Questions from Financial Reporting

Q: Stone has provided the following information on its available-for-

Stone has provided the following information on its available-for-sale securities: Aggregate cost as of 12/31/17 …………………..$170,000 Unrealized gain as of 12/31/17 …………………..4,000 Unrealized losses as...

Q: Founded on January 1, 2017, Gehl Company had the following

Founded on January 1, 2017, Gehl Company had the following short-term investments in securities at the end of 2017 and 2018 (all were held in the “trading” portfoli...

Q: Pate Corp. owns 80% of Strange Inc.’s common

Pate Corp. owns 80% of Strange Inc.’s common stock. During 2017, Pate sold inventory to Strange for $600,000 on the same terms as sales made to outside customers. Strange sold the en...

Q: On July 1, 2017, Pushway Corporation issued 100,000

On July 1, 2017, Pushway Corporation issued 100,000 shares of common stock in exchange for all of Stroker Company’s common stock. The Pushway stock issued had a market value of $500,...

Q: A wholly owned subsidiary of Ward Inc. has certain expense accounts

A wholly owned subsidiary of Ward Inc. has certain expense accounts for the year ended December 31, 2017, stated in local currency units (LCU) as follows: The exchange rates at various dates are as...

Q: Lindy, a calendar-year U.S. corporation,

Lindy, a calendar-year U.S. corporation, bought inventory items from a supplier in Germany on November 5, 2017, for 100,000 euros, when the spot exchange rate was $1.40 per euro. At Lindy’s December 3...

Q: On January 5, 2018, Alpha Inc. acquired 80%

On January 5, 2018, Alpha Inc. acquired 80% of the outstanding voting shares of Beta Inc. for $2,000,000 cash. Following are the separate balance sheets for the two companies immediately after the sto...

Q: Refer to the salesforce.com financial statement excerpts given below to

Refer to the salesforce.com financial statement excerpts given below to answer the questions. On January 31, 2015, the price of salesforce.com stock was $56.45, and there were 650,596,000 shares of co...

Q: On January 1, 2017, Chesapeake Corporation issued common stock with

On January 1, 2017, Chesapeake Corporation issued common stock with a fair value of $810,000 in exchange for 90% of Deardon Corporation’s common stock. Following are the January 1, 2...

Q: Information related to Jones Company’s portfolio of trading securities at December 31

Information related to Jones Company’s portfolio of trading securities at December 31, 2017, follows: Aggregate cost of securities ………………….. $340,000 Gross unrealized gains (cumulative) …………………..8,00...