ACC 423 FINAL EXAMS
1) When convertible debt is retired by the issuer, any material difference between the cash acquisition price and the carrying amount of the debt should be 2) The conversion of preferred stock may be recorded by the
3) The conversion of preferred stock into common stock requires that any excess of the par value of the common shares issued over the carrying amount of the preferred being converted should be 4) The accounting problem in a lump sum issuance is the allocation of proceeds between the classes of securities. An acceptable method of allocation is the 5) When a corporation issues its capital stock in payment for services, the least appropriate basis for recording the transaction is the 6) Total stockholders' equity represents
7) When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited? 8) “Gains" on sales of treasury stock (using the cost method) should be credited to 9) Wilson Corp. purchased its own par value stock on January 1, 2007 for $20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $12,000. The $8,000 difference between the cost and sales price should be recorded as a deduction from 10) When computing diluted earnings per share, convertible bonds are 11) In computations of weighted average of shares outstanding, when a stock dividend or stock split occurs, the additional shares are 12) In the diluted earnings per share computation, the treasury stock method is used for options and warrants to reflect assumed reacquisition of common stock at the average market price during the period. If the exercise price of the options or warrants exceeds the average market price, the computation would
13) On December 31, 2006, the stockholders' equity section of Clark, Inc., was as follows: Common stock, par value...
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