Questions from Financial Accounting

Q: Prepare journal entries under the cost method to record the following treasury

Prepare journal entries under the cost method to record the following treasury stock transactions of Danos Corporation. a. Purchases 10,000 shares of its own $10 par value common stock for $30 per sha...

Q: Prepare journal entries under the cost method to record the following treasury

Prepare journal entries under the cost method to record the following treasury stock transactions of Melissa Corporation. a. Purchases 10,000 shares of its own $5 par value common stock for $12 per sh...

Q: Morrissey Corporation grants 50,000 stock options to its managerial employees

Morrissey Corporation grants 50,000 stock options to its managerial employees on December 31, 2013, to purchase 50,000 shares of its $1 par value common stock for $60 per share. The market price of a...

Q: Watson Corporation grants 20,000 stock options to its managerial employees

Watson Corporation grants 20,000 stock options to its managerial employees on December 31, 2013, to purchase 20,000 shares of its $10 par value common stock for $25 per share. The market price of a sh...

Q: Higgins Corporation issues $1 million of 20-year, $

Higgins Corporation issues $1 million of 20-year, $1,000 face value, 10% semiannual coupon bonds at par on January 2, 2013. Each $1,000 bond is convertible into 40 shares of $1 par value common stock....

Q: Symantec has convertible bonds outstanding with a face value of $10

Symantec has convertible bonds outstanding with a face value of $10,000,000 and a carrying value of $10,255,000. Holders of the bonds convert them into 100,000 shares of $10 par value common stock. Th...

Q: Kiersten Corporation sells 60,000 common stock warrants for $4

Kiersten Corporation sells 60,000 common stock warrants for $4 each on February 26, 2013. Each warrant permits its holder to purchase a share of the firm’s $10 par value common stock for $30 per share...

Q: On December 7, 2008, Alpharm issued shares of convertible preferred

On December 7, 2008, Alpharm issued shares of convertible preferred stock and warrants to purchase additional shares of preferred stock for an aggregate issue price of $46,180,000 in a private placeme...

Q: For each of the items a to d below, describe the

For each of the items a to d below, describe the accounting treatment using one of the following four approaches, assuming that the firm does not elect the fair value option: (1) Measured at fair valu...

Q: Exhibit 6.12 in Chapter 6 provides a simplified statement of

Exhibit 6.12 in Chapter 6 provides a simplified statement of cash flows. For each of the transactions that follow, indicate the number(s) of the line(s) in Exhibit 6.12 affected by the transaction and...