Questions from Financial Accounting

Q: ARM received $48,000,000 for the issuance of

ARM received $48,000,000 for the issuance of its stock on May 14. The par value of the ARM stock was only $48,000. Was the excess amount of $47,952,000 a profit to ARM? If not, what was it? Suppose th...

Q: During 2012, the Martell Heights Corp. income statement reported income

During 2012, the Martell Heights Corp. income statement reported income of $500,000 before tax. The company’s income tax return fi led with the IRS showed taxable income of $440,000. During 2012, Mart...

Q: Palace Loan Company’s balance sheet reports the following: Preferred stock

Palace Loan Company’s balance sheet reports the following: Preferred stock, $20 par value, 2%, 11,000 shares issued ............ $ 220,000 Common stock, $2.50 par, 1,100,000 shares issued................

Q: Select an activity for each of the following transactions: 1

Select an activity for each of the following transactions: 1. Paying cash dividends is a/an ___________ activity. 2. Receiving cash dividends is a/an ___________ activity.

Q: Prep Holding Company operates numerous businesses, including motel, auto rental

Prep Holding Company operates numerous businesses, including motel, auto rental, and real estate companies. 2012 was interesting for Prep, which reported the following on its income statement (in mill...

Q: Clean, Inc., a household products chain, reported a prior

Clean, Inc., a household products chain, reported a prior-period adjustment in 2012. An accounting error caused net income of 2011 to be understated by $15 million. Retained earnings at December 31, 2...

Q: At December 31, 2012, Mendonca Mall, Inc., reported

At December 31, 2012, Mendonca Mall, Inc., reported stockholders’ equity as follows: Common stock, $0.50 par, 500,000 shares authorized, 350,000 shares issued......... $ 175,000 Additional paid-in cap...

Q: Revere Water Company reported the following items on its statement of shareholders’

Revere Water Company reported the following items on its statement of shareholders’ equity for the year ended December 31, 2012: 1. Determine the December 31, 2012, balances in Rev...

Q: Suppose Whitney Cycles, Inc., reported a number of special items

Suppose Whitney Cycles, Inc., reported a number of special items on its income statement. The following data, listed in no particular order, came from Whitney’s financial statements...

Q: The Bergeron Book Company’s accounting records include the following for 2012 (

The Bergeron Book Company’s accounting records include the following for 2012 (in thousands): Other revenues............................................................................... $ 1,500 Inco...