Questions from Intermediate Accounting

Q: The balance sheet at December 31, 2021, for Nevada Harvester

The balance sheet at December 31, 2021, for Nevada Harvester Corporation includes the liabilities listed below: a. 11% bonds with a face amount of $40 million were issued for $40 million on October 31...

Q: The unadjusted trial balance of the Manufacturing Equitable at December 31,

The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturing’s 2021 financial statements were is...

Q: Sometimes compensation packages include bonuses designed to provide performance incentives to employees

Sometimes compensation packages include bonuses designed to provide performance incentives to employees. The difficulty a bonus can cause accountants is not an accounting problem, but a math problem....

Q: Eastern Manufacturing is involved with several situations that possibly involve contingencies.

Eastern Manufacturing is involved with several situations that possibly involve contingencies. Each is described below. Eastern’s fiscal year ends December 31, and the 2021 financial statements are is...

Q: The Heinrich Tire Company recalled a tire in its subcompact line in

The Heinrich Tire Company recalled a tire in its subcompact line in December 2021. Costs associated with the recall were originally thought to approximate $50 million. Now, though, while management fe...

Q: On January 1, 2021, Instaform, Inc., issued 10

On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $50 million, dated January 1. The bonds mature in 2040 (20 years). The market yield for bonds of similar risk and maturity i...

Q: At the beginning of the year, Lambert Motors issued the three

At the beginning of the year, Lambert Motors issued the three notes described below. Interest is paid at year-end. 1. The company issued a two-year, 12%, $600,000 note in exchange for a tract of land....

Q: At January 1, 2021, Brant Cargo acquired equipment by issuing

At January 1, 2021, Brant Cargo acquired equipment by issuing a five-year, $150,000 (payable at maturity), 4% note. The market rate of interest for notes of similar risk is 10%. Required: 1. Prepare t...

Q: At the beginning of 2021, VHF Industries acquired a machine with

At the beginning of 2021, VHF Industries acquired a machine with a fair value of $6,074,700 by issuing a four-year, noninterest-bearing note in the face amount of $8 million. The note is payable in fo...

Q: Funseth Farms Inc. purchased a tractor in 2018 at a cost

Funseth Farms Inc. purchased a tractor in 2018 at a cost of $30,000. The tractor was sold for $3,000 in 2021. Depreciation recorded through the disposal date totaled $26,000. (1) Prepare the journal e...