Global Environment and Problem Sets
Team B
Learning Team Global Environments and Problem Sets
ACC 300
Learning Team Global Environments and Problem Sets
In the restaurant business there is a household name that controls a big part of the market share and has experienced a tremendous growth since it was founded in the 1940’s. McDonald’s growth has not just been in the United States but has grown rapidly grown in the global market. McDonald’s has adapted their business model to global environments by maintaining consistent accounting standards. Reporting debt securities, common stock, equity, and any financial activities on financial statements is a common practice by the McDonald’s corporation which has assisted them to plan future financial growth.
Debt securities are reported on financial statements which are on a McDonald’s balance sheet. Accounting professionals should classify the different types of debt security since it will require a different accounting method. Some the debt securities will fall under current assets and non-current assets. McDonald’s is bound by following the generally accepted accounting principles or GAAP like any other company as debt security is accounted for.
McDonalds Corporation has an estimated 900,000 shareholders and records stock as common stock on their balance sheet under liabilities. McDonald’s discloses the par value of the stock that is shared with investors. Common stock has a par value that is required amount needed to contribute to the purchase the shares. The par value is very similar to a stock price, the difference is that the stock price is what it is bought and sold in the stock market. Today McDonald’s common stock value is going for $101.99 a share and it is trading for $103.59. Previous recorded high for McDonald’s in stock has been record as $102.41 for a record fifty-two weeks and the report low has been $83.31 for fifty-two weeks. McDonald’s stockholders’ equity is listed on the balance
Learning Team Global Environments and Problem Sets
ACC 300
Learning Team Global Environments and Problem Sets
In the restaurant business there is a household name that controls a big part of the market share and has experienced a tremendous growth since it was founded in the 1940’s. McDonald’s growth has not just been in the United States but has grown rapidly grown in the global market. McDonald’s has adapted their business model to global environments by maintaining consistent accounting standards. Reporting debt securities, common stock, equity, and any financial activities on financial statements is a common practice by the McDonald’s corporation which has assisted them to plan future financial growth.
Debt securities are reported on financial statements which are on a McDonald’s balance sheet. Accounting professionals should classify the different types of debt security since it will require a different accounting method. Some the debt securities will fall under current assets and non-current assets. McDonald’s is bound by following the generally accepted accounting principles or GAAP like any other company as debt security is accounted for.
McDonalds Corporation has an estimated 900,000 shareholders and records stock as common stock on their balance sheet under liabilities. McDonald’s discloses the par value of the stock that is shared with investors. Common stock has a par value that is required amount needed to contribute to the purchase the shares. The par value is very similar to a stock price, the difference is that the stock price is what it is bought and sold in the stock market. Today McDonald’s common stock value is going for $101.99 a share and it is trading for $103.59. Previous recorded high for McDonald’s in stock has been record as $102.41 for a record fifty-two weeks and the report low has been $83.31 for fifty-two weeks. McDonald’s stockholders’ equity is listed on the balance
References: MacDonald, 10K, 2012(2012) Retrieved from http://www.sec.gov/Archives/edgar/data/63908/000119312511046701/d10k.htm#toc37660_6 BusinessWeek Debt securities (2012), Retrieved April 26, 2012 from:http://www.investopedia.com/terms/d/debtsecurity.asp#axzz1tLsCwZxJ Equity vs Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons. McDonald Corporation McDonalds Debt Security (2010). Retrieved April 27, 2012 From: http://www.thefreelibrary.com/McDONALD 'S+FILES+SHELF+REGISTRATION+FOR+DEBT+SECURITIES-a017218858 Problem Sets (b) Prepare the adjusting entry at December 31, 2012, to report the investments at fair value (c) Show the balance sheet presentation of investment securities at December 31, 2012. Jul | 1 | Cash (1200 x 0.80) | | | | 960 | | | | Dividend Revenue | | | | | 960 |