Questions from Intermediate Accounting

Q: Lighthouse Company began operations on January 1. Authorized were 25,

Lighthouse Company began operations on January 1. Authorized were 25,000 shares of $1 par value common stock and 5,000 shares of 10%, $100 par value convertible preferred stock. The following transact...

Q: Atlantic Pacific Corporation was organized on September 1, 2013, with

Atlantic Pacific Corporation was organized on September 1, 2013, with authorized capital stock of 150,000 shares of 7% cumulative preferred stock with a $40 par value and 1,000,000 shares of no-par co...

Q: Manti Company had the following account balances on its balance sheet at

Manti Company had the following account balances on its balance sheet at December 31, 2013, the end of its first year of operations. All stock was issued on a subscription basis. Common stock subscri...

Q: Keystone Company has two classes of capital stock outstanding: 10%,

Keystone Company has two classes of capital stock outstanding: 10%, $40 par preferred and $1 par common. During the fiscal year ended November 30, 2013, the company was active in transactions affectin...

Q: The Stockholders’ Equity section of Webster Inc. showed the following data

The Stockholders’ Equity section of Webster Inc. showed the following data on December 31, 2012: common stock, $3 par, 300,000 shares authorized, 250,000 shares issued and outstanding, $750,000; paid-...

Q: Pineview Co., organized on June 1, 2012, was authorized

Pineview Co., organized on June 1, 2012, was authorized to issue stock as follows: • 80,000 shares of preferred 9% stock, convertible, $100 par • 500,000 shares of common stock, $2.50 stated value Dur...

Q: Lupito Company had the following transactions occur during 2013: (

Lupito Company had the following transactions occur during 2013: (a) Issued 8,000 shares of common stock to the founders for land valued at $275,000. Par value of the common stock is $1 per share. (b)...

Q: Transactions that affected Barter Company’s stockholders’ equity during 2013, the first

Transactions that affected Barter Company’s stockholders’ equity during 2013, the first year of operations, follow. (a) Issued 30,000 shares of 9% preferred stock, $20 par, at $26. (c) Purchased and i...

Q: The board of directors of Muir Company adopted a fixed stock option

The board of directors of Muir Company adopted a fixed stock option plan to supplement the salaries of certain executives of the company. Options to buy common stock were granted as follows: Options...

Q: If a company experiences a current operating loss, it may carry

If a company experiences a current operating loss, it may carry the loss backward and forward. What impact do these carrybacks and carryforwards have on the reported operating loss? on the statement o...