Questions from Financial Accounting

Q: Protecto Corporation purchased 60 percent of Strand Company’s outstanding shares on January

Protecto Corporation purchased 60 percent of Strand Company’s outstanding shares on January 1, 20X1, for $24,000 more than book value. At that date, the fair value of the noncontroll...

Q: Stage Company operates on a calendar-year basis, reporting its

Stage Company operates on a calendar-year basis, reporting its results of operations quarterly. For the first quarter of 20X1, Stage reported sales of $240,000 and operating expenses of $180,000 and p...

Q: Princeton Products Corporation acquired 90 percent ownership of Stanford Company on October

Princeton Products Corporation acquired 90 percent ownership of Stanford Company on October 20, 20X2, through an exchange of voting shares. Princeton Products issued 8,000 shares of its $10 par stock...

Q: Tex Hardware sells many of its products overseas. The following are

Tex Hardware sells many of its products overseas. The following are some selected transactions. 1. Tex sold electronic subassemblies to a firm in Denmark for 120,000 Danish kroner (Dkr) on June 6, whe...

Q: Globe Shipping, a U.S. company, is an

Globe Shipping, a U.S. company, is an importer and exporter. The following are some transactions with foreign companies. 1. Globe sold blue jeans to a South Korean importer on January 15 for $7,400, w...

Q: Select the correct completion of each of the following items.

Select the correct completion of each of the following items. 1. Which of the following steps in the acquisition of goods and services occurs first? a. Appropriation b. Encumbrance c. Budget d. Expen...

Q: Maple Company had the following export and import transactions during 20X5:

Maple Company had the following export and import transactions during 20X5: 1. On March 1, Maple sold goods to a Canadian company for C$30,000, receivable on May 30. The spot rates for Canadian dollar...

Q: Match the items in the left-hand column with the descriptions

Match the items in the left-hand column with the descriptions/explanations in the right-hand column.

Q: On December 1, 20X1, Micro World Inc. entered into

On December 1, 20X1, Micro World Inc. entered into a 120-day forward contract to sell 100,000 Australian dollars (A$). Micro World’s fiscal year ends on December 31. The direct excha...

Q: Select the correct answer for each of the following questions.

Select the correct answer for each of the following questions. 1. According to ASC 815, which of the following is not an underlying? a. A security price. b. A monthly average temperature. c. The pric...