240993674 Week 6 Exercises Problems
Exercises & Problems Week Six
Robert A. Dan
XACC/291
January 26, 2014
Christopher Phillips
Exercises & Problems Week Six
E11-15
Before
After
Stock
Dividend
After
Stock
Split
Shareholders’ assets Paid-in capital Ordinary shares In excess of par value Total paid-in capital Saved earnings Total shareholders’ assets
600,000 0 600,000 900,000
1,500,000
630,000 12,000 642,000 858,000
1,500,000
600,000 0 600,000 900,000
1,500,000
Unpaid shares
60,000
63,000
120,000
E12-1
1. Establishments have surplus cash or try to make earnings from investment income.
2. Because of the annual seasonal change in sales, as a result of a recurrent business model, as well as the general economic environment.
3. I believe we would be discussing low-risk, short-term investments, for example government-issued securities.
4. Investment securities as well as debt securities.
5. A business would just be gambling that the investments will increase in value.
6. If you are taking a calculated risk, an organization may buy share of organizations in a relevant sector or in an unrelated sector in which the organization wants to get in through a merger or purchase.
E12-2
A. Jan. 1 Debt Investments 50,900 Cash 50,900
July 1 Cash 2,000 Interest Revenue 2,000
1 Cash 33,500 Debt Investments 30,540 Income on Sale of Debt Investments 2,960
B. Dec. 31 Interest Receivable 800 Interest income 800
P11-6A
A. 1. Land 296,000 Preferred Stock 240,000 Paid-in Capital in over Par Value Preferred Stock 56,000
2. Cash 7,700,000
Robert A. Dan
XACC/291
January 26, 2014
Christopher Phillips
Exercises & Problems Week Six
E11-15
Before
After
Stock
Dividend
After
Stock
Split
Shareholders’ assets Paid-in capital Ordinary shares In excess of par value Total paid-in capital Saved earnings Total shareholders’ assets
600,000 0 600,000 900,000
1,500,000
630,000 12,000 642,000 858,000
1,500,000
600,000 0 600,000 900,000
1,500,000
Unpaid shares
60,000
63,000
120,000
E12-1
1. Establishments have surplus cash or try to make earnings from investment income.
2. Because of the annual seasonal change in sales, as a result of a recurrent business model, as well as the general economic environment.
3. I believe we would be discussing low-risk, short-term investments, for example government-issued securities.
4. Investment securities as well as debt securities.
5. A business would just be gambling that the investments will increase in value.
6. If you are taking a calculated risk, an organization may buy share of organizations in a relevant sector or in an unrelated sector in which the organization wants to get in through a merger or purchase.
E12-2
A. Jan. 1 Debt Investments 50,900 Cash 50,900
July 1 Cash 2,000 Interest Revenue 2,000
1 Cash 33,500 Debt Investments 30,540 Income on Sale of Debt Investments 2,960
B. Dec. 31 Interest Receivable 800 Interest income 800
P11-6A
A. 1. Land 296,000 Preferred Stock 240,000 Paid-in Capital in over Par Value Preferred Stock 56,000
2. Cash 7,700,000