Questions from Financial Reporting

Q: Fountain Inc. has 5,000,000 shares of common

Fountain Inc. has 5,000,000 shares of common stock outstanding on January 1, 2017. It issued an additional 1,000,000 shares of common stock on April 1, 2017, and 500,000 more on July 1, 2017. On Octob...

Q: On January 1, 2017, Pack Corp. acquired all of

On January 1, 2017, Pack Corp. acquired all of Slam Corp.’s common stock for $500,000. On that date, the fair values of Slam’s net assets equaled their book values...

Q: Bostonian Company provided the following information related to its defined benefit pension

Bostonian Company provided the following information related to its defined benefit pension plan for 2017: PBO on 1/1 …………………….…………………….………… $2,500,000 Fair value of plan assets on 1/1 ………………………… 2,00...

Q: The income statement and statement of cash flows for ABC Equipment Company

The income statement and statement of cash flows for ABC Equipment Company for 2017 are provided below. Supplemental Information: Other current liabilities represent obligations for general and a...

Q: Lino Company’s worksheet for the preparation of its 2017 statement of cash

Lino Company’s worksheet for the preparation of its 2017 statement of cash flows included the following information: Lino’s 2017 net income is $150,000. Required...

Q: Alp Inc. had the following activities during 2017:

Alp Inc. had the following activities during 2017: Acquired 2,000 shares of stock in Maybel Inc. for $26,000. Sold an investment in Rate Motors for $35,000 when the carrying value was $33,000. Acqu...

Q: Metro Inc. reported net income of $150,000 for

Metro Inc. reported net income of $150,000 for 2017. Changes occurred in several balance sheet accounts during 2017 as follows: Investment in Videogold Inc. stock, carried on the equity basis ……………....

Q: The Barden Corporation’s comparative balance sheets for 2017 and 2016 are presented

The Barden Corporation’s comparative balance sheets for 2017 and 2016 are presented below. The income statement of Barden Corporation for the year ended December 31, 2017, is as...

Q: Neighborhood Supermarkets is preparing to go public, and you are asked

Neighborhood Supermarkets is preparing to go public, and you are asked to assist the firm by preparing its statement of cash flows for 2017. Neighborhood’s balance sheets at December...

Q: Cummings Inc. had the following reconciliation at December 31, 2017

Cummings Inc. had the following reconciliation at December 31, 2017: Fair value of plan assets …………………………. $5,000 PBO …………………….………………………………. 4,200 Funded status …………………….………………. $ 800 AOCI—prior serv...