Questions from Intermediate Accounting

Q: Bedard Corporation reported net income of $300,000 in 2020

Bedard Corporation reported net income of $300,000 in 2020 and had 200,000 common shares outstanding throughout the year. Also outstanding all year were 45,000 (written) options to purchase common sha...

Q: Hanover Corporation has 750,000 shares outstanding. The shares have

Hanover Corporation has 750,000 shares outstanding. The shares have an average cost of $45 per share. On September 5, 2020, the company repurchases 1,500 of its own shares at $75 per share and does no...

Q: On January 1, 2020, Blaine Corporation granted 6,000

On January 1, 2020, Blaine Corporation granted 6,000 options to executives. Each option entitles the holder to purchase one share of Blaine's common shares at $35 per share at any time after January 1...

Q: Applegate Inc. established a share appreciation rights (SARs) program

Applegate Inc. established a share appreciation rights (SARs) program on January 1, 2020, which entitles executives to receive cash at the date of exercise for the difference between the shares' fair...

Q: Potash Corporation of Saskatchewan Inc., Loblaw Companies Limited, and Air

Potash Corporation of Saskatchewan Inc., Loblaw Companies Limited, and Air Canada are all Canadian companies with defined benefit plans as at December 31, 2017. Visit www.sedar.com to access financial...

Q: Spencer Ltd. established a SARs program on January 1, 2020

Spencer Ltd. established a SARs program on January 1, 2020, which entitles executives to receive cash at the date of exercise (any time in the next three years) for the difference between the shares'...

Q: Hedley Corporation had 2020 net income of $1.4 million

Hedley Corporation had 2020 net income of $1.4 million. During 2020, Hedley paid a dividend of $5 per share on 100,000 preferred shares. Hedley also had 220,000 common shares outstanding during the ye...

Q: Assume the same information for Hedley Corporation as in BE17.3

Assume the same information for Hedley Corporation as in BE17.3 except that the preferred shares are non-cumulative and the dividend has not been declared or paid. Calculate Hedley's 2020 earnings per...

Q: Assume the same information for Hedley Corporation as in BE17.3

Assume the same information for Hedley Corporation as in BE17.3 except that the preferred shares are cumulative and the dividends have not yet been declared or paid. Calculate Hedley's 2020 earnings p...

Q: Dencil Corporation had 600,000 common shares outstanding on January 1

Dencil Corporation had 600,000 common shares outstanding on January 1, 2020. On March 1, 2020, Dencil issued 150,000 shares. On September 1, Dencil repurchased and cancelled 50,000 shares. Calculate D...