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 comm

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?
Chase Corp sold 200, $1,000, 6.5 percent bonds at 105 on March 1, 2006.
Each bond has 10 warrants attached, and each warrant allows its holder to
purchase one share of $1 par value common stock at $10 per share. At the
time of sale, the bonds without the stock warrants would have sold for 102,
and the stock warrants for $10. The stock warrants will expire on December
31, 2008.The journal entry to record the sale of the bonds should include a
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.
At December 31, 2007, Norbett Company had 500,000 shares of common
stock issued and outstanding, 400,000 of which had been issued and
outstanding throughout the year and 100,000 of which were issued on
October 1, 2007. Net income for the year ended December 31, 2007, was
$1,020,000. What should be Norbett's 2007 earnings per common share,
rounded to the nearest penny?

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
Which of the following situations is not required in order to use the
completed-production method of revenue recognition?
In which of the following situations would revenue recognition be delayed?
Muscle Construction signs a contract to build a classroom addition for
Smallville High School. The total price for the addition is $800,000, and the
initial cost estimate was $650,000. The project is expected to take 18 months
to complete. The project was begun in 2006 and finished in 2007. Muscle
Construction uses a calendar year for reporting purposes. The following
details are from 2006 and 2007: For 2006: Cost incurred: $350,000, Billings:
$400,000, Collections: $390,000, Estimated cost to complete: $350,000. For
2007: Cost incurred: $280,000, Billings: $400,000, Collections: $350,000.
Calculate the amount of gross profit Muscle Construction should recognize
in 2007, using the percentage-of-completion method.
Page Manufacturing Company uses the percentage-of-completion method of
recognizing income on its long-term projects. During 2006, Page agreed to
make a specialized production system for $1,000,000. Information relating
to the contract is as follows: December 31, 2006: Percentage of completion:
20%, Estimated total costs at completion: $750,000, Income recognized
(cumulative): $50,000. December 31, 2007: Percentage of completion: 60%,
Estimated total costs at completion: $800,000, Income recognized
(cumulative): $120,000. Contract costs incurred during 2007 were
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