Questions from Intermediate Accounting

Q: The stockholders’ equity of Thomas Company as of December 31, 2012

The stockholders’ equity of Thomas Company as of December 31, 2012, was as follows: Common stock, $1 par, authorized 275,000 shares; 240,000 shares issued and outstanding . . . . . . . . . . . . . ....

Q: The company received subscriptions for 20,000 shares of $1

The company received subscriptions for 20,000 shares of $1 par common stock for $25 per share. The company received 40% of the subscription amount immediately and the remainder two months later. Make...

Q: In 2013, Calton Inc. had 100,000 shares of

In 2013, Calton Inc. had 100,000 shares of $1.50 par value common stock outstanding. Calton issued 100,000 stock rights. Five rights, plus $50 in cash, are required to purchase one new share of Calton...

Q: Western Company wants to raise additional equity capital. After analysis of

Western Company wants to raise additional equity capital. After analysis of the available options, the company decides to issue 1,500 shares of $20 par preferred stock with detachable warrants. The pa...

Q: On January 1, 2012, Obregon Supply Company established a stock

On January 1, 2012, Obregon Supply Company established a stock-based compensation plan for its senior employees. A total of 45,000 options was granted that permit employees to purchase 45,000 shares o...

Q: Rhiener Corporation initiated a performance-based employee stock option plan on

Rhiener Corporation initiated a performance-based employee stock option plan on January 1, 2012. The performance base for the plan is net sales in the year 2014. The plan provides for stock options to...

Q: San Juan Corporation established a stock option plan that provides for cash

San Juan Corporation established a stock option plan that provides for cash payments to employees based on the appreciation of stock prices from an established threshold price. The plan was instituted...

Q: How do changes in the balances of deferred income taxes affect the

How do changes in the balances of deferred income taxes affect the amount of cash paid for income taxes?

Q: Stockholders’ equity for Channa Co. on December 31 was as follows

Stockholders’ equity for Channa Co. on December 31 was as follows: Preferred stock, $14 par, 25,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . . $ 350,000 Paid-in capital in ex...

Q: Endicott Company’s December 31, 2012, balance sheet reported retained earnings

Endicott Company’s December 31, 2012, balance sheet reported retained earnings of $86,500, and net income of $124,000 was reported in the 2012 income statement. While preparing financial statements fo...