Questions from Intermediate Accounting

Q: On January 1, 2020, Tiamund Corp. sold at 103

On January 1, 2020, Tiamund Corp. sold at 103, 100 of its $1,000 face value, five-year, 9% non-convertible, retractable bonds. The retraction feature allows the holder to redeem the bonds at an amount...

Q: Brush Inc. recently purchased Paint Pro, a home-painting

Brush Inc. recently purchased Paint Pro, a home-painting corporation. One of the terms of the merger was that, if Paint Pro's net income for 2021 was $110,000 or more, 10,000 additional shares would b...

Q: On January 1, 2020, Waldorf Corporation granted 40,000

On January 1, 2020, Waldorf Corporation granted 40,000 options to key executives. Each option allows the executive to purchase one share of Waldorf's common shares at a price of $30 per share. The opt...

Q: On January 1, 2020, Kasan Corp. granted stock options

On January 1, 2020, Kasan Corp. granted stock options to its chief executive officer. This is the only stock option plan that Kasan offers and the details are as follows: On January 1, 2025, 2,000 of...

Q: On January 2, 2020, Thompson Corp. issued a $

On January 2, 2020, Thompson Corp. issued a $100,000, four-year note at prime plus 1% variable interest, with interest payable semi-annually. On the same date, Thompson entered into an interest rate s...

Q: On January 2, 2020, Yellowknife Corp. issues a $

On January 2, 2020, Yellowknife Corp. issues a $10-million, five-year note at LIBOR, with interest paid annually. To protect against the cash flow uncertainty related to interest payments that are bas...

Q: The books of Binkerton Corporation carried the following account balances as at

The books of Binkerton Corporation carried the following account balances as at December 1, 2020: The preferred shares have dividends in arrears for the past year (2019). On December 21, 2020, the bo...

Q: Anchovy Corp. issued a $1-million, four-

Anchovy Corp. issued a $1-million, four-year, 7.5% fixed-rate interest only, non-prepayable bond on December 31, 2019. Anchovy later decided to hedge the interest rate and change from a fixed rate to...

Q: Barrett Limited established a share appreciation rights (SARs) program that

Barrett Limited established a share appreciation rights (SARs) program that entitled its new president, Angela Murfitt, to receive cash for the difference between the Barrett Limited common shares' fa...

Q: At the end of its fiscal year, December 31, 2020

At the end of its fiscal year, December 31, 2020, Javan Limited issued 200,000 share appreciation rights to its officers that entitled them to receive cash for the difference between the fair value of...