Questions from Intermediate Accounting

Q: Bedard Corporation reported net income of $300,000 in 2017

Bedard Corporation reported net income of $300,000 in 2017 and had 200,000 shares of common stock outstanding throughout the year. Also outstanding all year were 45,000 options to purchase common stoc...

Q: Ferraro, Inc. established a stock-appreciation rights (SARs

Ferraro, Inc. established a stock-appreciation rights (SARs) program on January 1, 2017, which entitles executives to receive cash at the date of exercise for the difference between the market price o...

Q: Presented below are two independent cases related to available-for-

Presented below are two independent cases related to available-for-sale debt investments. For each case, determine the amount of impairment loss, if any.

Q: Use the information from BE17-5 but assume the stock is

Use the information from BE17-5 but assume the stock is nonmarketable. Prepare Fairbanks’ journal entries to record a. the purchase of the investment, b. the dividends received, and c. the fair val...

Q: The following information relates to Moran Co. for the year ended

The following information relates to Moran Co. for the year ended December 31, 2017: net income $1,245.7 million; unrealized holding loss of $10.9 million related to available-for-sale debt securities...

Q: Petrenko Corporation has outstanding 2,000 $1,000 bonds

Petrenko Corporation has outstanding 2,000 $1,000 bonds, each convertible into 50 shares of $10 par value common stock. The bonds are converted on December 31, 2017, when the unamortized discount is $...

Q: Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone

Telephone Sellers Inc. sells prepaid telephone cards to customers. Telephone Sellers then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the pre...

Q: Manual Company sells goods to Nolan Company during 2017. It offers

Manual Company sells goods to Nolan Company during 2017. It offers Nolan the following rebates based on total sales to Nolan. If total sales to Nolan are 10,000 units, it will grant a rebate of 2%. If...

Q: Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise

Travel Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Carmel Company employees. The total cruise package price to Carmel Company employees is $70,000. Travel Inc. receives a com...

Q: Guillen, Inc. began work on a $7,000

Guillen, Inc. began work on a $7,000,000 contract in 2017 to construct an office building. Guillen uses the completed-contract method. At December 31, 2017, the balances in certain accounts were Const...