Questions from Intermediate Accounting

Q: Presented below is information from the annual report of Potter Plastics,

Presented below is information from the annual report of Potter Plastics, Inc. Operating income ……………………………… $ 532,150 Bond interest expense ………………………….. 135,000 …………………………………………………………… 397,150 Income...

Q: The outstanding capital stock of Pennington Corporation consists of 2,000

The outstanding capital stock of Pennington Corporation consists of 2,000 shares of $100 par value, 6% preferred, and 5,000 shares of $50 par value common. Instructions Assuming that the company has...

Q: Martinez Company’s ledger shows the following balances on December 31, 2012

Martinez Company’s ledger shows the following balances on December 31, 2012. Preferred Stock (5%; $10 par value, outstanding 20,000 shares) ………….. $ 200,000 Common Stock ($100 par value, outstanding 3...

Q: Hagar Company has outstanding 2,500 shares of $100 par

Hagar Company has outstanding 2,500 shares of $100 par, 6% preferred stock and 15,000 shares of $10 par value common. The schedule below shows the amount of dividends paid out over the last 4 years....

Q: On January 5, 2012, Phelps Corporation received a charter granting

On January 5, 2012, Phelps Corporation received a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 50,000 shares of $10 par v...

Q: Clemson Company had the following stockholders’ equity as of January 1,

Clemson Company had the following stockholders’ equity as of January 1, 2012. Common stock, $5 par value, 20,000 shares issued …………………….. $100,000 Paid-in capital in excess of par—common stock …………………...

Q: Hatch Company has two classes of capital stock outstanding: 8%,

Hatch Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2012, the following accounts were included in stockholders’ equity. Preferred Stock...

Q: Seles Corporation’s charter authorized issuance of 100,000 shares of $

Seles Corporation’s charter authorized issuance of 100,000 shares of $10 par value common stock and 50,000 shares of $50 preferred stock. The following transactions involving the issuance of shares of...

Q: Before Gordon Corporation engages in the treasury stock transactions listed below,

Before Gordon Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share)....

Q: Briggs and Stratton recently reported unamortized debt issue costs of $5

Briggs and Stratton recently reported unamortized debt issue costs of $5.1 million. How should the costs of issuing these bonds be accounted for and classified in the financial statements?