Questions from Financial Accounting

Q: The following independent situations represent various types of liabilities. Analyze each

The following independent situations represent various types of liabilities. Analyze each situation and indicate which of the following is the proper accounting treatment for each company: (1) record...

Q: Over what time period should the cost of providing retirement benefits to

Over what time period should the cost of providing retirement benefits to employees be expensed?

Q: Demski Company pays its employees on the 1st and 15th of each

Demski Company pays its employees on the 1st and 15th of each month. It is March 31 and Demski is preparing financial statements for this quarter. Its employees have earned $25,000 since the 15th of t...

Q: Define par value stock. What is the significance of a stock's

Define par value stock. What is the significance of a stock's par value from an accounting and analysis perspective?

Q: On January I, 2019, Hutton Corp. issued $300

On January I, 2019, Hutton Corp. issued $300,000 of 15-year, 11 % bonds payable for $377,814, yielding an effective interest rate of 8%. Interest is payable semiannually on June 30 and December 31. a....

Q: If a corporation purchases 600 shares of its own common stock at

If a corporation purchases 600 shares of its own common stock at $10 per share and resells them at $ 14 per share where would the $2.400 increase in capital be reported in the financial statements? Wh...

Q: D'Souza, Inc., issues $900,000 of 11 %

D'Souza, Inc., issues $900,000 of 11 % bonds that pay interest semiannually and mature in seven years. Assume that the market interest (yield) rate is 12% per year compounded semiannually. Compute the...

Q: On August 1, 2019, Paradise Airlines agreed to lease a

On August 1, 2019, Paradise Airlines agreed to lease a passenger jet from Boeing Corporation. The 20-year lease requires an annual payment of $450,000. If Paradise were to purchase the jet, it could b...

Q: A corporation has total stockholders' equity of $4.628.

A corporation has total stockholders' equity of $4.628.000 and one class of $2 par value common stock. The corporation has 500,000 shares authorized; 300.000 shares issued; 260.000 shares outstanding;...

Q: What is a stock dividend? How does a common stock dividend

What is a stock dividend? How does a common stock dividend distributed to common shareholders affect their respective ownership interests?