Manno Corporation has the following information available concernin
g its postretirement benefit plan for 2012.
Service cost $53,750
Interest cost 58,360
Actual return on plan assets 40,190
Compute Manno‟s 2012 postretirement expense
Question 28
Ravonette Corporation issued 310 shares of $13 par value common st
ock and 130 shares of $47 par value preferred stock for a lump sum of
$17,500. The common stock has a market price of $22 per share, and
the preferred stock has a market price of $98 per share. Prepare the jo
urnal entry to record the issuance
Question 29
Garfield Company purchased, as a held-tomaturity investment, $82,400 of the 9%, 8year bonds of Chester Corporation for $73,919, which provides an 11
% return. Prepare Garfield‟s journal entries for (a) the purchase of the
investment and (b) the receipt of annual interest and discount amortiz
ation. Assume effective interest amortization is used.
Question 30
Clydesdale Corporation has a cumulative temporary difference related
to depreciation of $606,600 at December 31, 2012. This difference w
ill reverse as follows: 2013, $43,100; 2014, $264,300; and 2015, $299
,200. Enacted tax rates are 34% for 2013 and 2014, and 40% for 2015.
Compute the amount Clydesdale should report as a deferred tax liabil
ity at December 31, 2012.
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ACC 423 Final Exam Guide 2
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1) When the cash proceeds from a bond issued with detachable stock
warrants exceed the sum of the par value of the bonds and the fair mar
ket value of the warrants, the excess should be credited to
A. premium on bonds payable.