Monthly Archives: March 2012

15-32 An audit client is being sued for $500,000 for discriminatory hiring practices

15-32 An audit client is being sued for $500,000 for discriminatory hiring practices. Required Indicate the appropriate action the auditor should take for each of the following independent responses to the letter of audit inquiry: a. The lawyer stated that … Continue reading

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14-43 The chapter talks about Delphi Company reducing its other postretirement benefits by approximately $500 million because of a change in the law

14-43 The chapter talks about Delphi Company reducing its other postretirement benefits by approximately $500 million because of a change in the law. The federal government will reimburse companies for prescription drug benefits that they provide to their employees who … Continue reading

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B3. (Book and market values) Consider the following information about the Dilbert Printing Company

B3. (Book and market values) Consider the following information about the Dilbert Printing Company. All data are in millions of dollars. BOOK VALUE MARKET VALUE Assets, December 31, previous year 1,000 2,000 Assets, December 31, latest year 1,200 1,400 Liabilities, … Continue reading

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E15-18 (Dividends and Stockholders’ Equity Section) Elizabeth Company reported the following amounts in the stockholders’ equity section of its December 31, 2010, balance sheet

E15-18 (Dividends and Stockholders’ Equity Section) Elizabeth Company reported the following amounts in the stockholders’ equity section of its December 31, 2010, balance sheet. Preferred stock, 8%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, $5 par … Continue reading

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E15-13 (Stock Split and Stock Dividend) The common stock of Warner Inc. is currently selling at $110 per share

E15-13 (Stock Split and Stock Dividend) The common stock of Warner Inc. is currently selling at $110 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par … Continue reading

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Comprehensive Problem 1 Susquehanna Equipment Rentals

Comprehensive Problem 1 Susquehanna Equipment Rentals Susquehanna Equipment Rentals, 16th Edition A COMPREHENSIVE ACCOUNTING CYCLE PROBLEM On December 1, 2011, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately … Continue reading

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P10-5A Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2010

P10-5A Fordyce Electronics issues a $400,000, 8%, 10-year mortgage note on December 31, 2010. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for semiannual installment payments, exclusive … Continue reading

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E10-15 Leoni Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2011

E10-15 Leoni Co. receives $240,000 when it issues a $240,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2011. The terms provide for semiannual installment payments of $20,000 on June 30 and December 31. … Continue reading

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E10-11 On January 1, Flory Company issued $300,000, 8%, 5-year bonds at face value

E10-11 On January 1, Flory Company issued $300,000, 8%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1. Instructions: Prepare journal entries to record the following events. The issuance of the bonds. The payment … Continue reading

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E10-10 On January 1, Neuer Company issued $500,000, 10%, 10-year bonds at par

E10-10 On January 1, Neuer Company issued $500,000, 10%, 10-year bonds at par. Interest is payable semiannually on July 1 and January 1. Instructions: Prepare journal entries to record the following. a. The issuance of the bonds. b. The payment … Continue reading

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