ACC 423 Entire Course

ACC/423

INTERMEDIATE
FINANCIAL ACCOUNTING III


 

The Latest Version A+ Study
Guide


 

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ACC 423 Entire Course Link

https://uopcourses.com/category/acc-423/

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ACC 423 Week 1 Owners’ Equity Paper

Prepare a 700- to 1,050-word response to the following
questions:


  • Why is it
    important to keep paid-in capital separate from earned capital?

  • As an
    investor, is paid-in capital or earned capital more important? Explain
    why.

  • As an
    investor, are basic or diluted earnings per share more important? Explain
    why.



Format your paper consistent with APA
guidelines.



Click the
Assignment Files tab to submit your assignment.

 

 

ACC 423 Week 2 Textbook Problems

Prepare written responses to the following assignments from
Ch. 16 of Intermediate Accounting:


  • Problem
    P15-1

  • Problem
    P15-11

  • Exercise
    E16-15

  • Exercise
    E16-20

  • Exercise
    E16-25

  • Exercise
    E16-29



Click the Assignment Files tab to submit your
assignment.

 

 

ACC 423 Week 2 WileyPLUS Assignment:
Week 2 Assignment

Complete the following Week Two Assignment in WileyPLUS: 


  • Exercise
    E15-1

  • Exercise
    E15-6

  • Exercise
    E15-14

  • Exercise
    E15-18

  • Exercise
    E16-2

  • Exercise
    E16-7

  • Exercise
    E17-2

  • Exercise
    E17-4

  • Exercise
    E17-7

  • Exercise
    E17-13

  • Exercise
    E17-16



 

ACC 423 Week 3 Textbook Problems

Prepare written responses to the following assignments from
Ch. 17 of Intermediate Accounting:


  • Problem
    P17-1

  • Problem
    P17-3

  • Exercise
    E17-22



Click the Assignment Files tab to submit your
assignment.

 

 

ACC 423 Week 3 WileyPLUS Assignment:
Week 3 Assignment

Complete the following Week Three Assignment in WileyPLUS:

 Exercise 19-2


  • Exercise
    19-4

  • Exercise
    19-8

  • Exercise
    19-12

  • Exercise
    19-21



 

 

ACC 423 Week 4 Textbook Problems

Prepare written
responses to the following assignments from Ch. 19 of Intermediate Accounting:


  • Problem P19-1

  • Problem P19-2

  • Problem P19-4

  • Exercise E19-6



Click the Assignment Files tab to submit your assignment.

 

 

ACC 423 Week 4 WileyPLUS Assignment:
Week 4 Assignment

Complete the following Week Four Assignment in WileyPLUS: 


  • Exercise
    E20-1

  • Exercise
    E20-4

  • Exercise
    E20-6

  • Exercise
    E20-8

  • Exercise E20-10

  • Exercise
    E20-16



 

 

ACC 423 Week 5 Textbook Assignment

Prepare written
responses to the following assignments from Ch. 20 of Intermediate Accounting:


  • Problem P20-1

  • Problem P20-3

  • Problem P22-1

  • Problem P22-2



Click the Assignment Files tab to submit your assignment.

 

 

ACC 423 Week 5 WileyPLUS Assignment:
Week 5 Assignment

Complete the following Week Five Assignment in WileyPLUS: 


  • Exercise
    E22-1

  • Exercise
    E22-3

  • Exercise
    E22-6

  • Exercise
    E22-9

  • Exercise
    E22-14

  • Exercise
    E22-17



 

 

ACC 423 Week 5 WileyPLUS Assignment:
Final Examination

Resource: WileyPLUS

Complete the
Final Examination in WileyPLUS.  Results
are auto-graded and sent to your instructor

 

Question 1

Buttercup Corporation
issued 300 shares of $10 par value common stock for $4,500.



Prepare Buttercup’s journal entry. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for
the amounts.)


Question 2

Wilco Corporation has the following account
balances at December 31, 2014.




Common stock, $5
par value



$510,000




Treasury stock



90,000




Retained earnings



2,340,000




Paid-in capital in
excess of par—common stock



1,320,000






Prepare Wilco’s December 31, 2014, stockholders’ equity section. (Enter account name
only and do not provide descriptive information.)


Question 3

Woolford Inc.
declared a cash dividend of $1.00 per share on its 2 million
outstanding shares. The dividend was declared on August 1, payable on September
9 to all stockholders of record on August 15.

Question 4

Ravonette Corporation
issued 300 shares of $10 par value common stock
and 100 shares of $50 par value preferred stock for a lump sum
of $13,500. The common stock has a market price of $20 per share, and the
preferred stock has a market price of $90 per share.

Question 5

The outstanding
capital stock of Edna Millay Corporation consists of 2,000 shares of
$100 par value, 8% preferred, and 5,000 shares of
$50 par value common.



Assuming that the company has retained earnings of $90,000, all of which is to
be paid out in dividends, and that preferred dividends were not paid during the
2 years preceding the current year, state how much each class of stock should
receive under each of the following conditions.

Question 6

Matt Schmidt Company’s ledger shows the
following balances on December 31, 2014.




7% Preferred
Stock—$10 par value, outstanding 20,000 shares



$ 200,000




Common Stock—$100
par value, outstanding 30,000 shares



3,000,000




Retained Earnings



630,000






Assuming that the directors decide to declare total dividends in the amount of
$366,000, determine how much each class of stock should receive under each of
the conditions stated below. One year‘s dividends are in arrears on the
preferred stock.

Question 7

On January 1, 2014,
Barwood Corporation granted 5,000 options to executives. Each option
entitles the holder to purchase one share of Barwood’s $5 par value common
stock at $50 per share at any time during the next 5 years. The market price of
the stock is $65 per share on the date of grant. The fair value of the
options at the grant date is $150,000. The period of benefit is 2 years.

Question 8

Rockland Corporation
earned net income of $300,000 in 2014 and had 100,000 shares of
common stock outstanding throughout the year. Also outstanding all year was
$800,000 of 10% bonds, which are convertible into 16,000 shares
of common. Rockland’s tax rate is 40 percent.

Question 9

Ferraro, Inc.
established a stock-appreciation rights (SAR) program on January 1, 2014, which
entitles executives to receive cash at the date of exercise for the difference
between the market price of the stock and the pre-established price of
$20 on 5,000 SARs. The required service period is 2 years. The
fair value of the SARs are determined to be $4 on December 31, 2014, and
$9 on December 31, 2015.

Question 10

Garfield Company
purchased, as a held-to-maturity investment, $80,000 of
the 9%, 5-year bonds of Chester Corporation for $74,086, which
provides an 11% return.

Question 11

Arantxa Corporation made the following
cash purchases of securities during 2014, which is the first year in which
Arantxa invested in securities.




1.



On January 15,
purchased 10,000 shares of Sanchez Company’s common stock at
$33.50 per share plus commission $1,980.




2.



On April 1,
purchased 5,000 shares of Vicario Co.’s common stock at
$52 per share plus commission $3,370.




3.



On September 10,
purchased 7,000 shares of WTA Co.’s preferred stock at
$26.50 per share plus commission $4,910.






On May 20, 2014, Arantxa sold 4,000 shares of Sanchez Company’s
common stock at a market price of $35 per share less brokerage
commissions, taxes, and fees of $3,850. The year-end fair values per share were
Sanchez $30, Vicario $55, and WTA $28. In addition, the chief accountant of
Arantxa told you that Arantxa Corporation plans to hold these securities for
the long term but may sell them in order to earn profits from appreciation in
prices.

Question 12

The following are two
independent situations.



Situation 1

Conchita Cosmetics acquired 10% of the 200,000 shares of common stock
of Martinez Fashion at a total cost of $13 per share on March 18, 2014. On
June 30, Martinez declared and paid a $75,000 cash dividend. On December
31, Martinez reported net income of $122,000 for the year. At December 31,
the market price of Martinez Fashion was $15 per share. The securities are
classified as available-for-sale.



Situation 2

Monica, Inc. obtained significant influence over Seles Corporation by
buying 30% of Seles’s 30,000 outstanding shares of common stock
at a total cost of $9 per share on January 1, 2014. On June 15, Seles
declared and paid a cash dividend of $36,000. On December 31, Seles reported a
net income of $85,000 for the year.

Question 13

Parent Co. invested $1,000,000 in Sub
Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income
in dividends each year.



Use the information in the following T-account for the investment in Sub to
answer the following questions.

 

Question 14

Jaycie Phelps Inc.
acquired 20% of the outstanding common stock of Theresa Kulikowski Inc. on
December 31, 2013. The purchase price was
$1,200,000 for 50,000 shares. Kulikowski Inc. declared and paid
an $0.85 per share cash dividend on June 30 and on December 31, 2014.
Kulikowski reported net income of $730,000 for 2014. The fair value of
Kulikowski’s stock was $27 per share at December 31, 2014.





Question 15

On January 2, 2014,
Jones Company purchases a call option for $300 on Merchant common stock.
The call option gives Jones the option to buy 1,000 shares of
Merchant at a strike price of $50 per share. The market price of a
Merchant share is $50 on January 2, 2014 (the intrinsic value is therefore
$0). On March 31, 2014, the market price for Merchant stock is $53 per
share, and the time value of the option is $200.

Question 16

In 2014, Amirante
Corporation had pretax financial income of $168,000 and taxable income of
$120,000. The difference is due to the use of different depreciation methods
for tax and accounting purposes. The effective tax rate is 40%.

Question 17

Clydesdale
Corporation has a cumulative temporary difference related to depreciation of
$580,000 at December 31, 2014. This difference will reverse as follows:
2015, $42,000; 2016, $244,000; and 2017, $294,000. Enacted tax rates
are 34% for 2015 and 2016, and 40% for 2017.

Question 18

At December 31, 2014,
Fell Corporation had a deferred tax liability of $680,000, resulting from
future taxable amounts of $2,000,000 and an enacted tax rate of 34%. In
May 2015, a new income tax act is signed into law that raises the tax rate
to 40% for 2015 and future years.

Question 19

Lahey Corp. has three defined benefit
pension plans as follows.






Pension Assets

(at Fair Value)



Projected Benefit

Obligation




Plan X



$600,000



$500,000




Plan Y



900,000



720,000




Plan Z



550,000



700,000






How will Lahey report these multiple plans in its financial statements?

 

Question 20

Manno Corporation has the following
information available concerning its postretirement benefit plan for 2014.




Service cost



$40,000




Interest cost



47,400




Actual and expected
return on plan assets



26,900




Question 21

For 2014, Sampsell
Inc. computed its annual postretirement expense as $240,900. Sampsell’s
contribution to the plan during 2014 was $180,000.

Question 22

Wertz Construction
Company decided at the beginning of 2014 to change from the completed-contract
method to the percentage-of-completion method for financial reporting purposes.
The company will continue to use the completed-contract method for tax
purposes. For years prior to 2014, pretax income under the two methods was as
follows: percentage-of-completion $120,000, and completed-contract $80,000. The
tax rate is 35%.

Question 23

In 2014, Bailey
Corporation discovered that equipment purchased on January 1, 2012, for
$50,000 was expensed at that time. The equipment should have been
depreciated over 5 years, with no salvage value. The effective tax rate
is 30%.

Question 24

At January 1, 2014,
Beidler Company reported retained earnings of $2,000,000. In 2014, Beidler
discovered that 2013 depreciation expense was understated by $400,000. In 2014,
net income was $900,000 and dividends declared were $250,000. The tax rate
is 40%.

Question 25

Simmons Corporation
owns stock of Armstrong, Inc. Prior to 2014, the investment was accounted for
using the equity method. In early 2014, Simmons sold part of its investment in
Armstrong, and began using the fair value method. In 2014, Armstrong earned net
income of $80,000 and paid dividends of $95,000.

Question 26

DiCenta Corporation
reported net income of $270,000 in 2014 and had 50,000 shares of
common stock outstanding throughout the year. Also outstanding all year
were 5,000 shares of cumulative preferred stock, each convertible
into 2 shares of common. The preferred stock pays an annual dividend of
$5 per share. DiCenta’s tax rate is 40%.

Question 27

AMR Corporation (parent company of American Airlines) reported the
following for 2011 (in millions).




Service cost



$366




Interest on P.B.O.



737




Return on plan
assets



593




Amortization of
prior service cost



13




Amortization of net
loss



154




 

Question 28

For Warren
Corporation, year-end plan assets were $2,000,000. At the beginning of the
year, plan assets were $1,780,000. During the year, contributions to the
pension fund were $120,000, and benefits paid were $200,000.

Question 29

For 2012, Campbell Soup Company had pension
expense of $73 million and contributed $71 million to the pension fund.

Hillsborough Co. has
an available-for-sale investment in the bonds of Schuyler Corp. with a carrying
(and fair) value of $70,000. Hillsborough determined that due to poor economic
prospects for Schuyler, the bonds have decreased in value to $60,000. It is
determined that this loss in value is other-than-temporary.

Question 30

Hillsborough Co. has
an available-for-sale investment in the bonds of Schuyler Corp. with a carrying
(and fair) value of $70,000. Hillsborough determined that due to poor economic
prospects for Schuyler, the bonds have decreased in value to $60,000. It is
determined that this loss in value is other-than-temporary.
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