Questions from Intermediate Accounting

Q: (a) In a troubled-debt situation, why might

(a) In a troubled-debt situation, why might the creditor grant concessions to the debtor? (b) What type of concessions might a creditor grant the debtor in a troubled-debt situation?

Q: A company plans to issue shares and wants to know the SEC’s

A company plans to issue shares and wants to know the SEC’s stance on the accounting treatment for the costs of issuing stock. Can these costs be deferred, or must they be expensed immediately?

Q: How are restrictions of retained earnings reported?

How are restrictions of retained earnings reported?

Q: The Colson Company issued $300,000 of 10% bonds

The Colson Company issued $300,000 of 10% bonds on January 1, 2013. The bonds are due January 1, 2018, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Cols...

Q: On January 1, 2013, JWS Corporation issued $600,

On January 1, 2013, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $559,224, and pay interest each July 1 and January 1. JWS uses the effective-interest method...

Q: Assume the bonds in BE14-6 were issued for $644

Assume the bonds in BE14-6 were issued for $644,636 and the effective-interest rate is 6%. Prepare the company’s journal entries for (a) The January 1 issuance, (b) The July 1 interest payment, and (c...

Q: What are the types of situations that result in troubled debt?

What are the types of situations that result in troubled debt?

Q: Teton Corporation issued $600,000 of 7% bonds on

Teton Corporation issued $600,000 of 7% bonds on November 1, 2013, for $644,636. The bonds were dated November 1, 2013, and mature in 10 years, with interest payable each May 1 and November 1. Teton u...

Q: At December 31, 2013, Hyasaki Corporation has the following account

At December 31, 2013, Hyasaki Corporation has the following account balances: Bonds payable, due January 1, 2021 …………………… $2,000,000 Discount on bonds payable ……………………………………… 88,000 Interest payable …...

Q: Wasserman Corporation issued 10-year bonds on January 1, 2013

Wasserman Corporation issued 10-year bonds on January 1, 2013. Costs associated with the bond issuance were $160,000. Wasserman uses the straight-line method to amortize bond issue costs. Prepare the...