Posted: July 12th, 2016
E16-15 (Weighted-Average Number of Shares) Gogean Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common stock. At no time has Gogean issued any potentially dilutive securities. Listed below is a summary of Gogean’s common stock activities.
1. Number of common shares issued and outstanding at December 31, 2011 2,400,000
2. Shares issued as a result of a 10% stock dividend on September 30, 2012 240,000
3. Shares issued for cash on March 31, 2013 2,000,000
Number of common shares issued and outstanding at December 31, 2013 4,640,000
4. A 2-for-1 stock split of Gogean’s common stock took place on March 31, 2014
E13-2 (Accounts and Notes Payable) The following are selected 2012 transactions of Darby Corporation.
Sep 1 Purchased inventory from Orion Company on account for $50,000
Darby records purchases gross and uses a periodic inventory system
Oct 1 Issued a $50,000 12-month, 8% note to Orion in payment of account.
Oct 1 Borrowed $75,000 from the Shore Bank by signing a 12-month, zero-interest-
bearing $81,000 note.
E19-3 (One Temporary Difference, Future Taxable Amounts, One Rate, Beginning Deferred Taxes) Brennan Corporation began 2012 with a $90,000 balance in the Deferred Tax Liability account. At the end of 2012, the related cumulative temporary difference amounts to $350,000 and it will reverse evenly over the next 2 years. Pretax accounting income for 2012 is $525,000, the tax rate for all years is 40%, and taxable income for 2012
Place an order in 3 easy steps. Takes less than 5 mins.