Questions from Intermediate Accounting

Q: The following are four independent situations. a. On March

The following are four independent situations. a. On March 1, 2018, Wilke Co. issued at 103 plus accrued interest $4,000,000, 9% bonds. The bonds are dated January 1, 2018, and pay interest semiannua...

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: 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, 2017. Because Crocker Corp. is in financial troub...

Q: Good-Deal Inc. developed a new sales gimmick to help

Good-Deal Inc. developed a new sales gimmick to help sell its inventory of new automobiles. Because many new car buyers need financing, Good-Deal offered a low downpayment and low car payments for the...

Q: Holiday Company issued its 9%, 25-year mortgage bonds in

Holiday Company issued its 9%, 25-year mortgage bonds in the principal amount of $3,000,000 on January 2, 2003, at a discount of $150,000, which it proceeded to amortize by charges to expense over the...

Q: Presented below are selected transactions on the books of Simonson Corporation.

Presented below are selected transactions on the books of Simonson Corporation. May 1, 2017……………..Bonds payable with a par value of $900,000, which are dated January 1, 2017, are sold at 106 plus acc...

Q: On April 1, 2017, Seminole Company sold 15,000

On April 1, 2017, Seminole Company sold 15,000 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bo...

Q: On December 31, 2017, Faital Company acquired a computer from

On December 31, 2017, Faital Company acquired a computer from Plato Corporation by issuing a $600,000 zero-interest-bearing note, payable in full on December 31, 2021. Faital Company’s credit rating p...

Q: Sabonis Cosmetics Co. purchased machinery on December 31, 2016,

Sabonis Cosmetics Co. purchased machinery on December 31, 2016, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each December 31. An assumed interest...