INTERMEDIATE ACCOUNTING <CUSTOM LL>
10th Edition
ISBN: 9781260887068
Author: SPICELAND
Publisher: MCG CUSTOM
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Chapter 18, Problem 18.6DMP
To determine
Share issue cost: Cost such as legal fee, promotional charge, and accounting services incurred for the purpose of share issuance would reduce the net cash proceeds from the sale of shares.
To write: A memo to the supervisor explaining the difference between the treatment for the share issue cost from the way debt issue costs are recorded.
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Question 3
6:15 A M M
{l 59%i
You have reviewed the work performed by
your assistant, Samson Chow, on the audit of
Bexca Ltd for the year ended 30 June 2018
and
have
noted
the
following
two
independent matters:
(i)
In
testing investments
in
listed
securities,
Samson
selected
all
shareholdings with a market value
above $200,000 and checked them to
the closing market value reported by
Stock Exchange to
the Australian
determine the net realisable value of
each shareholding. The items tested
totalled $5,500,000, or 60% of the total
balance. Of the items tested, only one
error of $110,000 was discovered.
Samson concluded that the error was
not itself material, as only 2% of the
balance was tested. He extrapolated
this error to the total population and
estimated that the error for the total
population would be $185,000, which
was also immaterial. Therefore, he
concluded that the investments in listed
securities were fairly stated at the
lower of cost or net realisable value.
(ii)
Bexca Ltd…
Plz asap
Exercise 15-1 (Static) Debt and equity securities and short- and long-term investments LO C1
Complete the following descriptions by selecting the appropriate option.
1. Debt securities reflect a(n)
2. Equity securities reflect a(n)
3. Short-term investments are securities that (1) management intends to convert to cash within
or the
4. Long-term investments in securities are defined as those securities that are
convertible to cash or are
relation such as with investments in notes and bonds.
relation such as with investments in shares of stock.
whichever is longer, and (2) are readily convertible to
to be converted into cash in the short term.
Chapter 18 Solutions
INTERMEDIATE ACCOUNTING <CUSTOM LL>
Ch. 18 - Identify and briefly describe the two primary...Ch. 18 - Prob. 18.2QCh. 18 - Prob. 18.3QCh. 18 - Prob. 18.4QCh. 18 - Prob. 18.5QCh. 18 - Prob. 18.6QCh. 18 - Prob. 18.7QCh. 18 - What is meant by a shareholders preemptive right?Ch. 18 - Terminology varies in the way companies...Ch. 18 - Most preferred shares are cumulative. Explain what...
Ch. 18 - The par value of shares historically indicated the...Ch. 18 - Prob. 18.12QCh. 18 - How do we report components of comprehensive...Ch. 18 - The balance sheet reports the balances of...Ch. 18 - At times, companies issue their shares for...Ch. 18 - Prob. 18.16QCh. 18 - The costs of legal, promotional, and accounting...Ch. 18 - When a corporation acquires its own shares, those...Ch. 18 - Discuss the conceptual basis for accounting for a...Ch. 18 - The prescribed accounting treatment for stock...Ch. 18 - Brandon Components declares a 2-for-1 stock split....Ch. 18 - What is a reverse stock split? What would be the...Ch. 18 - Suppose you own 80 shares of Facebook common stock...Ch. 18 - Prob. 18.24QCh. 18 - Comprehensive income LO181 Schaeffer Corporation...Ch. 18 - Stock issued LO184 Penne Pharmaceuticals sold 8...Ch. 18 - Prob. 18.3BECh. 18 - Prob. 18.4BECh. 18 - Prob. 18.5BECh. 18 - Retirement of shares LO185 Agee Storage issued 35...Ch. 18 - Treasury stock LO185 The Jennings Group...Ch. 18 - Prob. 18.8BECh. 18 - Prob. 18.9BECh. 18 - Property dividend LO187 Adams Moving and Storage,...Ch. 18 - Stock dividend LO188 On June 13, the board of...Ch. 18 - Prob. 18.14BECh. 18 - Stock split LO188 Refer to the situation...Ch. 18 - Prob. 18.16BECh. 18 - Prob. 18.2ECh. 18 - Earnings or OCI? LO182 Indicate by letter whether...Ch. 18 - Stock issued for cash; Wright Medical Group LO184...Ch. 18 - Issuance of shares; noncash consideration LO184...Ch. 18 - Prob. 18.6ECh. 18 - Share issue costs; issuance LO184 ICOT Industries...Ch. 18 - Prob. 18.14ECh. 18 - Prob. 18.16ECh. 18 - Prob. 18.20ECh. 18 - Prob. 18.22ECh. 18 - Prob. 18.25ECh. 18 - Various stock transactions; correction of journal...Ch. 18 - Prob. 18.1DMPCh. 18 - Prob. 18.6DMPCh. 18 - Prob. 18.8DMP
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