Critical Financial Accounting Problems Issues and Solutions 1 docx

... Warrants ϫ Issuance Price 18 Critical Financial Accounting Problems Exhibit 1. 4 Schedule of Note Discount Amortization, 10 % Note Discounted at 12 % (a) ϭ $20,000 ϫ 0 .10 ϭ $2,000 (b) ϭ $19 ,039.66 ϫ 0 .12 ϭ $2,284.759 (c) ... Schedule (a) ϭ $6 01, 056.00 ϫ 10 % ϭ $60 ,10 5.60 (b) ϭ $6 01, 056.00 ϩ $60 ,10 5.60 ϭ $6 61, 1 61. 60 B. By the Gore Company Notes Payable $1, 000,000 C...

Ngày tải lên: 20/06/2014, 18:20

... i in the following formula: 11 $12 ,6 71, 092 ϭ 1, 000,000 ϩ 1 Ϫ 1, 000,000 (1 ϩ i)ˆ5 (1 ϩ i) ˆ5 (i) Solving the equation leads to (i) ϭ 4%. Therefore, on December 31, 19 95, the Mario Company makes ... Liabilities 29 Exhibit 1. 9 Schedule of Computation of Interest Revenue (a) ϭ $10 ,000,000 ϫ 10 % (b) ϭ $9,879,080 ϫ 12 % (c) ϭ $1, 113 ,489.60 Ϫ $1, 000,000 (d) ϭ $9,279,080 ϩ $11...

Ngày tải lên: 20/06/2014, 18:20

... follows: 50 Critical Financial Accounting Problems NOTES 1. Loren A. Nikolai and John D. Bazley, Intermediate Accounting, 6th ed. (Cincinnati, Ohio: South-Western Publishing Co., 19 94), p. 852. 2. ‘ Accounting ... gains and losses accounted for as a sep- 62 Critical Financial Accounting Problems Retained Earnings $250,000 Total $600,000 The Monti Company paid, on June...

Ngày tải lên: 20/06/2014, 18:20

... using Exhibit 4.2 is $4,000 ( $12 ,000 ϫ 33.33%). Second: At the end of 19 95 the asset has a book value of $11 ,000 ( $12 ,000 Ϫ $1, 000) for financial reporting and a book value of $8,000 ( $12 ,000 Ϫ $4,000) for ... had a taxable income of $15 ,000 and the 30% tax rate is enacted for years. First: the depreciation expense for financial reporting is $1, 000 [1, 000 ϫ ( $12 ,000 /12 ,000)...

Ngày tải lên: 20/06/2014, 18:20

... $11 , 618 .543 Cash $14 , 618 .543 3. Recognition of accrued interest on December 31, 19 96 Interest Expense $3,682. 915 13 6 Critical Financial Accounting Problems B. If the lease involves both land and ... international standard setters made some calls for it. Attitudinal stud- Accounting for Leases 13 7 10 . Kieso and Weygandt, Intermediate Accounting, p. 11 33. 11 . ‘...

Ngày tải lên: 20/06/2014, 18:20

... Transactions and Futures Contracts 16 5 December 15 , 19 X3: FC1 ϭ $0.50 December 31, 19 X3: FC1 ϭ $0.60 January 15 , 19 X3: FCI ϭ $0.80 The accounting entries for this transaction follow: 1. At the date ... Disclosure by Diver- sified Firms and Security Prices: A Comment.’’ Accounting Review 50 (October 19 75), pp. 818 – 21. 16 0 Critical Financial Accounting Problems...

Ngày tải lên: 20/06/2014, 18:20

... residual value, 12 7–29 Leases/leasing: advantages to lessee, 11 4; advantages to lessor, 12 0– 21; capitalization approach, 11 3 14 ; classification of, 11 5; defined, FASB Statement No. 13 , 11 3; re- sidual ... capitalization (SFAS No. 13 ), 11 3 14 ; pension account- ing (SFAS No. 87), 98, 10 2; post- retirement benefits (SFAS No. 10 6), 98, 10 0 10 1; segmental re- porting (SFA...

Ngày tải lên: 20/06/2014, 18:20

... i in the following formula: 11 $12 ,6 71, 092 ϭ 1, 000,000 ϩ 1 Ϫ 1, 000,000 (1 ϩ i)ˆ5 (1 ϩ i) ˆ5 (i) Solving the equation leads to (i) ϭ 4%. Therefore, on December 31, 19 95, the Mario Company makes ... of Financial Accounting Standards No. 10 5. Norwalk, Conn.: FASB, 19 90. ‘‘Disclosure of Long-Term Obligations.’’ Statement of Financial Accounting Standards No. 47. Stamfor...

Ngày tải lên: 21/06/2014, 04:20

... November 1, 2000 1. Amortized Cost, July 1, 2000 ϭ $19 8 ,13 0.68 2. Plus: Discount Amortization up until November 1, 2000 ϭ 1, 246.09 3. Book Value 19 9,376.77 B. Selling Price of Bonds 19 9,500.00 C. ... Investments in Common Stock,’’ Opinion of Accounting Principles Board No. 18 (New York: AICPA, 19 71) , par. 17 . 2. Ibid. 62 Critical Financial Accounting Problems Reta...

Ngày tải lên: 21/06/2014, 04:20

... follows: Plan assets, Jan 1, 19 96 are: $200,000 Projected benefit obligation, Jan 1, 19 96 is: $200,000 Annual service cost for 19 96 is: $18 ,000 90 Critical Financial Accounting Problems First Example ... Loss on Bond Redemption 1, 800 Retained Earnings (Prior Period Adjustments) 1, 350 Income Taxes Payable 16 ,850 98 Critical Financial Accounting Problems administra...

Ngày tải lên: 21/06/2014, 04:20