Questions from Financial Reporting

Q: On July 1, 2017, Amos Corporation granted nontransferable, nonqualified

On July 1, 2017, Amos Corporation granted nontransferable, nonqualified stock options to certain key employees as additional compensation. The options permit the purchase of 20,000 shares of Amos’s $1...

Q: Warren Corporation was organized on January 1, 2017, with an

Warren Corporation was organized on January 1, 2017, with an authorization of 500,000 shares of common stock ($5 par value per share). During 2017, the company had the following capital transactions:...

Q: Munn Corporation’s records included the following stockholders’ equity accounts: Preferred

Munn Corporation’s records included the following stockholders’ equity accounts: Preferred stock, par value $15, authorized 20,000 shares …………………… $255,000 Additional paid-in capital—preferred stock …...

Q: Weldon Wire has issued 2,500,000 shares of $

Weldon Wire has issued 2,500,000 shares of $2 par common stock at an average price of $10 per share. Of these, 100,000 shares were repurchased during the year for $15 each and retired. Another 200,000...

Q: Newton Corporation was organized on January 1, 2017. On that

Newton Corporation was organized on January 1, 2017. On that date, it issued 200,000 shares of its $10 par-value common stock at $15 per share (400,000 shares were authorized). During the period from...

Q: On December 31, 2017, the Stockholders’ Equity section of Mercedes

On December 31, 2017, the Stockholders’ Equity section of Mercedes Corporation was as follows: Common stock, par value $5; authorized 30,000 shares; ………… $ 45,000 issued and outstanding, 9,000 shares...

Q: Several years ago, RJR Nabisco Holdings Corporation (Holdings) offered

Several years ago, RJR Nabisco Holdings Corporation (Holdings) offered for sale 93 million shares of its subsidiary RN-Nabisco Group. According to the prospectus, the estimated initial public offering...

Q: The following data pertain to Tyne Company’s investments in marketable equity securities

The following data pertain to Tyne Company’s investments in marketable equity securities. (Assume that all securities were held throughout 2016 and 2017.) Required: 1. What amount...

Q: Sea Company purchased 60% of Island Company’s common stock for $

Sea Company purchased 60% of Island Company’s common stock for $180,000. On the acquisition date, Island’s book value of net assets totaled $250,000 and the fair va...

Q: On September 1, 2017, Cano & Company, a U

On September 1, 2017, Cano & Company, a U.S. corporation, sold merchandise to a foreign firm for 250,000 euros. Terms of the sale require payment in euros on February 1, 2018. On September 1, 2017, th...