Questions from Intermediate Accounting

Q: Describe the accounting for the issuance for cash of no-par

Describe the accounting for the issuance for cash of no-par value common stock at a price in excess of the stated value of the common stock.

Q: Explain the difference between the proportional method and the incremental method of

Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales of capital stock.

Q: What are the different bases for stock valuation when assets other than

What are the different bases for stock valuation when assets other than cash are received for issued shares of stock?

Q: Assume the bonds in IFRS14-3 were issued for $644

Assume the bonds in IFRS14-3 were issued for $644,636 and the effective-interest rate is 6%. Prepare the company’s journal entries for (a) The January 1 issuance, (b) The July 1 interest payment, and...

Q: Explain how underwriting costs and accounting and legal fees associated with the

Explain how underwriting costs and accounting and legal fees associated with the issuance of stock should be recorded.

Q: For what reasons might a corporation purchase its own stock?

For what reasons might a corporation purchase its own stock?

Q: Discuss the propriety of showing: (a) Treasury stock

Discuss the propriety of showing: (a) Treasury stock as an asset. (b) “Gain” or “loss” on sale of treasury stock as additions to or deductions from income. (c) Dividends received on treasury stock as...

Q: What features or rights may alter the character of preferred stock?

What features or rights may alter the character of preferred stock?

Q: Dagwood Inc. recently noted that its 4% preferred stock and

Dagwood Inc. recently noted that its 4% preferred stock and 4% participating preferred stock, which are both cumulative, have priority as to dividends up to 4% of their par value. Its participating pr...

Q: Where in the financial statements is preferred stock normally reported?

Where in the financial statements is preferred stock normally reported?