You must use this file to complete your work for each question. Download the file: Exam 2 Work File 19E – Chs 14_15.xlsx Click OK to navigate away from your browser page Save it to your desktop renamed: LastnameFirstnameExam2ACCT5102 (Example: JohnsonScottExam2ACCT5102) Save your work regularly or turn on Autosave Since I am only allowing one screen, a best practice is to split your screen so you can see the exam questions and work in your Excel file without switching back and forth. Keep in mind, in order to maintain the integrity of the exam, Honorlock will be recording all the activity on your screen throughout the exam. You should only have the quiz browser and an Excel file active. Each question is formatted as a file upload question so that all your work is included in your Excel file. You only need to upload your file once. When you have completed the exam, upload your Excel file in the last question.

ABC, Inc., has $500,000 of 5% preferred stock and $1,500,000 of common stock outstanding, each having a par value of $10 per share. No dividends were paid during 2023 and 2024. During 2025, ABC declared a $300,000 dividend. Required: How will the dividend be allocated between preferred and common stockholders if the preferred stock is cumulative and fully participating?

ABC Corporation’s charter allows it to issue 25,000,000 shares of $100 par preferred stock and 5,000,000 shares of $20 par common stock. The company had the following stock transactions during the year: Issued 10,000 shares of common stock to the corporate founders in exchange for a building valued at $150,000 and equipment valued at $75,000. Sold 500 shares of preferred stock at $125 per share and 1,000 shares of common stock at par to an investor. Sold 5,000 shares of common stock for $35 per share. Issued 2,000 shares of common stock with a market value of $40 per share, and 750 shares of preferred stock with a market value of $145 per share, for a lump sum of $200,000. Purchased at $25 per share, 2,000 shares of ABC Corporation common stock. Sold 1,000 shares of treasury stock at $30 per share. Sold 1,000 shares of treasury stock at $18 per share. Required: Prepare journal entries for each transaction. No other transactions have affected the stock accounts. Record all lump sum transactions using the proportional method and all treasury stock transactions using the cost method.

Hayes Corp. is a manufacturer of truck trailers. On January 1, 2025, Hayes Corp. leases ten trailers to Lester Company under a six-year noncancelable lease agreement. The following information about the lease and the trailers is provided: Equal annual payments that are due on January 1 each year , with the first payment due at inception, provide Hayes Corp. with an 8% return on investment. The trailers revert to Hayes Corp. at the end of the lease. The fair value of each trailer is $60,000. The cost of each trailer to Hayes Corp. is $54,000. Each trailer has an expected useful life of nine years. There is an guaranteed residual value of $6,000 on each trailer. Collectibility of the lease payments is probable. Instructions: Calculate the annual lease payment. You may use Excel, a financial calculator, or the present value tables below to calculate the appropriate values. (Round to nearest dollar.) What type of lease is this for Hayes Corp.? Explain how you made the determination. Prepare a lease amortization schedule for Hayes Corp. covering the entire lease term. (Round to the nearest dollar.) Prepare the journal entries for Hayes Corp. to record the lease activity for 2025.

The following data were taken from the balance sheet accounts of ABC Company on December 31, 2024. Current assets $7,000,000 Debt investments (trading) 1,000,000 Common stock, $10 par, 300,000 shares issued and outstanding 3,000,000 Paid-in capital in excess of par – Common 1,000,000 Retained earnings 5,000,000 Shares of ABC Company stock are currently selling for $25. Required: Prepare the appropriate journal entries on the date of declaration only for each of the following: A stock dividend of 15% is declared. A stock dividend of 50% is declared. A 3-for-1 stock split is declared. A property dividend of bonds held as an investment with a book value of $50,000 and a fair value of $75,000 is declared.

Krause Company (lessee) on January 1, 2025, entered into a nine-year noncancelable lease for equipment having an estimated useful life of 10 years and a fair value of $4,000,000 at the inception of the lease. Daly Corp. (lessor) calculated the annual rental payments to yield an 8% return and Krause is aware of that rate. Krause’s incremental borrowing rate is 10%. Krause uses the straight-line method to depreciate its assets. The lease contains the following provisions: Annual rental payments of $578,058 are payable on the anniversary date of the lease (annuity due), with the first payment due at inception. A guarantee by Krause Company that Daly Corp. will realize $200,000 from selling the asset at the expiration of the lease. However, the actual residual value is expected to be $120,000. Required: What type of lease is this for Krause Company? Explain how you made the determination. What is the present value of the lease payments (a) for classification of the lease as either a finance or operating lease, and (b) for measurement of the lease liability? You may use Excel, a financial calculator, or the present value tables below to calculate the appropriate values. (Round to nearest dollar.)  Prepare a lease amortization schedule for Krause Company covering the entire lease term. (Round to the nearest dollar.) Prepare all journal entries for Krause Company to record the lease activity for 2025.

ABC Corporation had a projected benefit obligation of $4,300,000 and plan assets of $4,100,000 at January 1, 2025. ABC also had a net actuarial loss of $565,000 in accumulated OCI-G/L at January 1, 2025. The average remaining service period of ABC’s employees is 5 years. Required: Compute ABC’s minimum amortization of the actuarial loss for 2025, if any.

The accountant for Marlin Corporation has developed the following information for the company’s defined-benefit pension plan for 2025: On January 1, 2025, Marlin amends the plan and grants prior service benefits having a present value of $1,250,000 Service cost 1,000,000 Actual return on plan assets 500,000 Annual contribution to the plan 1,840,000 Amortization of prior service cost 250,000 Benefits paid to retirees 120,000 Settlement rate 10% Expected rate of return on plan assets 8% The average remaining service period of Marlin’s employees is 10 years. Required: Using the information provided, complete the pension worksheet for 2025. Calculated amounts should be supported.  Prepare the journal entry to reflect the accounting for the company’s pension plan for the year ending December 31, 2025.

ABC Corporation has the following information available concerning its defined-benefit pension plan for 2025. Service cost $40,000 Prior service cost in 2025 due to plan changes 100,000 Annual contributions to plan 50,000 Amortization of prior service cost – OCI 35,000 Interest cost 47,400 Actual return on plan assets 25,000 Expected return on plan assets 26,900 Amortization of asset gains and losses – OCI 5,000 Actuarial loss in 2025 due to changes in assumptions 50,000 Benefits paid to retirees 100,000 Required: Compute ABC’s 2025 pension expense.

You must use this file to complete your work for each question. Download the file: 5102 Exam 2 Work Template – Chs 14_15 – MAKEUP.xlsx Click OK to navigate away from your browser page Save it to your desktop renamed: LastnameFirstnameExam2ACCT5102 (Example: JohnsonScottExam2ACCT5102) Save your work regularly or turn on Autosave Since I am only allowing one screen, a best practice is to split your screen so you can see the exam questions and work in your Excel file without switching back and forth. Keep in mind, in order to maintain the integrity of the exam, Honorlock will be recording all the activity on your screen throughout the exam. You should only have the quiz browser and an Excel file active. Each question is formatted as a file upload question so that all your work is included in your Excel file. You only need to upload your file once. When you have completed the exam, upload your Excel file in the last question.