PepsiCo, Inc.”s financial statements are presented. Financial statements ofThe Coca-Cola Companyare presented. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively. Instructions (a)What is the par or stated value of Coca-Cola”s and PepsiCo”s common stock? (b)What percentage of authorized shares was issued by Coca-Cola at […]

Calculating Depreciation Expense A copy machine was acquired at the beginning of 1998 for $12,000. It had a salvage value of $2,000 and an estimated life of five years. Required a. Calculate the annual straight-line (SL) depreciation. b. Assume that at the beginning of the year 2000, the copy machine’s total useful life is estimated to be eight years. What is the effect of this […]

“s financial statements are presented. Financial statements ofWal-Mart Stores, Inc.are presented. Instructions for accessing and using the complete annual reports of Amazon and Wal-Mart, including the notes to the financial statements, are also provided in Appendices D and E, respectively. Instructions (a)What is the par or stated value of Amazon”s and Wal-Mart”s common stock? (b)What percentage of authorized shares was issued by Amazon at December […]

Calculating Bad Debt Expense Dandy’s Discount Duds offers credit to all customers. It estimated that 15 percent of all such customers will not be able to pay their accounts. Dandy’s credit sales in 2000 were $4,000,000. Its estimated bad debt expense was calculated at 15 percent of annual credit sales. Required a. What is the effect of estimated bad debts on net income in 2000? […]

The stockholders’ meeting for Percival Corporation has been in progress for some time. The chief financial officer for Percival is presently reviewing the company”s financial statements and is explaining the items that comprise the stockholders’ equity section of the balance sheet forthe current year. The stockholders’ equity section of Percival Corporation at December 31, 2014, is as follows. PERCIVAL CORPORATION Balance Sheet (partial) December 31, […]

Change in Accounting Principles Fitzer, Inc. reported the following data in its 1999 income statement (dollars in millions): Income before cumulative effect of accounting changes $1,093.5 Cumulative effect of change in accounting for postretirement benefits, net of income taxes (312.6) Income taxes 30.0 Net income $810.9 Fitzer’s notes include the following explanations: In the fourth quarter of 1999, the Company adopted the provisions of SFAS […]

The R&D division of Piqua Chemical Corp. has just developed a chemical for sterilizing the vicious Brazilian “killer bees” which are invading Mexico and the southern states of the United States. The president of the company is anxious to get the chemical on the market to boost the company”s profits. He believes his job is in jeopardy because of decreasing sales and profits. The company […]

Gilliam Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review his textbooks on the topic of corporation accounting. During the first month, the accountant made the following entries for the corporation”s capital stock. May 2 cash 130,000 capital Stock 130,000 (Issued 10,000 shams of $10 par value […]

The stockholders’ equity section ofAluminum Company of America (Alcoa)showed the following (in alphabetical order): additional paid-in capital $6,101, common stock $925, preferred stock $55, retained earnings $7,428, and treasury stock 2,828. All dollar data are in millions. The preferred stock has 557,740 shares authorized, with a par value of $100 and an annual $3.75 per share cumulative dividend preference. At December 31 of the current […]

The ledger of Rolling Hills Corporation contains the following accounts: Common Stock, Preferred Stock, Treasury Stock, Paid-in Capital in Excess of Par—Preferred Stock, Paid-in Capital in Excess of Stated Value—Common Stock, Paid-in Capital from Treasury Stock, and Retained Earnings. Instructions Classify each account using the following table headings. Paid-in Capital Account Capital Stock Additional Retained Earnings Other