The accounting for a property dividend should be based on the carrying value( book value) of the nonmonetary assets transferred.
All of the above
1.( TCO C) Redstone Company spent $ 190,000 developing a new process, $ 45,000 in legal fees to obtain a patent, and $ 91,000 to market the process that was patented. How should these costs be accounted for in the year they are incurred?
2.( TCO D) Total payroll of Watson Co. was $ 920,000, of which $ 160,000 represented amounts paid in excess of $ 100,000 to certain employees. The amount paid to employees in excess of $ 7,000 was $ 720,000. Income taxes withheld were $ 225,000. The state unemployment tax is 1.2 %, the federal unemployment tax is. 8 %, and the FICA tax is 7.65 % on an employee’ s wages to $ 100,000 and 1.45 % in excess of $ 100,000.
( a) Prepare the journal entry for the wages and salaries paid.( b) Prepare the entry to record the employer payroll taxes.
3.( TCO D) Hurst, Incorporated sold its 8 % bonds with a maturity value of $ 3,000,000 on August 1, 2009 for $ 2,946,000. At the time of the sale, the bonds had 5 years until they reached maturity. Interest on the bonds is payable semiannually on August 1 and February 1. The bonds are callable at 104 at any time after August 1, 2011. By October 1, 2011, the market rate of interest has declined and the market price of Hurst ' s bonds has risen to a price of 101. The firm