F7

Question 1

Amortization of Bond discount on Long term debt

Answer 1

Operating activity addition to income

Question 2

Stock Dividend

Answer 2

There is no effect on total shareholder’s equity because all transfers take place within shareholder’s equity

Question 3

Disclosue in financial statements for Pension do not require inclusion of

Answer 3

The difference in executive and non executive plans

Question 4

Subscription price>par value common stock

Answer 4

APIC subsciption is recorded

Question 5

statement of changes in net assets available for benefits

Answer 5

changes in pensions plan assets-1.increase investment income
2.decrease benefits paid participants

Question 6

Statement of changes accumulated plan benefits

Answer 6

changes in PV benefits paid to beneficiaries
effect of plan amendments
changes in actuarial assumptions

Question 7

how does stock dividend affect Additional paid in capital and Retained earnings

Answer 7

adiitional paid in capital increases
Retained earning decreases

Question 8

Antidilutive /Dilutive

Answer 8

MP<EP=Antidilutive

Question 9

grant date and exercise date are different stock option outstanding should be reduced at

Answer 9

Exercise date

Question 10

issued shares common stock purchase land

Answer 10

supplemental discolsures

Question 11

Buy back treasury

Answer 11

PAR
Dr treasury stock
Dr APIC (common stock)
Dr APIC T/S
Dr retained earnings
Cr cash
Cr APIC T/S

COST
Dr Treaasury stock
Cr Cash

Question 12

Re-sell treasury stock

Answer 12

PAR
Dr Cash
Cr Treasury Stock
Cr APIC C/S

COST
Dr Cash
Dr APIC T/S
Dr Retained earnings
Cr Treasury stock
Cr APIC T/S