Questions from Intermediate Accounting

Q: On January 1, 2017, JWS Corporation issued $600,

On January 1, 2017, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $559,224, and pay interest each July 1 and January 1. Prepare the company’s journal entries...

Q: Treasure Land Corporation incurred the following costs in 2017.

Treasure Land Corporation incurred the following costs in 2017. Prepare the necessary 2017 journal entry(ies) for Treasure Land.

Q: Assume the bonds in IFRS14-3 were issued for $644

Assume the bonds in IFRS14-3 were issued for $644,636 and the effective-interest rate is 6%. Prepare the company’s journal entries for a. the January 1 issuance, b. the July 1 interest payment, and...

Q: Assume the same information as in IFRS14-5, except that

Assume the same information as in IFRS14-5, except that the bonds were issued at 84.95 to yield 12%. Prepare the journal entries to record a. the issuance of the bonds, b. the payment of interest an...

Q: On December 31, 2017, Alexander Company had $1,

On December 31, 2017, Alexander Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2018. On January 21, 2018, the company issued 25,000 ordinary shares for $36 per...

Q: Presented below are two different situations related to Mckee Corporation’s debt obligations

Presented below are two different situations related to Mckee Corporation’s debt obligations. Mckee’s next financial reporting date is December 31, 2017. The financial statements are authorized for is...

Q: Dumars Corporation reports in the current liability section of its balance sheet

Dumars Corporation reports in the current liability section of its balance sheet at December 31, 2017 (its year-end), short-term obligations of $15,000,000, which includes the current portion of 12% l...

Q: Brazil Group purchases a vehicle at a cost of $50,

Brazil Group purchases a vehicle at a cost of $50,000 on January 2, 2017. Individual components of the vehicle and useful lives are as follows. Assume that Pujols will continue to use this asset in...

Q: Margaret Avery Company from time to time embarks on a research program

Margaret Avery Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2015, the company expends $325,000 on a research project, but by the end...

Q: Presented below is information related to equipment owned by Pujols Company at

Presented below is information related to equipment owned by Pujols Company at December 31, 2017. Cost (residual value $0)………………………..$9,000,000 Accumulated depreciation to date…………..1,000,000 Value-in...