Questions from Intermediate Accounting

Q: At January 1, 2017, Langley Company’s outstanding shares included the

At January 1, 2017, Langley Company’s outstanding shares included the following. 280,000 shares of $50 par value, 7% cumulative preferred stock 900,000 shares of $1 par value common stock Net income f...

Q: In 2016, Chirac Enterprises issued, at par, 60 $

In 2016, Chirac Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Chirac had revenues of $17,500 and expenses other than interest and taxes of $8,400 f...

Q: Michek Company loans Sarasota Company $2,000,000 at

Michek Company loans Sarasota Company $2,000,000 at 6% for 3 years on January 1, 2017. Michek intends to hold this loan to maturity. The fair value of the loan at the end of each reporting period is a...

Q: On June 1, 2015, Andre Company and Agassi Company merged

On June 1, 2015, Andre Company and Agassi Company merged to form Lancaster Inc. A total of 800,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On...

Q: The Simon Corporation issued 10-year, $5,000

The Simon Corporation issued 10-year, $5,000,000 par, 7% callable convertible subordinated debentures on January 2, 2017. The bonds have a par value of $1,000, with interest payable annually. The curr...

Q: On January 1, 2017, Crocker Company issued 10-year

On January 1, 2017, Crocker Company issued 10-year, $2,000,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Crocker common stock. Crocker’s net income in 2017 was $3...

Q: Venzuela Company’s net income for 2017 is $50,000.

Venzuela Company’s net income for 2017 is $50,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2016, each exercisable for one share at $6. None has been exerc...

Q: On August 15, 2016, Outkast Co. invested idle cash

On August 15, 2016, Outkast Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $360. The notional value of the call option is 400 shares, and the option price...

Q: Hart Golf Co. uses titanium in the production of its specialty

Hart Golf Co. uses titanium in the production of its specialty drivers. Hart anticipates that it will need to purchase 200 ounces of titanium in November 2017, for clubs that will be sold in advance o...

Q: Assume the same information as E17-9 and that Steffi Graf

Assume the same information as E17-9 and that Steffi Graf, Inc. reports net income in 2017 of $120,000 and in 2018 of $140,000. Total holding gains (including any realized holding gain or loss) equal...