Trouble Problems

Question 1

Straight Line Carrying Value

Answer 1

(Cost (1-%)) + (((SharePrice)+Interest)*Months)

Question 2

Straight line Carrying Value partial months

Answer 2

Proceeds + ((FV*2%) * months

Question 3

SL interest expense

Answer 3

(FV*%) + (____ /Y years)

Question 4

With Premium

Answer 4

(FV*acrrued) - FV

Question 5

SL Bond Interest

Answer 5

((FV%) * MONTHS) - (( ___/ years) months)

Question 6

Redemption JE Credit

Answer 6

discount

Question 7

gain on retirement

Answer 7

(BP+premium)-(premium/years)*months * % = a
a- (retired * retired %)

Question 8

Loss on retirement

Answer 8

CV + ((CVYEILD%)-(FVMKT%))=A
A-(FV*Accrued)

Question 9

Requisition Price

Answer 9

issued * accrued - (issued(1-accrued)/years)((accrued)-1)* months = a

a- (repurchased*Market%)

Question 10

Loss on called bonds

Answer 10

((FVcalled%)+(FV(1-CALLED%) * (Months/years)) * 60%=a
(Called*accrued)-a

Question 11

Income before taxes with times ratio

Answer 11

(net income + interest + x) / interest = ratio

Question 12

record aro

Answer 12

Debit Natural Gas Facility
Credit Asset Retirement Obligation

PV of removal cost

Question 13

Expenses recorded for dismantling an oil rig

Answer 13

Depr Exp: (Cost+PV)/years

Interest:PV*interest %

Question 14

Report as liability with warrants

Answer 14

(total sales*all percents added)-actual expenditures

Question 15

premiums for box tops

Answer 15

(((sold* est %)- redeemed)/cost of gift)* (bowl-boxes)

Question 16

JE to record estimated warranty

Answer 16

Debit Warranty Expense
Credit Warranty Liability
sales*percent

Question 17

acid ratio

Answer 17

(Current Assets+ST inv + AR) / Current liab

Question 18

Credited accounts to record sale of TS

Answer 18

TS- sold shares * CS per
PIC/TS - sold shares * (CS per - sold $ epr)

Question 19

Total additional PIC

Answer 19

PIC + (TS Sold *__) - (remaining shares * ___)

Question 20

Cost method total stockholders equity

Answer 20

Total Equity - (reacquired amounts) + (sold amounts) + net income

Question 21

Dividends received

Answer 21

Current shares * price * percent = a
(a-dividends)+a

Question 22

Cash to stockholders

Answer 22

shares * % * price = a

declared - (a*years)

Question 23

gain and net reduction in retained earnings would result from this property dividend

Answer 23

(purchased price / #shares) * price per = a

(price per - (purch price / # owned shares))*a= b

a-b

Question 24

result of the dividends declared during the year, retained earnings decreased

Answer 24

shares * par * per= a
a+(shares (1+%)dividend $)

Question 25

Capital stock from stock dividend

Answer 25

(shares of CapS *price of CapS)+ total capital stock

Question 26

Payout ratio

Answer 26

dividends / (net income + preferred)

Question 27

rate of return

Answer 27

(net income - pref divid) / (common equity for both years*2)

Question 27

book value per share

Answer 27

shares / outstanding

Question 28

distributed and preferred stock is also participating, how much will the common stockholders receive?

Answer 28

% * price of shares = a
(1-%)* price of shares= b

outstanding shares * % * (par-stated)= c

a+c=d

(distributed - d) / (price of shares + outstanding shares)

Question 29

Revenue from Investment

Answer 29

Net income * (shares CS / outstanding shares

Question 30

increase in FV from investment

Answer 30

0

Question 31

Gross Profit with percent-of-complete

Answer 31

contract - (both costs incurred)

Question 32

Construction in Processes

Answer 32

(costs to date / est cost) * (contract - est) = a
costs to date + a

Question 33

Gross Profit on Install

Answer 33

(Years GP / P/Y install) * P/Y Sales = a
((C/y GP/C/Y install) * CY Sales) + a

Question 34

Reduction on equity

Answer 34

(owned share * market $) - ((market - CV) Owned Share)

Question 35

Net reduction on Retained Earnings

Answer 35

(shares/10) * per = a
a - (a (shares * (shares/owned))

Question 36

Rent Expense

Answer 36

Deposit + ((Install/years) * 1/2)

Question 37

Interest Income

Answer 37

PV Rent Payable- purchase = a
(purchase- payable)* % = b

Question 38

Total Liability Pensions

Answer 38

Acc benefit Obligation - Plan assets