ACC423 Final Exam

ACC423 Final Exam in $48

Question 1

Buttercup Corporation issued 310 shares of $13 par value common stock for $6,045. Prepare Buttercup’ journal entry.(List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

Description/Account Debit Credit

Question 2

Wilco Corporation has the following account balances at December 31, 2012.

Common stock, $5 par value $547,790

Treasury stock 92,420

Retained earnings 2,358,180

Paid-in capital in excess of par 1,330,540

Prepare Wilco’s December 31, 2012, stockholders’ equity section.

WILCO CORPORATION

Stockholders’ Equity

December 31, 2012

ACC 423 Week 5 WileyPlus Assignment – Exercises

ACC 423 Week 5 WileyPlus Assignment – Exercises in US$ 7 (Instant Download)ACC 423 Week 5 WileyPlus Assignment - Exercises

P13-9 (Premium Entries and Financial Statement Presentation) Sycamore Candy Company offers
a CD single as a premium for every five candy bar wrappers presented by customers together with $2.50. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each CD to the company is $2.25; in addition it costs 50 cents to mail each CD. The results of the premium plan for the years 2010 and 2011 are as follows. (All purchases and sales are for cash.)
 CDs purchased                                                                            2010                      2011
CDs purchased                                                                          250,000                 330,000
Candy bars sold                                                                     2,895,400               2,743,600
Wrappers redeemed                                                              1,200,000              1,500,000
2010 wrappers expected to be redeemed in 2011               290,000
2011 wrappers expected to be redeemed in 2012                350,000

Instructions
(a) Prepare the journal entries that should be made in 2010 and 2011 to record the transactions related to the premium plan of the Sycamore Candy Company.
(b) Indicate the account names, amounts, and classifications of the items related to the premium plan that would appear on the balance sheet and the income statement at the end of 2010 and 2011.

ACC 423 Week 2 WileyPlus Assignment-Exercises

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E15-13 (a,b) (Stock Split and Stock Dividend)
The common stock of Warner Inc. is currently selling at $110 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $70 per share. Five million shares are issued and outstanding.

(a) How much is the debit to retained earnings if the board votes a 2-for-1 stock split?
(b) Prepare the necessary journal entries if the board votes a 100% stock dividend.

P15-1 (Equity Transactions and Statement Preparation) 
On January 5, 2010, Phelps Corporation received a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 50,000 shares of $10 par value common stock. It then completed these transactions.
Jan. 11 Issued 20,000 shares of common stock at $16 per share.
Feb. 1 Issued to Sanchez Corp. 4,000 shares of preferred stock for the following assets: machinery with a fair market value of $50,000; a factory building with a fair market value of $160,000; and land with an appraised value of $270,000.
July 29 Purchased 1,800 shares of common stock at $17 per share. (Use cost method.)
Aug. 10 Sold the 1,800 treasury shares at $14 per share.
Dec. 31 Declared a $0.25 per share cash dividend on the common stock and declared the preferred dividend.
Dec. 31 Closed the Income Summary account. There was a $175,700 net income.

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