Questions from Intermediate Accounting


Q: Davida Limited started operations in early 2016. Although it has grown

Davida Limited started operations in early 2016. Although it has grown steadily, the company reported accumulated operating losses of $450,000 in its first four years in business. In the most recent y...

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Q: Mallard Inc. owns shares of Oakwood Corporation that are classified as

Mallard Inc. owns shares of Oakwood Corporation that are classified as Mallard's fair value through net income (FV-NI) investment portfolio and accounted for using the FV-NI model. At December 31, 201...

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Q: Assume that the bonds in BE14.11 were issued at 103

Assume that the bonds in BE14.11 were issued at 103. Assume also that Grenier Limited follows ASPE and records the amortization using the straight-line method. Prepare the journal entries related to t...

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Q: The City of Fram issued 100 bonds at their face value of

The City of Fram issued 100 bonds at their face value of $6,000 each plus accrued interest on June 1, 2020. The term of the bonds was January 1, 2020, to January 1, 2026, with interest payable semi-an...

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Q: On January 1, 2020, Quinton Corporation issued $600,

On January 1, 2020, Quinton Corporation issued $600,000 of 7% bonds that are due in 10 years. The bonds were issued for $559,229 and pay interest each July 1 and January 1. The company uses the effect...

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Q: Assume that the bonds in BE14.15 were issued for $

Assume that the bonds in BE14.15 were issued for $644,632 and the effective interest rate was 6%. a. Prepare Quinton Corporation's journal entry for the January 1 issuance. b. Prepare the company's jo...

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Q: Lu Corporation has the following account balances at December 31, 2020

Lu Corporation has the following account balances at December 31, 2020: Prepare the December 31, 2020 shareholders' equity section of the SFP.

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Q: Sawgrass Corporation, a public company, reported the following balances at

Sawgrass Corporation, a public company, reported the following balances at January 1, 2020: During the year ended December 31, 2020, the following summary transactions occurred: a. Prepare a stateme...

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Q: Sullivan Limited issued 2,000 common shares for $79,

Sullivan Limited issued 2,000 common shares for $79,000. Prepare Sullivan's journal entry if a. the shares have no par value, and b. the shares have a par value of $11 per share.

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Q: On February 1, 2020, Daily Produce Ltd. entered into

On February 1, 2020, Daily Produce Ltd. entered into a purchase commitment contract to buy apples from Farmers Corporation. According to the contract, Daily Produce could settle the contact on a net b...

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