Questions from Intermediate Accounting

Q: Use the same information as in E14.24 but assume now

Use the same information as in E14.24 but assume now that Green Bank reduced the principal to $1.6 million rather than $1.9 million. On January 1, 2024, Troubled Inc. pays $1.6 million in cash to Gree...

Q: As at December 31, 2019, Cayenne Ltd., a public

As at December 31, 2019, Cayenne Ltd., a public company, had 40,000 common shares outstanding. During 2020, Cayenne had the following transactions. 1. Issued 6,000 common shares at $29 per share, les...

Q: Stellar Corp. had the following shareholders' equity on January 1,

Stellar Corp. had the following shareholders' equity on January 1, 2020: The contributed surplus arose from net excess of proceeds over cost on a previous cancellation of common shares. Stellar prepa...

Q: Diagnostics Corp. follows IFRS and sells its products in expensive,

Diagnostics Corp. follows IFRS and sells its products in expensive, reusable containers that can be tracked. The customer is charged a deposit for each container that is delivered and receives a refun...

Q: Refer to the information for Darby Corporation in E13.2.

Refer to the information for Darby Corporation in E13.2. Instructions a. Prepare the journal entries for the payment of the notes at maturity. Assume no other accruals of interest were recorded sin...

Q: McNamara Limited's ledger shows the following balances on December 31, 2020

McNamara Limited's ledger shows the following balances on December 31, 2020: Instructions Assuming that the directors decide to declare total dividends in the amount of $445,000, determine how much...

Q: RIT Co. has an investment of 5,000 shares in

RIT Co. has an investment of 5,000 shares in a public company, SIT Ltd. In October 2020, RIT Co. purchased 5,000 put options for SIT Ltd. shares at a price of $2 per put option. The strike price assoc...

Q: Collins Corporation bought a computer on December 31, 2020, paying

Collins Corporation bought a computer on December 31, 2020, paying $30,000 down with a further $75,000 payment due on December 31, 2023. An interest rate of 10% is implicit in the purchase price. Coll...

Q: The shareholders' equity accounts of Abbasi Inc. have the following balances

The shareholders' equity accounts of Abbasi Inc. have the following balances on December 31, 2020: Common shares are currently trading on the Toronto Stock Exchange at $59. Instructions Prepare th...

Q: Dadayeva Inc. has $5 million of 6% convertible bonds

Dadayeva Inc. has $5 million of 6% convertible bonds outstanding. Each $1,000 bond is convertible into 50 no par value common shares. The bonds pay interest on January 31 and July 31. On July 31, 2020...