Busy. Please wait.
Log in with Clever
or

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever
or

Username is available taken
show password

Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.

Notecards I made from Wiley's 2012 CPA Exam Review

        Help!  

Question
Answer
If preferred stock is issued, what does the participating feature mean? cumulative?   show
🗑
show 1. stockholders have option of exchanging preferred stock for common stock at a specified ratio 2. entity has option to repurchase stock at a specified price  
🗑
Do redeemable preferred stock have to be classified on the balance sheet?   show
🗑
show Debit: Cash (amount received), subscription receivable (balance) Credit: common stock subscribed (par), paid-in capital in excess of par (subscription price > par)  
🗑
show 1. When the total subscription price is received 2. Debit: Cash, Credit: Subscription receivable (clear balance) Debit: Common stock subscribed, Credit: Common stock (at par to show stock is now issued)  
🗑
What happens if a stock subscription is defaulted?   show
🗑
show Market value for the stock - Par  
🗑
show 1. when the FV of all classes of securities is not determinable 2. known FV security is allocated only FV amount, rest is allocated to other security and excess to additional paid in capital of the security  
🗑
When stock is issued with other securities for a lump sum, how is the proportional method calculated?   show
🗑
show 1. the relative FV of stock and warrants 2. use FV of known amount and remaining is allocated to the remaining security (usually resulting in additional paid in capital allocated to that security)  
🗑
show Par/ stated value is the assumed worth of the stock, collecting below Par is thought of as a loss and above par results in additional paid in capital  
🗑
Define Treasury stock   show
🗑
What is the cost method for accounting for treasury stock?   show
🗑
show debit treasury stock at par value - excess > par value debit PIC- CS up to original issue price - excess > original issue price debit to RE - acquire > par < original price debit PIC-CS to paid amount, PIC-TS to original price - resale same as issuanc  
🗑
show Debit Common stock at par value If loss- Debit RE: amount over issue price, PIC- excess of par: remove from books, use original issue price. Credit Treasury Stock (Cash if not already Treasury Stock) Gains credited to PIC- from retirement account  
🗑
show Stockholders is decreased by treasury stock. RE is an account underneath stockholders equity, and is not affected by treasury stock.  
🗑
On the date of declaration, what is the entry to record dividends? On payment?   show
🗑
show 1. Dividends paid out in an asset other than cash 2. at FV of transferred asset. Gain or loss is recognized based on difference of BV of transferred asset  
🗑
show 1. dividend not based on earnings, are a return of capital to stockholders 2. Debit reduce paid-in capital amount of dividend  
🗑
show 1. promise to pay dividends in future, may bear interest 2. Same as regular dividends with possibility of interest expense on payment date  
🗑
When stock certificates are given as a dividend, does the proportion of ownership change? What's the entry on the declaration date? at issuance?   show
🗑
show take preferred % amount and multiply by total par value for common and preferred stocks outstanding. this gives the amount for only preferred. Subtract it from total dividend, allocate remaining based on proportion of total par values for preferred/common  
🗑
What does dividends in arrears mean? how is it calculated? how is it reported?   show
🗑
show 1. change number of shares outstanding and the par value per share 2. reduced in proportion to the increase in number of shares, total par value does not change, so RE is unaffected  
🗑
show restricts RE to show that assets in the amount of the appropriation are not available for dividends Debit- RE Credit- Reserve for RE Reverse when reserve no longer needed  
🗑
What are share based payments?   show
🗑
What are share based payments to nonemployees measured on?   show
🗑
Define requisite service period. service inception date.   show
🗑
When are share-based payments, classified as equity, measured? How? How is compensation expense allocated?   show
🗑
show 1. each reporting period. Final measurement is on settlement date 2. FV of liability incurred 3. straight line over requisite service period  
🗑
show At grant date Db- Deferred compensation expense Cd- Stock options outstanding Amortization (straight-line) Db- Compensation expense Cd- Def Comp exp. Option exercised Debit- Cash (option price), Stock options outstanding Credit- CS (par), Addtl PI  
🗑
show share based payment classified as a liability- allows employees to receive stock or cash equal to the difference between the MV and some predetermined amount per share for a certain amount of shares  
🗑
What are the accounting entries for share-based payments classified as a liability?   show
🗑
What are the sources of income that require a basic EPS calculation?   show
🗑
How is basic EPS calculated for net income?   show
🗑
show Net income available to common stockholders/ weighted-avg number of common shares outstanding - Numerator calculated by NI -income/+loss from discontinued operations, extraordinary items - take # and - dividends as in basic EPS for net income  
🗑
What is the difference between basic EPS and diluted EPS on convertible equity?   show
🗑
show 1. average market price > exercise price 2. average market price <= exercise price 3. EPS would stay the same or increase  
🗑
How are the dilutive affects of options and warrants calculated?   show
🗑
In calculating diluted EPS, what happens if convertible bonds or stock werent outstanding the whole year but issued during it? If converted?   show
🗑
show difference of FV and carrying amount of preferred stock treated the same as a dividend  
🗑
When calculating diluted EPS how are shares to be issued in the future with no restrictions but time figured in?   show
🗑
show presents the current market values of the assets and the status of the various categories of the equity interests of the corporation  
🗑
show preferred claims, fully secured creditors, partially secured creditors, unsecured creditors, stockholders equity  
🗑
What goes in to the statement of affairs for bankruptcy?   show
🗑
show distinguish between events related to reorganization and ongoing operations. Classify liabilites like this at expected amounts on BS  
🗑
show value of assets before confirmation < liabilties incurred and voting shareholders before confirmation receive < 50% of the voting shares of the entity  
🗑
show allow companies to avoid formal bankruptcy proceedins through informal proceedings. ELIMINATES DEFECIT in RE  
🗑
What happens in a quasi reorganization?   show
🗑
show when more stock is issued existing shareholders have preemptive privalage to keep the same % of voting rights  
🗑
What is an employee stock ownership plan? what happens if payment is secured by employeer?   show
🗑
What is a dividend payout? How is it calculated?   show
🗑
What is BV of common stock? How is it calculated?   show
🗑
What is rate of return on common stockholders equity? How is it calculated?   show
🗑
show 1. shows companys ability to sustain losses 2. total debt, all liabilities/ stockholders equity  
🗑
What are the IFRS set of requirements for reporting shareholders equity?   show
🗑


   

Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
 
To hide a column, click on the column name.
 
To hide the entire table, click on the "Hide All" button.
 
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
 
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.

 
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how
Created by: Bsantoro
Popular Accounting sets