Questions from Intermediate Accounting

Q: Sabonis Cosmetics Co. purchased machinery on December 31, 2011,

Sabonis Cosmetics Co. purchased machinery on December 31, 2011, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each December 31. An assumed interest...

Q: Presented below are four independent situations. (a) On

Presented below are four independent situations. (a) On March 1, 2013, Wilke Co. issued at 103 plus accrued interest $4,000,000, 9% bonds. The bonds are dated January 1, 2013, and pay interest semiann...

Q: Samantha Cordelia, an intermediate accounting student, is having difficulty amortizing

Samantha Cordelia, an intermediate accounting student, is having difficulty amortizing bond premiums and discounts using the effective-interest method. Furthermore, she cannot understand why GAAP requ...

Q: Wallace Computer Company is a small, closely held corporation. Eighty

Wallace Computer Company is a small, closely held corporation. Eighty percent of the stock is held by Derek Wallace, president. Of the remainder, 10% is held by members of his family and 10% by Kathy...

Q: Martin Corporation is planning to issue 3,000 shares of its

Martin Corporation is planning to issue 3,000 shares of its own $10 par value common stock for two acres of land to be used as a building site. Instructions (a) What general rule should be applied to...

Q: Crocker Corp. owes D. Yaeger Corp. a 10-

Crocker Corp. owes D. Yaeger Corp. a 10-year, 10% note in the amount of $330,000 plus $33,000 of accrued interest. The note is due today, December 31, 2012. Because Crocker Corp. is in financial troub...

Q: In the absence of restrictive provisions, what are the basic rights

In the absence of restrictive provisions, what are the basic rights of stockholders of a corporation?

Q: Explain the difference between the proportional method and the incremental method of

Explain the difference between the proportional method and the incremental method of allocating the proceeds of lump-sum sales of capital stock.

Q: On January 1, 2013, Nichols Company issued for $1

On January 1, 2013, Nichols Company issued for $1,085,800 its 20-year, 11% bonds that have a maturity value of $1,000,000 and pay interest semiannually on January 1 and July 1. Bond issue costs were n...

Q: On March 1, 2013, Sealy Company sold its 5-

On March 1, 2013, Sealy Company sold its 5-year, $1,000 face value, 9% bonds dated March 1, 2013, at an effective annual interest rate (yield) of 11%. Interest is payable semiannually, and the first i...