b. stock to defer the taxable gain as a "tax-free reorganization."
c. cash to create a taxable gain.
d. stock to create a taxable gain.
3. A controlling interest in a company implies that the parent company
a. owns all of the subsidiary's stock.
b. has influence...
Improvements or expansions
3. Measuring and Recording Acquisition Cost
a. Acquisition cost includes purchase price and all expenditures needed to prepare asset for intended use (freight, installation, etc.)
b. Acquisition cost does not include financing charges and is net of cash discounts
customers Not when ordered
Service revenue earned with completion of service
Expenses recognized in same period as the revenue with which they are associated
Inventory expense is recognized when the inventory is sold to customers, not when inventory is purchased by company
Organization expenses (costs) are incurred in creating a corporation. Examples include: legal fees, promoter fees, accountant fees, costs of printing stock certificates, and fees paid to obtain a state charter.
2. Organization expenses (costs) are reported as expenses when incurred—as part of operating...
Earnings – Treasury stock
PART A: Invested Capital
Articles of Incorporation
ADVANTAGES of a CORPORATION
-ability to raise capital
-lack of mutual agency
DISADVANTAGES of a CORPORATION
-SEC regulation requirements
Number of Shares
source journal. For example, the credit sale would likely get recorded in a sales journal. Other journals are: purchases journal, cash receipts journal, cash disbursements journal, payroll journal and the general journal. Note that this is by no means a comprehensive listing. 4. Posting: the journals get...
12. Examples of assets include cash, inventory, and capital stock issued to investors.
13. Inventory is goods held by a company for the purpose of sale to customers, and is considered a liability on the balance sheet.
14. A balance sheet is...
Activities: Purchase and sale of long-term assets Financing: Money needed to start a business Retained Earnings Equation: Beginning RE + Net Income – Dividends = Ending Retained Earnings Cost Principle: Assets are recorded at the cost to acquire them Going Concern: That a company will continue to operate...
Treasury Stock (Pg. 963-966)
* Shares repurchased and not retired.
* We view the purchase of treasury stock as a temporary reduction of shareholders’ equity, to be reversed later when the treasury stock is resold.
* The cost of acquiring the shares is “temporarily” debited to...
2006? Prepare the journalentry to record Abbott Laboratories’ share of TAP’s 2007 earnings. What amount did Abbott include on its 2007 and 2006 balance sheets for the TAP joint venture? Where does this appear on Abbott Laboratories’ balance sheet? Prepare the journalentry to record the dividends that...
from the University of Nebraska, and a Ph.D. from the University of Illinois. He
published actively in journals including The Accounting Review,
Journal of Accounting, Auditing and Finance, Journal of Accountancy, The Atlantic Economic Review, Management Accounting,
and others. He was a member of the...
Total long-term liabilities
Commonstock $0.05 par value
Authorized 2,300 shares and Issued 1,106 shares for all periods presented; Outstanding 463 and 485 shares
on plant assets (70% selling, 30% administrative) | 65,000 |
| Dividends declared | 16,000 |
There were 20,000 shares of commonstock outstanding during the year.
(a) | Prepare a multiple-step income statement. |
(b) | Prepare a single-step income statement. |
Armstrong Corporation reported...