Questions from Intermediate Accounting

Q: On November 1, 2021, Quantum Technology, a geothermal energy

On November 1, 2021, Quantum Technology, a geothermal energy supplier, borrowed $16 million cash to fund a geological survey. The loan was made by Nevada BancCorp under a noncommitted short-term line...

Q: Access the FASB Accounting Standards Codification at the FASB website (www

Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Required: Determine the specific eight- or nine-digit Codification citation (XXX-XX-XX-XX) that describes the foll...

Q: An annual report of Sprint Corporation contained a rather lengthy narrative entitled

An annual report of Sprint Corporation contained a rather lengthy narrative entitled “Review of Segmental Results of Operation.” The narrative noted that short-term notes payable and commercial paper...

Q: 1. How would Sprint report the debt in its balance sheet

1. How would Sprint report the debt in its balance sheet if it reported under IFRS? Why? 2. Would your answer to requirement 1 change if Sprint obtained its long-term credit facility after the balance...

Q: At December 31, 2021, Newman Engineering’s liabilities include the following

At December 31, 2021, Newman Engineering’s liabilities include the following: 1. $10 million of 9% bonds were issued for $10 million on May 31, 1999. The bonds mature on May 31, 2029, but bondholders...

Q: Access the FASB Accounting Standards Codification at the FASB website (www

Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Required: 1. Obtain the relevant authoritative literature on recognition of contingent losses. What is the specifi...

Q: Cupola Awning Corporation introduced a new line of commercial awnings in 2021

Cupola Awning Corporation introduced a new line of commercial awnings in 2021 that carry a two-year warranty against manufacturer’s defects. Based on their experience with previous p...

Q: Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified

Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2021 of a circuit flaw in an amplifier that poses a potential fire hazard. An intense inve...

Q: The Manda Panda Company uses the allowance method to account for bad

The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2021, the allowance account had a credit balance of $75,000. Credit sales for 2021 totaled $2,400,000 an...

Q: At April 1, 2022, the Food and Drug Administration is

At April 1, 2022, the Food and Drug Administration is in the process of investigating allegations of false marketing claims by Hulkly Muscle Supplements. The FDA has not yet proposed a penalty assessm...