Questions from Intermediate Accounting

Q: On December 31, 2020, Zimmer Corporation has $7.

On December 31, 2020, Zimmer Corporation has $7.9 million of short-term debt in the form of notes payable that are due in 2021 to Provincial Bank. On January 28, 2021, Zimmer enters into a refinancing...

Q: On January 1, 2020, Osborn Inc. sold 12%

On January 1, 2020, Osborn Inc. sold 12% bonds having a maturity value of $800,000 for $860,652, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature on Jan...

Q: Cinderella Shoes Inc., a private company following ASPE, is having

Cinderella Shoes Inc., a private company following ASPE, is having difficulty meeting its working capital requirements. As a result, on January 1, 2020, the company sold bonds with a face value of $1...

Q: Minor Inc. sells 10% bonds having a maturity value of

Minor Inc. sells 10% bonds having a maturity value of $3 million for $2,783,713. The bonds are dated January 1, 2020, and mature on January 1, 2025. Interest is payable annually on January 1. Instru...

Q: Four independent situations follow. 1. Wen Corporation incurred the

Four independent situations follow. 1. Wen Corporation incurred the following costs when it issued bonds: printing and engraving costs, $25,000; legal fees, $69,000; and commissions paid to underwrit...

Q: Sunshine Incorporated provides solar energy services to Toronto. Sunshine needed to

Sunshine Incorporated provides solar energy services to Toronto. Sunshine needed to buy additional solar energy panels to meet the demand for its energy product. The Government of Ontario offered an i...

Q: Friedman Corporation had bonds outstanding with a maturity value of $500

Friedman Corporation had bonds outstanding with a maturity value of $500,000. On April 30, 2020, when these bonds had an unamortized discount of $10,000, they were called in at 104. To pay for these b...

Q: Refer to E14.18 and Auburn Limited. Instructions Repeat the

Refer to E14.18 and Auburn Limited. Instructions Repeat the instructions of E14.18 assuming that Auburn Limited follows IFRS and uses the effective interest method. Provide an effective interest table...

Q: Two independent situations follow: 1. On January 1,

Two independent situations follow: 1. On January 1, 2020, Divac Limited issued $300,000 of 10-year, 9% bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1. 2. On...

Q: On January 1, 2020, Landlord Corporation acquired the following properties

On January 1, 2020, Landlord Corporation acquired the following properties: 1. Investment property consisting of land and an apartment building in Toronto for $1.5 million. To finance this transactio...