Questions from Intermediate Accounting

Q: Early extinguishment of debt often produces a gain or a loss.

Early extinguishment of debt often produces a gain or a loss. How is the gain or loss determined?

Q: Appling Enterprises issued 8% bonds with a face amount of $

Appling Enterprises issued 8% bonds with a face amount of $400,000 on January 1, 2018. The bonds sold for $331,364 and mature in 2037 (20 years). For bonds of similar risk and maturity the market yiel...

Q: Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on

Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $112,080. Related Information...

Q: King Cones leased ice cream-making equipment from Ace Leasing.

King Cones leased ice cream-making equipment from Ace Leasing. Ace earns interest under such arrangements at a 6% annual rate. The lease term is eight months with monthly payments of $10,000 due at th...

Q: At January 1, 2018, Café Med leased restaurant equipment from

At January 1, 2018, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $25,000 beginning January 1, 2018...

Q: At January 1, 2018, Café Med leased restaurant equipment from

At January 1, 2018, Café Med leased restaurant equipment from Crescent Corporation under a nine-year lease agreement. The lease agreement specifies annual payments of $25,000 beginning January 1, 2018...

Q: King Company leased equipment from Mann Industries. The lease agreement qualifies

King Company leased equipment from Mann Industries. The lease agreement qualifies as a finance lease and requires annual lease payments of $52,538 over a six-year lease term (also the asset’s useful l...

Q: The long-term liability section of Eastern Post Corporation’s balance sheet

The long-term liability section of Eastern Post Corporation’s balance sheet as of December 31, 2017, included 10% bonds having a face amount of $40 million and a remaining premium of $6 million. On Ja...

Q: Briefly describe the conceptual basis for asset and liability recognition under the

Briefly describe the conceptual basis for asset and liability recognition under the right-of-use approach used by the lessee in a lease transaction.

Q: Grichuk Power leased high-tech electronic equipment from Kolten Leasing on

Grichuk Power leased high-tech electronic equipment from Kolten Leasing on January 1, 2018. Kolten purchased the equipment from Wong Machines at a cost of $250,000, its fair value. Related Information...