ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Page 17

(b)
per share
(c)
per share
(d)
%
(e)
%
Earnings per share of common stock
Book value per share of common stock
$
$
Payout ratio of common stock
Return on common stock equity
4) Sisco Co. purchased a patent from Thornton Co. for $620,000
on July 1, 2012. Expenditures of $119,000 for successful litigation in
defense of the patent were paid on July 1, 2015. Sisco estimates that
the useful life of the patent will be 20 years from the date of
acquisition.
Prepare a computation of the carrying value of the patent at
December 31,
2015.
5) On August 31, Latty Co. partially refunded $401,000 of its
outstanding 10% note payable made one year ago to Dugan State
Bank by paying $401,000 plus $40,100 interest, having obtained the
$441,100 by using $126,240 cash and signing a new one-year
$346,000 note discounted at 9% by the bank.
6) Make the entry to record the partial refunding. Assume Latty
Co. makes reversing entries when appropriate. (Credit account titles
are automatically indented when the amount is entered. Do not indent
manually.)
6)
7) Prepare the adjusting entry at December 31, assuming straight-
line amortization of the discount. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually.)
ACC 304 Final Exam Part 2 (2 Sets)