The shareholders’ equity section of Superior Corporation’s balance sheet as of December 31, 2015, is as follows: Shareholders’ Equity Preferred stock, $100 par value; authorized, 300,000 shares; issued, 33,000 shares $3,300,000 Common stock, $5 par value; authorized, 2,000,000 shares; issued, 377,000 shares 1,885,000 Paid-in capital in excess of par—preferred 96,000 Paid-in capital in excess of par—common 825,000 Retained earnings 2,920,000 $9,026,000 The following events occurred during 2016: Jan. 5 10,500 shares of authorized and unissued common stock were sold for $7 per share. 16 10,000 shares of authorized and unissued preferred stock were sold for $108 per share. Apr. 1 79,000 shares of common stock were repurchased for the treasury at a price of $21 per share. Superior uses the cost method to account for treasury stock. Sept. 1 3,500 shares of preferred stock are issued in exchange for a piece of land. The land has an appraised value of $389,500. The preferred stock currently trades on the New York Stock Exchange at a price of $109 per share. Dec. 1 24,000 shares of treasury stock are reissued at a price of $24 per share.

Required: 1. Prepare journal entries for each of the above transactions.

2. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2016.

3. Calculate Superior’s legal capital at December 31, 2016.

Campbell Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 339,500 pounds of raw materials, the company generates 75,300 pounds of B7, 162,100 pounds of K6, and 102,100 pounds of X9. A standard batch costs $2,037,000 to produce. The sales prices per pound are $5, $15, and $20 for B7, K6, and X9, respectively.

Required

1. Allocate the joint product cost among the three final products using weight as the allocation base.

2. Allocate the joint product cost among the three final products using market value as the allocation base

FILL IN CHARTS

Unit Cost, Ending Work-in-Process Inventory, Journal Entries

During August, Skyler Company worked on three jobs. Data relating to these three jobs follow:

Overhead is assigned on the basis of direct labor hours at a rate of $2.30 per direct labor hour. During August, Jobs 39 and 40 were completed and transferred to Finished Goods Inventory. Job 40 was sold by the end of the month. Job 41 was the only unfinished job at the end of the month.

Required:

1. Calculate the per-unit cost of Jobs 39 and 40. Round unit costs to nearest cent.

2. Compute the ending balance in the work-in-process inventory account.
$

Feedback

1. Manufacturing cost comes from totaling direct materials, direct labor, and overhead on each job. The grand total can be divided by the number of units to determine per-unit cost.

2. Determine which jobs are still in work-in-process and compute the balance.

3. Prepare the journal entries reflecting (a.) the completion of Jobs 39 and 40 and (b.) the sale of Job 40. Make the entry to record the cost of Job 40 first, followed by the entry to record the revenue from its sale. The selling price is 140 percent of cost.

1) Net income:

A) is calculated by subtracting total expenses and total dividends from total revenues.

B) occurs when total revenues are less than total expenses.

C) is often referred to as the "bottom line" on an income statement.

D) decreases total stockholders' equity.

2) On January 1, 2017, total assets for Wininger Technologies were $140,000; on December 31, 2017, total assets were $155,000. On January 1, 2017, total liabilities were $111,000; on December 31, 2017, total liabilities were $118,000. What is the amount of the change and the direction of the change in Wininger Technologies' owners' equity for 2017?

A) decrease of $8000

B) increase of $8000

C) increase of $22,000

D) decrease of $22,000

3) Golden Company had the following accounts and balances at the end of the year. What are total assets at the end of the year?

A) $75,000

B) $117,000

C) $130,000

D) $172,000

4) The CORRECT data flow from one financial statement to the next is:

A) statement of retained earnings, income statement, balance sheet, statement of cash flows.

B) balance sheet, statement of retained earnings, income statement, statement of cash flows.

C) statement of retained earnings, income statement, statement of cash flows, balance sheet.

D) income statement, statement of retained earnings, balance sheet, statement of cash flows.

5) Potter Company reports the following line items:

What is net income?

A) $26,000

B) $34,000

C) $59,500

D) $104,000

6) Analyze each of the following transactions in terms of their effects on the accounting equation of Osgood Delivery Service. The company is a sole proprietorship. Enter the correct amounts in the columns of the spreadsheet.

a)   James Osgood contributes $75,000 cash to the business in exchange for capital.

b) The business purchases $750 of office supplies on account.

c)   The business pays cash to purchase a delivery van for $25,000.

d) Services are performed for clients and $5,000 cash is received.

e)   Cash is paid for rent expense, $800 and utilities expense, $400.

f)   James Osgood withdraws $1,000 from the business for personal use.

Which of the following statements is true of a nonqualified plan?

(A) The employer receives a tax deduction only when the employee reports income.

(B) The contributions are tax deductible to the employer and to the employee at the time the employer makes them.

(C) The contributions are deductible to the employer at the time the employer makes them and taxable to the employee.

(D) The contributions are deductible to the employer at the time the employer makes them and the employee is not taxed until benefits are distributed.

Which of the following advantages is (are) obtained from installation of a defined-benefit retirement plan? ​

I. The plan will increase employees’ take-home pay. ​

II​. The plan will help the employer to attract needed employees. ​

III​.The plan will minimize the employer’s investment risk. ​

IV​. The plan will allow the employer to deduct contributions in the year made.

(A) II only​​ (B) II and IV only​ (C) I and III only (D) I, II, III and IV

Which of the following statements concerning a qualified plan is (are) correct?

(A) Qualified plans do not provide protection for plan benefits from bankruptcy of the business.

(B) Qualified plans provide a tax shelter for the investment income earned by the plan assets.

(C) Qualified plans are not limited on the amount of benefits when the plan includes immediate vesting.

(D) Qualified plans are not subject to ERISA rules when the plan includes immediate vesting.

Which of the following statements best describes the advantages of a qualified money-purchase pension plan?

(A) It is designed to adequately protect against inflation.

(B) Older employees can be more readily provided with adequate retirement benefits.

(C) Tax sheltering is enhanced because an annuity can be purchased for each employee.

(D) Costs are predictable, and the design is simple and understandable.

Which of the following statements concerning a cash balance plan is correct?

​​(A) ​The employer assumes the investment risk.

(B)  ​There are individual account balances in a cash balance plan.

(C)  ​A cash balance plan is a profit sharing plan.

(D)  ​The cash balance plan is generally less expensive plan to install than a money purchase plan.

Which of the following statements concerning the nondiscrimination requirements of profit-sharing and stock bonus 401(k) plans is correct? ​​​

(A) The actual deferral percentage of the highly-paid employees may not exceed 100% of that of the nonhighly-paid.

(B) The actual deferral percentage of the highly-paid employees may not be more than 200% of that of the nonhighly-paid, and the difference between the two percentages may not exceed 2%.

(C) The use of a safe-harbor provision is prohibited.

(D) In addition to the ADP test, the plans must satisfy both the ratio percentage test and the average benefit test.

Which of the following statements concerning funding policy and objectives is (are) correct?​

​I​. Defined-benefit plans are required to adopt a funding policy, but it is optional for defined-contribution plans.

​II​. In defined-contribution plans, the objective may be to offer investment vehicles so that participants can make up their own portfolios.

(A)​I only​​(C)​Both I and II

(B)​II only​​(D)​Neither I nor II

​Which of the following statements concerning selection of investments for qualified plans is (are) correct?

​I​. Tax-exempt bonds are generally not appropriate investments for qualified plans.

​II​. Money market instruments are appropriate for long-term capital growth.

(A) ​I only​​ (C) ​Both I and II

(B) ​II only​​ (D) ​Neither I nor II

All the following statements concerning mutual fund investments for qualified plans are correct, EXCEPT:

(A)​The availability of participant-directed investments relieves the sponsor of all fiduciary liability.

(B)​Management and acquisition fees are important factors.

(C)​Debt portfolios may be used in addition to equity-based funds.

(D)​Both small and large plans can participate in mutual fund investments.

1. Retail sales on the Internet:

   	a.	Are growing rapidly
   	b.	Have only been achieved by major retailers such as Wal-Mart
   	c.	Were growing at first, but are now declining
   	d.	Are not possible on the Internet

It is always best to extract all data from the source data store during ETL.

True

False

Resolving issues related to harmonizing field formats and data duplication would be addressed in which phase of the ETL process?

The term cloud computing refers to services that organizations can access on the Internet.

True

False

Companies are not required to, but have the option to, value some or all of their financial assets and liabilities at fair value. a- True b- false

1. Compliance with the IFRS is enforced by:

a. FASB, b. government regulators, c. IAS, or d. IASB

2. Under IFRS unrealized holding gains and losses on held-for-trading equity investments of less than 20 percent are recorded in _____, and unrealized holding gains and losses on non-trading equity investments of less than 20 percent are recorded in _______.

a. net income; net income. b. net income; other comprehensive income. c. other comprehensive income; net income. d. other comprehensive income; other comprehensive income

3. ABC co. purchases XYZ Co. for less than the fair value of XYZ Co.'s net assets (ie. a bargain purchase). How should ABC co. record the difference between the fair value of XYZ Co's net assets and the purchase price?

a. amortization expense. b. gain. c. goodwill. d. loss

4. On December, 31 2018, Buthainah Corp. owned a patent. The carrying amount of the patent (following the amortization journal entry on December 31, 2018) is 100,000/ The recoverable amount of the patent is determined to be $70,000. Which of the following is true regarding the journal entry that Buthainah Corp. should record on December 31, 2018.

a. Debit to loss on impairment of $30,000. b. credit to patent of $30,000. c. debit to goodwill of $30,000. d. both A and B are correct

5. Danah Corp. has three intangible assets (two patents and goodwill) on December 31, 2018. There is no impairment of any of the three intangible assets/ One patent has a carrying value of $20,000, one patent has a carrying value of $30,000, and the goodwill amount is $10,000. How should the three intangible assets be presented on the statement of financial position?

a. each intangible asset should be listed separately. b. all intangible assets should be grouped together in one intangible assets account. c. the two patents should be grouped together in one intangible assets account and goodwill should be listed separately. d. the threee intangible assets do NOT belong on the statement of financial position.

Statement of Cash Flows (Indirect Method)
Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-current-liabilities ratio.

a. Use negative signs with cash outflow answers.

b. Operating-cash-flow-to-current-liabilities ratio (Round answers to two decimal places.)

Answer

On January 1, 2018 Casey Corporation exchanged $3,244,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems.

At the acquisition date, Casey prepared the following fair-value allocation schedule:

Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records.

Prepare an acquisition-date consolidated balance sheet for Casey Corporation and its subsidiary Kennedy Corporation. (Negative amounts should be indicated by a minus sign.)

s a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Regina Soap Co.:

Factory output and sales for 20Y9 are expected to total 23,000 units of product, which are to be sold at $120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year.

Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows:

Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of $250,400 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of $1 per share are expected to be declared and paid in March, June, September, and December on 35,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for $125,000 cash in May.

Required:

1. Prepare a budgeted income statement for 20Y9.

Feedback

Use information from the expected sales, cost of goods manufactured and sold, and selling and administrative expenses.

Learning Objective 4, Learning Objective 5.

2. Prepare a budgeted balance sheet as of December 31, 20Y9.

Feedback

Do not forget to include inventories of finished goods, work in process, and materials as assets in the balance sheet.

Calculate the ending retained earnings balance. Include the remaining assets, liabilities, and stockholders' equity.

1.a Sheridan Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,088,700 of 14% term corporate bonds on March 1, 2020, due on March 1, 2035, with interest payable each March 1 and September 1, with the first interest payment on September 1st, 2020. At the time of issuance, the market interest rate for similar financial instruments is 12%.

As the controller of the company, determine the selling price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Selling price of the bonds = ?

1.b

Shamrock Corporation, having recently issued a $20,069,100, 15-year bond issue, is committed to make annual sinking fund deposits of $616,800. The deposits are made on the last day of each year and yield a return of 10%.

Future value of an ordinary annuity = ?

1. c Under the terms of his salary agreement, president Chris Walters has an option of receiving either an immediate bonus of $55,000, or a deferred bonus of $70,000 payable in 10 years.

Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept?

Present value of deferred bonus = ?

• How does the IRS define what is a “political contribution” that cannot be deducted? Is the disallowance limited to outright gifts, or does it extend to less direct methods of providing funds to a candidate or party? If the latter, please explain the circumstances in which the disallowance applies to something that is not an outright gift.
• How does the IRS define what is “lobbying,” so that a taxpayer may determine what expenses are not deductible as lobbying expenses?
• Many not-for-profit organizations are engaged in lobbying, but still qualify to receive deductible charitable contributions. Does this activity affect an individual’s ability to claim a charitable deduction for contributions to an otherwise qualified organization? If so, in what circumstances, and how is the deduction affected?

On March 1, 2018, E Corp. issued $1,000,000 of 10% nonconvertible bonds at 103, due on February 28, 2028. Each $1,000 bond was issued with 30 detachable stock warrants, each of which entitled the holder to purchase, for $50, one share of Evan's $25 par common stock. On March 1, 2018, the market price of each warrant was $4. By what amount should the bond issue proceeds increase shareholders' equity?