Question: Using the information provided in E14-13,

> Assume that the $3,500,000 net income reported by Stewart Stamping in E20-4 includes a $780,000 loss from discontinued operations, net of tax. Required: a. Based on this information, compute basic and diluted earnings per share for the current year. b.

> Topher Company began the current year with 1,600,000 common shares outstanding. It also reported $800,000 par value, 2% convertible bonds outstanding all year. The bonds were issued at par and can be converted to 800,000 shares of common stock. Topher ma

> On January 1, Bright Star Inc. had 600,000 common shares outstanding. The company issued an additional 200,000 shares on March 1. Bright Star also issued $1,000,000 par value, 2% nonconvertible, noncumulative preferred stock on October 1 and declared div

> Use the same information in E20-4 except assume that the company issued $10,000,000, 2.5% convertible bonds on June 30 (i.e., $250,000 coupon interest annually), which are convertible into 325,000 shares of common stock. Based on this information, comput

> Stewart Stamping began the current year with 400,000 common shares outstanding and issued an additional 150,000 shares on September 1. The firm has $10,000,000, 2.5% convertible bonds outstanding for a full year (i.e., $250,000 coupon interest per year),

> On January 1, 2018, Queens Company reported the following stockholders’ equity: On January 4, the company purchased 10,000 shares of its own stock at $25 per share to be held as treasury stock. On June 30, the company declared a $2 per

> Assume that Jarden Associates began the year with 75,000 outstanding shares and implemented a 7% stock dividend on January 1 of the current year. Jarden employees held 90,000 options that were granted on April 1. If exercised, there would be 18,000 incre

> Using the information from BE14-9, determine the issue price of the bonds assuming that the market rate of interest is 4% Data from BE14-9: Jorge Corporation issued $100,000 par value, 6%, 4-year bonds (i.e., there were 100 of $1,000 par value bonds in

> Thomas Company began the year with 150,000 common shares outstanding. The firm issued an additional 75,000 shares on May 1 and 15,000 shares on November 1. In addition, Thomas implemented a 2-for-1 stock split on July 1. The firm’s year-end is December 3

> Refer to the income statement for Gamba Incorporated from E20-11, noting the following modifications: Required: a. Based on the information provided, compute basic and diluted earnings per share for the current year. Include all computations related to

> We present Gamba Incorporated’s current-year partial income statement: Gamba is subject to a 35% income tax rate. Required: a. Based on the information provided, compute basic and diluted earnings per share for the current year. Inclu

> Archangelo Company provided the following information for the current year. Net income is $8,112,600, and the company is subject to a 40% tax rate. For the entire year, there are 1,020,300 shares of outstanding common stock with an average market price o

> Start Stamping began the current year with 450,000 common shares outstanding. The firm has $1,150,000 par value, 3% nonconvertible, noncumulative preferred stock outstanding. The preferred shares were outstanding for a full year and the firm declared pre

> Crystal Glass Works, Ltd. provided you with the following information regarding its defined-benefit pension plan. Required: • Beginning plan assets at fair value (market-related value), $600,000 • Beginning projected benefit obligation (PBO), $558,00

> NR Enterprises, Inc., an IFRS reporter, granted stock appreciation rights to its key employees on January 2, 2018. These SARs allow the employees to receive cash at the end of the vesting period for the difference between the market price of the stock on

> NR Enterprises, Inc., an IFRS reporter, granted stock appreciation rights to its key employees on January 2, 2018. These SARs allow the employees to receive cash at the end of the vesting period for the difference between the market price of the stock on

> Saddle Corporation reported comprehensive income of $14,000 for the current year. It had unrealized losses on available-for-sale debt investment securities of $750 after tax and a foreign currency translation gain of $3,500 after tax. The beginning balan

> NR Enterprises, Inc. granted stock appreciation rights to its key employees on January 2, 2018. These SARs allow the employees to receive cash at the end of the vesting period for the difference between the market price of the stock on the exercise date

> eGear Company started a share appreciation plan on January 1, 2018, when it granted 200,000 rights to its executives. The vesting period is 2 years. The plan expires on January 1, 2020. The fair value of eGear’s SARs for the years ended

> Scudder Products, Inc. borrowed $600,000 by issuing a 6-month note on September 1 of the current fiscal year. The note is due on March 1 of the following fiscal year. The short-term note carries a 5% annual interest rate with interest due at maturity. Th

> Max Ferguson Cosmetics compensates its key employees by offering stock options as part of total compensation. On January 1 of the current year, Max Ferguson granted 10,000 options to acquire 10,000 shares of its $2 par value common stock at an exercise p

> Davidson Company compensates its key employees by offering stock options as part of total compensation. On January 1 of the current year, Davidson granted 80,000 options to acquire 80,000 shares of its $1 par value common stock at an exercise price of $3

> Max Ferguson Cosmetics compensates its key employees by offering stock options as part of total compensation. On January 1 of the current year, Max Ferguson granted 10,000 options to acquire 10,000 shares of its $2 par value common stock at anexercise pr

> Welsa Manufacturing, Inc. offers a noncontributory, defined-benefit pension plan to its employees. The average remaining service life of employees is 10 years. The company provides you with the following information for the year ended December 31, 2019:

> The following information relates to the defined benefit pension plan of Murry Corp. for the year ended December 31, 2019: There were no benefit payments for the year. Required: (Round all computations to the nearest dollar) a. Compute the total pen

> McDonald-Johnson Engineering Associates offers its employees a defined-benefit pension plan. The company asked you to assess the impact of the following events on its annual pension cost, the balance of accumulated other comprehensive income, and its net

> Desmond Group provided the following information related to its defined-benefit plan for the current year. Required: a. Compute the total pension cost for the current year. b. Determine the ending balances of the plan assets and the projected benefit

> Neddle Corporation reported net income of $176,000 for the current year. It had unrealized gains on available-for-sale debt investment securities of $5,000 after tax and a foreign currency translation loss of $8,000 after tax. The beginning balance of it

> Rory Storm Roofing and Siding, Inc. reported the following shareholders’ equity section as of the beginning of the current year Rory Storm also issued 823,000 shares of its $5 par value preferred stock. There is a 6% dividend rate on t

> Pavane Company recorded the original issuance of its $10 par value common shares as follows: Required: Provide the journal entries for the following transactions. a. Pavane bought 95,000 shares of common stock as treasury shares at $55. It used the co

> The stockholders’ equity section of Bellwood Brands’ 2017 balance sheet follows: During 2018, Bellwood completed the following transactions: • November 9: Purchased 200 shares of its own stock to be

> Repeat the requirements of E15-9 and assume that the shares are retired rather than held in the treasury Data from E15-9: Prepare the journal entries required to record the following share buyback transactions assuming that Samuel Company holds the sha

> Pergolesi Products, Inc. recently issued 5,000 shares of no-par common stock. The shares carry a $2 per share stated value. The market price of the shares on the date of issue was $35 per share. The company paid $12,000 in underwriting fees to issue the

> Romero Brothers Contracting reports a $1,200,000 biweekly payroll. Romero and its employees must pay Social Security (federal insurance contribution act (or FICA) taxes, and none of the employees has exceeded the wage base for FICA taxes or the minimum a

> Takedo Company issued $600,000 par value, 10-year, 5% bonds on February 1, 2018. The bonds are dated January 1, 2018, and pay interest quarterly each March 31, June 30, September 30, and December 31. The bonds are sold at par plus accrued interest becaus

> On January 1, 2018, Faxico, Inc. issued $4,500,000 par value, 8%, 5-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2018. The market rate of interest on the da

> On January 1, 2018, McMillan Corporation issued $100,000 par value, 5-year, zero-coupon bonds. The market rate of interest on the date of the bond issue was 6%. The company’s fiscal year ends on December 31. Required: a. Determine the issue price of t

> On January 1, 2018, the Landon Capital Partners issued $600,000 par value, 6%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2018. The market rate of inter

> On January 1, 2018, Mill Road Corporation issued $300,000 par value, 5%, 5-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2018. The market rate of interest on

> On March 31, 2018, Vine Company issued a $487,000, 2%, 3-year note payable when the market rate was 8%. Interest is due on each March 31, beginning March 31, 2019. The company’s fiscal year ends on December 31. Required: a. Prepare the journal entry t

> Broad Street Company borrows $975,050 by issuing an 8%, 7-year note on January 1, 2018. Broad Street must make payments of principal and interest every 6 months beginning June 30, 2018. The note will be fully paid at maturity on December 31, 2024. The co

> On January 1, 2018, Sohape Corporation issued $100,000 par value, 5-year bonds with a 3% stated interest rate. Interest is paid annually each December 31. The market rate of interest on the date of the bond issue was 2.5%. The amortization table for the

> On January 1, 2018, McMillan Corporation issued $86,000 par value, 6-year bonds with a 0% stated interest rate. The discount on the bonds is amortized annually each December 31. The market rate of interest on the date of the bond issue was 3.25%. Fair va

> EA&Y, Inc. borrowed $350,000 on January 1, 2018, with a 6% interest rate. It will make a payment of $101,007 annually (beginning December 31, 2018) until the note is paid off on December 31, 2021. The company’s fiscal year ends on December 31. The paymen

> Michael and Sons, Ltd. sells lawn and garden products for home use. The company offers an assurance-type warranty that covers all repair costs, including parts and labor, for 1 year after the date of sale of lawn tractors. Michael also sells a service-ty

> DHC Associates issued 2,100 of its $1,000, 8%, 5-year par value bonds. There are no bond issue costs. Interest is paid annually. The market rate on the date of issue was 9%. The market price of DHC common shares on the date that the bonds are issued is $

> Randolph Company issued 4,500 of its $1,000 par value bonds for $1,440, providing total cash proceeds of $6,480,000. There are no bond issue costs. The market price of Randolph’s common shares on the date that the bonds were issued was $40 per share. The

> Use the information from E14-16 and assume that all bonds convert after 3 years. The carrying value of the bonds at the conversion date is $913,000. Prepare the journal entry at conversion Data from E14-16: Marly, Inc., issues 1,000 of 6-year, 3% conver

> Marly, Inc., issues 1,000 of 6-year, 3% convertible bonds at par of $1,000. Each $1,000 bond converts into 10 shares of no-par value common stock at the option of the bondholder beginning 3 years after the date of issue. There were no bond issue costs. T

> Using the information provided in E14-13, complete the following requirements assuming that the effective rate of interest for convertible bonds is 4% on the date of issue. Required: a. Determine the issue price of the debt. b. Prepare the amortizatio

> On January 1, 2018, Mobile Technology, Incorporated issued $850,000 of $1,000 par value, 6%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2018. The market

> On January 1, 2018, Faxico, Inc. issued $4,500,000 par value 8%, 5-year bonds. Interest is payable semiannually on January 1 and July 1 with the first interest payment on July 1, 2018. The market rate of interest on the date of the bond issue was 10%. Fa

> Teter Company issued $700,000 par value, 5-year, 3% bonds on November 30, 2018. The bonds are dated July 1, 2018, and pay interest semiannually on June 30 and December 31. The bonds are sold at $723,807, including accrued interest, because they are sold

> Briscoe Company issued $700,000 par value, 5-year, 4% bonds on April 30, 2018. The bonds are dated January 1, 2018, and pay interest semiannually on June 30 and December 31. The bonds are sold at $703,455, including accrued interest, because they are sol

> Using the information provided in BE13-16, prepare the journal entries necessary to record the assurance-type warranty in the year of the sale and the actual repairs incurred during the following year assuming that Landau uses the accrual basis. Data fr

> Gardiner Manufacturing, Inc. borrowed $950,000 by issuing an 8-month note on July 1 of the current year. The note is due on March 1 of the following fiscal year. The short-term note carries a 6% annual interest rate with interest due at maturity. The com

> Using the same information from E13-8, assume that Fireen’s reports under IFRS. Required: a. Explain how the lawsuit should be reported under IFRS. b. Prepare any journal entries required. Data from E13-8: In January 2018, a customer filed a lawsuit

> In January 2018, a customer filed a lawsuit against Fireen’s Boutique. The customer fell on an icy patch in the store’s parking lot and broke an ankle in December. Fireen’s fiscal yearend is January 31. The company’s attorneys believe that it is reasonab

> On January 1, Tritrua Auto Company built a new manufacturing facility at a total cost of $15,000,000 and paid cash. To dismantle the plant and restore the property at the end of the plant’s 25-year life, the estimated cost is $850,000. Tritrua will depre

> On January 1, Evergreen Utilities Company acquired a power plant at a total cost of $23,500,000 and paid cash. The estimated cost to dismantle the plant and restore the property at the end of the plant’s 20-year life is $4,850,000. Evergreen’s cost of ca

> Bristol Stamping Company provides its 100 employees with a comprehensive benefits package. As part of this package, Bristol allows each of its 100 employees 12 paid sick days per year. The average wage rate for the current year is $140 per day. If employ

> Eaton Technology operates retail stores throughout the tristate area. The company’s sales are subject to a 7% sales tax payable to the state and county government. At the end of the current year, Eaton reported accounts receivable of $5,617,500 for credi

> Diamond Depot sold $57,000 of gift cards during the current year and received cash. Diamond uses the proportional method for accounting for gift card breakage. Based on historical experience, it estimates a breakage percentage of 12% of its gift card sal

> On May 1 of the current year, Interstate Home and Casualty, Inc. collected $720,000 for 3-year insurance policies. Coverage begins on May 1. Interstate has a December 31 year-end. Required: a. Prepare the journal entries required on the date that Inter

> Supergreen Grocers, Inc. offered its customers a free baking pan in exchange for 100 green stickers. Customers earn 1 green sticker for each $10 of groceries purchased at Supergreen during 2018. During 2018, Supergreen purchased with cash 1,100 baking pa

> Landau Manufacturing Company manufactures and distributes small power tools. Landau offers an assurance-type warranty that covers all repair costs, including parts and labor, for 2 years after the date of sale. During the current year, the company sold $

> Genius Computers sells computers and offers an assurance type warranty that covers all repair costs, including parts and labor, for 1 year after the date of purchase. Genius also sells a service-type warranty contract that covers all parts and labor for

> Cole Electronics, Inc. manufactures and distributes LCD televisions. Every television manufactured by Cole carries an assurance-type warranty covering all parts and labor to protect against defects for a 2-year period. During the current year, Cole’s sal

> On November 1, Barcelona Sales, Inc. purchased inventory costing $589,000 using a 5-month trade note payable. The note carries an annual interest rate of 10%. Barcelona has a December 31 year-end. The company uses a perpetual inventory system. Required

> Elyctric Company reports a $2,850,000 monthly payroll. Payroll income taxes average 20% for federal and 4% for state and local taxes. The company is also responsible for federal and state unemployment taxes. The federal unemployment tax rate is 1.6%. The

> Neumann Consulting Group reports a $1,200,000 biweekly payroll. Payroll income taxes average 20% for federal and 4% for state and local taxes. The company is also responsible for federal and state unemployment taxes. The federal unemployment tax rate is

> Lousa Company revalues its equipment with a carrying value of €1,100,000 to its fair value of €950,000. The original cost of the equipment is €1,500,000 and accumulated depreciation is €400,000. Required: a. What is the revaluation surplus or unrealiz

> Sousa Company revalues equipment with a carrying value of €1,100,000 to its fair value of €1,400,000. The original cost of the equipment is €1,600,000 and accumulated depreciation is €500,000. Required: a. What is the revaluation surplus or unrealized

> Hattie Corporation recently decided to dispose of a significant portion of its plant assets. The assets to be held for disposal are summarized here: * Machinery is depreciated by the straight-line method, assuming a 6-year life with no scrap value. The

> Use the same information from E12-5 but now assume that Brigatti Company is an IFRS reporter and that Cornish Division is a cash-generating unit. Assume that costs to sell the unit are zero. Required: a. Determine whether goodwill is impaired assuming

> Use the same information from E12-4 but now treat SMC Research Associates as an IFRS reporter. Required: a. Compute the impairment loss (if any) for each intangible asset. b. Prepare the journal entry necessary to record the impairment loss. c. Assu

> IFRS. Use the information from BE13-14 and now assume that TU Bank is an IFRS reporter. What is the journal entry under IFRS? Data from BE13-14: In August 2018, a customer at TU Bank slipped on a wet floor and broke an arm. The customer sued the bank in

> Use the same information from E12-3 but now assume that Derrick’s Domino Manufacturing Company is an IFRS reporter. Required: a. Prepare the journal entry required to record the impairment loss. b. Assuming that Derrickâ&#128

> Use the same information from E12-1 but now assume that Henne Optical Corporation is an IFRS reporter. Henne Optical’s discount rate is 5% and costs to sell any equipment are zero. Required: a. Determine the asset group for purposes o

> Brigatti Company pays $1,560,000 to acquire 100% of the common stock of Cornish Incorporated. It assumes that Cornish’s plant assets (such as the factory building and land) are undervalued by $40,000. The historical cost of the net asse

> Environmental remediation costs have become increasingly prevalent in the last few decades. Read paragraphs 4 through 7, paragraph 15, and paragraph 25 of ASC 410-30-05. Also read paragraphs 1 through 13 of ASC 410-30-25. 1. Briefly explain the followin

> Kraker, Inc. is a calendar-year private company that is not required to register with the SEC. It operates five different restaurant chains, two of which are fast-food chains and three of which provide higher-end dining experiences. On January 2, 2017, K

> A&N, Inc. is a manufacturer and retailer of specialized office equipment. It currently operates in two countries, both of which follow IFRS for their financial reporting. For the sake of simplicity, assume that both countries have the same currency,

> Refer to FASB ASC 230-10 and the Basis for Conclusions in FASB’s Statement of Financial Accounting Standards No. 95 to answer the following questions: 1. Are companies permitted to report cash flow per share on their financial statements? 2. What was F

> Refer to the Codification to determine the correct classification in the statement of cash flows (operating, investing, or financing) for the following transactions: 1. Cash contributions to charities 2. Proceeds from insurance on a building that was d

> 1. Read FASB ASC 250-10-S99 to respond to the following question. ASCO Recordings has decided to change its inventory system from the LIFO method to the FIFO method for the 2015 fiscal year. Because it does not carry much inventory, the change in princip

> On March 1 of the current year, Johanne Stores acquired 100% of the voting shares of Ferry Furniture Com pany. Johanne reports only annually on a calendar basis. As part of the merger agreement, Johanne agreed to distribute 0.2 additional shares for each

> In August 2018, a customer at TU Bank slipped on a wet floor and broke an arm. The customer sued the bank in September 2018. As of TU Bank’s December 31 year-end, the company’s attorneys believe that it is 80% likely that TU will lose this case. The atto

> ASC 825-10 Financial Instruments – Overall permits (but does not require) the option to report most financial assets at fair value. Read paragraphs A12 – A19 of the Basis for Conclusions in Statement of Financial Accounting Standards No. 159. 1. When mus

> On January 1, 2018, Western Wear, Inc. granted 100,000 stock options to its employees. Of these options, 30% will vest on December 31, 2018, 30% will vest on December 31, 2019, and the remaining 40% will vest on December 31, 2020. The fair value of the o

> On January 1, 2018, Western Wear, Inc. granted 100,000 stock options to its employees. Of these options, 30% will vest on December 31, 2018, 30% will vest on December 31, 2019, and the remaining 40% will vest on December 31, 2020. The fair value of the o

> In the text, we discussed the practical, step-by-step approach for the subsequent measurement of an operating lease for the lessee. However, that exact approach is not specified by the Codification. Consider the following lease scenario. Baldwin Brokerag

> On January 1, 2019 (lease inception date), Tofootles Company leases a piece of equipment from ABC Leasing Company. The lease term is for 4 years with the first payment of $1,000 due on January 1, 2019. The remaining three payments of $1,000 each are due

> Consider each of the following scenarios and determine whether a lease contract exists for each scenario. Support your conclusions with Topic 842 in the Codification and provide appropriate citations to the Codification. 1. Guitar World Company (GWC) se

> GTI Corporation acquired a 15% interest in DDA Partnership on February 15 of the current year. GTI is preparing its financial statements for the first quarter and needs to determine how to report the investment. GTI realizes that it will either report at

> Toofles Company, a publicly traded entity, issued nonredeemable preferred stock on January 1, 2018, Toofles issued 1,000 shares of $100 par value shares for $82,425. On January 1, 2015, the market rate of interest for preferred stock with the same charac

> Companies sometimes issue bonds with detachable warrants entitling the bondholder to buy the stock of the company at a fixed price. The U.S. GAAP rules related to the issue of these bonds are included in ASC 470-20, Debt with Conversion and Other Options

> Under U.S. GAAP, firms may choose to report most financial assets and financial liabilities at fair value, using the fair value option. The rules related to the fair value option are included in ASC 825-10 Financial Instruments—Overall. When an entity ch

> The managers of Axbo Company, a private company whose bank requires it to follow U.S. GAAP, have decided to close one of its factories. The managers made this decision on July 16 of the current year and communicated this plan to their workers on August 1

> Buckner Chemical Products reported the following information on its latest balance sheet dated December 31 of the current year. The relevant t-accounts follow. On January 1 of the following year, Buckner sold the plant asset for $9,000 and incurred $6,2