会计英语2(Review).doc

ReviewNOTE：此资料作为复习时参考资料，有改动部分或更新部分请上课时认真听讲，否则死记硬背该资料后果自负！一、Available-for-sale1、W Co. made the following available-for-sale securities transactions:2011Jan 14 Purchased 5,0000 shares of C Corporation stock at $20 per shareMar 1 Received a cash dividend of $0.30 per share on the C Corporation stockDec 31 The market value of the C Corporation stock was $18per share.2012May 8 Purchased 20,000 shares of C Corporation stock at $26 per shareJun 1 Received a cash dividend of $0.40 per share on the C Corporation stockAug 1 sold 10,000 shares of C Co. stock at $28 per share.Dec 31 The market value of the C Corporation stock was $18per share.Required: Prepare the journal entries required to record each of these events2、Prepare journal entries to record the transactions.In January 2004, S Inc. determined that it had excess cash on hand and decided to invest in H Company stock. The company intends to hold the stock for a period of three to five years, thereby making the investment an available-for-sale security. The following transactions took place in 2004, 2005, 20062004 Jan17 Purchased 2750 shares of H Company stock for $89500.May 10 Received a cash dividend of $1.30 per share on H Company stock.Dec. 31 The market value of the H Company stock was $30 per share.2005 May 22 Purchased 750 shares of H Company stock at $40 per share. July 18 Received a cash dividend of $0.90 per share on the H Company stock. Dec. 31 The market value of the H Company stock was $42 per share.2006 June 7 Received a cash dividend of $1 per share on the H Company stock. Oct. 5 Sold the H Company stock 1000 shares at $27 per share for cash. Dec. 31 The market value of the H Company stock was $25 per share.Required: Prepare the journal entries required to record each of these events二、long-term investment1、Presented below are two independent situations:Situation I C company acquired 10% of the $200 000 shares of common stock of M company at a total cost of $13 per share on March 18, 2006. On June 30, M declared and paid a $75 000 cash dividend. On December 31, M reported net income of $122 000 for the year. At December 31, the market price of M was $15 per share. The securities are classified long-term investment.Situation II M Inc. obtained significant influence over S Corporation by buying 30% of S $3 000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2006. On June 15, S declared and paid a cash dividend of $36 000. On December 31, S reported a net income of $85 000 for the year.Required Prepare all necessary journal entries in 2006 for both situations.2、Situation IF Company acquired 15% of 400,000 of common stock of M Company at total cost of $25 per share on Mar.28, 2009. On June 30 and on Dec.30. M Company declared and paid a $340,000 cash dividend respectively. On Dec 31. M Company reported net income of $820,000 for the year. The securities are classified as available-for sale.Situation IIM Company obtained significant influence over S Company by buying 40% of S Companys 50,000 shares of outstanding common stock at a total cost of $11 per share on Jan 1,2009. On June 15, S Company declared and paid cash dividend of $255,000. On Dec 31, S Company reported a net income of $620,000 for the year.Required:Prepare journal entries using cost method and equity method3、A company acquired 40% of B companys voting stock for $300000 on January 2,2007. As 40% interest in B give A the ability to exercise significant influence over Bs operating and financial policies. During 2007, B earned $200000 and paid dividends of $150000. B reported earnings of $100000 for the six months ending June 30,2008, and $140000 for the year ending December 31,2008. On July 1, 2008, A sold half of its stock in B for $195000 cash. B paid dividends of $60000 on December 23,2008.Required:Prepare journal entries using cost method and equity method三、Treasury stock1、Cable transmissions engaged in the following transactions involving treasury stock:Nov 10 Purchased for cash 12,500 shares of treasury stock at a price of $40 per share.Dec 4 Reissued 5,000 shares of treasury stock at a price of $44 per share.Dec 12 Reissued 7,500 shares of treasury stock at a price of $38 per share.Dec 18Purchased for cash 40,000 shares of treasury stock at a price of $36 per share.Dec 4 Reissued 25,000 shares of treasury stock at a price of $34 per share.Dec 12 Reissued 5,000 shares of treasury stock at a price of $32per share.Required:Prepare general journal entries to record these transactions.2、Cable transmissions engaged in the following transactions involving treasury stock:Nov 10 Purchased for cash 12,500 shares of treasury stock at a price of $30 per share.Dec 4 Reissued 5,000 shares of treasury stock at a price of $33 per share.Dec 12 Reissued 7,500 shares of treasury stock at a price of $29 per share.Dec 18Purchased for cash 40,000 shares of treasury stock at a price of $28 per share.Dec 4 Reissued 25,000 shares of treasury stock at a price of $27 per share.Dec 12 Reissued 5,000 shares of treasury stock at a price of $26per share.Required:Prepare general journal entries to record these transactions.四、stock dividend，stock split & EPSGlass corporation has 500,000 shares of $10 par value capital stock outstanding. You are to prepare the journal entries to record the following transactions:Mar 1 Distributed an additional 500,000 shares of capital stock in a 2 for 1 stock split. Par value per share was reduced from $10 to $5.June 1 declared a cash dividend of 60 cents per share.July 1 paid the 60 cent cash dividend to stock holders.Aug 1 declared a 10% stock dividend. Market price of stock was $20 per share.Oct 1 issued 100,000 shares to the 10% stock dividend.Dec 1 declared a 30% stock dividend. Market price of the stock was $25 per share.Dec 31 The net income of the corporation in the current year was $600,000Prepare general journal entries to record the above transactions and calculate the EPS.五、held-to-maturity securities1、On Dec31,2007, when the market interest rate was 10 percent , an investor purchased $20,000 of Bail Corp. 6-year, 8-percent coupon rate bonds at issuance. Determine the cost (present value) of this long-term bond investment, which the investor expected to hold to maturity. Journalized the purchase on Dec 31,2007. The first semiannual interest receipt was on June 30,2008 and the year-end interest receipt on Dec 31,2008. The investor uses the effective amortization method.Required:1Determined the cost (present value) of this long-term bond investment.2Using the effective interest method to amortizing the bond investment through 2008-2009.Additional information:Present Value of $1Period (year)4%5%8%10%30.88900.86380.79380.751360.79030.74620.63020.5645120.62460.55680.39710.3186Present Value of an ordinary annuity $1Period (year)4%5%8%10%32.75512.72322.57712.486965.24215.07574.62294.3553129.38518.86337.53616.8137DateCash receivedInterest RevenueDiscount AmortizedUnamortizedDiscountCarrying Amount of Bonds2、On December 31, 2007, when the market interest rate is 8 percent, an investor purchases $500 000 of Bail Corp. 6-year, 10-percent bonds at issuance. Determine the cost (present value) of this long-term bond investment, which the investors expect to hold to maturity. Journalize the purchase on December 31, 2007, the first semiannual interest receipt on June 30, 2008, and the year-end interest receipt on December 31, 2008. The investor uses the effective amortization method.Required:(1). Determine the present value of the bond on Dec.31, 2007.(2). Use the interest method to amortize the premium of the bond through 2008-2009.(3). Prepare a journal entry to record the interest received and premium amortization of the bond for June 30, 2008. (15%)DateCash receivedInterest Revenue premium AmortizedUnamortizedpremiumCarrying Amount of Bonds六、The statement of cash flow1、Net changes in the non cash balance sheet accounts of the E Co. during the year ended December 31,2008 are listed below:Increase DecreaseCurrent assets other than Cash $1500000Plant, property and equipmentAccumulated DepreciationLandPatentsCurrent liabilitiesNon-current liabilitiesStockholders equityRetained earningsAdditional facts are as follows:1) E. Co. sustained a net loss during 2008 of $400000,including a loss of $500000 on the sale of land having a book value of $16000002) 100000 shares of common stock were sold at $8 per share.3) A cash dividend of $100 000 was paid. No stock dividends were declared.Required using the indirect method to prepare a statement of cash flows.2.The following data are taken from the records of Fuhe Company:Fuhe CompanyIncome StatementDec.31, 2008Sales $2000 Less: Cost of goods sold (1200)Gross profit 800 Less: General and administr