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In: Accounting

Nicholas Corporation reacquired 1600 shares of its own $5 par value stock at a price of...

Nicholas Corporation reacquired 1600 shares of its own $5 par value stock at a price of $9/share.

1000 shares were reissued at $115/share.

Later, Nicholas Corporation reissued the remaining 600 shares at $75/share.

A. Prepare the journal entries related to these transactions

Waters Inc. had revenue and expense numbers of $950,000 ansd $830,000.

During the year, the company sold a failing division that had net income of $50,000.

The division was sold at a loss of $30,000.

All items are subject to an income tax rate of 30%.

A. Prepare an Income Tax Statement for Waters for the year.

1. Make sure to clearly differentiate between "Continuing Operations" and Discontinued Operations".

Fellows Inc. declared a 5% stock dividend on its 500,000 shares of common stock. The $10 par value common stock was originally selling

for $12/share and was selling for $14/share when the stock dividend was declared.

A. Prepare the journal entries to declare and pay the dividend.

Smiles Company sold $500,000 bonds at 98.

Assume that the bonds will be outstanding for 10 years and that interest at the rate of 5% will be paid annually.

A. Prepare the issuing entry and the first interest payment.

Next, assume that the bonds were sold at 104.

Assume that the bonds will be outstanding for 10 years and that interest at the rate of of 5% will be paid annually.

B. Prepare the issuing entry and the first interest payment,

Crawford Inc. has 500 shares of marketable securities with a current market value of $12/share.

The original cost of the shares was $8/share.

A. What is the adjusting entry that must be made on December 31, 2020 ?

Taylor Inc. purchased equipment for $25,000. It depreciated the equipment over a 5 year life using straight line depreciation.

At the end of the second year (after depreciation was taken), the asset was sold for $8,000.

A. Show your depreciation calculation using the straight line method.

B. Calculate the gain or loss at the end of the second year.

A business is formed when Walters invests $50,000 and Riley invests $70,000.

During the first year $120,000 of Net Income is earned.

Create a schedule to divide net income assuming the following-

a. Salaries of $20,000 to Walters and $40,000 to Riley

b. Interest at 15% on beginning capital investments

c. Balance divided equally

Expert Solution

ekkarill92 answered 2 years ago

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