Questions from Financial Accounting


Q: Mega Company believes the price of oil will increase in the coming

Mega Company believes the price of oil will increase in the coming months. Therefore, it decides to purchase call options on oil as a price risk-hedging device to hedge the expected increase in prices...

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Q: On November 3, 20X2, PRD Corporation acquired 2 JRS Company

On November 3, 20X2, PRD Corporation acquired 2 JRS Company bonds ($1,000 face value) at a cost of 105. PRD classifies them as available-for-sale securities. On this same date, PRD decides to hedge ag...

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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.

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Q: On January 1, 20X5, Pirate Company acquired all of the

On January 1, 20X5, Pirate Company acquired all of the outstanding stock of Ship Inc., a Norwegian company, at a cost of $151,200. Ship’s net assets on the date of acquisition were 7...

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Q: Refer to the information in P12-17. Assume the U

Refer to the information in P12-17. Assume the U.S. dollar is the functional currency, not the krone. Required: a. Prepare a schedule re measuring the trial balance from Norwegian kroner into U.S. do...

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Q: Refer to the information presented in P12-17 and your answer

Refer to the information presented in P12-17 and your answer to part a of P12-17. Required: Prepare a schedule providing a proof of the translation adjustment. Data from P12-17: On January 1, 20X5,...

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Q: Sink Corporation prepared the following summarized balance sheet on January 1,

Sink Corporation prepared the following summarized balance sheet on January 1, 20X1: Plumber Company acquires 80 percent of Sink Corporation’s common stock on January 1, 20X1, for...

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Q: Refer to the information given in P12-17 and your answer

Refer to the information given in P12-17 and your answer to part a of P12-18. Required: Prepare a schedule providing a proof of the re measurement gain or loss. For this part of the problem, assume t...

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Q: On January 1, 20X4, Plum Corporation acquired Silva Company,

On January 1, 20X4, Plum Corporation acquired Silva Company, a Brazilian subsidiary, by purchasing all its common stock at book value. Silva’s trial balances on January 1, 20X4, and...

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Q: Refer to the information in P12-21. Assume that the

Refer to the information in P12-21. Assume that the dollar is the functional currency. Required: a. Prepare a schedule re measuring Silva Company’s December 31, 20X4, trial balance...

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