 Debt Investments 1,350,000 E15-16 Total income since incorporation $317,000.00 Less: Total cash dividends paid $60,000.00 Total value of stock dividends 30,000 90,000 Current balance of retained earnings 227,000 E15-18 (A) 1. Dividends payable-preferred (2,000x$10) 20,000 Dividends payable-common(2,000x$2) 40,000 Cash 60,000 2. Treasury Stock 68,000 Cash (1,700x $40) 68,000 3. Land 30,000 Treasury stock(700x40) 28,000 Paid in Capital From Treasury Stock 2,000 4. Cash (500x105) 52,500 Preferred Stock (500x100) 50,000 Paid in Capital in Excess of Par Preferred 2,500 5. Retained Earnings (1,900x45) 85,500 Common Stock...
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...Does your career plan include a world of lifelong success? Program of Professional Studies THE CERTIFIED GENERAL ACCOUNTANTS ASSOCIATION OF BRITISH COLUMBIA We see more than numbers. Choose a career that places you on the path to lifelong success. It’s all about opportunity. Accounting professionals can work in any sector, anywhere in the world. And when you choose CGA, you’ll gain the leadership, problem-solving and technical skills that are sought after by organizations in the private, public and not-for-profit sectors. The CGA Program of Professional Studies gives you the tools to succeed in business, no matter where your career takes you. You’ll enter the workforce with the applied knowledge and demonstrated expertise that employers want, including specialized technical knowledge, sectorspecific competencies, problem-solving skills and the ethical integrity to lead. CGA’s competency-based curriculum is simply your best way to prepare for a rewarding career in financial management. Flexible study options and the freedom to choose the career you want CGA is all about choice. You choose the professional-studies path and real-world experience that best match your career goals and interests. We give you the skills and freedom to work in any type of organization, in any industry, at any level of management. With a CGA designation, your opportunities—both professional and personal, at home and around the world—are limitless. Take your place as a highly respected...
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...ACCT 551 Course Project Professor Shinedling Note 1: Summary of Significant Accounting Policies Oreo Corp. provides a wide range of telecommunications services, including voice and data transmission, internet access, various value added services through wireless and fixed lines as well as selling equipment and accessories. OREO Corp. prepares its financial statements in accordance with generally accepted accounting principles in the United States (GAAP). It represents the financial statements on a consolidated basis and on a sector basis for financial service sectors. The additional information provided in the sector statements enables the reader to better understand the operating performance, financial position, cash flows, and liquidity of the businesses. We eliminate all intercompany items and transactions in the consolidated and sector balance sheets. Notes 2: Inventories All Inventories are stated at the lower of cost or market. Cost for a substantial portion of U.S inventories is determined on a last in, first out (LIFO) basis. LIFO was used for 18% and 17% of total inventories at December 31, 2012 and 2011 respectively. Cost of other inventories is determined by costing methods that approximate first in, first out (FIFO) basis. Inventories were as follows US$ THOUSANDS 2011 2012 Raw materials and consumables 774 703 Work in progress 843 812 ...
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...Keller Graduate School of Management ACCT 551 Course Project Notes to Financial Statements Table of Contents I. Cover Page 1 II. Table of Contents Page 2 III. Tropical Pool Cleaning Income Statement Page 3 IV. Tropical Pool Cleaning Balance Sheet Page 4 V. Notes to Financial Statements Page 5 VI. Reference Page 9 Notes to Consolidated Financial Statements NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. Nature of Operations Tropical Pool Cleaning Corporation (henceforth refer to as the “Company,” “we” or “us”) provides pool cleaning, maintenance and repair services to individuals and corporations nationwide. Our headquarters are in New York City however we maintain a significant presence in Florida, California and Texas. 2. Accounting Principles and Presentation The Consolidated Financial Statements have been prepared in agreement with the United States of America GAAP regulations. 3. Use of Estimates In the preparation of financial statements estimates by managers are sometimes necessary. These assumptions are made using available data pertaining to the company’s assets, liabilities, revenue and expenses. Other areas where estimation may occur are future tax liability projections, fair value estimation and impairment calculation on investments. 4. Revenue Recognition Revenue is recognized when a service contract is signed, service is rendered, or evidence...
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