Questions from Intermediate Accounting

Q: On January 1, 2024, Vijay Communications granted restricted stock units

On January 1, 2024, Vijay Communications granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated with...

Q: Heidi Software Corporation provides a variety of share-based compensation plans

Heidi Software Corporation provides a variety of share-based compensation plans to its employees. Under its executive stock option plan, the company granted options on January 1, 2024, that permit exe...

Q: On January 1, 2024, Adams-Men eke Corporation granted

On January 1, 2024, Adams-Men eke Corporation granted 25 million incentive stock options to division managers, each permitting holders to purchase one share of the company’s $1 par common shares withi...

Q: Martinez Audio Visual Inc. offers an incentive stock option plan to

Martinez Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2024, options were granted for 40 million $1 par common shares. The exercise price is the marke...

Q: What is the main difference between a perpetual inventory system and a

What is the main difference between a perpetual inventory system and a periodic inventory system? Which system is used more often by major companies?

Q: SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are

SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of share based compensation plans. Under its nonqualified stock option plan, SSG granted options...

Q: During 2022 (its first year of operations) and 2023,

During 2022 (its first year of operations) and 2023, Fiery Foods used the FIFO inventory costing method for both financial reporting and tax purposes. At the beginning of 2024, Fiery decided to change...

Q: The Canlas Milling Company purchased machinery on January 2, 2022,

The Canlas Milling Company purchased machinery on January 2, 2022, for $800,000. A five-year life was estimated and no residual value was anticipated. Canlas decided to use the straight-line depreciat...

Q: S. J. Byland Engineering Group receives royalties on a technical

S. J. Byland Engineering Group receives royalties on a technical manual written by two of its engineers and sold to William B. Irving Publishing, Inc. Royalties are 10% of net sales, receivable on Oct...

Q: The Commonwealth of Virginia filed suit in October 2022 against Northern Timber

The Commonwealth of Virginia filed suit in October 2022 against Northern Timber Corporation, seeking civil penalties and injunctive relief for violations of environmental laws regulating forest conser...