Kelso, Intermediate Accounting Chapter 15 Solutions

In: Business and Management

Submitted By kyojiron
Words 19396
Pages 78
CHAPTER 15
Stockholders’ Equity
ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)
Topics 1. Stockholders’ rights; corporate form. 2. Stockholders’ equity. Questions 1, 2, 3 4, 5, 6, 16, 17, 18, 29, 30, 31 7, 10 8, 9 11, 12, 17 3, 13, 14, 15 3 7, 10, 16, 17 1, 2, 4, 6, 9 3, 4, 5, 6 3, 6, 7, 9, 10, 18 8 10, 11, 17 1, 2, 3, 9 Brief Exercises Exercises Problems Concepts for Analysis 1

3. Issuance of shares. 4. Noncash stock transactions; lump sum sales. 5. Treasury stock transactions, cost method. 6. Preferred stock. 7. Stockholders’ equity accounts; classifications; terminology. 8. Dividend policy. 9. Cash and stock dividends; stock splits; property dividends; liquidating dividends. 10. Restrictions of retained earnings. 11. Analysis *12. Dividend preferences and book value.

1, 2, 6 4, 5 7, 8 9

1, 3, 4 1, 4 1, 2, 3, 5, 6, 7 1, 3 9, 11, 12 3 2 7

19, 20, 21, 22, 25, 26 22, 23, 24

10 10, 11, 12, 13, 14

12, 15, 16 13, 14, 15, 18

7, 10 6, 7, 8, 10, 11 4, 5, 6

27, 28 17, 19, 20 32 15 21, 22, 23, 24

9

*This material is covered in an Appendix to the chapter.

Copyright © 2010 John Wiley & Sons, Inc.

Kieso, Intermediate Accounting, 13/e, Solutions Manual

(For Instructor Use Only)

15-1

ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE)
Learning Objectives 1. 2. 3. 4. 5. 6. 7. 8. 9. *10. Discuss the characteristics of the corporate form of organization. Identify the key components of stockholders’ equity. Explain the accounting procedures for issuing shares of stock. Describe the accounting for treasury stock. Explain the accounting for and reporting of preferred stock. Describe the policies used in distributing dividends. Identify the various forms of dividend distributions. Explain the accounting for small and large stock dividends, and for stock splits. Indicate how to present and analyze stockholders’ equity. Explain the different…...

Similar Documents

Intermediate Accounting Solutions

...Chapter 3 The Balance Sheet and Financial Disclosures Questions for Review of Key Topics Question 3-1 The purpose of the balance sheet, also known as the statement of financial position, is to present the financial position of the company on a particular date. Unlike the income statement, which is a change statement that reports events occurring during a period of time, the balance sheet is a statement that presents an organized array of assets, liabilities, and shareholders’ equity at a point in time. It is a freeze frame or snapshot picture of financial position at the end of a particular day marking the end of an accounting period. Question 3-2 The balance sheet does not portray the market value of the entity (number of common stock shares outstanding multiplied by price per share) for a number of reasons. Most assets are not reported at fair value, but instead are measured according to historical cost. Also, there are certain resources, such as trained employees, an experienced management team, and a good reputation, that are not recorded as assets at all. Therefore, the assets of a company minus its liabilities, as shown in the balance sheet, will not be representative of the company’s market value. Question 3-3 Current assets include cash and other assets that are reasonably expected to be converted to cash or consumed during one year, or within the normal operating cycle of the business if the operating cycle is longer than...

Words: 12426 - Pages: 50

Intermediate Accounting Chapter 11

...Chapter 11 Property, Plant, and Equipment and Intangible Assets: Utilization and Impairment Questions for Review of Key Topics Question 11-1 The terms depreciation, depletion, and amortization all refer to the process of allocating the cost of property, plant, and equipment and finite-life intangible assets to periods of use. The only difference between the terms is that they refer to different types of these long-lived assets; depreciation for plant and equipment, depletion for natural resources, and amortization for intangibles. Question 11-2 The term depreciation often is confused with a decline in value or worth of an asset. Depreciation is not measured as decline in value from one period to the next. Instead, it involves the distribution of the cost of an asset, less any anticipated residual value, over the asset's estimated useful life in a systematic and rational manner that attempts to match revenues with the use of the asset. Question 11-3 The process of cost allocation for plant and equipment and finite-life intangible assets requires that three factors be established at the time the asset is put into use. These factors are: 1. Service (useful) life — The estimated use that the company expects to receive from the asset. 2. Allocation base — The value of the usefulness that is expected to be consumed. 3. Allocation method — The pattern in which the usefulness is expected to be consumed. Question......

Words: 16063 - Pages: 65

Acct 551 Chapter 12 Solutions, Intermediate Accounting

...EXERCISE 12-1 (15–20 minutes) (a) 10, 13, 15, 16, 17, 19, 23 (b) 1. Long-term investments in the balance sheet. 2. Property, plant, and equipment in the balance sheet. 3. Research and development expense in the income statement. 4. Current asset (prepaid rent) in the balance sheet. 5. Property, plant, and equipment in the balance sheet. 6. Research and development expense in the income statement. 7. Charge as expense in the income statement. 8. Operating losses in the income statement. 9. Charge as expense in the income statement. 11. Not recorded; any costs related to creating goodwill incurred internally must be expensed. 12. Research and development expense in the income statement. 14. Research and development expense in the income statement. 18. Research and development expense in the income statement. 20. Research and development expense in the income statement. 21. Long-term investments, or other assets, in the balance sheet. 22. Expensed in the income statement. EXERCISE 12-4 (15–20 minutes) 1. Palmiero should report the patent at $900,000 (net of $600,000 accumulated amortization) on the balance sheet. The computation of accumulated amortization is as follows. Amortization for 2010 and 2011 ($1,500,000/10) X 2 | $300,000 | 2012 amortization: ($1,500,000 – $300,000) ÷ (6 – 2) | 300,000 | Accumulated amortization, 12/31/12 | $600,000 | 2. Palmiero should amortize the franchise over its......

Words: 781 - Pages: 4

Intermediate Accounting Chapter 1 Ppt

...INTERMEDIATE ACCOUNTING I (ACC 221) 21 Aug 2013 - 15 Oct 2013 TEACHER: Dr. Joseph L. Ilk, CPA, CMA, CVA, CPCM TELEPHONE: Office: (703) 805-4473 Home: (540) 582-6008 E-mail: jilk@nvcc.edu If you e-mail me, please put “ACC 221" and either "E40W" or "E80W" ” in the subject line. If you do not I will not recognize the e-mail and will delete the file. The student needs to put their First and Last Name in the e-mail so I know who it came from. OFFICE HOURS: Mon-Fri 8:00 p.m. - 9:00 p.m.I check my e-mail (jilk@nvcc.edu) every day. NOVA IT Helpdesk: (703) 426-4141 CONNECT HELPDESK: (800) 331-5094 PRE-REQUISITES: ACC 212 - Principles of Accounting II I. THE COURSE: ACC 221, intermediate accounting covers accounting principles and theory, including a review of the accounting cycle and accounting for current assets, current liabilities, and investments. Introduces various accounting approaches and demonstrates the effect of these approaches on the financial statement users II. SCOPE: The study will cover but not be limited to the following areas: Theoretical structure of financial accounting Time value of money Review of the accounting process Cash and receivables Balance sheet Inventories Income statement Plant, property, and equipment Cash flow statement Investments Income measurement and profitability analysis III. Course Learning Objectives: * Comprehend the environment and......

Words: 2091 - Pages: 9

Chapter 15 Intermediate Accounting Hw

... Exercise 15-1 Operating lease [LO4] On January 1, 2011, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers from ComputerWorld Corporation under a two-year operating lease agreement. The contract calls for four rent payments of $10,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by Computer World at a cost of $90,000 and were expected to have a useful life of six years with no residual value. |        Required: | Prepare the appropriate entries for both (a) the lessee and (b) the lessor from the inception of the lease through the end of 2011. (Use straight-line depreciation.) (Omit the "$" sign in your response.) |        Date | General Journal | Debit | credit | (a) Nath-Langstrom Services, Inc. (Lessee) |   |   |   June 30,  2011 | Rent expense |     |   |   |      Cash |   |    |   |   |   |   |   Dec. 31, 2011 | Rent expense | |   |   |      Cash |   |    |   |   |   |   | (b) Computer World Corporation (Lessor) |   June 30, 2011 | Cash |    |   |   |      Rent revenue |   |    |   |   |   |   |   Dec.31, 2011 | Cash |    |   |   |      Rent revenue |   |    |   |   |   |   |   | Depreciation expense |    |   |   |      Accumulated depreciation |   |    | | rev: 11_23_2011   Explanation: (b) Computer World Corporation (Lessor): | December 31,2011 | Depreciation expense ($90,000 ÷ 6 years) = 15,000 | 2. Exercise 15-7 Capital...

Words: 3399 - Pages: 14

Solution to Intermediate Accounting Ch1

...CHAPTER 1 Financial Accounting and Accounting Standards ASSIGNMENT CLASSIFICATION TABLE | | | | |Topics |Questions |Cases | |1. |Subject matter of accounting. |1 |1 | |2. |Environment of accounting. |2, 3, 4 |3, 4 | |3. |Role of principles, objectives, standards, and accounting |5, 6, 7 |2 | | |theory. | | | |4. |Historical development of GAAP. |8, 9, 10, 11 |5 | |5. |Authoritative pronouncements and rule-making bodies. |12, 13, 14, 15, 16, 17, 18, 19, 20,|6, 8, 9, 10, | | | |21, 22, 23 |11, 13, 14 | |6. |Role of pressure groups. |23, 24, 25, 26, |7, 16, 17 ...

Words: 11135 - Pages: 45

Audit Chapter 15 Solutions

...CHAPTER 15 Debt and Equity Capital Review Questions 15–1 A trust indenture is drawn to protect the position of bondholders by imposing restrictions upon the borrowing corporation. One of the most common of these restrictions is that the company must not declare dividends that would cause the working capital to fall below a specified amount. An overly generous dividend policy could leave the company so short of cash as to endanger the position of bondholders. 15–2 Restrictions commonly imposed on a borrowing company by long-term creditors relate to (a) dividend payments, (b) acquisition of property and equipment, (c) increases in managerial compensation and (d) acquisition of additional debt. Such actions are usually permitted only if they will not reduce the current ratio and amount of working capital below specified levels, or increase the debt to equity ratio above a specified level. Creation of a sinking fund is another common requirement designed to assure that cash will be available to pay the long-term debt at maturity. 15–3 The trustee protects the interests of the bondholders by accounting for the issuance and redemption of bond certificates, determining that provisions of the borrowing agreement are observed by the corporation, and reporting periodically on the amount of the liability and of any related sinking fund. This work by the trustee leaves little opportunity for either error or fraud in the issuance, servicing, or redemption of......

Words: 4365 - Pages: 18

Intermediate Accounting 7e Chapter 1 Solutions

...Chapter 1 Environment and Theoretical Structure of Financial Accounting AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools, departments, and faculty may approach assessment and its documentation differently, one approach is to provide specific questions on exams that become the basis for assessment. To aid faculty in this endeavor, we have labeled each question, exercise and problem in Intermediate Accounting, 7e with the following AACSB learning skills: Questions 1–1 1–2 1–3 1–4 1–5 1–6 1–7 1–8 1–9 1–10 1–11 1–12 1–13 1–14 1–15 1–16 1–17 1–18 1–19 1–20 1–21 1–22 1–23 1–24 1–25 1–26 1–27 1–28 1–29 AACSB Tags Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking 1–30 1–31 1–32 Reflective thinking Reflective thinking Reflective thinking Brief Exercises 1–1 1–2 1–3 1–4 1–5 1–6 AACSB Tags Analytic Reflective thinking Reflective thinking Reflective......

Words: 7572 - Pages: 31

Intermediate Financial Accounting Kieso Solution Manual Chapter 6

...CHAPTER 6 Accounting and the Time Value of Money ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) | | |Brief Exercises | | | |Topics |Questions | |Exercises |Problems | | 1. |Present value concepts. |1, 2, 3, 4, | | | | | | |5, 9, 17 | | | | | 2. |Use of tables. |13, 14 |8 |1 | | | 3. |Present and future value problems: | | | | | | |a. Unknown future amount. |7, 19 |1, 5, 13 |2, 3, 4, 7 | | | |b. Unknown payments. |10, 11, 12 |6, 12, |8, 16, 17 |2, 6 | | | | |15, 17 | | | | ...

Words: 12226 - Pages: 49

Intermediate Accounting Chapter 1 Solutions

...Chapter 1 Environment and Theoretical Structure of Financial Accounting AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools, departments, and faculty may approach assessment and its documentation differently, one approach is to provide specific questions on exams that become the basis for assessment. To aid faculty in this endeavor, we have labeled each question, exercise and problem in Intermediate Accounting, 5e with the following AACSB learning skills: |Questions | |Exercises | | |1-1 |Reflective thinking |1-1 |Analytic | |1-2 |Reflective thinking |1-2 |Analytic | |1-3 |Reflective thinking |1-3 |Reflective thinking | |1-4 |Reflective thinking |1-4 |Reflective thinking | |1-5 |Reflective thinking |1-5 |Reflective thinking | |1-6 |Reflective thinking |1-6 |Reflective thinking | |1-7 |Reflective thinking |1-7 |Reflective thinking | |1-8 |Reflective......

Words: 5973 - Pages: 24

Chapter 21 Solutions-Intermediate Accounting

...CHAPTER 21 Accounting for Leases SOLUTIONS TO EXERCISES EXERCISE 21-1 (15–20 minutes) (a) This is a capital lease to Adams since the lease term (5 years) is greater than 75% of the economic life (6 years) of the leased asset. The lease term is 831/3% (5 ÷ 6) of the asset’s economic life. (b) Computation of present value of minimum lease payments: $9,968 X 4.16986* = $41,565 *Present value of an annuity due of 1 for 5 periods at 10%. (c) 1/1/12 Leased Equipment................................... Lease Liability.................................. Lease Liability.......................................... Cash................................................... 12/31/12 Depreciation Expense............................. Accumulated Depreciation— Capital Leases.............................. ($41,565 ÷ 5 = $8,313) Interest Expense...................................... Interest Payable................................ [($41,565 – $9,968) X .10] 1/1/13 Lease Liability.......................................... Interest Payable....................................... Cash................................................... 41,565 41,565 9,968 9,968 8,313 8,313 3,160 3,160 6,808 3,160 9,968 21-1 EXERCISE 21-2 (20–25 minutes) (a) To Brecker, the lessee, this lease is a capital lease because the terms satisfy the following criteria: 1. 2. The lease term is greater than 75% of the economic life of the leased asset; that is, the lease term is 831/3 % (50/60) of the economic life.......

Words: 6910 - Pages: 28

Intermediate Accounting Chapter 2

...CHAPTER 2 Conceptual Framework for Financial Reporting ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. 2. 3. 4. 5. 6. Conceptual framework–general. Objectives of financial reporting. Qualitative characteristics of accounting. Elements of financial statements. Basic assumptions. Basic principles: a. Measurement. b. Revenue recognition. c. Expense recognition. d. Full disclosure. Accounting principles–comprehensive. Constraints. Assumptions, principles, and constraints. 28, 29, 30 10 11 Questions 1, 7 2 3, 4, 5, 6, 8 9, 10, 11 12, 13, 14 15, 16, 17, 18 19, 20, 21, 22, 23 24 25, 26, 27 1, 2, 3, 4 6, 11, 13 5, 7 8, 9, 12 8 8, 12, 8, 12 1, 2 2, 3, 4 5 6, 7 6, 7 7 6, 7 6, 7, 8 9, 10 3, 6, 7 6, 7 12 5, 6 5, 6 5, 6, 7, 8, 9, 11 11 Brief Exercises Exercises Concepts for Analysis 1, 2 3 4, 10 7. 8. 9. Copyright © 2011 John Wiley & Sons, Inc. Kieso, Intermediate Accounting, 14/e, Solutions Manual (For Instructor Use Only) 2-1 ASSIGNMENT CLASSIFICATION TABLE (BY LEARNING OBJECTIVE) Learning Objectives 1. 2. 3. 4. 5. 6. 7. 8. Describe the usefulness of a conceptual framework. Describe the FASB’s efforts to construct a conceptual framework. Understand the objectives of financial reporting. Identify the qualitative characteristics of accounting information. Define the basic elements of financial statements. Describe the basic assumptions of accounting. Explain the application of the basic principles of accounting. Describe the impact that constraints have on......

Words: 18492 - Pages: 74

Intermediate Financial Accounting Chapter 1 Solution

...Chapter 1 Environment and Theoretical Structure of Financial Accounting AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools, departments, and faculty may approach assessment and its documentation differently, one approach is to provide specific questions on exams that become the basis for assessment. To aid faculty in this endeavor, we have labeled each question, exercise and problem in Intermediate Accounting, 7e with the following AACSB learning skills: Questions 1–1 1–2 1–3 1–4 1–5 1–6 1–7 1–8 1–9 1–10 1–11 1–12 1–13 1–14 1–15 1–16 1–17 1–18 1–19 1–20 1–21 1–22 1–23 1–24 1–25 1–26 1–27 1–28 1–29 AACSB Tags Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking Reflective thinking 1–30 1–31 1–32 Reflective thinking Reflective thinking Reflective thinking Brief Exercises 1–1 1–2 1–3 1–4 1–5 1–6 AACSB Tags Analytic Reflective thinking Reflective thinking Reflective......

Words: 7572 - Pages: 31

Chapter 11 Intermediate Accounting

...CHAPTER 11 Depreciation, Impairments, and Depletion ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) | | |Brief Exercises | | | Concepts for | |Topics |Questions | |Exercises |Problems |Analysis | |1. |Depreciation methods; meaning of |1, 2, 3, 4, 5, 6, | |1, 2, 3, 4, 5, 8, |1, 2, 3 |1, 2, 3, 4, 5 | | |depreciation; choice of depreciation |10, 14, | |14, 15 | | | | |methods. |20, 21, 22 | | | | | |2. |Computation of |7, 8, 9, 13 |1, 2, 3, 4 |1, 2, 3, 4, |1, 2, 3, |1, 2, 3 | | |depreciation. | | |5, 6, 7, |4, 8, 10, 11, 12 | | | | | | |10, 15 | | | |3. |Depreciation base. |6, 7 |5 |8, 14 |1, 2, 3, |3 | | | ...

Words: 21765 - Pages: 88

Intermediate Accounting Chapter 5

...PROBLEM 5-9 1. The new estimate would be used in computing depreciation expense for 2011. No adjustment of the balance in accumulated depreciation at the beginning of the year would be made. Instead, the remaining depreciable cost would be divided by the estimated remaining life. This is not a change in accounting principle, but rather a change in an estimate, which requires a prospective treatment. Disclosure in the notes to the financial statements is appropriate, if material. 2. The additional assessment should be shown on the current period's income statement. If material it should be shown separately; if immaterial it could be included with the current year's tax expense. Only if the additional assessment were from the correction of an error should it appear on the statement of retained earnings and any comparative numbers that would appear in the financial statements. If the assessment was due to an error, details should be discussed in the financial statement notes. 3. The effect of the error at December 31, 2010, should be shown as an adjustment of the beginning balance of retained earnings on the retained earnings statement (net of applicable income taxes). The current year's expense should be adjusted (if necessary) for the possible carry forward of the error into the 2011 expense computation. Any comparative figures appearing on the financial statements would also have to be retroactively adjusted, as well as details of the error should be discussed in......

Words: 504 - Pages: 3

Euphoria.2017.German.DVDRip.x264-DOUCEMENT | Fatty Girl - Ludacris, LL Cool J & Keith Murray | Phantasm: Ravager (2016)