Questions from Intermediate Accounting

Q: On January 1, 2017, Hi and Lois Company purchased 12

On January 1, 2017, Hi and Lois Company purchased 12% bonds having a maturity value of $300,000 for $322,744.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and...

Q: On January 1, 2016, when its $30 par value

On January 1, 2016, when its $30 par value common stock was selling for $80 per share, Plato Corp. issued $10,000,000 of 8% convertible debentures due in 20 years. The conversion option allowed the ho...

Q: The December 31, 2017, balance sheet of Kepler Corp.

The December 31, 2017, balance sheet of Kepler Corp. is as follows. On March 5, 2018, Kepler Corp. called all of the bonds as of April 30 for the principal plus interest through April 30. By April 3...

Q: On January 1, 2017, Gottlieb Corporation issued $4,

On January 1, 2017, Gottlieb Corporation issued $4,000,000 of 10-year, 8% convertible debentures at 102. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be co...

Q: Assume the same information in IFRS16-11, except that Angela

Assume the same information in IFRS16-11, except that Angela Corporation converts its convertible bonds on January 1, 2017. Instructions a. Compute the carrying value of the bond payable on January...

Q: On June 1, 2017, Mills Company sells $200,

On June 1, 2017, Mills Company sells $200,000 of shelving units to a local retailer, ShopBarb, which is planning to expand its stores in the area. Under the agreement, ShopBarb asks Mills to retain th...

Q: Assume that Sarazan Company has a share-option plan for top

Assume that Sarazan Company has a share-option plan for top management. Each share option represents the right to purchase a $1 par value ordinary share in the future at a price equal to the fair valu...

Q: On December 21, 2017, Zurich Company provided you with the

On December 21, 2017, Zurich Company provided you with the following information regarding its trading investments. During 2018, Carolina Co. shares were sold for $9,500. The fair value of the share...

Q: The financial statements of M&S are presented in Appendix E

The financial statements of M&S are presented in Appendix E. The company’s complete annual report, including the notes to the financial statements, is available online. Instructions Refer to M&S’s...

Q: Your client, Cascade Company, is planning to invest some of

Your client, Cascade Company, is planning to invest some of its excess cash in 5-year revenue bonds issued by the county and in the shares of one of its suppliers, Teton Co. Teton’s shares trade on th...