• Joan Holtz Case 5-3
    . Premium Coupons Sales allowance should be made for these coupons. If not, it will lead to imbalance of total debits & total credit of some transactions in the journal entry. (E.g. when selling the tea with coupons, Credit sales revenue of tea, but Debit no item)The coffee manufacturer can decide to...
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  • Shareholder's Equity
    7a: REPURCHASE OF TREASURY STOCK From Example 5: Originally sold 1,000 shares of $1 par value common stock to shareholders for $10 per share. Dr. Cash $10,000 Cr. Common Stock ($1*1,000) $1,000 Cr. APIC – Common Stock ($9*1,000) $9,000 What journal entry would the...
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  • CF Written Coursework Assignment
    equity is 10% and cost of debt is .9%; leveraged cost is: It can be seen that the capital structure does not impact the weighted average cost of capital, as it is the same at a (75%, 25%) and (100%, 0%) capital structure. Repurchase of Stock Issuing new debt to repurchase...
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  • Cfa1 Financial Review
    equity proxy statement: matters that require a shareholder vote, such as election of board members, compensation, management qualification, issurance of stock options, etc. (2)Journal entries, general ledger, trial balance    journal entries: recorded by date, or all transaction happened general...
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  • Debt vs. Equity and Asymmetric Information: a Review
    Financial Economics 9, 113-138. Dann, L.Y. and W. Mikkelson, 1984. Convertible debt issuance, capital structure change and financingrelated information: Some new evidence, Journal of Financial Economics 13, 157-86. Dann, L.Y., R.W. Masulis, and D. Mayers, 1991. Repurchase tender offers and earnings...
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  • Far 2008 Final
    in treasury at the beginning of the year. Prepare the journal entries. (2 points each) 1. Birdie Corporation issued 500,000 shares of $5 par common stock on January 18, 2008. The shares are sold for $42 each. 2. On July 1, 2008 Birdie repurchased 150,000 shares of stock for $52.00. The...
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  • Salomon vs Salomon
    price of $2.75 and another of 3,000,000 shares at a price of $3.00. On 4 July 20X3 the company decided to buy back 500,000 shares, offering a price of $3.50 per share. By 31 July 20X3 the repurchase had been completed. Required: (a) Prepare the journal entry required to record the buy back...
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  • Using Treasury Shares to Stabilize Stock Market
    . References Dittmar, A. K. (2000). Why Do Firms Repurchase Stock?. Chicago Journals, 73(3), 331-355. Retrieved June 17, 2010, from http://www.jstor.org/stable/2668568 Hurtt, D. N., Kreuze, J. G., & Langsam, S. A. (2008). Stock Buybacks and Their Association with Stock Options Exercised in the...
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  • Final Exam
    : Estimated uncollectible accounts = $15,000. Allowance for Doubtful Accounts = $3,000 What is the amount of bad debts expense? $12,000 Explanation: This entry simply requires you to subtract 3,000 from the 15,000 in estimated uncollectable accounts. 3. What is true about intangible assets...
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  • COMM293 Final Exam + Solution
    entries to record credit sales, collections, write-offs, reinstatements and bad debts expense for the year ended December 31, 2005. Show your calculations. (12 Marks) 4,000 Accounts receivable 4,000 Question 2 Shareholders’ Equity (27 marks, suggested time 27 minutes) Stellbert Inc...
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  • General Host; Accounting for a Bond Refunding
    ; $20,300,000 Present value of bonds: $20.3 million 5. Prepare the journal entry to record the exchange. Bonds payable (old) $33.9 million Bonds payable (new) $20.3 million Gain on early extinguishment $13.6 million II. Evaluating the exchange: Considering only the work you have done so...
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  • Accounting Review
    to the treasury stock account. * At this point, the shares are considered to be issued, but not outstanding. Balance Sheet Effect * When a share repurchase is viewed as treasury stock, the cost of the treasury stock is simply reported as a reduction in total shareholders’ equity. Journal...
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  • Fasb Codification Assignment 1 – Receivables
    into at the time of the transfer. (ASC 860-10-40-4) 6. Assuming that the conditions for the treatment as a sale are met, prepare Beds and Beyond’s journal entry to record the factoring of $400,000 of receivables. Cash 360,000 Due from Factors 24,000 Loss on sale of receivables...
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  • Intermediate Accounting 14th Chp7
    debts. Recording bad debts. Computing bad debts and preparing journal entries. Bad-debt reporting. Bad debts—aging. Journalizing various receivable transactions. Assigning accounts receivable. Journalizing various receivable transactions. Transfer of receivables with recourse. Transfer of...
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  • Acct review 2300
    / Historic Net Sales = % a.i..b.ii. % * Current year Net Sales a.i..b.iii. The estimate here is the BAD DEBT a.ii. Net Realizable Value = A/R – Allowance for Doubtful Accounts b. Notes Receivable b.i. Terms b.ii. Journal Entries Notes Receivable XXX Sales Revenue XXX...
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  • Accounts Revison
    Accounting Revision Preparing the Financial Statements Ultimately, the journals, ledgers and adjusting entries exist purely so companies can create accurate financial statements, both to show shareholders how their investment is performing, and to allow the tax authorities to deduct the...
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  • Analyzing Financial Ratios
    adjustments. 2. Make the appropriate journal entries, if any, to account for Terry’s extra dividend and stock repurchase (including any necessary changes to income tax expense). 3. Make any necessary changes to the financial statements. 4. Calculate the two (2) ratios after you make any...
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  • Accounting Notes
    =7k beg bal is 2k C needs 5k adjust. Journal Entry: BDE 5k D, Allow of Doubtful 5K C. BS: AR 100k, Less Allow (ending) 7K, Net AR 93k Bad debt 2% Sales: 500Kx.2= 10k ending bal in exp beg bal = 0. So 10K adjust. Journal: 10k BDE D, Allowance of D 10K C.BS: AR 100k less allow (ending) 12k = Net AR...
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  • Restriction
    or repurchase of shares. 2. The issuance or repayment of debt securities. 3. The payment of cash dividends. B. The classification also includes subsequent transactions related to these, such as: 1. The repurchase of common or preferred stock (to retire the stock or...
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  • Accounting
    stated value – Do not record “Additional Paid in Capital” 11-10 Par Value ≠ Market Value! 10 Initial Sale of Stock – Par Value On July 6, Wesfarmers issued 100,000 shares of $1 par value common stock for $20 per share. Prepare the journal entry to record this transaction. 100,000...
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