Questions from Intermediate Accounting

Q: Tevez Company experienced an actuarial loss of $750 in its defined

Tevez Company experienced an actuarial loss of $750 in its defined benefit plan in 2014. For 2014, Tevez’s revenues are $125,000, and expenses (excluding pension expense of $14,000, which does not inc...

Q: What are the arguments for giving separate accounting recognition to the conversion

What are the arguments for giving separate accounting recognition to the conversion feature of debentures?

Q: Lexington Co. has the following available-for-sale securities

Lexington Co. has the following available-for-sale securities outstanding on December 31, 2014 (its first year of operations). During 2015, Summerset Company stock was sold for $9,200, the difference...

Q: Monat Construction Company, Inc., entered into a firm fixed-

Monat Construction Company, Inc., entered into a firm fixed-price contract with Hyatt Clinic on July 1, 2014, to construct a four-story office building. At that time, Monat estimated that it would tak...

Q: The following defined pension data of Doreen Corp. apply to the

The following defined pension data of Doreen Corp. apply to the year 2014. Instructions For 2014, prepare a pension worksheet for Doreen Corp. that shows the journal entry for pension expense and the...

Q: If the bonds in Question 8 are classified as available for sale

If the bonds in Question 8 are classified as available for sale and they have a fair value at December 31, 2014, of $3,604,000, prepare the journal entry (if any) at December 31, 2014, to record this...

Q: Four years after issue, debentures with a face value of $

Four years after issue, debentures with a face value of $1,000,000 and book value of $960,000 are tendered for conversion into 80,000 ordinary shares immediately after an interest payment date. At tha...

Q: Four years after issue, debentures with a face value of $

Four years after issue, debentures with a face value of $1,000,000 and book value of $960,000 are tendered for conversion into 80,000 shares of common stock immediately after an interest payment date....

Q: Sue’s Construction is in its fourth year of business. Sue

Sue’s Construction is in its fourth year of business. Sue performs long-term construction projects and accounts for them using the completed-contract method. Sue built an apartment b...

Q: Johnstone Co. purchased a put option on Ewing common shares on

Johnstone Co. purchased a put option on Ewing common shares on July 7, 2014, for $240. The put option is for 200 shares, and the strike price is $70. (The market price of a share of Ewing stock on tha...