Questions from Intermediate Accounting

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 valu...

Q: Distinguish between the following interest rates for bonds payable: (

Distinguish between the following interest rates for bonds payable: (a) Yield rate. (b) Nominal rate. (c) Stated rate. (d) Market rate. (e) Effective rate.

Q: What is done to record properly a transaction involving the issuance of

What is done to record properly a transaction involving the issuance of a non-interest-bearing long-term note in exchange for property?

Q: Assume the same information as in IFRS14-5, except that

Assume the same information as in IFRS14-5, except that the bonds were issued at 84.95 to yield 12%. In IFRS14-5 Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2012, at 119.792 t...

Q: Explain how a non-consolidated subsidiary can be a form of

Explain how a non-consolidated subsidiary can be a form of off-balance-sheet financing.

Q: How should discount on bonds payable be reported on the financial statements

How should discount on bonds payable be reported on the financial statements? Premium on bonds payable?

Q: When is the stated interest rate of a debt instrument presumed to

When is the stated interest rate of a debt instrument presumed to be fair?

Q: What is the “call” feature of a bond issue?

What is the “call” feature of a bond issue? How does the call feature affect the amortization of bond premium or discount?

Q: What disclosures are required relative to long-term debt and sinking

What disclosures are required relative to long-term debt and sinking fund requirements?

Q: What are the general rules for measuring gain or loss by both

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