Questions from Intermediate Accounting

Q: On January 1, 2020, Novotna Company purchased $400,

On January 1, 2020, Novotna Company purchased $400,000 worth of 8% bonds of Aguirre Co. for $369,114. The bonds were purchased to yield 10% interest. Interest is payable semi-annually, on July 1 and J...

Q: Presented below is information taken from a bond investment amortization schedule,

Presented below is information taken from a bond investment amortization schedule, with related fair values provided. These bonds are classified as FV-OCI. Instructions a. Were the bonds purchased at...

Q: Chong Corp. purchased a machine on July 1, 2020,

Chong Corp. purchased a machine on July 1, 2020, for $30,000. Chong paid $200 in title fees and a legal fee of $100 related to the machine. In addition, Chong paid $500 in shipping charges for deliver...

Q: The following information relates to the debt securities investments of Wild Company

The following information relates to the debt securities investments of Wild Company: 1. On February 1, the company purchases 10% bonds of Gibbons Co. having a par value of $300,000 at 100 plus accrue...

Q: On July 1, 2020, Menard Concrete Ltd. purchased 5

On July 1, 2020, Menard Concrete Ltd. purchased 5% bonds having a maturity value of $50,000 for $48,645.70. The bonds provide the bondholders with a 6% yield. The bonds mature July l, 2023, with inter...

Q: Octavio Corp. prepares financial statements annually on December 31, its

Octavio Corp. prepares financial statements annually on December 31, its fiscal year end. The company follows IFRS. At December 31, 2020, the company has the account Investments in its general ledger,...

Q: Brooks Corp. is a medium-sized corporation that specializes in

Brooks Corp. is a medium-sized corporation that specializes in quarrying stone for building construction. The company has long dominated the market, and at one time had 70% market penetration. During...

Q: Harper Corporation had the following portfolio of investments at December 31,

Harper Corporation had the following portfolio of investments at December 31, 2020, that qualified and were accounted for using the FV-OCI method: Early in 2021, Harper sold all the Frank Inc. shares...

Q: Fellows Inc., a publicly traded manufacturing company in the technology industry

Fellows Inc., a publicly traded manufacturing company in the technology industry, has a November 30 fiscal year end. The company grew rapidly in its first 10 years and made three public offerings over...

Q: On January 1, 2020, Melbourne Corporation, a public company

On January 1, 2020, Melbourne Corporation, a public company following IFRS, acquired 15,000 of the 50,000 outstanding common shares of Noah Corp. for $25 per share. Noah's statement of financial posit...