Questions from Intermediate Accounting

Q: On January 1, 2020, Jamil Incorporated redeemed bonds prior to

On January 1, 2020, Jamil Incorporated redeemed bonds prior to their maturity date of January 1, 2021. The face value of the bonds was $800,000, and the redemption was performed at 97. As at the redem...

Q: Lu Corp. erected and placed into service an offshore oil platform

Lu Corp. erected and placed into service an offshore oil platform on January 1, 2020 at a cost of $10 million. Lu is legally required to dismantle and remove the platform at the end of its nine-year u...

Q: Lawrence Incorporated owes $100,000 to Ontario Bank Inc.

Lawrence Incorporated owes $100,000 to Ontario Bank Inc. on a two-year, 10% note due on December 31, 2020. The note was issued at par. Because Lawrence is in financial trouble, Ontario Bank agrees to...

Q: On January 1, 2020, Steinem Corporation established a special purpose

On January 1, 2020, Steinem Corporation established a special purpose entity to buy $1 million of accounts receivable from Steinem. Investors have invested in the special purpose entity to benefit fro...

Q: Brestovacki Corporation issued a $50,000, five-year

Brestovacki Corporation issued a $50,000, five-year, 5% note to Jernigan Corp. on January 1, 2020, and received a piece of equipment that normally sells for $38,912. The note requires annual interest...

Q: Big Country Corporation is in the business of selling cattle. Due

Big Country Corporation is in the business of selling cattle. Due to recent diseases plaguing cattle, Big Country is experiencing a cash shortage. Big Country issued a $280,000, six-year, zero-interes...

Q: Pflug Ltd. signed an instalment note on January 1, 2020

Pflug Ltd. signed an instalment note on January 1, 2020, in settlement of an account payable of $40,000 owed to Mott Ltd. Pflug is able to borrow funds from its bank at 11%, whereas Mott can borrow at...

Q: Watson Corporation issued $500,000 of 8%, 10-

Watson Corporation issued $500,000 of 8%, 10-year bonds on January 1, 2020, at face value. The bonds require annual interest payments each December 31. Costs associated with the bond issuance were $25...

Q: Martinez Ltd. has the following equity accounts at January 1,

Martinez Ltd. has the following equity accounts at January 1, 2020. a. What was the average issue price of the preferred shares? b. Of the common shares? c. If the preferred shares pay a dividend o...

Q: BCE Inc., a well-known Canadian telecommunications and media company

BCE Inc., a well-known Canadian telecommunications and media company, has a December 31 year end. Access the company's 2017 annual report from the company website or from www.sedar.com. Instructions...