ACC/423

INTERMEDIATE FINANCIAL
ACCOUNTING III
The Latest Version A+ Study Guide

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ACC 423 Entire Course Link

https://uopcourses.com/category/acc-423/
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ACC 423 Week 1 Owners Equity Paper

Prepare a 700- to 1,050-word response to the following questions:
Why is it important to keep paid-in capital separate from earned capital?
As an investor, is paid-in capital or earned capital more important? Explain why.
As an investor, are basic or diluted earnings per share more important? Explain
why.
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.

ACC 423 Week 2 Textbook Problems

Prepare written responses to the following assignments from Ch. 16 of Intermediate
Accounting:
Problem P15-1
Problem P15-11
Exercise E16-15

Exercise E16-20
Exercise E16-25
Exercise E16-29

Click the Assignment Files tab to submit your assignment.

ACC 423 Week 2 WileyPLUS Assignment: Week 2 Assignment

Complete the following Week Two Assignment in WileyPLUS:
Exercise E15-1
Exercise E15-6
Exercise E15-14
Exercise E15-18
Exercise E16-2
Exercise E16-7
Exercise E17-2
Exercise E17-4
Exercise E17-7
Exercise E17-13
Exercise E17-16

ACC 423 Week 3 Textbook Problems

Prepare written responses to the following assignments from Ch. 17 of Intermediate
Accounting:
Problem P17-1
Problem P17-3
Exercise E17-22
Click the Assignment Files tab to submit your assignment.

ACC 423 Week 3 WileyPLUS Assignment: Week 3 Assignment

Complete the following Week Three Assignment in WileyPLUS:
Exercise 19-2
Exercise 19-4
Exercise 19-8
Exercise 19-12
Exercise 19-21

ACC 423 Week 4 Textbook Problems

Prepare written responses to the following assignments from Ch. 19 of Intermediate
Accounting:
Problem P19-1
Problem P19-2
Problem P19-4
Exercise E19-6
Click the Assignment Files tab to submit your assignment.

ACC 423 Week 4 WileyPLUS Assignment: Week 4 Assignment

Complete the following Week Four Assignment in WileyPLUS:
Exercise E20-1
Exercise E20-4
Exercise E20-6
Exercise E20-8
Exercise E20-10
Exercise E20-16

ACC 423 Week 5 Textbook Assignment

Prepare written responses to the following assignments from Ch. 20 of Intermediate
Accounting:
Problem P20-1
Problem P20-3
Problem P22-1
Problem P22-2
Click the Assignment Files tab to submit your assignment.

ACC 423 Week 5 WileyPLUS Assignment: Week 5 Assignment

Complete the following Week Five Assignment in WileyPLUS:
Exercise E22-1
Exercise E22-3
Exercise E22-6

Exercise E22-9
Exercise E22-14
Exercise E22-17

ACC 423 Week 5 WileyPLUS Assignment: Final Examination

Resource: WileyPLUS
Complete the Final Examination in WileyPLUS. Results are auto-graded and sent to
your instructor

Question 1
Buttercup Corporation issued 300 shares of $10 par value common stock for $4,500.
Prepare Buttercups journal entry. (Credit account titles are automatically indented
when amount is entered. Do not indent manually. If no entry is required, select
"No Entry" for the account titles and enter 0 for the amounts.)

Question 2
Wilco Corporation has the following account balances at December 31, 2014.
Common stock, $5 par value
Treasury stock

$510,000
90,000

Retained earnings

2,340,000

Paid-in capital in excess of parcommon stock

1,320,000

Prepare Wilcos December 31, 2014, stockholders equity section. (Enter account name
only and do not provide descriptive information.)

Question 3
Woolford Inc. declared a cash dividend of $1.00 per share on its 2 million outstanding
shares. The dividend was declared on August 1, payable on September 9 to all
stockholders of record on August 15.

Question 4
Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares
of $50 par value preferred stock for a lump sum of $13,500. The common stock has a

market price of $20 per share, and the preferred stock has a market price of $90 per
share.

Question 5
The outstanding capital stock of Edna Millay Corporation consists of 2,000 shares of
$100 par value, 8% preferred, and 5,000 shares of $50 par value common.
Assuming that the company has retained earnings of $90,000, all of which is to be paid out
in dividends, and that preferred dividends were not paid during the 2 years preceding the
current year, state how much each class of stock should receive under each of the
following conditions.

Question 6
Matt Schmidt Companys ledger shows the following balances on December 31, 2014.
7% Preferred Stock$10 par value, outstanding 20,000 shares

$ 200,000

Common Stock$100 par value, outstanding 30,000 shares

3,000,000

Retained Earnings

630,000

Assuming that the directors decide to declare total dividends in the amount of $366,000,
determine how much each class of stock should receive under each of the conditions
stated below. One years dividends are in arrears on the preferred stock.

Question 7
On January 1, 2014, Barwood Corporation granted 5,000 options to executives. Each
option entitles the holder to purchase one share of Barwoods $5 par value common stock
at $50 per share at any time during the next 5 years. The market price of the stock is
$65 per share on the date of grant. The fair value of the options at the grant date is
$150,000. The period of benefit is 2 years.

Question 8
Rockland Corporation earned net income of $300,000 in 2014 and had 100,000 shares of
common stock outstanding throughout the year. Also outstanding all year was $800,000 of
10% bonds, which are convertible into 16,000 shares of common. Rocklands tax rate
is 40 percent.

Question 9
Ferraro, Inc. established a stock-appreciation rights (SAR) program on January 1, 2014,
which entitles executives to receive cash at the date of exercise for the difference between
the market price of the stock and the pre-established price of $20 on 5,000 SARs. The

required service period is 2 years. The fair value of the SARs are determined to be $4 on
December 31, 2014, and $9 on December 31, 2015.

Question 10
Garfield Company purchased, as a held-to-maturity investment, $80,000 of the 9%, 5-year
bonds of Chester Corporation for $74,086, which provides an 11% return.

Question 11
Arantxa Corporation made the following cash purchases of securities during 2014, which is
the first year in which Arantxa invested in securities.
1.

On January 15, purchased 10,000 shares of Sanchez Companys common stock at

$33.50 per share plus commission $1,980.

2.

On April 1, purchased 5,000 shares of Vicario Co.s common stock at $52 per share
plus commission $3,370.

3.

On September 10, purchased 7,000 shares of WTA Co.s preferred stock at $26.50 per
share plus commission $4,910.

On May 20, 2014, Arantxa sold 4,000 shares of Sanchez Companys common stock at a
market price of $35 per share less brokerage commissions, taxes, and fees of $3,850. The
year-end fair values per share were Sanchez $30, Vicario $55, and WTA $28. In addition,
the chief accountant of Arantxa told you that Arantxa Corporation plans to hold these
securities for the long term but may sell them in order to earn profits from appreciation in
prices.

Question 12
The following are two independent situations.
Situation 1
Conchita Cosmetics acquired 10% of the 200,000 shares of common stock of Martinez
Fashion at a total cost of $13 per share on March 18, 2014. On June 30, Martinez declared
and paid a $75,000 cash dividend. On December 31, Martinez reported net income of
$122,000 for the year. At December 31, the market price of Martinez Fashion was $15 per
share. The securities are classified as available-for-sale.
Situation 2
Monica, Inc. obtained significant influence over Seles Corporation by buying 30% of
Seless 30,000 outstanding shares of common stock at a total cost of $9 per share on
January 1, 2014. On June 15, Seles declared and paid a cash dividend of $36,000. On
December 31, Seles reported a net income of $85,000 for the year.

Question 13
Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays
out 40% of net income in dividends each year.
Use the information in the following T-account for the investment in Sub to answer the
following questions.

Question 14
Jaycie Phelps Inc. acquired 20% of the outstanding common stock of Theresa Kulikowski
Inc. on December 31, 2013. The purchase price was $1,200,000 for 50,000 shares.
Kulikowski Inc. declared and paid an $0.85 per share cash dividend on June 30 and on
December 31, 2014. Kulikowski reported net income of $730,000 for 2014. The fair value
of Kulikowskis stock was $27 per share at December 31, 2014.

Question 15
On January 2, 2014, Jones Company purchases a call option for $300 on Merchant
common stock. The call option gives Jones the option to buy 1,000 shares of Merchant at a
strike price of $50 per share. The market price of a Merchant share is $50 on January 2,
2014 (the intrinsic value is therefore $0). On March 31, 2014, the market price for
Merchant stock is $53 per share, and the time value of the option is $200.

Question 16
In 2014, Amirante Corporation had pretax financial income of $168,000 and taxable
income of $120,000. The difference is due to the use of different depreciation methods for
tax and accounting purposes. The effective tax rate is 40%.

Question 17
Clydesdale Corporation has a cumulative temporary difference related to depreciation of
$580,000 at December 31, 2014. This difference will reverse as follows: 2015, $42,000;
2016, $244,000; and 2017, $294,000. Enacted tax rates are 34% for 2015 and 2016,
and 40% for 2017.

Question 18
At December 31, 2014, Fell Corporation had a deferred tax liability of $680,000,
resulting from future taxable amounts of $2,000,000 and an enacted tax rate of
34%. In May 2015, a new income tax act is signed into law that raises the tax

rate to 40% for 2015 and future years.

Question 19
Lahey Corp. has three defined benefit pension plans as follows.
Pension Assets

Projected Benefit

(at Fair Value)

Obligation

Plan X

$600,000

$500,000

Plan Y

900,000

720,000

Plan Z

550,000

700,000

How will Lahey report these multiple plans in its financial statements?

Question 20
Manno Corporation has the following information available concerning its
postretirement benefit plan for 2014.
Service cost

$40,000

Interest cost

47,400

Actual and expected return on plan assets

26,900

Question 21
For 2014, Sampsell Inc. computed its annual postretirement expense as
$240,900. Sampsells contribution to the plan during 2014 was $180,000.

Question 22
Wertz Construction Company decided at the beginning of 2014 to change from
the completed-contract method to the percentage-of-completion method for
financial reporting purposes. The company will continue to use the completedcontract method for tax purposes. For years prior to 2014, pretax income under
the two methods was as follows: percentage-of-completion $120,000, and
completed-contract $80,000. The tax rate is 35%.

Question 23
In 2014, Bailey Corporation discovered that equipment purchased on January 1,
2012, for $50,000 was expensed at that time. The equipment should have been
depreciated over 5 years, with no salvage value. The effective tax rate is 30%.

Question 24
At January 1, 2014, Beidler Company reported retained earnings of $2,000,000.
In 2014, Beidler discovered that 2013 depreciation expense was understated by
$400,000. In 2014, net income was $900,000 and dividends declared were
$250,000. The tax rate is 40%.

Question 25
Simmons Corporation owns stock of Armstrong, Inc. Prior to 2014, the
investment was accounted for using the equity method. In early 2014, Simmons
sold part of its investment in Armstrong, and began using the fair value method.
In 2014, Armstrong earned net income of $80,000 and paid dividends of
$95,000.

Question 26
DiCenta

Corporation

reported

net

income

of

$270,000 in

2014

and

had 50,000 shares of common stock outstanding throughout the year. Also
outstanding all year were 5,000 shares of cumulative preferred stock, each
convertible into 2 shares of common. The preferred stock pays an annual dividend
of $5 per share. DiCentas tax rate is 40%.

Question 27
AMR Corporation (parent company of American Airlines) reported the
following for 2011 (in millions).
Service cost

$366

Interest on P.B.O.

737

Return on plan assets

593

Amortization of prior service cost

Amortization of net loss

13
154

Question 28
For Warren Corporation, year-end plan assets were $2,000,000. At the beginning
of the year, plan assets were $1,780,000. During the year, contributions to the
pension fund were $120,000, and benefits paid were $200,000.

Question 29
For 2012, Campbell Soup Company had pension expense of $73 million and
contributed $71 million to the pension fund.

Hillsborough Co. has an available-for-sale investment in the bonds of Schuyler

Corp. with a carrying (and fair) value of $70,000. Hillsborough determined that
due to poor economic prospects for Schuyler, the bonds have decreased in value
to $60,000. It is determined that this loss in value is other-than-temporary.

Question 30
Hillsborough Co. has an available-for-sale investment in the bonds of Schuyler
Corp. with a carrying (and fair) value of $70,000. Hillsborough determined that
due to poor economic prospects for Schuyler, the bonds have decreased in value
to $60,000. It is determined that this loss in value is other-than-temporary.