Questions from Intermediate Accounting

Q: Loretta Corporation, a publicly traded company, is preparing the comparative

Loretta Corporation, a publicly traded company, is preparing the comparative financial statements to be included in the annual report to shareholders. Loretta's fiscal year ends May 31. The following...

Q: Audrey Inc. has 1 million common shares outstanding as at January

Audrey Inc. has 1 million common shares outstanding as at January 1, 2020. On June 30, 2020, 4% convertible bonds were converted into 100,000 additional shares. Up to that point, the bonds had paid in...

Q: Use the same information for Audrey Inc. as in P17.

Use the same information for Audrey Inc. as in P17.3, but also assume the following. 1. On September 30, 200,000 convertible preferred shares were redeemed. If they had been converted, these shares w...

Q: Tseng Corporation Ltd. has the following capital structure at the following

Tseng Corporation Ltd. has the following capital structure at the following fiscal years ended December 31: The following additional information is available. 1. On July 31, 2020, Tseng Corporation...

Q: Bryce Corporation is preparing the comparative financial statements for the annual report

Bryce Corporation is preparing the comparative financial statements for the annual report to its shareholders for the fiscal years ended May 31, 2020, and May 31, 2021. The income from operations was...

Q: Cornwall Inc., a publicly accountable enterprise that reports in accordance with

Cornwall Inc., a publicly accountable enterprise that reports in accordance with IFRS, issued convertible bonds for the first time on January 1, 2020. The $1 million of six-year, 10% (payable annually...

Q: Isabelle Leclerc is the controller at Camden Pharmaceutical Industries, a public

Isabelle Leclerc is the controller at Camden Pharmaceutical Industries, a public company. She is currently preparing the calculation for basic and diluted earnings per share and the related disclosure...

Q: An excerpt from the statement of financial position of Twilight Limited follows

An excerpt from the statement of financial position of Twilight Limited follows: Notes and Assumptions December 31, 2020 1. Options were granted/written in 2019 that give the holder the right to pu...

Q: The treasurer of Hing Wa Corp. has read on the Internet

The treasurer of Hing Wa Corp. has read on the Internet that the stock price of Ewing Inc. is about to take off. In order to profit from this potential development, Hing Wa purchased a call option on...

Q: The following information was disclosed during the audit of Shawna Inc.:

The following information was disclosed during the audit of Shawna Inc.: 1. On January 1, 2020, equipment was purchased for $400,000. For financial reporting purposes, the company uses straight-line...