ACC 110 Lecture Notes - Current Liability, Net Income, Capital Structure
6 Oct 2012
School
Department
Course
Professor
Document Summary
To record the issue of 500,000 common shares (500,000 shares per share = ,000,000) b. No journal entry is required for a stock split. c. 27,500,000 (250,000,000 shares sh. 11 per share = ,500,000) Using the market value of the shares on april 21, 2015 ((20,000,000 8%) . 20). Using the average price paid for the shares by investors ((20,000,000 8%) (,000,000 20,000,000 shares)). f. To recognize the gain on disposal of inventory. (market value carrying amount = ,700,000 ,100,000) Beginning i ii iii iv v vi ix. Issue of common for shares of another company. Dr. (,000,000 8 years 3 years) In 2013, retained earnings must be reduced by ,875,000 to ,925,000. Since the error was discovered during 2013 the deprecation expense of ,000 for 2013 can be properly recorded for that year. The ,875,000 adjustment has no bearing on 2013 and the error results in prior years" statements being misstated so retroactive adjustment makes sense.
