Questions from Intermediate Accounting

Q: The Holiday Corporation, a private company, began operations on January

The Holiday Corporation, a private company, began operations on January I, 2011. During its first three years of operations, Holiday reported net income and declared dividends as follows: The followi...

Q: Plato Inc. prepares financial statements in accordance with IFRS and uses

Plato Inc. prepares financial statements in accordance with IFRS and uses the following headings on its statement of financial position: l. Current assets 2. Long-term investments 3. Property, plant...

Q: Rainy Day Umbrella Corporation had the following balances at December 31,

Rainy Day Umbrella Corporation had the following balances at December 31, 2013 (all amounts in thousands): preferred shares $2,006; common shares $5,291; contributed surplus 52,225; retained earnings...

Q: Environmental Corporation specializes in the production and sale of eco-friendly

Environmental Corporation specializes in the production and sale of eco-friendly packaging. In 2014, Environmental reported net income (earnings) in excess of analyst expectations. This included a sig...

Q: The shareholders' equity section of Emerson Corporation as at December 31, 2014

The shareholders' equity section of Emerson Corporation as at December 31, 2014, follows: Net income of$24 million for 2014 reflects a total effective tax rate of25%. Included in the net income figur...

Q: Portmann Corp. maintains its financial records using the cash basis of accounting

Portmann Corp. maintains its financial records using the cash basis of accounting. As it would like to secure a long-term loan from its bank, the company asks you, as an independent CA, to convert its...

Q: Reach Out Card Company Limited reported the following for 2014: net

Reach Out Card Company Limited reported the following for 2014: net sales revenue $1.2 million; cost of goods sold $750,000; selling and administrative expenses $320,000; gain on disposal of building...

Q: Pike Corporation, a clothing retailer, had income from operations (

Pike Corporation, a clothing retailer, had income from operations (before tax) of $375,000, and recorded the following before tax gains/ (losses) for the year ended December 31, 2014: Pike also had th...

Q: Assume that PAC Inc. decided to sell SBT, a subsidiary

Assume that PAC Inc. decided to sell SBT, a subsidiary, on September 30, 2014. There is a formal plan to dispose of the business component, and the sale qualifies for discontinued operations treatment...

Q: On October 5, 2014, Diamond in the Rough Recruiting Group

On October 5, 2014, Diamond in the Rough Recruiting Group Inc.'s board of directors decided to dispose of the Blue Division. A formal plan was approved. Diamond derives approximately 7 5% of its incom...