Questions from Intermediate Accounting

Q: On June 30, 2006, County Company issued 12% bonds

On June 30, 2006, County Company issued 12% bonds with a par value of $800,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2014. Because of lower inte...

Q: Presented below is a note disclosure for Matsui Corporation.Litigation

Presented below is a note disclosure for Matsui Corporation. Litigation and Environmental: The Company has been notified, or is a named or a potentially responsible party in a number of governmenta...

Q: On February 1, 2015, one of the huge storage tanks

On February 1, 2015, one of the huge storage tanks of Viking Manufacturing Company exploded. Windows in houses and other buildings within a one-mile radius of the explosion were severely damaged, an...

Q: What are the general rules for measuring and recognizing gain or loss

What are the general rules for measuring and recognizing gain or loss by both the debtor and the creditor in a troubled debt restructuring involving a modification of terms?

Q: What is meant by “accounting symmetry” between the entries recorded

What is meant by “accounting symmetry” between the entries recorded by the debtor and creditor in a troubled debt restructuring involving a modification of terms? In what ways is the accounting for tr...

Q: Under what circumstances would a transaction be recorded as a troubled-

Under what circumstances would a transaction be recorded as a troubled-debt restructuring by only one of the two parties to the transaction?

Q: Linda Day George Company had bonds outstanding with a maturity value of

Linda Day George Company had bonds outstanding with a maturity value of $300,000. On April 30, 2014, when these bonds had an unamortized discount of $10,000, they were called in at 104. To pay for t...

Q: Distinguish between a determinable current liability and a contingent liability. Give

Distinguish between a determinable current liability and a contingent liability. Give two examples of each type.

Q: What is the required method of amortizing discount and premium on bonds

What is the required method of amortizing discount and premium on bonds payable? Explain the procedures.

Q: Whiteside Corporation issues $500,000 of 9% bonds,

Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semi annually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bon...