Questions from Financial Reporting

Q: It’s July 1, 2018, and the market price of Warm

It’s July 1, 2018, and the market price of Warm Ways’ common stock is $175 per share. There are 1.1 million common shares outstanding, and the Retained earnings account shows a balance of $45,000,000....

Q: On January 1, 2012, when its $30 par-

On January 1, 2012, when its $30 par-value common stock was selling for $80 per share, Gierach Corporation issued $10 million of 4% convertible debentures due in 10 years. The conversion option allowe...

Q: Statements of cash flows are provided for three companies:

Statements of cash flows are provided for three companies: Telstra Corporation Limited is an Australian telecommunications and media company, formerly owned by the Australian government and privatize...

Q: Avnext Industries issues 10-year convertible notes at par for $

Avnext Industries issues 10-year convertible notes at par for $10,000 on December 31, 2017. The notes mature in 10 years and are convertible into 400 shares of Avnext common stock at any time after Ja...

Q: The Shareholders’ Equity section of Holiday Roads Company’s balance sheet shows:

The Shareholders’ Equity section of Holiday Roads Company’s balance sheet shows: Net income for 2017 was $1,700,000, preferred stock dividends were $200,000, and...

Q: Tredegar Industries Inc. makes plastic films and molded plastic products and

Tredegar Industries Inc. makes plastic films and molded plastic products and soft alloy aluminum extrusions, distributes business applications software, and provides proprietary chemistry services. A...

Q: Central Sprinkler Corporation manufactures and sells automatic fire sprinkler heads and valves

Central Sprinkler Corporation manufactures and sells automatic fire sprinkler heads and valves, and it distributes components for automatic sprinkler systems. Selected information from the company&aci...

Q: On January 1, 2017, Figland Company purchased for cash 40

On January 1, 2017, Figland Company purchased for cash 40% of Irene Company’s 300,000 shares of voting common stock for $1,800,000. At the time, 40% of the book value of the underlying equity in Irene...

Q: AutoParts Heaven is a U.S. company whose operations include

AutoParts Heaven is a U.S. company whose operations include a large, 100% owned foreign subsidiary. The subsidiary’s functional currency is the U.S. dollar. The local currency in the country where the...

Q: On January 1, 2018, Wilson Corporation acquired mortgage-backed

On January 1, 2018, Wilson Corporation acquired mortgage-backed securities (MBS) from National Financial for $10,000 and classified the investment in its available-for-sale (AFS) portfolio. On Decembe...