Questions from Intermediate Accounting

Q: MedQuest Enterprises is threatened with bankruptcy due to its inability to meet

MedQuest Enterprises is threatened with bankruptcy due to its inability to meet interest payments and fund requirements to retire $5,000,000 of long-term notes. The notes are all held by Dynasty Insur...

Q: Van Etten Company declared and paid a cash dividend of $3

Van Etten Company declared and paid a cash dividend of $3.25 per share on its $1 par common stock. Van Etten has 100,000 shares of common stock outstanding and total paid-in capital from common stock...

Q: On January 1, the company purchased investment securities for $1

On January 1, the company purchased investment securities for $1,000. The securities are classified as trading. By December 31, the securities had a fair value of $1,800 but had not yet been sold. Exc...

Q: The company has the following three loans payable scheduled to be repaid

The company has the following three loans payable scheduled to be repaid in February of next year. As of December 31 of this year, compute (1) Total current liabilities and (2) Total noncurrent liab...

Q: The manager is entitled to a bonus equal to 5% of

The manager is entitled to a bonus equal to 5% of her store’s earnings. The difficult part is that calculation of the store’s earnings includes a subtraction for the amount of the bonus. The store’s e...

Q: The company issued 10,000 shares of $1 par common

The company issued 10,000 shares of $1 par common stock for cash of $40 per share. Make the necessary journal entry.

Q: Earnings per share computations have received increased prominence on the income statement

Earnings per share computations have received increased prominence on the income statement. How would an investor use such information in making investment decisions?

Q: What is the treasury stock method of accounting for outstanding stock options

What is the treasury stock method of accounting for outstanding stock options, warrants, and rights in computing diluted EPS?

Q: What is the notional amount of a derivative? How can the

What is the notional amount of a derivative? How can the notional amount be misleading?

Q: A derivative used as an economic hedge of foreign currency risk associated

A derivative used as an economic hedge of foreign currency risk associated with a foreign currency–denominated asset or liability is not accounted for as a hedge under the provisions of FASB ASC Topic...