Questions from Intermediate Accounting

Q: DiCenta Corporation reported net income of $270,000 in 2014

DiCenta Corporation reported net income of $270,000 in 2014 and had 50,000 shares of common stock outstanding throughout the year. Also outstanding all year were 5,000 shares of cumulative preferred...

Q: On January 1, 2014, Lennon Industries had stock outstanding as

On January 1, 2014, Lennon Industries had stock outstanding as follows. To acquire the net assets of three smaller companies, Lennon authorized the issuance of an additional 160,000 common shar...

Q: Refer to the data for Barwood Corporation in BE16-6.

Refer to the data for Barwood Corporation in BE16-6. In BE16-6 On January 1, 2014, Barwood Corporation granted 5,000 options to executives. Each option entitles the holder to purchase one share of...

Q: Melton Corporation is preparing the comparative financial statements for the annual report

Melton Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2014, and May 31, 2015. The income from operations for e...

Q: Where can authoritative IFRS be found related to dilutive securities, stock

Where can authoritative IFRS be found related to dilutive securities, stock-based compensation, and earnings per share?  

Q: Vargo Company has bonds payable outstanding in the amount of $500

Vargo Company has bonds payable outstanding in the amount of $500,000, and the Premium on Bonds Payable account has a balance of $7,500. Each $1,000 bond is convertible into 20 shares of preferred s...

Q: What are stock rights? How does the issuing company account for

What are stock rights? How does the issuing company account for them?  

Q: What effect do stock dividends or stock splits have on the computation

What effect do stock dividends or stock splits have on the computation of the weighted-average number of shares outstanding?  

Q: Archer Inc. issued $4,000,000 par value

Archer Inc. issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not included the conversion feature, they would have sold for 95. Prepare the journal entry to record t...

Q: Brad Dolan, a stockholder of Rhode Corporation, has asked you

Brad Dolan, a stockholder of Rhode Corporation, has asked you, the firm’s accountant, to explain why his stock warrants were not included in diluted EPS. In order to explain this situation, yo...