Questions from Intermediate Accounting

Q: What is meant by a dilutive security?

What is meant by a dilutive security?

Q: On January 2, 2007, Prebish Corporation issued $1,

On January 2, 2007, Prebish Corporation issued $1,500,000 of 10% bonds at 97 due December 31, 2016. Legal and other costs of $24,000 were incurred in connection with the issue. Interest on the bonds i...

Q: Robinson, Inc. had outstanding $5,000,000

Robinson, Inc. had outstanding $5,000,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $7,000,000 of 10%, 15-year bonds (interest payable July 1 and Jan...

Q: On June 30, 2004, Mendenhal Company issued 12% bonds

On June 30, 2004, Mendenhal Company issued 12% bonds with a par value of $600,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2012. Because of lower int...

Q: Explain each of the following terms: authorized capital stock, unissued

Explain each of the following terms: authorized capital stock, unissued capital stock, issued capital stock, outstanding capital stock, and treasury stock.

Q: Friedman Company had bonds outstanding with a maturity value of $500

Friedman Company had bonds outstanding with a maturity value of $500,000. On April 30, 2013, when these bonds had an unamortized discount of $10,000, they were called in at 104. To pay for these bonds...

Q: On January 1, 2013, McLean Company makes the two following

On January 1, 2013, McLean Company makes the two following acquisitions. 1. Purchases land having a fair value of $300,000 by issuing a 5-year, zero-interest-bearing promissory note in the face amount...

Q: Presented below are two independent situations: (a) On

Presented below are two independent situations: (a) On January 1, 2013, Spartan Inc. purchased land that had an assessed value of $390,000 at the time of purchase. A $600,000, zero-interest-bearing no...

Q: On January 1, 2012, Durdil Co. borrowed and received

On January 1, 2012, Durdil Co. borrowed and received $500,000 from a major customer evidenced by a zero-interest-bearing note due in 3 years. As consideration for the zero-interest-bearing feature, Du...

Q: Fallen Company commonly issues long-term notes payable to its various

Fallen Company commonly issues long-term notes payable to its various lenders. Fallen has had a pretty good credit rating such that its effective borrowing rate is quite low (less than 8% on an annual...