Question 1

The following information is for employee William Heedy for the week ended March 15.
Total hours worked: 48
Rate: $16 per hour, with double time for all hours in excess of 40
Federal income tax withheld: $200
United Fund deduction: $50
Cumulative earnings prior to current week: $6,400
Tax rates:
Social security: 6% on maximum earnings of $106,800
Medicare tax: 1.5% on all earnings; on both employer and employee
State unemployment: 4.2% on maximum earnings of $7,000; on employer
Federal unemployment: 0.8% on maximum earnings of $7,000; on employer
 (a)Determine (1) total eanings, (2) total dechuctions, and (3) cash paid.
(b) Detemine each of the employer's payroll taxes related to the eanings of William Heedy for the week ended Mach 15 .

Accepted Answer

The answer of The following information is for employee William...

Question 2

Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect a company's total assets, liabilities, and stockholders' equity.
 $\begin{array}{lrr}
&\text { Stockloders'Equity }& \text {  Liabilities}& \text {  Assets}&\
  \text { (1) Declaring a cash dividend } &\
 \text { (2) Paying the cash dividend declared in (1) } &\
 \text {(3) Declaring a stock dividend  } &\
 \text { (4) Issuing stock certificates for the stock  } &\
 \text {dividend declared in (3)  } &\
\end{array}$

Accepted Answer

The answer of Indicate whether the following actions would (+)...

Question 3

Illustrate the effects on the accounts and the financial statements of each of the following transactions:
 $\begin{array}{lrr}
  \text { Issued a $ \$ 70,000,60 $-day, $ 6 \% $ note dated April 30 to Goldman Co. on account.  } & \text { Apr. 30 } &\
 \text {  Paid Goldman Co. the amount owed on note dated April 30.} &\text { June 29 } &\
\end{array}$

Accepted Answer

The answer of Illustrate the effects on the accounts and...

Question 4

For the year that just ended, a company reports net income of $1,500,000. There are 500,000 shares authorized, 300,000 shares issued, and 250,000 shares of common stock outstanding. What is the earnings per share?

Accepted Answer

The answer of For the year that just ended, a...

Question 5

A corporation has the following stockholders' equity accounts at the end of the current fiscal year, after the closing entries have been posted: Common Stock, $5 par, $2,000,000; Paid-In Capital in Excess of Par--Common Stock, $375,000; Retained Earnings, $1,285,000. The earnings for the current year, during which there were no unusual items, were $300,000.
Compute the earnings per share of common stock.

Accepted Answer

The answer of A corporation has the following stockholders' equity...

Question 6

The following accounts and their balances appear in the ledger on December 31 of the current year:
 $\begin{array}{ll}
\$ 400,000 & \text { CommonStock, } \$ 20 \text { par } \
44,000 & \text { Paid-In Capital in Excess of Par } \
265,000 & \text { RetainedEarnings } \
20,000 & \text { Treasuy Stock }
\end{array}$
 Prepare the Stockholders' Equity section of the balance sheet as of December 31. Twenty five thousand shares of common stock are authorized, and 1,000 shares have been reacquired.

Accepted Answer

The answer of The following accounts and their balances appear...

Question 7

On April 1, 10,000 shares of $20 par common stock were issued at $24. Illustrate the effects on the accounts and the financial statements.

Accepted Answer

The answer of On April 1, 10,000 shares of $20...

Question 8

Smith Co. is considering the following alternative plans for financing the company:
 $\begin{array}{|l|l|l|}
\hline\text { Plan II } & \text { PlanI } & \
\hline \$ 1,000,000 & - & \text { Issue } 10 \% \text { Bonds (at face) } \
\hline \$ 2,000,000 & \$ 3,000,000 & \text { Issue } \$ 10 \text { Common Stock } \
\hline
\end{array}$
 Income tax is estimated at 40% of income.
Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and income tax is $1,000,000.

Accepted Answer

The answer of Smith Co. is considering the following alternative...

Question 9

June Co. is considering the following alternative plans for financing the company:
 $\begin{array}{|l|l|l|}
\hline \text { Plan II } & \text { PlanI } & \
\hline \$ 3,000,000 & - & \text { Issue } 10 \% \text { Bonds (at face) } \
\hline \$ 1,000,000 & \$ 4,000,000 & \text { Issue } \$ 10 \text { Common Stock } \
\hline & & \

\end{array}$ Income tax is estimated at 40% of income.
Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and income tax is $1,000,000.

Accepted Answer

The answer of June Co. is considering the following alternative...

Question 10

A corporation, which had 20,000 shares of common stock outstanding, declared a 3-for-1 stock split.
 (a)What will be the number of shares outstancing after the split?
(b)If the common stock had a market price of $ \$ 240 $ per share before the stock split, what would be an approximate market price per share after the split?

Accepted Answer

The answer of A corporation, which had 20,000 shares of...

Question 11

Based on the following information, what is earnings per share? $\begin{array}{ll}
115,000 & \text { Common shares outstanding } \
\$ 40,000 & \text { Preferred stock cividend declared and paid } \
\$ 350,000 & \text { Net income }
\end{array}$

Accepted Answer

The answer of Based on the following information, what is...

Quiz 8: Liabilities and Stockholders Equity

For the year that just ended, a company reports net income of $1,500,000. There are 500,000 shares authorized, 300,000 shares issued, and 250,000 shares of common stock outstanding. What is the earnings per share?

On April 1, 10,000 shares of $20 par common stock were issued at $24. Illustrate the effects on the accounts and the financial statements.

Based on the following information, what is earnings per share? $\begin{array}{ll}115,000 & \text { Common shares outstanding } \\\$ 40,000 & \text { Preferred stock cividend declared and paid } \\\$ 350,000 & \text { Net income }\end{array}$