Questions from Intermediate Accounting


Q: Discuss the similarities and the differences between convertible debt and debt issued

Discuss the similarities and the differences between convertible debt and debt issued with stock warrants.  

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Q: Winsor Inc. recently purchased Holiday Corp., a large midwestern home

Winsor Inc. recently purchased Holiday Corp., a large midwestern home painting corporation. One of the terms of the merger was that if Holiday’s income for 2014 was $110,000 or more, 10,000 ad...

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Q: Agassi Corporation is preparing the comparative financial statements to be included in

Agassi Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Agassi employs a fiscal year ending May 31. Income from operations before i...

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Q: The following two items appeared on the Internet concerning the GAAP requirement

The following two items appeared on the Internet concerning the GAAP requirement to expense stock options. WASHINGTON, D.C.—February 17, 2005 Congressman David Dreier (R–CA), Chairman o...

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Q: Flagstad Inc. presented the following data./Instructions

Flagstad Inc. presented the following data. Instructions Compute earnings per share.  

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Q: On June 1, 2012, Andre Company and Agassi Company merged

On June 1, 2012, Andre Company and Agassi Company merged to form Lancaster Inc. A total of 800,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. O...

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Q: What type of earnings per share presentation is required in a complex

What type of earnings per share presentation is required in a complex capital structure?  

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Q: Illiad Inc. has decided to raise additional capital by issuing $

Illiad Inc. has decided to raise additional capital by issuing $170,000 face value of bonds with a coupon rate of 10%. In discussions with investment bankers, it was determined that to help the sale...

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Q: Assume that Sarazan Company has a share-option plan for top

Assume that Sarazan Company has a share-option plan for top management. Each share option represents the right to purchase a $1 par value ordinary share in the future at a price equal to the fair va...

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Q: Aubrey Inc. issued $4,000,000 of 10

Aubrey Inc. issued $4,000,000 of 10%, 10-year convertible bonds on June 1, 2014, at 98 plus accrued interest. The bonds were dated April 1, 2014, with interest payable April 1 and October 1. Bond di...

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