Questions from Intermediate Accounting

Q: Rosek Inc. provides the following information related to its post-

Rosek Inc. provides the following information related to its post-retirement health care benefits for the year 2017: Defined post-retirement benefit obligation at January 1, 2017………………………………$110,000...

Q: Brestovacki Corporation issued a $50,000, five-year

Brestovacki Corporation issued a $50,000, five-year, 5% note to Jernigan Corp. on January 1, 2017 and received a piece of equipment that normally sells for $38,912. The note requires annual interest p...

Q: Big Country Corporation is in the business of selling cattle. Due

Big Country Corporation is in the business of selling cattle. Due to recent diseases plaguing cattle, Big Country is experiencing a cash shortage. Big Country issued a $280,000, six-year, zero-interes...

Q: Pflug Ltd. signed an instalment note on January 1, 2017

Pflug Ltd. signed an instalment note on January 1, 2017 in settlement of an account payable of $40,000 owed to Mott Ltd. Pflug is able to borrow funds from its bank at 11%, whereas Mott can borrow at...

Q: Explain the pros and cons of incorporating.

Explain the pros and cons of incorporating.

Q: Hamza Inc. declared a cash dividend of $0.60

Hamza Inc. declared a cash dividend of $0.60 per share on its 1.5 million outstanding shares. The dividend was declared on August 1 and is payable on September 9 to all shareholders of record on Augus...

Q: Martinez Ltd. has the following equity accounts at January 1,

Martinez Ltd. has the following equity accounts at January 1, 2017. Preferred shares outstanding: 2,500 shares……………………………$ 62,500 Common shares outstanding: 4,000 shares…………………………….400,000 (a) What...

Q: Mallard Inc. owns shares of Oakwood Corporation that are classified as

Mallard Inc. owns shares of Oakwood Corporation that are classified as Mallard’s fair value through net income (FV-NI) investment portfolio and accounted for using the FV-NI model. At December 31, 201...

Q: On April 20, Raule Mining Corp. declared a dividend of

On April 20, Raule Mining Corp. declared a dividend of $400,000 that is payable on June 1. Of this amount, $150,000 is a return of capital. Raule had no contributed surplus on April 20. Prepare the Ap...

Q: Chadwick Corporation has 450,000 common shares outstanding. The corporation

Chadwick Corporation has 450,000 common shares outstanding. The corporation declares a 6% stock dividend when the common shares’ fair value is $30 per share. (Their carrying value is $18 per share.) P...