Info
Warning
Danger

Accounting Expert Answers, Study Resources & Learning Aids

The vast field of accounting contributes to one of the largest subjects in our study resources. Accounting flashcards, homework answers for textbooks & other learning aids can increase your competency in this domain instantly. Become a top student with our support. Search Now…

Ask an Expert

Our Experts can answer your tough homework and study questions.

Answers in as fast as 15 minutes
Post a Question
Accounting:  Concepts & Applications, 11e Chapter 9  1 13.On May 1, 2011, Dominquez Inc. purchased equipment at a cost of $280,000. The equipment has an estimated salvage value of $12,000 and is being depreciated over an estimated life of six years. The company's policy is to recognize depreciation to the nearest.
12 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 51.As compared with preferred stock, common stock usually has favorable preferences in terms of a. Liquidated assets b. Dividends c. Voting rights d. Both liquidated assets and voting rights 52.The declaration of dividends by a company a. Always decreases the balance in Retained Earnings b. Always reduces the Cash balance c. Always increases the balance in Retained Earnings d. Always.
8 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 21.Which of the following is LEAST likely to be classified as a long-term liability? a.Salaries payable b.Mortgage payable c.Lease obligations d.Deferred income taxes payable 22.Which of the following is LEAST likely to be classified as a current liability? a.Wages Payable b.Income Taxes Payable c.Unemployment Taxes Payable d.Bonds Payable 23.Which of the following is.
7 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 9.The following information is given for Wellington Company, Torrey Company, and Sunset Company. Wellington Torrey Sunset Accounts receivable $ 30,000 $ 100,000 $ 35,000 Retained earnings 90,000   200,000 205,000 Cash dividends   10,000    20,000   30,000 Capital stock 320,000   400,000 125,000 Total assets 200,000   300,000 150,000 Sales 800,000 1,200,000 350,000 Net income 40,000   140,000   45,000 Compute.
12 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 9  1 9.On July 1, 2011, Macro Inc. purchased a franchise to operate a Blended Coffee Corner at a cost of $180,000. Assuming that Macro amortizes franchises over a 10-year period, prepare journal entries to record 1. The purchase of the franchise on July 1, 2011. 2. The amortization.
5 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 9  1 5.Smolan Company purchased a new machine on September 1, 2011. It was expected to produce 200,000 units of product over its estimated useful life of eight years. Total cost of the machine was $900,000, and salvage value was estimated to be $90,000. Actual.
9 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 7.On January 1, 2011, Geary Corporation leased equipment under a capital lease. The lease agreement specified payments of $37,000 per year (payable each year on December 31, starting at the end of 2011) for 8 years. The market rate of interest for lease.
7 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 61.The Retained Earnings balance of Mantua Company was $128,700 on January 1, 2012. Net income for 2012 was $72,820. If Retained Earnings had a credit balance of $57,750 after closing entries were posted on December 31, 2012, and if additional stock of $35,750.
9 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 51.On April 1, 2012, Fiedler purchased $10,000 of Hun Corporation Bonds at 96 plus accrued interest. The bonds pay interest of 10 percent semiannually on March 1 and September 1. To record this acquisition, Fiedler should debit Investments in Held-to-Maturity Securities - Hun's.
10 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 9  1 3.Belpre Inc. constructed a new office building. Building material costs for the new building were $3,000,000; total labor costs were $2,500,000; total company overhead was $9,000,000 (25% of which could be assigned to the new project); and interest paid on a new construction.
9 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 8.In 2012, Vidalia had the following activities in long-term investments: May 10 Purchased 50,000 shares of Woodbine stock for $15 per share plus brokerage fees of $5,000. August 24 Received a cash dividend of $2 per share on Woodbine stock. Dec. 31 Woodbine reported net income of $478,000. Woodbine.
11 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 5.On January 1, 2011, Bixby Corporation borrowed $80,000 on a 2-year interest bearing note from Cache Bank at an annual interest rate of 8 percent (Note A). Also on January 1, 2011, Bixby borrowed $50,000 from Dewey Bank, signing a 3-year interest bearing.
8 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 11.What is the approximate present value of $500 to be received in 1 year if interest is 8 percent compounded annually? a.$415 b.$423 c.$460 d.$463 12.The present value of $1,000 to be received in 3 years when interest is 12 percent compounded quarterly is computed by discounting at a.3.
9 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 3.In June 2012, Barwick Company had excess cash that would not be needed until March 1, 2013. Management decided to invest the money in a short-term investment in trading securities. Barwick owned no investment securities before June 2012. The following transactions relate to.
11 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 12.On April 1, 2011, Jenkins Corporation issued $500,000 of 10 percent, 5-year bonds at a yield of 12 percent compounded semiannually. Interest is payable on April 1 and October 1 of each year. The corporation is a calendar-year corporation. Bond premiums and discounts.
10 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 11.On March 1, 2012, Lloyd Corporation sold $400,000 of 12 percent, 5-year bonds at a yield of 10 percent compounded semiannually. Interest is payable on March 1 and September 1 of each year. The corporation is a calendar-year corporation. Bond premiums and discounts.
5 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 41.Moony Corporation had 20,000 shares of $4 par-value common stock outstanding on January 1, 2012. On January 10, 2012, the firm purchased 2,000 of its outstanding shares for $18 per share. On July 22, 2012, it reissued 1,000 shares at $22 per share..
7 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 PROBLEM 1.Use the present value and the future value tables or a financial calculator to calculate answers to the following problems. 1. What is the present value of receiving $900 annually for 5 years at an interest rate of 12% compounded annually? 2. If $5,000 is deposited in.
5 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 31.A corporation’s contributed capital is a. The total par value of the common and preferred stock, along with the associated amounts of paid-in capital in excess of par b. The total par value of the common and preferred stock c. The total par value of the common stock and.
5 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 MULTIPLE CHOICE 1.Which of the following statements is FALSE? a.A liability is an item that involves a future transfer of resources. b.A liability is an item that is measurable in monetary terms. c.A liability is an item that represents an obligation of an enterprise. d.A liability is an.
21 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 61.If the market rate of interest is 12 percent and a company is issuing long-term bonds paying 10 percent, at what percent would those liabilities have to be discounted, assuming semiannual compounding? a.5 percent b.6 percent c.10 percent d.12 percent 62.Flute Corporation issued $200,000, 10-year, 9 percent bonds.
4 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 41.The amount of a company's future operating lease payments must be disclosed in the a.Current liabilities section of the balance sheet b.Long-term liabilities section of the balance sheet c.Notes to the financial statements d.Operating expenses section of the income statement 42.A 10-year capital lease requiring payments of $25,000.
6 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 7.Halsey Corporation first issued stock on January 1, 2010. Halsey has the following stock outstanding on December 31, 2013: Preferred Stock (5 percent cumulative, $45 par, 10,000 shares authorized, 6,000 shares issued and outstanding) $270,000 Common Stock ($5 par, 100,000 shares authorized, 75,000 shares issued and.
14 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 10.Johnson Company owns part of three different subsidiaries. The balance sheet and the income statement for Johnson Company and its three subsidiaries are shown below. Johnson Company currently accounts for the ownership of the three subsidiaries using the equity method.   Percentage of Johnson’s Ownership     90% 60% 40%   Johnson Subsidiary.
16 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 9.On July 1, 2011, Meeker Corporation issued $375,000 bonds with a stated interest rate of 12%, compounded semiannually. Interest is paid on January 1 and July 1 and the bonds mature in 10 years. The effective interest rate is also 12%. 1. Prepare the journal.
6 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 MULTIPLE CHOICE 1.Which form of financing allows the source of the funds to share in the wealth if the company who received the financing does well? a. A loan b. An investment c. Both a loan and an investment d. Neither a loan nor an investment 2.Which form of financing requires repayment, regardless.
18 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 11.The equity method is used to account for an investment of more than 20% of another company's a. Bonds b. Preferred stock c. Common stock d. Convertible bonds 12.Which of the following is NOT one of the acceptable classifications for investments? a. Trading securities b. Available-for-sale securities c. Equity method securities d. Control securities 13.A financial instrument that carries with it.
14 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 21.Compared with preferred stock, common stock usually has a favorable preference in terms of a. Dividends b. Voting rights c. Liquidated assets d. Resale value 22.Which of the following is NOT true regarding "legal capital"? a. It is intended as a means to protect a company's creditors. b. It represents an amount that cannot be returned.
10 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 PROBLEM 1.Identify the three types of organizations and list the characteristics of each one. 2.Identify the two types of stock that are sold by a corporation and list the characteristics of each one. .
7 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 41.On January 1, 2012, Ya-Ling Co. paid $500,000 for 20,000 shares of Chen Co.'s common stock and classified these shares as trading securities. The fair value of Chen Co.'s stock at December 31, 2012, is $27 per share. What is the net asset.
10 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 71.On February 19, 2012, Jose Inc. acquired 18,000 shares of Luis Corporation stock at $45 per share. Jose has 50,000 shares outstanding. On December 31, 2012, Luis common stock had a closing market price of $26 per share. Assuming that the decline in.
13 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 9  1 7.In 2002, Yates Company purchased land and a building at a cost of $2,000,000, with $600,000 allocated to land and $1,400,000 to the building. On December 31, 2011, the accounting records showed the following: Land $600,000 Building 1,400,000 Accumulated Depreciation – Building 800,000 During 2012, it is determined that the.
7 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 3.The stockholders' equity section of the balance sheet for Beryl Corporation as of December 31, 2012, is as follows: Stockholders' Equity     Preferred stock (6 percent, $24 par, cumulative, 100,000 shares authorized) $   1,200,000 Common stock (no par, $10 stated value, 200,000 shares authorized) 1,600,000 Paid-in capital in excess of stated.
7 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 11.Which of the following organizations has a Retained Earnings account? a. Partnership b. Proprietorship c. Corporation d. A Retained Earnings account is used in all three types of businesses 12.Which of the following is NOT true of a corporation? a. A corporation has easy transferability of ownership. b. A corporation is taxed separately from its owners. c. A.
13 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 7.Lexington Corporation purchased fifty $1,000, 12%, 5-year bonds of Jedediah Company on January 1, 2012, as a long-term investment for $55,934. Interest payments are made semiannually on June 30 and December 31. 1. Using the straight-line method of amortization, prepare a schedule showing the amortization.
9 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 MULTIPLE CHOICE 1.Which of the following is NOT typically a reason why one company would invest in another company? a. To diversify product offerings b. To ensure a supply of raw materials c. To recruit key personnel d. To acquire a new product 2.Which of the following is NOT typically a reason why.
14 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 51.Callable bonds a.Can be redeemed by the issuer at any time at a specified price b.Can be converted to stock c.Mature in a series of payments d.Mature in one single sum on a specified future date 52.The issuance price of a bond does NOT depend on the a.Face value.
3 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 9  1 11.On January 1, 2011, Milner Company purchased a machine for $138,000. The machine cost $1,200 to deliver and $4,800 to install. At the end of 10 years, Milner expects to sell the machine for $12,000. Compute depreciation expense for 2011 and 2012 using.
6 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 5.Don Ono purchased Yoko bonds with a face value of $30,000 in the secondary market on March 1, 2012, at a price of $28,340 plus a brokerage fee of $280 and accrued interest. Interest at 10 percent is payable on January 1 and.
8 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 11  1 5.Assume that 2,000 shares of common stock with a par value of $12 and a market price of $16 per share are issued in exchange for land with a fair market value of $32,000. 1. Prepare the journal entry to record the transaction. 2. If the land's.
7 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 21.Which of the following is NOT one of the issues associated with accounting for securities? a. Accounting for the purchase b. Accounting for the dividend revenue earned c. Accounting for the changes in value d. All of these are an issue associated with accounting for securities 22.A realized gain or loss indicates.
14 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 81.Which of the following is true of a premium on bonds payable? a.It is a contra-stockholders' equity account b.It is an account that appears only on the books of the investor c.It increases when amortization entries are made until it reaches its maturity value d.It decreases when.
5 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 3.On June 1, 2012, Bellamy Corporation borrowed $400,000 on a 15-year mortgage to purchase land and a building. The land and building are pledged as collateral on the mortgage, which has an interest rate of 12 percent compounded monthly. The payments of $4,800.
7 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 61.Mel Company purchased $60,000 of Gibson Company's 20-year, 8 percent bonds at 98 on July 1, 2012. The bonds pay interest each January 1 and July 1, and they mature on July 1, 2029. Given this information, the entry needed on December 31,.
9 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 PROBLEM 1.List the four different classifications of securities.  Answer the following questions for each classification of security: 1. What type(s) of securities are included in this classification? 2. Where are temporary changes reported? 3. Where are other than temporary changes reported? 2.Dixie Corporation recorded the following.
9 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 31.An $18,000, 8 percent (payable annually), one-year note is accepted by the bank on April 1. If the note is prematurely repaid on November 1 of the same year (without penalty), how much interest is paid? a.$700 b.$840 c.$980 d.$1,440 32.If equipment is purchased by issuing a 10-year,.
4 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 12  1 31.Unrealized holding gains or losses which are recognized in income are from securities classified as a. Trading b. Available-for-sale c. Held-to-maturity d. Income producing 32.Changes in fair value of securities are reported in the income statement for which type of securities? a. Marketable equity securities b. Available-for-sale securities c. Trading securities d. Held-to-maturity securities 33.Changes in fair value of securities are.
11 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 9  1 PROBLEM 1.On January 1, 2012, Versachi Industries, a calendar-year corporation, leased an airplane under a 7-year, noncancelable lease agreement that requires Versachi to pay the lessor $30,000 at the end of each year. The first payment is due December 31, 2012. The present value.
10 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 71.If a gain occurs on the early retirement of bonds, it is a.Not reported in the financial statements b.Reported on the income statement c.Only reported in the notes to the financial statements d.Reported on the balance sheet 72.On January 1, 2012, Lawton Corporation issued 10-year, $1,000,000 bonds with.
5 Views
View Answer
Accounting:  Concepts & Applications, 11e Chapter 10  1 91.On January 1, 2012, Cabuki Corporation issued $500,000 of 10 percent, 10-year bonds at 88.5. Interest is payable on December 31. If the market rate of interest was 12 percent at the time the bonds were issued, how much cash was paid for.
7 Views
View Answer

Can't find what you're looking for ?

Ask our exprts a study questions, on us.
Get free Homework Help*