Questions from Intermediate Accounting

Q: McDonnell-Myer Corporation reported net income of $741 million.

McDonnell-Myer Corporation reported net income of $741 million. The company had 544 million common shares outstanding at January 1 and sold 36 million shares on Feb. 28. As part of an annual share rep...

Q: Do cash flows from operating activities report all the elements of the

Do cash flows from operating activities report all the elements of the income statement on a cash basis? Explain.

Q: At December 31, 2017 and 2018, Funk & Noble Corporation

At December 31, 2017 and 2018, Funk & Noble Corporation had outstanding 820 million shares of common stock and 2 million shares of 8%, $100 par value cumulative preferred stock. No dividends were decl...

Q: Fully vested incentive stock options exercisable at $50 per share to

Fully vested incentive stock options exercisable at $50 per share to obtain 24,000 shares of common stock were outstanding during a period when the average market price of the common stock was $60 and...

Q: Ahnberg Corporation had 800,000 shares of common stock issued and

Ahnberg Corporation had 800,000 shares of common stock issued and outstanding at January 1. No common shares were issued during the year, but on January 1, Ahnberg issued 100,000 shares of convertible...

Q: Sugarbaker Designs Inc. changed from the FIFO inventory costing method to

Sugarbaker Designs Inc. changed from the FIFO inventory costing method to the average cost method during 2018. Which items from the 2017 financial statements should be restated on the basis of the ave...

Q: Niles Company granted 9 million of its no par common shares to

Niles Company granted 9 million of its no par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $5 per share o...

Q: First Link Services granted 8 million of its $1 par common

First Link Services granted 8 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years. The common shares have a market price of $6 per s...

Q: Second Link Services granted restricted stock units (RSUs) representing 16

Second Link Services granted restricted stock units (RSUs) representing 16 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. After...

Q: Under its executive stock option plan, National Corporation granted 12 million

Under its executive stock option plan, National Corporation granted 12 million options on January 1, 2018, that permit executives to purchase 12 million of the company’s $1 par common shares within th...