• Q : Determining the consolidated cost of goods sold....
    Accounting Basics :

    Webb Co. acquired 100% of Rand Inc. on January 5, 20011. During 2011, Webb sold goods to Rand for $2,400,000 that cost Webb $1,800,000. Rand still owned 40% of the goods at the end of the year. Cost

  • Q : Equity method to account for investment....
    Accounting Basics :

    Race decided to use the equity method to account for this investment. What was the noncontrolling interest's share of consolidated net income?

  • Q : What is the controlling interest in consolidated net income....
    Accounting Basics :

    Without regard for this investment, Keefe independently earns $300,000 in net income during 2011. All net income is earned evenly throughout the year. What is the controlling interest in consolidate

  • Q : What annual interest rate must she earn....
    Accounting Basics :

    Candice Willis will invest $30,000 today. She needs $150,000 in 21 years. What annual interest rate must she earn? Mel needs $250,000in 10 yrs. How much must he invest at the end of each year,at 11% i

  • Q : Earnings per common share concept....
    Accounting Basics :

    During 2004, Reese declared and paid $125,000 cash dividends on the common stock and $100,000 on the preferred stock. Net income for the year ended December 31, 2004 was $775,000. What should be Ree

  • Q : Warrants exceeds the average market-price....
    Accounting Basics :

    In the diluted earnings per share computation, the treasury stock method is used for options and warrants to reflect assumed reacquisition of common stock at the average market price during the peri

  • Q : Earnings per common share amounted....
    Accounting Basics :

    At December 31, 2004 and 2003, Glass Corp. had 120,000 shares of common stock and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the

  • Q : Compensation expense under the fair value method....
    Accounting Basics :

    For 2005, Cater should recognize compensation expense under the fair value method of

  • Q : Par value common stock issued and outstanding....
    Accounting Basics :

    On May 1, 2004 Lett Corp. declared and issued a 15% common stock dividend. Prior to this dividend, Lett had 100,000 shares of $1 par value common stock issued and outstanding. The fair value of Lett

  • Q : Reissuance of the stock on the accounts....
    Accounting Basics :

    Wilson acquired 20,000 shares of its common stock at a price of $16 per share and accounted for them by the cost method. Subsequently, these shares were reissued at a price of $12 per share. There h

  • Q : Settlement for legal services with a fair value....
    Accounting Basics :

    A corporation was organized in January 2004 with authorized capital of $10 par value common stock. On February 1, 2004, shares were issued at par for cash. On March 1, 2004, the corporation's attorn

  • Q : Recognize the redemption of the bonds....
    Accounting Basics :

    The bond issue costs relating to this transaction were $90,000. Harry amortizes discounts, premiums, and bond issue costs using the straight-line method. What amount of loss should Harry recognize o

  • Q : Problem based on unamortized bond discount....
    Accounting Basics :

    Moon uses the effective interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2004, Moon's unamortized bond discount should be:

  • Q : Amount did risen receive from the bond issuance....
    Accounting Basics :

    On July 1, 2004, Risen Co. issued 500 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2004 and mature on April 1, 2014. Interest is payable semiannually on April 1

  • Q : Paid-in capital would increase....
    Accounting Basics :

    A corporation was organized in January 2004 with authorized capital of $10 par value common stock. On February 1, 2004, shares were issued at par for cash. On March 1, 2004, the corporation's attorn

  • Q : Common stock of grady corporation....
    Accounting Basics :

    The common stock of Grady Co. returned an 11.25 percent rate of return last year. The dividend amount was $.70 a share which equated to a dividend yield of 1.5 percent.

  • Q : Corporation uses the perpetual inventory method....
    Accounting Basics :

    Malone Corporation uses the perpetual inventory method. On March 1, it purchased $30,000 of inventory, terms 2/10, n/30. On March 3, Malone returned goods that cost $3,000. On March 9, Malone paid t

  • Q : Find out the cost of the land....
    Accounting Basics :

    Credit Company incurred the following costs in acquiring plant assets: Determine the cost of the land.

  • Q : Separate component of stockholders equity....
    Accounting Basics :

    At December 31,2010 the fair value of the Carlin, Inc. bonds was $318,000. What should Richman Co. report as other comprehensive income and as a separate component of stockholders' equity?  

  • Q : Tax return show gross income....
    Accounting Basics :

    Under the terms of the written separation agreement they signed on July 1, 2006, Richard was required to pay Alice $1,500 per month of which $600 was designated as child support. He made 12 such pay

  • Q : Calculating return on investment-residual income....
    Accounting Basics :

    Lowry Company has sales of $125,000, cost of goods sold of $70,000, operating expenses of $20,000, average invested assets of $400,000, and a hurdle rate of 8 percent. Calculate Lowry's return on in

  • Q : Single-rate cost-allocation method....
    Accounting Basics :

    If a single-rate cost-allocation method is used, what amount of operating costs will be budgeted for the Lamp Division each month? For the Flashlight Division each month?

  • Q : E-p as a result of the redemption....
    Accounting Basics :

    Canary Corporation has 1,000 shares of stock outstanding. It redeems in a qualifying stock redemption 200 shares for $200,000 at a time when it has paid-in capital of $100,000 and E & P or $800,

  • Q : Installent sale method....
    Accounting Basics :

    During 2008, Coronado Inc. had Sales Revenue of $240,000 and cost of goods sold of $180,000. The installent sale method was appropriately used.

  • Q : Gain recognized by demers company relating to the equipment....
    Accounting Basics :

    At the date of transfer, Demers records carried the equipment at a cost of $120,000 less accumulated depreciation of $48,000. Straight-line depreciation is used. Demers reported net income of $28,00

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