Questions from Intermediate Accounting

Q: Bedard Corporation reported net income of $300,000 in 2012

Bedard Corporation reported net income of $300,000 in 2012 and had 200,000 shares of common stock outstanding throughout the year. Also outstanding all year were 45,000 options to purchase common stoc...

Q: Presented on page 1032 are two independent situations. Situation 1

Presented on page 1032 are two independent situations. Situation 1 Hatcher Cosmetics acquired 10% of the 200,000 shares of common stock of Ramirez Fashion at a total cost of $14 per share on March 18,...

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

Fernandez Corp. invested its excess cash in available-for-sale securities during 2012. As of December 31, 2012, the portfolio of available-for-sale securities consisted of the following common stocks....

Q: Garison Music Emporium carries a wide variety of musical instruments, sound

Garison Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Garison uses two sales promotion techniques—warranties and premiums...

Q: The financial statements of Marks and Spencer plc (M&S

The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://corporate.marksandspencer.com/documents/publications/2010/Annual_Repo...

Q: This comment appeared in the annual report of MacCloud Inc.: “

This comment appeared in the annual report of MacCloud Inc.: “The Company could pay cash or property dividends on the Class A common stock without paying cash or property dividends on the Class B comm...

Q: Moleski Company includes 1 coupon in each box of soap powder that

Moleski Company includes 1 coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2012, Moleski Company purchased 8,800 premiums at 90 cen...

Q: Calaf’s Drillers erects and places into service an off-shore oil

Calaf’s Drillers erects and places into service an off-shore oil platform on January 1, 2013, at a cost of $10,000,000. Calaf is legally required to dismantle and remove the platform at the end of its...

Q: On January 1, 2012, Roosevelt Company purchased 12% bonds

On January 1, 2012, Roosevelt Company purchased 12% bonds, having a maturity value of $500,000, for $537,907.40. The bonds provide the bondholders with a10% yield. They are dated January 1, 2012, and...

Q: Gator Co. invested $1,000,000 in Demo

Gator Co. invested $1,000,000 in Demo Co. for 25% of its outstanding stock. Demo Co. pays out 40% of net income in dividends each year. Instructions Use the information in the following T-account for...