Questions from Financial Accounting

Q: Answer these questions about consolidation accounting: 1. Define “

Answer these questions about consolidation accounting: 1. Define “parent company.” Define “subsidiary company.” 2. How do consolidated financial statements differ from the financial statements of a...

Q: Two accounts that arise from consolidation accounting are goodwill and noncontrolling interest

Two accounts that arise from consolidation accounting are goodwill and noncontrolling interest. 1. What is goodwill, and how does it arise? Which company reports goodwill, the parent or the subsidiary...

Q: Companies divide their cash flows into three categories for reporting on the

Companies divide their cash flows into three categories for reporting on the cash flow statement. 1. List the three categories of cash flows in the order they appear on the cash flow statement. Which ca...

Q: Excerpts from The Ink Spot Company statement of cash flows, as

Excerpts from The Ink Spot Company statement of cash flows, as adapted, appear as follows: As the chief executive officer of The Ink Spot Company, your duty is to write the management...

Q: Broadbent Insurance purchased $100,000 of 5.5%

Broadbent Insurance purchased $100,000 of 5.5% DGM bonds on January 1, 2016, at a price of 90 when the market rate of interest was 8%. Broadbent intends to hold the bonds until their maturity date of...

Q: Calculate the present value of the following amounts: 1.

Calculate the present value of the following amounts: 1. $12,000 at the end of five years at 10% 2. $12,000 a year at the end of the next five years at 10%

Q: Chaplin Leasing leased a car to a customer. Chaplin will receive

Chaplin Leasing leased a car to a customer. Chaplin will receive $150 a month for 60 months. 1. What is the present value of the lease if the annual interest rate in the lease is 12%? Use the PV func...

Q: Using the data from S8-2, calculate the amount of

Using the data from S8-2, calculate the amount of discount amortization (using the straight-line amortization method) on July 1, 2016, and record the related journal entry. What is the total interest...

Q: Using the data from S8-2, make the adjusting entry

Using the data from S8-2, make the adjusting entry that Broadbent Insurance would need to make on December 31, 2016, related to the investment in DGM bonds. How would the bonds be reported on Broadben...

Q: Sunshine Pools purchased $100,000 of 12% BHT bonds

Sunshine Pools purchased $100,000 of 12% BHT bonds on January 1, 2016, at a price of 107.5 when the market rate of interest was 10%. Sunshine intends to hold the bonds until their maturity date of Jan...