Survey Of Accounting
4th Edition
ISBN: 9780077862374
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 8, Problem 3ATC
Using either Skechers USA, Inc.’s most current Form 10-K or the company’s annual report, answer the following questions. To obtain the Form 10-K use either the EDGAR system following the instructions in Appendix A or the company’s website. The company’s annual report is available on its website.
Required
- a. What is the book value of Skechers’s stockholders’ equity that is shown on the company’s
balance sheet ? - b. What is the par value of Skechers’s common stock?
- c. Does Skechers have any
treasury stock ? If so, how many shares of treasury stock does the company hold? - d. Why does the stock of a company such as Skechers have a market value that is higher than its book value?
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Instructions
At a total cost of $6,950,000, Herrera Corporation acquired 229,500 shares of Tran Corp. common stock as a
long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp.
has 850,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation.
Required:
A. Journalize the entries by Herrera Corporation on December 31 to record the following information
(refer to the Chart of Accounts for exact wording of account titles):
1. Tran Corp. reports net income of $974,000 for the current period.
2. A cash dividend of $0.28 per common share is paid by Tran Corp. during the current period.
stment?
DEBIT
262,980.00
✓
Score: 51/51
CREDIT
262,980.00
Shaded cells have feedback.
PAGE 10
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ACCOUNTING EQUATION
ASSETS
LIABILITIES
EQUITY
Austin Company reports the following components of stockholders' equity on January 1.
Common stock-$10 par value, 110,000 shares authorized,
40,000 shares issued and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
$ 400,000
60,000
330,000
$ 790,000
Total stockholders' equity
During the year, the following transactions affected its stockholders' equity accounts.
Jan.
2 Purchased 4,000 shares of its own stock at $23 cash per share.
5 Directors declared a $2 per share cash dividend payable on February 28 to the February 5 stockholders of
record.
28 Paid the dividend declared on January 5.
6 Sold 1,500 of its treasury shares at $27 cash per share.
22 Sold 2,500 of its treasury shares at $20 cash per share.
5 Directors declared a $2 per share cash dividend payable on October 28 to the September 25 stockholders of
Jan.
Feb.
July
Aug.
Sept.
Oct.
Dec.
record.
28 Paid the dividend declared on. September 5.
31 Closed the $497,000 credit balance (from net…
Chapter 8 Solutions
Survey Of Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - 5. What is the purpose of the articles of...Ch. 8 - 6. What is the function of the stock certificate?Ch. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - 9. What is a limited liability company? Discuss...Ch. 8 - Prob. 10Q
Ch. 8 - 11. What is the difference between contributed...Ch. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - 14. What is the meaning of each of the following...Ch. 8 - 15. What is the difference between cumulative...Ch. 8 - 16. What is no-par stock? How is it recorded in...Ch. 8 - 17. Assume that Best Co. has issued and...Ch. 8 - 18. If Best Co. issued 10,000 shares of 20 par...Ch. 8 - 19. What is the difference between par value stock...Ch. 8 - 20. Why might a company repurchase its own stock?Ch. 8 - 21. What effect does the purchase of treasury...Ch. 8 - 22. Assume that Day Company repurchased 1,000 of...Ch. 8 - 23. What is the importance of the declaration...Ch. 8 - 24. What is the difference between a stock...Ch. 8 - 25. Why would a company choose to distribute a...Ch. 8 - 26. What is the primary reason that a company...Ch. 8 - 27. If Best Co. had 10,000 shares of 20 par value...Ch. 8 - 28. When a company appropriates retained earnings,...Ch. 8 - Prob. 29QCh. 8 - Prob. 30QCh. 8 - Prob. 31QCh. 8 - 32. What are some reasons that a corporation might...Ch. 8 - Effect of accounting events on the financial...Ch. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Prob. 20PCh. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 1ATCCh. 8 - ATC 8-3 Research Assignment Analyzing Skecherss...Ch. 8 - Prob. 4ATCCh. 8 - ATC 11-7 Ethical Dilemma Bad news versus very bad...
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