Questions from Intermediate Accounting


Q: The accounting records of Jamaican Importers, Inc., at January 1

The accounting records of Jamaican Importers, Inc., at January 1, 2024, included the following: No changes occurred during 2024 in the investment portfolio. Required: Prepare appropriate adjusting ent...

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Q: The investments of Harlon Enterprises included the following cost and fair value

The investments of Harlon Enterprises included the following cost and fair value amounts ($ in millions): Harlon accounts for its equity investment portfolio at fair value through net income. Harlon s...

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Q: As a long-term investment at the beginning of the 2024

As a long-term investment at the beginning of the 2024 fiscal year, Florists International purchased 30% of Nursery Supplies Inc.’s 8 million shares for $56 million. The fair value and book value of t...

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Q: On December 12, 2024, an equity investment costing $80

On December 12, 2024, an equity investment costing $80,000 was sold for $100,000. The investment was carried in the balance sheet at $75,000, and was accounted for under the equity method. An error wa...

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Q: On January 1, 2024, Farmer Fabrication issued stock options for

On January 1, 2024, Farmer Fabrication issued stock options for 100,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for manageria...

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Q: Mills Corporation acquired as a long-term investment $240 million

Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2024. Company management has the positive intent and ability to hold the bonds until maturity. T...

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Q: Fizer Pharmaceutical paid $68 million on January 2, 2024,

Fizer Pharmaceutical paid $68 million on January 2, 2024, for 4 million shares of Carne Cosmetics common stock. The investment represents a 25% interest in the net assets of Carne and gave Fizer the a...

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Q: On January 1, 2024, Cameron Inc. bought 20%

On January 1, 2024, Cameron Inc. bought 20% of the outstanding common stock of Lake Construction Company for $300 million cash, giving Cameron the ability to exercise significant influence over Lake’s...

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Q: On July 1, 2024, Gupta Corporation bought 25% of

On July 1, 2024, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $100 million cash, giving Gupta the ability to exercise significant influence over VB’s operations. At t...

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Q: Tanner-UNF Corporation acquired as a long-term investment $

Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturi...

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