INTERMEDIATE ACCOUNTING (ACCT 3200B)
10th Edition
ISBN: 9781307660647
Author: SPICELAND
Publisher: MCG/CREATE
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Chapter 18, Problem 18.2BE
Stock issued
• LO18–4
Penne Pharmaceuticals sold 8 million shares of its $1 par common stock to provide funds for research and development. If the issue price is $12 per share, what is the
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Question 10 of 17
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Crane Company issued 9000 shares of its $5 par value common stock having a fair value of $20 per share and 14000 shares of its
$10 par value preferred stock having a fair value of $20 per share for a lump sum of $510000. How much of the proceeds would be
allocated to the common stock?
O $180000
O $310435
O $199565
O $206250
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Exercise 19-12 (Algo) EPS; shares issued; stock dividend [LO19-5, 19-6]
For the year ended December 31, 2021, Norstar Industries reported net income of $985,000. At January 1, 2021, the company had
1,150,000 common shares outstanding. The following changes in the number of shares occurred during 2021:
Apr. 30 Sold 105,000 shares in a public offering.
May 24 Declared and distributed a 5% stock dividend.
June
1 Issued 120,000 shares as part of the consideration for the purchase of assets from a subsidiary.
Required:
Compute Norstar's earnings per share for the year ended December 31, 2021. (Enter your answers in thousands. Round "EPS"
answer to 2 decimal places. Do not round intermediate calculations.)
Numerator
Denominator
Earnings per Share
%3D
%3D
BE 12-10 Equity securities
LO12-5
Adams Industries holds 40,000 shares of FedEx common stock, which is not a large enough
ownership interest to allow Adams to exercise significant influence over FedEx. On December 31,|
2021, and December 31, 2022, the market value of the stock is $95 and $100 per share,
respectively. What is the appropriate reporting category for this investment and at what amount
will it be reported in the 2022 balance sheet?
BE 12-11 Equity investments and dividends
LO12-5
Turner Company owns 10% of the outstanding stock of ICA Company. During the current year,
ICA paid a $5 million cash dividend on its common shares. What effect did this dividend have on
Turner's 2021 financial statements? Explain the reasoning for this effect.
BE 12-12 Equity method and dividends
LO12-6
Turner Company owns 40% of the outstanding stock of ICA Company. During the current year,
ICA paid a $5 million cash dividend on its common shares. What effect did this dividend have on
Turner's…
Chapter 18 Solutions
INTERMEDIATE ACCOUNTING (ACCT 3200B)
Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2QCh. 18 - Prob. 18.3QCh. 18 - Prob. 18.4QCh. 18 - Prob. 18.5QCh. 18 - Prob. 18.6QCh. 18 - Prob. 18.7QCh. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...
Ch. 18 - The par value of shares historically indicated the...Ch. 18 - Prob. 18.12QCh. 18 - How do we report components of comprehensive...Ch. 18 - The balance sheet reports the balances of...Ch. 18 - At times, companies issue their shares for...Ch. 18 - Prob. 18.16QCh. 18 - The costs of legal, promotional, and accounting...Ch. 18 - When a corporation acquires its own shares, those...Ch. 18 - Discuss the conceptual basis for accounting for a...Ch. 18 - The prescribed accounting treatment for stock...Ch. 18 - Brandon Components declares a 2-for-1 stock split....Ch. 18 - What is a reverse stock split? What would be the...Ch. 18 - Suppose you own 80 shares of Facebook common stock...Ch. 18 - Prob. 18.24QCh. 18 - Comprehensive income LO181 Schaeffer Corporation...Ch. 18 - Stock issued LO184 Penne Pharmaceuticals sold 8...Ch. 18 - Prob. 18.3BECh. 18 - Prob. 18.4BECh. 18 - Prob. 18.5BECh. 18 - Retirement of shares LO185 Agee Storage issued 35...Ch. 18 - Treasury stock LO185 The Jennings Group...Ch. 18 - Prob. 18.8BECh. 18 - Prob. 18.9BECh. 18 - Property dividend LO187 Adams Moving and Storage,...Ch. 18 - Stock dividend LO188 On June 13, the board of...Ch. 18 - Prob. 18.14BECh. 18 - Stock split LO188 Refer to the situation...Ch. 18 - Prob. 18.16BECh. 18 - Prob. 18.2ECh. 18 - Earnings or OCI? LO182 Indicate by letter whether...Ch. 18 - Stock issued for cash; Wright Medical Group LO184...Ch. 18 - Issuance of shares; noncash consideration LO184...Ch. 18 - Prob. 18.6ECh. 18 - Share issue costs; issuance LO184 ICOT Industries...Ch. 18 - Prob. 18.14ECh. 18 - Prob. 18.16ECh. 18 - Prob. 18.20ECh. 18 - Prob. 18.22ECh. 18 - Prob. 18.25ECh. 18 - Various stock transactions; correction of journal...Ch. 18 - Prob. 18.1DMPCh. 18 - Prob. 18.6DMPCh. 18 - Prob. 18.8DMP
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