Accounting exam questions Accounting exam questions Question During 2007, Taub Company issued at 104 three hundred, $1,000 bonds due in ten years. One detachable stock warrant entitling the holder to purchase 15 shares of Taub s common stock was attached to each bond. At the date of issuance, the market value of the bonds, without the stock warrants, was quoted at 96. The market value of each detachable warrant was quoted at $40. What amount, if any, of the proceeds from the issuance should be accounted for as part of Taub s stockholders' equity? Save your time! Proper editing and formatting Free revision, title page, and bibliography Flexible prices and money-back guarantee ORDER NOW Make sure you submit a unique essay Our writers will provide you with an essay sample written from scratch: any topic, any deadline, any instructions. 100% ORIGINAL ORDER NOW On May 1, 2007, Logan Co. issued $300,000 of 7% bonds at 103, which are due on April 30, 2017. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Logan s common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2007, the fair value of Logan s common stock was $35 per share and of the warrants was $2. On May 1, 2007, Logan should record the bonds with a The data below were taken from the accounting records of Fosel Inc. for 2006:Net income - $150,000;Income tax expense - 55,000;Interest expense - 35,000;Preferred stock dividends - 30,000;Common stock dividends - 45,000;Beginning shares of common stock- 54,000 shares;Shares of common stock issued February 28- 12,000 shares;Shares of treasury stock purchased July 1- 6,000 shares.Assuming that Fosel Inc. had split its stock 2 for 1 on June 1, compute the weighted-average number of shares outstanding at December 31, 2006. On January 2, 2007, Ramos Co. issued at par $10,000 of 6% bonds convertible in total into 1,000 shares of Ramos's common stock. No bonds were converted during 2007. Throughout 2007, Ramos had 1,000 shares of common stock outstanding. Ramos's 2007 net income was $3,000, and its income tax rate is 30%. No potentially dilutive securities other than the convertible bonds were outstanding during 2007. Ramos's diluted earnings per share for 2007 would be (rounded to the nearest penny) Ross Co. purchased $300,000 of bonds for $315,000. If Ross intends to hold the securities to maturity, the entry to record the investment includes A company invests in the common stock of XYZ Inc. with the intent to sell the stock within a couple of months. The company should classify the investment as 17-Which of the following is not a held-to-maturity security? a-Investment in bonds that the company intends to hold until the maturity date b-Investment in debt securities acquired exclusively as a fixed-income investment, which the company intends to keep until the end of the bond term c-Investment in preferred stock that the company intends to hold for 20 years d-Investment in bonds purchased four years after issue that the company intends to hold until the due date 18-Held-to-maturity securities are reported at acquisition cost. acquisition cost plus amortization of a discount. acquisition cost plus amortization of a premium. fair value. On August 1, 2007, Bettis Company acquired $200,000 face value 10% bonds of Hanson Corporation at 104 plus accrued interest. The bonds were dated May 1, 2007, and mature on April 30, 2012, with interest payable each October 31 and April 30. The bonds will be held to maturity. What entry should Bettis make to record the purchase of the bonds on August 1, 2007? On August 1, 2007, Witten Co. acquired 200, $1,000, 9% bonds at 97 plus accrued interest. The bonds were dated May 1, 2007, and mature on April 30, 2013, with interest paid each October 31 and April 30. The bonds will be added to Witten s available-for-sale portfolio. The preferred entry to record the purchase of the bonds on August 1, 2007 is Miley, Inc. began work in 2007 on a contract for $8,400,000. Other data are as follows: For 2007: Costs incurred to date: $3,600,000, Estimated costs to complete: $2,400,000, Billings to date: $2,800,000, Collections to date: $2,000,000. For 2008: Costs to date: $5,600,000, Estimated costs to complete: $0, Billings to date: $8,400,000, Collections to date: $7,200,000. If Miley uses the completed-contract method, the gross profit to be recognized in 2008 is Stone Co. owns 4,000 of the 10,000 outstanding shares of Maye Corp. common stock. During 2007, Maye earns $120,000 and pays cash dividends of $40,000. Stone should report investment revenue for 2007 of