Questions from Intermediate Accounting

Q: Vickie Plato, accounting clerk in the personnel office of Streisand Corp

Vickie Plato, accounting clerk in the personnel office of Streisand Corp., has begun to compute pension expense for 2016 but is not sure whether or not she should include the amortization of unrecogni...

Q: What is an operating segment, and when can information about two

What is an operating segment, and when can information about two operating segments be aggregated?

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 of the House Rul...

Q: Fernandez Corp. invested its excess cash in available-for-

Fernandez Corp. invested its excess cash in available-for-sale securities during 2014. As of December 31, 2014, the portfolio of available-for-sale securities consisted of the following common stocks....

Q: On July 1, 2014, Torvill Construction Company Inc. contracted

On July 1, 2014, Torvill Construction Company Inc. contracted to build an office building for Gumbel Corp. for a total contract price of $1,900,000. On July 1, Torvill estimated that it would take bet...

Q: Callaway Corp. has a deferred tax asset account with a balance

Callaway Corp. has a deferred tax asset account with a balance of $150,000 at the end of 2014 due to a single cumulative temporary difference of $375,000. At the end of 2015, this same temporary diffe...

Q: Saprano Company, on January 2, 2014, entered into a

Saprano Company, on January 2, 2014, entered into a contract with a manufacturing company to purchase room-size air conditioners and to sell the units on an installment plan with collections over appr...

Q: Volker Inc. issued $2,500,000 of convertible

Volker Inc. issued $2,500,000 of convertible 10-year bonds on July 1, 2014. The bonds provide for 12% interest payable semiannually on January 1 and July 1. The discount in connection with the issue w...

Q: What are the major types of subsequent events? Indicate how each

What are the major types of subsequent events? Indicate how each of the following “subsequent events” would be reported. (a) Collection of a note written off in a prior period. (b) Issuance of a large...

Q: Thinken Technology recently merged with College Electronix (CE), a computer

Thinken Technology recently merged with College Electronix (CE), a computer graphics manufacturing firm. In performing a comprehensive audit of CE’s accounting system, Gerald Ott, internal audit manag...