Questions from Financial Accounting

Q: Joseph Max, Inc., sold 10-year, 5 percent

Joseph Max, Inc., sold 10-year, 5 percent bonds for $1,000,000 at 98. On the interest payment date at the end of the fifth year the bonds were outstanding, 40 percent ($400,000) of the bonds were reti...

Q: Joseph Max, Inc., sold 10-year, 5 percent

Joseph Max, Inc., sold 10-year, 5 percent bonds for $1,000,000 at 98. On the interest payment date at the end of the fifth year the bonds were outstanding, 40 percent ($400,000) of the bonds were reti...

Q: Omega Co. sold 10,000 shares of common stock,

Omega Co. sold 10,000 shares of common stock, which has a par value of $8, for $13 per share. The company’s balance in retained earnings is $75,000. Prepare the stockholders’ equity section of the com...

Q: Weller, Inc., sold 1,000,000 shares of

Weller, Inc., sold 1,000,000 shares of $25 par value common stock at $32. It subsequently repurchased 100,000 of those shares at $50 per share and then sold 70,000 of those shares at $55. Calculate th...

Q: Beta Co. sold 10,000 shares of common stock,

Beta Co. sold 10,000 shares of common stock, which has a par value of $25, for $28 per share. The company also sold 1,000 shares of $100 par value preferred stock for $110. Assume the balance in retai...

Q: Zeta Co. has outstanding 100,000 shares of $100

Zeta Co. has outstanding 100,000 shares of $100 par value cumulative preferred stock, which has a dividend rate of 7 percent. The company has not declared any cash dividends on the preferred stock for...

Q: Mega, Inc., has common and 6 percent preferred stock outstanding

Mega, Inc., has common and 6 percent preferred stock outstanding as follows. The company declares a total dividend of $225,000. If the dividends on preferred stock are one year in arrears (in additio...

Q: Johnston, Inc., engaged in the following transactions involving treasury stock

Johnston, Inc., engaged in the following transactions involving treasury stock. a. Prepare general journal entries to record these transactions. b. Compute the amount of retained earnings that shoul...

Q: Baker Company has common and preferred stock outstanding as follows.

Baker Company has common and preferred stock outstanding as follows. Dividends on preferred stock have not been paid for the last three years (in addition to the current year). If the company pays a...

Q: Why does cost-volume-profit analysis focus on operating income

Why does cost-volume-profit analysis focus on operating income instead of net income?