Questions from Intermediate Accounting

Q: In keeping with a modernization of corporate statutes in its home state

In keeping with a modernization of corporate statutes in its home state, UMC Corporation decided in 2018 to discontinue accounting for reacquired shares as treasury stock. Instead, shares repurchased...

Q: The Crump Companies, Inc., has ownership interests in several public

The Crump Companies, Inc., has ownership interests in several public companies. At the beginning of 2018, the company’s ownership interest in the common stock of Silken Properties increased to the poi...

Q: Three programmers at Feenix Computer Storage, Inc., write an operating

Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill-McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales. Royalties...

Q: Companies often invest in the common stock of other corporations. The

Companies often invest in the common stock of other corporations. The way we report these investments depends on the nature of the investment and the investor’s motivation for the investment. The FASB...

Q: Access the FASB Accounting Standards Codification at the FASB website (www

Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the specific citation for accounting for each of the following items: 1. Reporting most changes in accou...

Q: The following excerpt is from an article reported in an online issue

The following excerpt is from an article reported in an online issue of Bloomberg. (Bloomberg) Ford Motor Co. (F) said it will repurchase $1.8 billion of its shares to reduce dilution from recent stoc...

Q: On December 12, 2018, an investment costing $80,

On December 12, 2018, an investment costing $80,000 was sold for $100,000. The total of the sale proceeds was credited to the investment account. Required: 1. Prepare the journal entry to correct the...

Q: Described below are six independent and unrelated situations involving accounting changes.

Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2018 before any adjusting entries or closing entries were prepared. Assume the tax...

Q: At the beginning of 2018, Wagner Implements undertook a variety of

At the beginning of 2018, Wagner Implements undertook a variety of changes in accounting methods, corrected several errors, and instituted new accounting policies. Required: Indicate for each item 1...

Q: Allied Paper Products, Inc. offers a restricted stock award plan

Allied Paper Products, Inc. offers a restricted stock award plan to its vice presidents. On January 1, 2018, the company granted 16 million of its $1 par common shares, subject to forfeiture if employ...