Questions from Intermediate Accounting

Q: Hagar Corporation has municipal bonds classified as available for-sale at

Hagar Corporation has municipal bonds classified as available for-sale at December 31, 2013. These bonds have a par value of $800,000, an amortized cost of $800,000, and a fair value of $720,000. The...

Q: The differences between the book basis and tax basis of the assets

The differences between the book basis and tax basis of the assets and liabilities of Castle Corporation at the end of 2013 are presented below. It is estimated that the litigation liability will be s...

Q: On January 1, 2014, Wetzel Company sold property for $

On January 1, 2014, Wetzel Company sold property for $250,000. The note will be collected as follows: $120,000 in 2014, $90,000 in 2015, and $40,000 in 2016. The property had cost Wetzel $150,000 when...

Q: What are some of the key obstacles for the FASB and IASB

What are some of the key obstacles for the FASB and IASB within their accounting guidance in the area of cash flow reporting? Explain.

Q: The stockholders’ equity section of Martino Inc. at the beginning of

The stockholders’ equity section of Martino Inc. at the beginning of the current year appears below. During the current year, the following transactions occurred. 1. The company issu...

Q: Melton Corporation is preparing the comparative financial statements for the annual report

Melton Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2014, and May 31, 2015. The income from operations for eac...

Q: Hart Golf Co. uses titanium in the production of its specialty

Hart Golf Co. uses titanium in the production of its specialty drivers. Hart anticipates that it will need to purchase 200 ounces of titanium in November 2014, for clubs that will be shipped in the sp...

Q: Brecker Company leases an automobile with a fair value of $10

Brecker Company leases an automobile with a fair value of $10,906 from Emporia Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of $250 per month (at end of each mo...

Q: Joblonsky Inc. has recently hired a new independent auditor, Karen

Joblonsky Inc. has recently hired a new independent auditor, Karen Ogleby, who says she wants “to get everything straightened out.” Consequently, she has proposed the following accounting changes in c...

Q: The information below pertains to Barkley Company for 2015. /

The information below pertains to Barkley Company for 2015. There were no changes during 2015 in the number of common shares, preferred shares, or convertible bonds outstanding. There is no treasury s...