Questions from Intermediate Accounting

Q: Companies sometimes issue bonds with detachable warrants entitling the bondholder to buy

Companies sometimes issue bonds with detachable warrants entitling the bondholder to buy the stock of the company at a fixed price. The U.S. GAAP rules related to the issue of these bonds are included...

Q: Toofles Company, a publicly traded entity, issued nonredeemable preferred stock

Toofles Company, a publicly traded entity, issued nonredeemable preferred stock on January 1, 2018, Toofles issued 1,000 shares of $100 par value shares for $82,425. On January 1, 2015, the market rat...

Q: GTI Corporation acquired a 15% interest in DDA Partnership on February

GTI Corporation acquired a 15% interest in DDA Partnership on February 15 of the current year. GTI is preparing its financial statements for the first quarter and needs to determine how to report the...

Q: Consider each of the following scenarios and determine whether a lease contract

Consider each of the following scenarios and determine whether a lease contract exists for each scenario. Support your conclusions with Topic 842 in the Codification and provide appropriate citations...

Q: On January 1, 2019 (lease inception date), Tofootles Company

On January 1, 2019 (lease inception date), Tofootles Company leases a piece of equipment from ABC Leasing Company. The lease term is for 4 years with the first payment of $1,000 due on January 1, 2019...

Q: In the text, we discussed the practical, step-by

In the text, we discussed the practical, step-by-step approach for the subsequent measurement of an operating lease for the lessee. However, that exact approach is not specified by the Codification. C...

Q: On January 1, 2018, Western Wear, Inc. granted

On January 1, 2018, Western Wear, Inc. granted 100,000 stock options to its employees. Of these options, 30% will vest on December 31, 2018, 30% will vest on December 31, 2019, and the remaining 40% w...

Q: On January 1, 2018, Western Wear, Inc. granted

On January 1, 2018, Western Wear, Inc. granted 100,000 stock options to its employees. Of these options, 30% will vest on December 31, 2018, 30% will vest on December 31, 2019, and the remaining 40% w...

Q: ASC 825-10 Financial Instruments – Overall permits (but does

ASC 825-10 Financial Instruments – Overall permits (but does not require) the option to report most financial assets at fair value. Read paragraphs A12 – A19 of the Basis for Conclusions in Statement...

Q: In August 2018, a customer at TU Bank slipped on a

In August 2018, a customer at TU Bank slipped on a wet floor and broke an arm. The customer sued the bank in September 2018. As of TU Bank’s December 31 year-end, the company’s attorneys believe that...